Us Airways: Into The Next Cloud

The strike's off, but now the carrier faces a price squeeze

It was a dramatic standoff: Threatened with a flight attendants' strike, US Airways Group Inc. CEO Rakesh Gangwal vowed to shut down the airline rather than suffer a union walkout. But when the Mar. 25 strike deadline hit, Gangwal compromised. The union busted management's long-standing demand to link flight attendants' pay to the industry average, and the airline won scheduling flexibility.

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