Air Transport World

US Airways.(US Majors)

The company once boasted that it had completed the fastest large-scale bankruptcy reorganization in the history of corporate America (ATW, 9/03, p. 28). Haste makes waste, however, and it now finds itself poised on the brink of a second reorganization because former President and CEO David Siegel and his leadership team did not cut nearly deeply enough the first time around.

In May, management said it must chop a further $1.5 billion from the budget on top of the $1.9 billion it claims it slashed during its eight-month Chapter 11 reorganization that ended on March 31, 2003. The news was conveyed to the airline's unions by Chairman David Bronner and newly appointed CEO Bruce Lakefield, who assumed the top spot last spring after it became clear that labor was unwilling to contemplate further concessions while Siegel was at the helm. …

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