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-07.21.25

Airborne-Unlimited-07.22.25

AirborneUnlimited-07.23.25

Airborne-Unlimited-07.24.25

AirborneUnlimited-07.25.25

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

Airborne 07.21.25: Nighthawk!, Hartzell Expands, Deltahawk 350HP!

Also: New Lakeland Fly-in!, Gleim's DPE, MOSAIC! Nearly three-quarters of a century in the making, EAA is excited about the future… especially with the potential of a MOSAIC>[...]

ANN's Daily Aero-Term (07.27.25): Estimated (EST)

Estimated (EST) -When used in NOTAMs “EST” is a contraction that is used by the issuing authority only when the condition is expected to return to service prior to the >[...]

ANN's Daily Aero-Linx (07.27.25)

Aero Linx: Regional Airline Association (RAA) Regional airlines provide critical links connecting communities throughout North America to the national and international air transpo>[...]

NTSB Final Report: Luce Buttercup

The Airplane Broke Up In Flight And Descended To The Ground. The Debris Path Extended For About 1,435 Ft. Analysis: The pilot, who was the owner and builder of the experimental, am>[...]

Classic Aero-TV: 'That's All Brother'-Restoring a True Piece of Military History

From 2015 (YouTube version): History Comes Alive Thanks to A Magnificent CAF Effort The story of the Douglas C-47 named, “That’s all Brother,” is fascinating from>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2025 Web Development & Design by Pauli Systems, LC