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Published on 11/12/2004 in the Prospect News Distressed Debt Daily.

US Airways asks court to give it authority to reject labor pacts

By Jeff Pines

Washington, Nov. 12 - US Airways Inc. wants the authority to reject certain labor pacts if the unions reject the company's demands for concessions.

The Arlington, Va.-based airline also wants permission to reduce retiree benefits to and terminate the pension plans for employees represented by the International Association of Machinists and Aerospace Workers, the flight attendants and others.

No hearing date was set, according to paperwork filed with U.S. Bankruptcy Court for the Eastern District of Virginia Friday.

US Airways said it needs the authority to bring its costs under control.

The airline filed for bankruptcy on Sept. 12. Its Chapter 11 case number is 04-13819.


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