US Airways Asks Court to Impose Cuts

Nov 15th, 2004 | By Jared Blank

US Airways, in a move that it calls "unfortunate but necessary" has asked a bankruptcy court to terminate existing contracts with 3 of its unions.  In addition, it seeks to eliminate its pension plan for 2 of its unions and eliminate health care for retirees. Separately, the carrier said it would close 4 of its airport clubs.  Things will continue to get worse before they get better.  Though, in case you were wondering, I think US Airways will never pull out of this bankruptcy.  This is, I think, a case of too little, too late—their first bankruptcy should have accomplished the same things they’re trying to do now.  Only now, the conditions in the industry are worse than they were before.





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