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US Airways: We’ll Emerge from Bankruptcy by June

In an email to customers yesterday, US Airways CEO Bruce Lakefield said that they have completed their restructuring plan and seek to emerge from Chapter 11 bankruptcy by June.  Yes, you read the correctly.  Two days ago, the airline was not going to survive, now they say they’ll be un-bankrupt in 5 months.  Sounds kinda fishy, no?  With immense competition from Southwest at Philly and Pittsburgh, they face an incredibly daunting task.  Moreover, they achieved their goals by asking their employees to take significant paycuts.  Are these paycuts now permanent?  Are the changes in workrules now permanent?  Will they expect no strong competitive response?  Considering how long it has taken United to get their act together, I would be shocked if US Airways emerges in June and stays viable for long.

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