Bankruptcy Judge: US Airways 'Ticking Time Bomb' | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-06.10.24

Airborne-NextGen-06.11.24

Airborne-Unlimited-06.12.24 Airborne-FltTraining-06.13.24

Airborne-Unlimited-06.14.24

Tue, Oct 19, 2004

Bankruptcy Judge: US Airways 'Ticking Time Bomb'

Workers Protest Judge's Order For 21 Percent Pay Cuts Through February

"This is a ticking fiscal time bomb."

Those words came from Alexandria (VA) Federal Judge Stephen Mitchell Friday, as he approved US Airways' request for a break on what it pays its workers. Labor negotiations aside, US Airways workers suddenly make 21-percent less than they did a week ago.

The Washington Post quotes Mitchell as saying he "reluctantly" went along with the airline's request, even though it "will result in financial hardship for the employees." The alternative, he said, would be for US Airways to liquidate, putting all workers out on the street for good.

Airline CEO Bruce Lakefield was the picture of a penitent man as he called the compensation cuts a "regrettable but necessary step" in company's attempt to emerge from its second bankruptcy.

On average, US Airways workers make $59,000 a year. After the wage reduction, they'll make an average $46,000.

"This is devastating for us," Roger Holmin, vice president of the flight attendants union, told the Post. "The difference of 2 percent is not going to matter. It will still throw many of our members into personal bankruptcy."

Friday's court ruling also cleared the way for US Airways to work its flight and cabin crews longer and outsource some of its maintenance work.

At Washington's Reagan National Airport, US Airways employees did little to hide their anger at the court order. "Our careers and customers are important to us," they said in leaflets handed out to passengers. "That's why we have made several rounds of pay and benefit sacrifices to save US Airways. Management hasn't done that in the past. And now, management wants lower-paid agents to accept pay and benefit cuts that are nearly three times greater than those asked of management."

FMI: www.usairways.com

Advertisement

More News

ANNouncement: Now Accepting Applications For Oshkosh 2024 Stringers!!!

An Amazing Experience Awaits The Chosen Few... Oshkosh, to us, seems the perfect place to get started on watching aviation recover the past couple of years... and so ANN is putting>[...]

Aero-News: Quote of the Day (06.13.24)

“NBAA has a tremendous responsibility to the business aviation industry, and we are constantly collaborating with them. Our flight departments, professionals and aircraft own>[...]

ANN's Daily Aero-Term (06.13.24): Dead Reckoning

Dead Reckoning Dead reckoning, as applied to flying, is the navigation of an airplane solely by means of computations based on airspeed, course, heading, wind direction, and speed,>[...]

ANN's Daily Aero-Linx (06.13.24)

Aero Linx: Vertical Aviation Safety Team (VAST) We are a public–private initiative to enhance worldwide flight operations safety in all segments of the vertical flight indust>[...]

ANN FAQ: How Do I Become A News Spy?

We're Everywhere... Thanks To You! Even with the vast resources and incredibly far-reaching scope of the Aero-News Network, every now and then a story that should be reported on sl>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC