US Airways, Pilots Reach Impasse on Concessions

Negotiations between US Airways Group Inc. and its pilots union over a new round of steep concessions collapsed Monday, heightening pressure on the carrier as it tries to avert insolvency.

Jack Stephan, a spokesman for the company’s chapter of the Air Line Pilots Assn., said more than a week of discussions between the two sides at the airline’s Arlington, Va., headquarters yielded little progress.

“Since the beginning of these talks, we have witnessed a disturbing trend by the company to seemingly dismiss several significant proposals from our pilot negotiators,” he said. “Instead, management has responded by piling on additional demands to their counterproposals.”

David Castelveter, an airline spokesman, said US Airways had negotiated in good faith.

The latest round of negotiations, due to end Friday but extended through the weekend, ended Sunday with the two sides far apart on the dollar value of a new package.

The union’s negotiating committee Monday declared the talks at an impasse. No new negotiations were scheduled.

Mindful of the airline’s wish to complete concession agreements with its unions by early September, pilot negotiators agreed to present the company’s latest proposal to senior union executives, who will then decide whether to have the general membership vote on the offer.

US Airways is seeking nearly $300 million in givebacks from pilots. The centerpiece of its plan is a proposed 16% pay cut.

The company hopes to avoid a second bankruptcy filing in two years by quickly implementing a restructuring plan out of court. US Airways wants $1.5 billion in overall cost savings, including $800 million from workers.

No concession agreements have been reached with flight attendants, mechanics, ticket agents or baggage handlers, the company said.

US Airways shares fell 1 cent to $1.91 on Nasdaq.