Tuesday, Aug 13, 2002
Front Page |
Southern States |
Other States |
Advts: Classifieds | Employment | Obituary |
By Sridhar Krishnaswami
Analysts maintain that the bankruptcy filing of US Airways comes as little surprise in that at least three smaller carriers have opted for the same route recently; and major carriers were eating into US Airways' Northeastern routes. But US Airways is the first major air carrier to file for Chapter 11; and there is scepticism as to whether the airline will be able to hold on to the present service structure and timetables. Airline officials are confident that the financial restructuring that is going to take place under the bankruptcy proceedings would be sufficient to have a turnaround by the first quarter of 2003. The US Airways group owns at least 340 jets and flew some 56 million passengers to 200 destinations in the U.S. last year.
The airlines is also seeking to cut costs on the labour front and has been actively seeking to cut deals with its workforce of some 40,000.
It reached a deal with the pilots and the flight attendants last week and the International Union of Machinists and Aerospace Workers are due to vote on a restructuring plan soon.
US Airways recently announced plans for code sharing with United Airlines which is also struggling to keep its head above water in the aftermath of what happened last year.
United Airlines' losses this year is said to be around $850 million and is seeking close to $2 billion in government guarantees.
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of