Usair: More Woes
It looked so good. In July, after three years of losses, USAir reported second-quarter earnings of $112.9 million. It was set to cut $2.5 billion in labor costs over five years under tentative agreements with its unions. But on July 28, after 18 months of talks, the deal collapsed, sending the stock down 15%. USAir said its effort to hammer out simultaneous pacts was too ambitious. It now will have to bargain with unions separately when contracts expire over the next 17 months.