US Airways announced that it will eliminate service to 20 cities from Pittsburgh beginning November 7th, part of its plan to significantly reduce the size of its Pittsburgh hub (the link contains a list of the cities affected).
In equally terrible news, bankers hired by US Airways’ pilots unions to disprove management’s claims of a dire financial situation actually found that the airline is, in fact, in a dire financial situation. How bad? The bankers’ report says that the carrier will declare bankruptcy in mid-September if drastic cuts are not in place.
The report said the carrier’s creditors have already put claims on its cash to minimize losses if US Airways collapses…and that US Airways “might be worth more dead than alive to groups other than the employees” because other airlines might use its assets more profitably.