US Airways is has been walking a fine line with this deal. What do they expect? Walter DCA CHICAGO, March 11 (Reuters) - US Airways' (U) bid to increase use of cost-efficient regional jets, seen by the carrier as critical to its recovery, have hit a snag as talks with pilots stalled over protection of jobs. "US Airways' need for more regional jets is well known. We are disappointed in these results," an airline spokesman said on Monday. The airline's existing agreement with pilots significantly restricts use of more cost-efficient regional jets US Airways has said puts it at a significant disadvantage to competitors such as Delta Air Lines (DAL) and Continental Airlines (CAL). US Airways has among the highest unit costs in the industry and posted a $1 billion fourth-quarter net loss due to a weak U.S. economy and the travel slump following the Sept. 11 attacks. A temporary shutdown of Reagan National Airport, a US Airways hub, also hurt the carrier more than rivals. Shares of the No. 6 U.S. carrier, fell 70 cents, or 9.5 percent, to $6.70 in Monday midday trading on the New York Stock Exchange. The Air Line Pilots Association Saturday on its Web site said negotiations over the past week had produced progress on the number of small jets to be operated and other issues but not on job protection. "The parties reached an impasse on pilot job protection issues, including employment for the protected 287 pilots and establishing a furlough recall schedule for nonprotected pilots," ALPA said. Talks apparently have stalled, but can resume and it would be logical to make a fresh start at this point with a new chief executive, ABN Amro airlines analyst Ray Neidl said. US Airways last week named David Siegel chief executive succeeding Stephen Wolf, who had replaced Rakesh Gangwal as chief executive in November. "This is a critical issue, not a key issue," Neidl said. "They need this done as quickly as possible." ©2002 Reuters Limited.