Sunday, September 12, 2004

US Airways files second bankruptcy in 2 years

US Airways filed for Chapter 11 bankruptcy protection on Sunday, its second such filing in two years, after workers refused to grant $800 million in cuts the company had sought to reduce its costs to the level of low-fare airlines.
Nothing will change for US Airways customers right away, but in the coming months the airline is expected to change its route system, which could mean the end of service for some of the nearly three dozen cities where US Airways is the only airline. And if it cannot cut its costs and win labor concessions from workers, its passengers could face further reductions in service or even the end of the airline, analysts said Sunday.

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