Report: U.S. Airways faces liquidation

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Report: U.S. Airways faces liquidation
The New York Times reported Thursday that U.S. Airways Group Inc.'s 28,00=
0 workers must agree to $800 million in wage and benefit cuts within 30 d=
ays or the airline may go out of business. =


U.S. Airways chairman David Bronner told Retirement Systems of Alabama, t=
hat state's public employee pension fund, that he would seek a Chapter 7 =
liquidation of the business without additional employee concessions. Bron=
ner is chief executive officer of that pension fund, which is a controlli=
ng shareholder in Arlington, Va.-based U.S. Airways. =


The airline's employees have already been asked to accept two previous cu=
ts in wages and benefits. Bronner said without concessions, the pension f=
und would not invest any more money into the airline, according to the Ti=
mes report. The pension fund invested $240 million to fund that airline's=
 emergence from bankruptcy a year ago. =


U.S. Airways lost $143 million in the first half of 2004. It provides air=
 carrier service at Milwaukee's General Mitchell International Airport th=
rough its regional US Airways Express service. =




=A9 2004 American City Business Journals Inc.


Roger
EWROPS

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