NYTimes.com Article: US Airways' Talks With Pilots Break Down

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US Airways' Talks With Pilots Break Down

March 12, 2002






ARLINGTON, Va., March 11 -- Negotiations by US Airways and
its pilots' union over expanded use of regional jets
collapsed over the weekend, sending the airline's stock
down today.

The shares fell 50 cents, nearly 7 percent, to $6.90, on
the Big Board.

US Airways executives have said that expanded use of
cheaper, smaller regional jets is crucial to stabilizing
the airline's financial performance. The airline lost
nearly $2 billion last year.

Roy Freundlich, a spokesman for the Air Line Pilots
Association's US Airways unit, said it had made substantial
concessions that could quadruple the number of regional
jets.

But he said management negotiators would not discuss the
union's concerns over laid-off pilots.

"Management negotiators said they were not even authorized
to resolve ALPA's issues," Mr. Freundlich said. "If they're
not even authorized to resolve our concerns, we didn't see
much point in continuing discussions."

The union was seeking job protection for 287 pilots - all
with 12 years of experience or more - who have been
scheduled for furloughs in the coming year, Mr. Freundlich
said.

The airline is now furloughing 1,350 pilots, including the
287.

US Airways has said it has the right to furlough those
pilots under a contract clause that allows the airline more
latitude in the case of a catastrophic event, like the
Sept. 11 terror attacks.
The airline has permission to use only 70 regional jets. It
has sought to increase that figure to 420. Union officials
had agreed to expand to 315 regional jets, Mr. Freundlich
said, with an option for even more under certain
conditions.

http://www.nytimes.com/2002/03/12/business/12USAI.html?ex=1016968225&ei=1&en=c88cc46457c730c9



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