Business: Airline stiffens contract stance

"US Airways tells employees they have two months to accept wage cuts or face Chapter 11.
By STEVE HUETTEL, Times Staff Writer
Published July 28, 2004

US Airways warned employees Tuesday that it needs new cost-cutting contracts within two months or could face another trip through bankruptcy.
The blunt message came on a day when the airline reported a rare quarterly profit. But chief executive Bruce Lakefield said US Airways has lost $143-million so far in 2004 and could see significant losses for the rest of year that would trigger actions by the airline's lenders."
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"In a telephone message to employees, Lakefield told them that unless they ratified new agreements "well before Sept. 30," the company may need to file for its second Chapter 11 bankruptcy reorganization in two years."

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