newswatcher
12th Aug 2002, 07:55
From the BBC(12/8):
"One of the largest airlines in the United States, US Airways, has filed for bankruptcy protection. The company plans to continue operations while it attempts to return to profitability.
US Airways suffered badly as a result of the economic recession and the downturn in the aviation industry following the 11 September terror attacks on New York and Washington.
It is the first major US air carrier to seek so-called Chapter 11 protection, which is designed to give failing companies breathing space from paying bills while restructuring plans are implemented.
Over the last financial year the airline is reported to have lost more than $2.1bn (£1.38bn).
"US Airways will continue to operate while we complete our financial restructuring," US Airways chief executive David Siegel said.
"Our customers should be confident that we will continue service to the more than 200 communities in our network," he added.
Last month US Airways pilots agreed to pay cuts amounting to $465m a year, in an effort to keep the company afloat. The sixth largest airline in the US recently has asked the government to back a $1bn loan. It is also seeking to save $1.3bn in annual expenses from labour, suppliers, lenders and creditors.
US Airways did not lose any planes on 11 September. But the airline's business was severely affected when Reagan National Airport, its main hub near Washington DC, was shut down for three weeks and reopened with only a limited schedule."
"One of the largest airlines in the United States, US Airways, has filed for bankruptcy protection. The company plans to continue operations while it attempts to return to profitability.
US Airways suffered badly as a result of the economic recession and the downturn in the aviation industry following the 11 September terror attacks on New York and Washington.
It is the first major US air carrier to seek so-called Chapter 11 protection, which is designed to give failing companies breathing space from paying bills while restructuring plans are implemented.
Over the last financial year the airline is reported to have lost more than $2.1bn (£1.38bn).
"US Airways will continue to operate while we complete our financial restructuring," US Airways chief executive David Siegel said.
"Our customers should be confident that we will continue service to the more than 200 communities in our network," he added.
Last month US Airways pilots agreed to pay cuts amounting to $465m a year, in an effort to keep the company afloat. The sixth largest airline in the US recently has asked the government to back a $1bn loan. It is also seeking to save $1.3bn in annual expenses from labour, suppliers, lenders and creditors.
US Airways did not lose any planes on 11 September. But the airline's business was severely affected when Reagan National Airport, its main hub near Washington DC, was shut down for three weeks and reopened with only a limited schedule."