We could be next


Aug 22, 2002
The good ole boys from Alabama have issued U a warning. If we aren''t carful, we could be next.
NEW YORK, Dec 7 (Reuters) - The chief executive of the primary lender to bankrupt US Airways Group (OTC BB:UAWGQ.OB - News) said he would liquidate the airline if unions refused to provide $200 million in additional wage and benefit concessions, The New York Times reported on Saturday.
David Bronner, CEO of the Retirement Systems of Alabama, said he did not expect to have to follow through on his ultimatum and predicted that cost-cutting discussions between the airline and its employees would result in an agreement by next week, The New York Times reported.
What''s their alternative? Bronner asked rhetorically. If they don''t want to do this, we''ll Chapter 7 it.
Alabama Retirement Systems has provided Arlington, Virginia-based US Airways with debtor-in-possession financing to help it operate while under bankruptcy protection. Bronner said that without the concessions, we''ll pull the DIP financing and they''re gone.
Bronner''s stance with the US Airways unions is an example of the tough stance analysts expect airlines to begin taking with employees now that a bankruptcy filing by UAL Corp.''s (NYSE:UAL - News) United Airlines is widely expected.
Executives at American Airlines'' parent AMR Corp. (NYSE:AMR - News), traveling around the country to meet with employees, also have asked workers to forgo pay increases next year in order to trim expenses by $3 billion to $4 billion.