Deadline set for US Airways concessions

Airline Industry Information, Oct 25, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Bankrupt US Airways has issued a mid-November deadline for its unions to agree a new concessions deal or face a court-imposed pay cut that the airline says it needs to survive.

The airline said that it would seek court approval to cancel union contracts if the machinists, flight attendants and ground workers unions don't agree a deal, and that it would continue with its plan to cut retiree benefits regardless. US Airways' pilots have already agreed a tentative deal which will now be put to the union's membership for ratification and the airline hopes that this will push the other unions into agreeing new deals.

The Association of Flight Attendants, the Communications Workers of America and the International Association of Machinists have all held talks with the airline but failed to reach a new long-term deal. The airline's machinists have so far refused to discuss a new contract. US Airways claims that it needs USD1bn in permanent concessions from the unions to survive, reports Reuters.

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