=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/05/17/n= ational0335EDT0487.DTL ---------------------------------------------------------------------- Friday, May 17, 2002 (AP) US Airways calls for drastic cost-cutting measures in its fight to avoid ba= nkruptcy MATTHEW BARAKAT, AP Business Writer (05-17) 00:35 PDT ARLINGTON, Va. (AP) -- US Airways has outlined drastic cost-cutting measures as it fights to avoid bankruptcy in the wake of a $2 billion loss last year, calling on employees to accept wage and benefit cuts of nearly $1 billion. Airline executives provided details of the plan Thursday to union leader= s, warning that the carrier would likely seek Chapter 11 bankruptcy protection if it could not get the labor concessions and $1 billion in federally backed loans. Details of the wage and benefit concessions weren't discussed, but $950 million in cuts would be significant for a company that reported $3.7 billion in labor costs in 2001. That would take US Airways from having the highest-paid employees in the industry to about sixth or seventh, said Jerry Glass, the airline's senior vice president for human resources. He said terms of the loan proposal were not final, but the airline will likely have to offer the federal government the opportunity to buy a stake in the company. Overall, the company's plan calls for $1.2 billion in cost reductions annually, meaning employees are being asked to bear about 80 percent of the reductions. Glass said the airline has no plans to lay off more workers or further reduce its capacity. Last year, the airline reduced capacity by 23 percent and laid off 11,000 of its 46,000 employees following Sept. 11. America West, the only other airline to seek the government loan support, received $429 million. The loan guarantees are available through the $15 billion industry bailout approved by Congress after Sept. 11. Karen Lascoli, representing US Airways' unit of the Association of Flight Attendants, said the airline's presentation was positive. "We're committed to helping this airline survive. We're not exactly sure what will be asked of us, so we have to be careful to committing to anything," she said. =20 ---------------------------------------------------------------------- Copyright 2002 AP