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US Airways CFO Cohen steps down
Monday May 3, 6:30 pm ET
CHICAGO, May 3 (Reuters) - US Airways on Monday said that Chief Financial Officer Neal Cohen has resigned, following Chief Executive David Siegel's departure in April, a year after the carrier emerged from bankruptcy.
Dave Davis, previously the No.7 U.S. airline's senior vice president of finance, will replace Cohen, effective immediately, the carrier said.
Cohen had an option in his employment contract, similar to the one exercised by Siegel, that permitted him to leave the company with certain benefits. Siegel's option entitled him to collect roughly $5 million in severance.
US Airways pilots were not happy with Siegel and his management team and had called for the removal of the two executives last December.
Former CEO Siegel led the company through an eight-month bankruptcy, but had recently told employees the carrier needed to cut costs by another 25 percent to stay competitive with low-fare airlines.
US Airways' new Chief Executive Bruce Lakefield, in the company's quarterly conference call last week, left open the possibility to even greater cost cuts going forward. The airline posted a loss of $177 million for the first quarter.
Davis joined US Airways in 2002 from Budget Group. He also held finance positions at Delta Air Lines (NYSE
AL - News) and Northwest Airlines (NasdaqNM:NWAC - News).
Monday May 3, 6:30 pm ET
CHICAGO, May 3 (Reuters) - US Airways on Monday said that Chief Financial Officer Neal Cohen has resigned, following Chief Executive David Siegel's departure in April, a year after the carrier emerged from bankruptcy.
Dave Davis, previously the No.7 U.S. airline's senior vice president of finance, will replace Cohen, effective immediately, the carrier said.
Cohen had an option in his employment contract, similar to the one exercised by Siegel, that permitted him to leave the company with certain benefits. Siegel's option entitled him to collect roughly $5 million in severance.
US Airways pilots were not happy with Siegel and his management team and had called for the removal of the two executives last December.
Former CEO Siegel led the company through an eight-month bankruptcy, but had recently told employees the carrier needed to cut costs by another 25 percent to stay competitive with low-fare airlines.
US Airways' new Chief Executive Bruce Lakefield, in the company's quarterly conference call last week, left open the possibility to even greater cost cuts going forward. The airline posted a loss of $177 million for the first quarter.
Davis joined US Airways in 2002 from Budget Group. He also held finance positions at Delta Air Lines (NYSE
AL - News) and Northwest Airlines (NasdaqNM:NWAC - News).
