US Air asks court to impose wage cuts

http://news.airwise.com/stories/2004/10/1097182334.html

US Air sais it needs immediate wage reductions in order to survive. It needs
to raise 200 million bucks in cash by february to survive, and right now, the
only do to this is to reduce costs significantly. (borrowing or new investors
not available). US Air is also considering reduction in fleet size and furloughs.

US Air also wants immediate permission to outsource maintenance, and the
unions want to delay this process as long as possible

Judge says survival of airline is his priority and that the airline is
runninng out of options/time.

For US Air, every $1 added to the proce of oil barrel adds $2 million per
month in costs.

I think the next couple of weeks will be critical for US Air. If the unions
really act like a brick wall, and delay the process, US air will not only have
less time to raise $200 million in savings, but will also have accumuilated
more debts and thus need to raise more than $200 million.

nobody wrote:

For US Air, every $1 added to the proce of oil barrel adds $2 million per
month in costs.



So it's possible that US may not live to see the new year? )-;

gld