But At What Cost To Labor?

It wasn't a well-attended bankruptcy court hearing Thursday. It lasted only 30-minutes or so. But it may have been the most important to date for US Airways in its effort to forge a new airline with Phoenix-based America West.

The Pittsburgh Tribune-Review reports federal Judge Stephen Mitchell approved the merger. That means it's pretty much clear sailing for what executives say will be a nationwide low-cost carrier to rival the likes of Southwest and Jet Blue.

Mitchell also approved Tudor Investment Group's request to buy $65-million of the new company's stock, bringing the total investment to $565-million.

With a long history of financial issues, including two bankruptcies, US Airways may never have had it so good. But if the new carrier's prospects continue to improve, its relations with workers is still on the decline. Speaking over the July 4th weekend, the head of the pilots union called US Air management "tyrannical" for its plans to offer less profit sharing than it proposed just a year ago.

Bill Pollock, chairman of the US Airways chapter of the Air Line Pilots Association, was quoted in the Charlotte Observer as saying his group will "use every weapon in our arsenal to put an end to this greed."

So far, there's been no response from management, although US Airways has said in the past that it needed to reduce benefits to attract more investors.

US Airways insiders tell ANN this may be an effort by the ALPA to repair its reputation after allegations its leadership has been too chummy with management in the recent past.

FMI: www.usairways.com, www.alpa.org