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US Airways trains sights on expenses
PITTSBURGH (Post-Gazette) - US Airways'' plan to decrease costs in bankruptcy proceedings may bring expenses almost in line with low-cost America West Airlines, Standard & Poor''s said, citing court filings.
US Airways, which has had some of the highest operating costs in the industry, said in a filing with the U.S. Bankruptcy Court this past weekend that its cost to fly one seat mile may drop 17 percent when the seventh-biggest U.S. carrier emerges from Chapter 11 bankruptcy protection. Such costs would be higher than Southwest Airlines, S&P analyst Phil Baggley said.
US Airways plans to reduce annual costs by $1.8 billion, including $1 billion from employee pay, benefit and work concessions. It costs U.S. Airways 10.95 cents to fly one seat mile, compared with 7.73 cents for America West and 7.38 cents cents to fly with Southwest, the nation''s No. 6 carrier.
The Arlington, Va.-based carrier said this weekend it hoped to emerge from Chapter 11 by the end of March
On Monday, America West Airlines and the Air Line Pilots Association, which represents 1,800 pilots, agreed on a tentative contract. Terms of the agreement weren''t disclosed.
PITTSBURGH (Post-Gazette) - US Airways'' plan to decrease costs in bankruptcy proceedings may bring expenses almost in line with low-cost America West Airlines, Standard & Poor''s said, citing court filings.
US Airways, which has had some of the highest operating costs in the industry, said in a filing with the U.S. Bankruptcy Court this past weekend that its cost to fly one seat mile may drop 17 percent when the seventh-biggest U.S. carrier emerges from Chapter 11 bankruptcy protection. Such costs would be higher than Southwest Airlines, S&P analyst Phil Baggley said.
US Airways plans to reduce annual costs by $1.8 billion, including $1 billion from employee pay, benefit and work concessions. It costs U.S. Airways 10.95 cents to fly one seat mile, compared with 7.73 cents for America West and 7.38 cents cents to fly with Southwest, the nation''s No. 6 carrier.
The Arlington, Va.-based carrier said this weekend it hoped to emerge from Chapter 11 by the end of March
On Monday, America West Airlines and the Air Line Pilots Association, which represents 1,800 pilots, agreed on a tentative contract. Terms of the agreement weren''t disclosed.
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