US Airways to Seek $1 Billion in Federally Backed Loans
US Airways to Seek $1 Billion in Federally Backed Loans, $950 Million in Pay Concessions
US Airways will ask the federal government to back roughly $1 billion in loans and ask employees to accept wage and benefit cuts of $950 million a year as it fights to prevent bankruptcy. |
Airline executives outlined the plan Thursday to union leaders, warning that the carrier would likely seek Chapter 11 bankruptcy protection if it could not get the labor concessions and the loan guarantees. The loan guarantees are available through the $15 billion industry bailout approved by Congress after Sept. 11.