US Airways Sets Deadline for Concessions Sunday October 24, 6:11 PM EDT By John Crawley WASHINGTON (Reuters) - US Airways Group Inc. (UAIRQ) has given its machinists, flight attendants and ground workers until the middle of November to reach long-term concession agreements or the bankrupt airline will seek court approval to throw out their contracts, court documents show. The seventh-largest domestic airline also said in court filings late last week that it would proceed with plans to cut retiree medical benefits, and would seek to force cuts in this area if unions do not agree voluntarily. The airline hopes to begin negotiations on retiree benefit reductions soon. Judge Stephen Mitchell of the U.S. Bankruptcy Court for the Eastern District of Virginia approved 21 percent wage cuts and other benefit reductions for thousands of union workers on Oct. 15. But that order expires in mid-February, and US Airways has said that it needs permanent union concessions of nearly $1 billion per year to survive. This past week, the pilots union ratified givebacks worth $300 million per year over five years, including an 18 percent pay cut. That deal supersedes the court-imposed austerity measures, which the airline hopes will help it accumulate $200 million in cash. The airline has also struck deals with smaller unions. The company has been talking with the Association of Flight Attendants, the International Association of Machinists, and the Communications Workers of America but has had no success in reaching long-term deals. Joe Tiberi, spokesman for the IAM, said the company has not yet discussed abandoning contracts but said on Sunday the labor group expects it to come up when the two sides meet on Monday. The machinists have so far refused to reopen their contract for new concessions. US Airways also hopes to negotiate changes soon to medical and other benefits for 10,800 retirees. The company projects that retiree medical benefits alone will cost it $69 million in 2005 and $72 million in 2006. Most of that goes to retired pilots. The concession deal with the Air Line Pilots Association does not cover changes in retiree benefits. Roger EWROPS