07/28/2004 09:38:01 AM
US Airways warned yesterday that it is considering filing for Chapter 11 protection for the second time in as many years if it is unable to win concessions from its labor group by Sept. 30, as the airline is at grave risk of defaulting on its covenants of government loan guarantee and regional jet financing deals.
In a message to employees on the same day as reporting a modest $34 million second-quarter profit, CEO Bruce Lakefield sent a clear and stern message to unions that the clock is ticking and they need to start negotiating some concessions or there will be grave consequences. 'Stop dragging your feet or hoping that Chapter 11 will help you,' he said. 'It certainly will not.' "
"Stop dragging your feet or hoping that Chapter 11 will help you," he (CEO Bruce Lakefield) said. "It certainly will not."
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