They're Baaack

For the second time in two years, Arlington (VA) based US Airways sought protection from its creditors Sunday, filing for Chapter 11 bankruptcy.

The move came after the airline couldn't get $800 million in annual concessions from its unions.

"We have come too far and accomplished too much to simply stop the process and not succeed. A restructured US Airways with low costs and low fares will be a dynamic competitor,"," said US Airways' president and CEO Bruce Lakefield. "We have devoted the last six months to building and implementing a transformation plan that leverages our strengths and allows us to compete successfully. We have made the difficult but necessary decision to complete this process with the help of the court."

Even as late as Friday, the airline was trying to reach a concession deal with its pilots, many of whom refused to give back any more to the company.

ALPA's US Airways rep in Pittsburgh (PA), Fred Fishwater, told the Associated Press, "When you look at the behavior of management, when you look at their proposals, they were seeking the total capitulation of labor."

A hearing is scheduled in US Bankruptcy Court on Monday. Stay tuned to ANN for live updates.

FMI: www.usairways.com