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Watch the trailer at: http://www.foxsearchlight.com/theclearing/index_nyt.html \----------------------------------------------------------/ US Airways Said to Be Seeking More Concessions April 21, 2004 By MICHELINE MAYNARD A day after the resignation of the chief executive of US Airways, the airline's board approved a framework yesterday for a streamlining program that includes labor concessions, people briefed on the board's action said. In an e-mail message to employees, Bruce Lakefield, the new chief executive, stressed that "fundamental changes" would be needed in the way US Airways does business. He added that they would have to participate in restructuring the airline, the nation's seventh largest, so that it could compete with low-fare carriers. People who had been briefed on the plan said it was essentially the same program advocated by the former chief executive, David N. Siegel. Mr. Siegel left the airline on Monday, reportedly at the request of its chairman, David G. Bronner, after sparring with its unions over his bid to reduce the airline's overall costs by roughly 25 percent. Airline officials, led by Mr. Lakefield, are expected to begin outlining the plan for union members soon, these people said. Although Mr. Siegel had stressed that US Airways urgently needed to address its costs, the airline has not set a date for carrying out the plan, these people said. A US Airways spokesman declined comment. Mr. Lakefield, a US Airways board member before his elevation on Monday, is a former Lehman Brothers executive. He is a close associate of Mr. Bronner, the airline's lead investor, who runs Alabama's pension fund. Yesterday's meeting was in Montgomery, Ala. In recent months, Mr. Lakefield joined Mr. Bronner in sessions with leaders of US Airways' unions. They were angered by Mr. Siegel's demand for more cuts on top of two rounds of concessions granted before US Airways emerged from bankruptcy protection in 2002. But in his e-mail message yesterday, Mr. Lakefield reaffirmed the emphasis placed by Mr. Siegel on the need to confront the airline's low-fare challengers like Southwest Airlines, which begins service to Philadelphia, one of US Airways' three hubs, on May 9. "As we look ahead, our goal remains constant," Mr. Lakefield wrote. "Given the radical, swift and permanent changes in our industry brought on by the low-cost carriers, US Airways must achieve lower costs to remain competitive and return to profitability." "In your heart of hearts, we believe that most of you know this," he added. He said that management and labor both shared the goal of creating a "healthy, prosperous US Airways" that would provide jobs, a return on shareholders' investments and reliable service. "Our common task, then, is to find the way to accomplish this," Mr. Lakefield wrote in the e-mail message. He continued: "I am under no illusion that this will be easy. It won't. Fundamental changes in the way we do business are necessary and, yes, participation again by our employees must be a part of the answer." Gary Chaison, professor of industrial relations at Clark University in Worcester, Mass., said he was surprised that Mr. Lakefield moved so swiftly after Mr. Siegel's departure to re-emphasize the need to cut costs. By doing so, he might have eliminated any chance for a honeymoon with union members. Professor Chaison said some might have thought the airline's plan would be off the table with Mr. Siegel's departure. That is not the case now, he said. "Participation means, 'you have to give up something,' " Professor Chaison said. "The question is, what if they don't decide to participate?" But given US Airways' dire financial situation, Mr. Lakefield must have decided he could not waste time, Professor Chaison said. http://www.nytimes.com/2004/04/21/business/21air.html?ex=1083557140&ei=1&en=cfa1d0a7f69ba76d --------------------------------- 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! Click here: http://homedelivery.nytimes.com/HDS/SubscriptionT1.do?mode=SubscriptionT1&ExternalMediaCode=W24AF HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2004 The New York Times Company