Crt OKs US Airways Plan To Make Future Pension Payments
DOW JONES NEWSWIRES
October 7, 2004 4:21 p.m.
By Christopher Scinta
Of DOW JONES NEWSWIRES
ALEXANDRIA, Va. -- A federal court judge said in a hearing Thursday that US Airways Group Inc. (UAIRQ) could make pension plan contributions due Oct. 15 and Jan. 15, 2005.
Judge Stephen Mitchell also said during the hearing he wouldn't rule immediately on the airline's plan to separate pension plan payments for its employees before and after it filed for Chapter 11.
Mitchell said legal issues related to pension obligations before and after the airline's Sept. 12 Chapter 11 filing were too complex to rule on immediately.
US Airways has two $14.5 million installment payments due in October and January on pension plans for its machinists and flight attendants.
Also during the hearing Thursday, Mitchell hinted that he may not rule immediately on US Airways' request to implement emergency labor wage cuts for its unionized workers.
In court papers, US Airways warned that it may have to liquidate by mid-February if it can't implement a 23% wage cut on its unionized labor.
The airline said the $38 million a month in temporary labor savings, along with $5 million a month in other cuts, would allow it to rebuild its cash position during the lean winter months