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-04.29.24

Airborne-NextGen-04.30.24

Airborne-Unlimited-05.01.24 Airborne-AffordableFlyers--05.02.24

Airborne-Unlimited-05.03.24

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

ANN's Daily Aero-Term (05.01.24): Say Altitude

Say Altitude Used by ATC to ascertain an aircraft's specific altitude/flight level. When the aircraft is climbing or descending, the pilot should state the indicated altitude round>[...]

ANN's Daily Aero-Linx (05.01.24)

Aero Linx: European Air Law Association (EALA) EALA was established in 1988 with the aim to promote the study of European air law and to provide an open forum for those with an int>[...]

Classic Aero-TV: Korean War Hero Twice Reborn

From 2023 (YouTube Version): The Life, Death, Life, Death, and Life of a Glorious Warbird In 1981, business-owner Jim Tobul and his father purchased a Chance-Vought F4U Corsair. Mo>[...]

Airborne 04.29.24: EAA B-25 Rides, Textron 2024, G700 Deliveries

Also: USCG Retires MH-65 Dolphins, Irish Aviation Authority, NATCA Warns FAA, Diamond DA42 AD This summer, history enthusiasts will have a unique opportunity to experience World Wa>[...]

Airborne Affordable Flyers 05.02.24: Bobby Bailey, SPRG Report Cards, Skydive!

Also: WACO Kitchen Bails, French SportPlane Mfr to FL, Dynon-Advance Flight Systems, Innovation Preview Bobby Bailey, a bit of a fixture in sport aviation circles for his work with>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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