Is It Mayday For Usair?
Can USAir pull out of its dive? With partner British Airways threatening to write down its investment, the long-troubled airline disclosed on June 14 that it had asked its unions for $500 million a year in permanent concessions. It hopes to generate another $500 million in annual savings through a wholesale restructuring that would include staff cuts, subcontracting some ground services, and offering more shuttle-like flights. That USAir employees will agree isn't certain; union leaders have questioned whether deep labor concessions are needed. Some industry experts also suspect that the proposed restructuring comes too late for the airline, which has been losing altitude after $2.4 billion in accumulated losses since 1988.