US Airways?

[scotts]

Does anyone know what the latest on US Airways is?

Any truth to the rumor about liquidation by the end of the year?

Thanks for any info...

Take care all,

Scotts

 

[SWA/FO]

Reuters
US Air union says no deal yet, liquidation possible
Monday December 9, 9:02 pm ET


NEW YORK, Dec 9 (Reuters) - Mechanics and related workers at US Airways Group (OTC BB:UAWGQ.OB - News), which is trying to restructure its bankrupt business, said in a bulletin on Monday that the airline could be liquidated if it fails to seal new concessionary deals with its employees.
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But representatives for the workers said several key issues over the airline's new effort to cut $200 million in labor costs still lay unresolved, after a negotiating session on Monday at US Airways' Arlington, Virginia headquarters.

US Airways has already lightened its cost structure to the tune of $1.3 billion annually, mainly with the help of its unionized workers. The airline filed for Chapter 11 bankruptcy protection in August.

But as its business continues to suffer, the company has launched another cost-cutting campaign, again focused on its workers, that could help cut as much as $1.6 billion a year.

The Retirement Systems of Alabama (RSA), the airline's lead financial sponsor in its bankruptcy, has stressed in recent weeks that another $200 million in cuts from labor groups is crucial for the carrier to keep its planes in the air.

If changes in workers' rules and productivity are not secured, the International Association of Machinists (IAM) said on Monday that RSA might choose to withhold its funding. The union represents about 11,500 active US Airways workers.

"The likely result of such action would be a liquidation of the company's assets, and ceasing all activities," the IAM bulletin said.

But it said the airline has not proved that another round of cost-cutting will win final approval for a $900 million government loan guarantee, which it needs to emerge from bankruptcy.

US Airways presented the machinists' union late last month with a proposal that would outsource some maintenance work, catering, and other operations, and eliminate the company's match to workers' 401(k) retirement plans.

"We have the lowest productivity in the industry because we have the least efficient work rules in the industry," US Airways President and Chief Executive Officer David Siegel said in a message to workers on Friday.

The IAM was the only labor union to initially vote down its wage concession proposal from US Airways during the airline's first round of labor-related cuts. The package, which called for $160 million in annual wage cuts and other measures, was approved after a second vote.

The union said on Monday that US Airways had not specified what it needed from machinists, and had not outlined whether management and non-union workers would join in the latest round of cost-cutting.

US Airways' unions have demanded additional sacrifices from the airline's management as a condition for their own participation in the renewed effort.

A US Airways spokesman could not be reached for comment.