By Keith L. Alexander
Washington Post Staff
Writer
Tuesday, September 21, 2004; Page E02
US Airways' four major unions and nine of its largest creditors were
appointed yesterday to a creditors' committee, which will play a critical role
in the carrier's reorganization. Nearly 200 lawyers, creditors and financial advisers crowded into the
ballroom of the Key Bridge Marriott hotel in Rosslyn yesterday, seeking a spot
on the committee that will help steer management decisions during the airline's
bankruptcy. U.S. Trustee W. Clarkson McDow Jr. appointed the Air Line Pilots Association,
the International Association of Machinists and Aerospace Workers, the
Communication Workers of America, and the Association of Flight Attendants.
Several aircraft and engine manufacturers, including Airbus North America
Holdings Inc., General Electric Co. and Bombardier Inc., also were appointed.
The committee will include the Pension Benefit Guaranty Corp., the federal
agency that took over the airline's pilots pension plan during its first
bankruptcy nearly two years ago. Also on the committee is Electronic Data
Systems Corp., Sabre Holdings Corp., U.S. Bank, Wachovia Corp. and the airline's
food supplier LSG Skychefs. Bruce R. Lakefield, US Airways chief executive, told the group that the
airline plans to emerge from bankruptcy as a stronger East Coast carrier whose
employees' wages are on par with those of low-cost carriers such as Southwest
Airlines, JetBlue Airways and AirTran Airways. The airline is seeking about $800 million in cost cuts from its labor unions.
If workers balk at the concessions, the airline could ask the bankruptcy court
to impose temporary pay cuts. "We intend to use all the tools that are available to us," Lakefield said.
"No matter what, the survival of the airline depends on having comparable wages
with low-cost carriers."