Judge delays ruling on US Airways pay cut

Airline Industry Information, Oct 8, 2004

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

The Bankruptcy Court judge overseeing US Airways' case has left the airline waiting for a decision over an emergency 23% pay cut on all unionised workers which the airline claims is needed to save the company.

In court on 7 October 2004 US Airways asked for a six-month emergency pay cut to be applied as it claims that otherwise it will collapse within five months through a lack of funds. The airline also delivered more bad news for its workers by claiming in court that its employee pension schemes are at risk.

Judge Stephen Mitchell delayed until Tuesday 12 October 2004 his decision on the pay cut and the airline's request to skip its USD110m payment to the employee pension fund which was due in September 2004, reports the Pittsburgh Post-Gazette.

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