The article below from NYTimes.com has been sent to you by psa188@xxxxxxxxx /--------- E-mail Sponsored by Fox Searchlight ------------\ THE DREAMERS - IN SELECT CITIES Set against the turbulent political backdrop of 1968 France when the voice of youth was reverberating around Europe, THE DREAMERS is a story of self-discovery as three students test each other to see just how far they will go. THE DREAMERS is now playing in select theaters. for more info: http://www.foxsearchlight.com/thedreamers/index_nyt.html \----------------------------------------------------------/ US Airways Presses Its Plea for Pay Cuts March 25, 2004 By MICHELINE MAYNARD US Airways faces a threat to its survival from Southwest Airlines, soon to invade its Philadelphia hub, and needs to clinch a third round of labor contract concessions quickly, the airline's chief executive said yesterday. Speaking to employees on a Web telecast that resembled an infomercial at times and a sermon at others, the chief executive, David N. Siegel, said formal contract talks would begin next month. Only the pilots' union has agreed to open negotiations. Yesterday, the machinists' union reiterated its stand against more cuts in wages and benefits. The flight attendants' union, which opposes further concessions, declined to comment. The airline held the unusual broadcast, accessible online, in an effort to convince employees of its dire situation and the need to fix it. "I don't want to start burning the furniture, but we may have to burn the furniture to keep warm," Mr. Siegel said. "We don't have a lot of time and we don't have a lot of choices." Mr. Siegel, dressed in a dark suit and yellow tie, stood alone before an audience of 75 airline employees, many in their uniforms, while graphics and talking points flashed on flat-screen monitors behind him. A federal loan board agreed this month to revise conditions of $900 million in guaranteed loans, which the airline obtained when it emerged from bankruptcy protection a year ago. Without the revisions, the airline would have been in default. Mr. Siegel said the move gave the airline a reprieve but stressed US Airways still had to address its costs. Mr. Siegel reiterated the company's goal, made in recent presentations to union leaders, to cut its overall costs to 6 cents a seat mile, the average for the industry's low-fare carriers including Southwest and JetBlue Airways, from a little over 10 cents. He did not offer specifics on how the company planned to achieve that, but reiterated that half the savings, or 2 cents a seat mile, needed to come from labor unions. Mr. Siegel said he was willing to give up some of his own compensation, and he appealed directly to employees to consider the airline's future, regardless of union officials' resistance to contract cuts. "I don't think they should make that decision for us," Mr. Siegel said. He said he respected union officials' views, but added, "Our individual employees need to decide whether or not to participate." Even as he stressed the need to cut costs, Mr. Siegel depicted Southwest as US Airways' biggest menace. On May 9, Southwest, the biggest low-fare carrier, plans to begin flights to six cities from Philadelphia, where US Airways is the dominant airline, with 68 percent of daily flights. Southwest is offering fares as low as $29 each way, with none higher than $299 each way. By contrast, US Airways in the past has charged last-minute fares of $1,000 or more to cities where it offers the only direct flights. It plans to match Southwest's fares to cities where the two directly compete and has added more flights on the routes that Southwest will fly. The two airlines have faced off twice before, in California and at Baltimore-Washington International Airport, where Southwest has displaced US Airways as the lead carrier in the last decade. Mr. Siegel warned of dire consequences if that happens in Philadelphia. "They beat us on the West Coast, they beat us in Baltimore, and if they beat us in Philadelphia, they're going to kill us," he said. "It's going to be a battle for our lives." Stressing his point, a screen showed Southwest Airlines' founder, Herbert D. Kelleher Jr., dressed as Uncle Sam, pointing his finger, next to the words, "I want your job!" "Let's not let Southwest take away our customers," Mr. Siegel said, as he ended the broadcast. "Let's not let Southwest take away our jobs. Let's not let Southwest take away our future. Let's not let Southwest take away our airline. Think about that." A Southwest spokesman, Ed Stewart, said he was surprised to hear Mr. Siegel dwell on Southwest. "To be sure, it's a very competitive industry, but we're just coming there to do what we do in all the cities where we fly, which is to bring fares down." He noted that AirTran, another low-fare airline already serves Philadelphia, and Frontier Airlines will begin service this spring. http://www.nytimes.com/2004/03/25/business/25air.html?ex=1081234464&ei=1&en=2ba26866c7334e67 --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! 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