=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/08/13/f= inancial1354EDT0120.DTL --------------------------------------------------------------------- Friday, August 13, 2004 (AP) US Airways shares plunge after pilots' union agrees US Airways finances are= dire (08-13) 13:38 PDT ARLINGTON, Va. (AP) -- US Airways shares fell 22 percent Friday as the company's chief executive warned of "nonexistent" progress in labor talks with the machinists' union, and the pilots' union warned of possible bankruptcy as soon as next month. In a weekly message to employees, chief executive Bruce Lakefield said he is astounded at the slow pace of labor talks given the airline's dire situation. "People are trying to tell me that the pace of negotiations is typical f= or the airline industry and I shouldn't get frustrated. As a newcomer to the industry ... I think it's silly that we are wasting so much time," said Lakefield, who replaced David Siegel as CEO earlier this year in large part because Lakefield had better relations with union leaders. On Thursday, an investment banker for the pilots' union said the airline= 's finances are at least as dire as management has claimed. "As a result of various financial pressures, it is highly likely the company will seek bankruptcy protection no later than mid-September," said the report prepared by Glanzer & Co. Management had previously warned it needed to have labor deals ratified = by Sept. 30, when the airline must meet certain financial benchmarks to avoid default on a $900 million federally guaranteed loan. The airline, which emerged from Chapter 11 protection in March 2003, says it needs $800 million in contract concessions from labor groups as part of a plan to cut costs by $1.5 billion a year. Unions previously agreed to $1 billion a year in cost cuts as part of the initial bankruptcy reorganization. The pilots' union, which was the first to agree to a new round of talks, said it would accelerate negotiations. The Air Line Pilots Association on Thursday posted the Glanzer report on its pilots-only Web site and union negotiators told members they'll meet with the airline Friday and every day next week about the $295 million in wage and benefit cuts the airline wants from its pilots. Lakefield said talks continue as well with the flight attendants' union and the Communications Workers of America, which represents reservations agents and gate workers. He said the machinists won't meet until Aug. 31, and only then to discuss cost-savings ideas proposed by the union. US Airways shares fell 56 cents to close at $1.98 Friday on the Nasdaq Stock Market. Just more than a year ago, the shares traded as high as $32. On the Net: Air Line Pilots Association: www.alpa.org US Airways: www.usairways.com ---------------------------------------------------------------------- Copyright 2004 AP