Philadelphia Inquirer | 07/27/2004 | US Airways aims to show improvement

"Time is running out for the airline to avoid bankruptcy by proving to its creditors that it can cut costs.

By Tom Belden
Inquirer Staff Writer

This may sound familiar: It's crunch time again for US Airways.
By late September, analysts say, the airline that dominates air service in Philadelphia could be staring at another trip through Chapter 11 bankruptcy if it hasn't shown its creditors that costs are dropping enough to keep it from defaulting on loans and aircraft-lease payments. The airline must make a payment to its employee pension plans of about $110 million that month."
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"A lot depends on what their results are," analyst Ray Neidl of Blaylock & Partners in New York said yesterday. "But they still need to have something done in late summer or early fall to avoid another bankruptcy filing."

US Airways' creditors granted the airline new terms on a $1 billion loan in March, but that only bought the company time to get its house in better order.

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