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US Airways

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The Smack Down!
Apr 26, 2002
US Airways plan expected to get OK
By Barbara De Lollis, USA TODAY
ALEXANDRIA, Va. — Bankruptcy Judge Stephen Mitchell is expected Friday to approve US Airways' reorganization plan, clearing the way for formation of the USA's newest airline.
Mitchell on Thursday presided at a hearing on some of the final details of US Airways' yearlong stay in Chapter 11 bankruptcy.

If Mitchell approves the carrier's exit plan as expected, its pending merger with Tempe, Ariz.-based America West Airlines could close in 10 days.

America West and US Airways announced the merger in May. The merged airline would keep the US Airways name, but the airline would be managed in Tempe.

The joined carrier would be one of the nation's largest discount carriers. It hopes to leverage US Airways' presence on the East Coast and in the Caribbean and America West's presence in the West.

The carriers, with the help of new financing from outsiders, hope to create an airline strong enough to withstand rocketing oil prices and intense competition.

US Airways' exit from Chapter 11 gained momentum at the court hearing when labor unions dropped objections to the reorganization plan.

Mitchell still has to grapple with union objections to a proposed severance package for departing executives. Union lawyers called the plan unfair.

CEO Bruce Lakefield, who joined the company in April 2004, would collect four times his annual salary, or $1.7 million.

A flight attendant with 30 years of seniority would collect about two weeks of severance pay.

Union lawyer Daniel Katz said, "Employees do not want to see $12.3 million paid to 11 executives."

Earlier in the week, US Airways' creditors approved the reorganization plan, and America West shareholders approved the merger.
Anyone know what happens to Colgan and other prop operators for us air after the merger?
TSA lost some prop work for them out of RIC. I believe we're done with that the end of the month. Lost 5 out of the 12 EMB that were flying under their colors also.

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