US Airways, Pilots In Tentative Pact
US Airways Group Inc. and its pilots’ union struck a tentative deal that would yield $465 million each year in wage cuts and other concessions for 6 1/2 years to help keep the airline afloat, according to the Air Line Pilots Assn.
The agreement is a major step forward in the No. 6 carrier’s bid to cut costs, win approval of its application for government-backed loans and if possible, avoid bankruptcy.
The wage cuts and cost reduction items are about 85% management’s latest request, a spokesman for the pilots’ union said. Discussions continued on issues still to be resolved.
Arlington, Va.-based US Airways has struggled to stay financially aloft since the Sept. 11 attacks. It is campaigning for about $1.3 billion in annual expense reductions from labor groups, suppliers, lenders and creditors and has asked the federal government to back $900 million of a $1-billion loan.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
