CLT Observer: US Airways posts big loss



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[P][FONT face=Times New Roman size=3]Siegel said industry conditions deteriorated further in September with the threat of war, higher fuel prices and a softening economy. The carrier is making progress as it restructures in bankruptcy court, he said, but [STRONG]we clearly have more to do[/STRONG].[/FONT][/P]
[P][FONT face=Times New Roman size=3]Today, the airline will post schedule cuts, many of them seasonal, in its computer reservations system. Daily departures from Charlotte, now at 459, will total 460 in December and 406 in January, before being raised to 449 in February.[/FONT][/P]
[P][STRONG][FONT face=Times New Roman size=3]The third-quarter results indicate that US Airways clearly has to get its costs down to survive, said David Bronner, chief executive of the Retirement Systems of Alabama. David (Siegel) is working on a new business plan and we will have to go from there.[/FONT][/STRONG][/P]
[P][STRONG][FONT face=Times New Roman size=3]Most of the cost savings from restructuring agreement haven''t kicked in yet, Freundlich said.[/FONT][/STRONG][/P]
[P][STRONG][FONT face=Times New Roman size=3]Considering the length of their routes, US Airways is getting close to where they need to be, Neidl said. They are becoming competitive. Of course, other airlines have to get costs down too.[/FONT][/STRONG][/P]
[P][FONT face=Times New Roman][FONT size=3]Neidl said he has been impressed with the airline''s cost cutting so far. About $1.3 billion annually has been cut from wages, lease costs and other expenses, and Siegel is seeking reductions of a few hundred million dollars more. [STRONG]It''s no small thing what they''ve done, Neidl said.[/STRONG][/FONT][/FONT][/P]

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