U.S. Airways' creditors support single retiree committee

By Jeff Pines

Washington, Oct. 27 - U.S. Airways Inc.'s unsecured creditors' committee supported the airline's request for a single retiree committee, the committee said in a Wednesday filing with the U.S. Bankruptcy Court for the Eastern District of Virginia.

The Air Line Pilots Association, the Communications Workers of America and the International Association of Machinists and Aerospace Workers declined to represent the retirees.

Arlington, Va.-based U.S. Airways wants the court to appoint a four-member committee with retirees from each of the unions and one retiree who is not a member of the unions.

The airline has said it wants to reduce retiree medical benefits and estimates it can save $87 million in 2005 and then save even more in the future. If it is unsuccessful in negotiating cuts in retiree medical benefits, then U.S. Airways said it would try to obtain them through the bankruptcy code.

U.S. Airways filed for bankruptcy on Sept. 12. Its Chapter 11 case number is 04-13819.

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