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US Air pilots sign off on cuts
By STEVE HUETTEL, Times Staff Writer US Airways pilots overwhelmingly approved a new contract Thursday that includes $465-million in pay and benefit reductions, the biggest piece of labor concessions the struggling carrier says it needs to survive. By a three-to-one margin, pilots voted for the deal that will cut their pay an average of 26 percent and expose hundreds of them to layoffs if US Airways reduces the size of its aircraft fleet. Under the 61/2-year deal, US Airways pilots will receive nearly 20 percent of the company's stock, get a seat on its board and be assured the airline won't ask for further concessions if it files to reorganize finances in bankruptcy court. The pilots are the first major labor group to ratify a new, cost-cutting contract. US Airways' flight attendants finish voting on a tentative contract today, but unions for two other groups are still in talks with airline negotiators. "This is one of a number of steps necessary to restructure our airline and return our company to profitability," David N. Siegel, US Airways' chief executive, said in a statement. He said the vote "clearly symbolizes the new spirit of partnership and cooperation" with employees. The agreement is "a tremendous sacrifice" for the airline's 4,800 pilots, said Chris Beebe, a captain and head of US Airways' branch of the Air Line Pilots Association, "The US Airways ALPA pilots . . . have decided to participate in US Airways' restructuring and help our company though difficult times and to assist its long-term recovery," he said in a statement. The nation's No. 7 airline and the third-largest at Tampa International, US Airways lost nearly $2-billion in 2001 and more than $500-million so far this year. US Airways wants a $900-million federal loan guarantee to overhaul its operations and buy hundreds of money-saving small jets. The Air Transportation Stabilization Board gave conditional approval last month but said US Airways had to nail down concessions from unions, vendors, aircraft lessors and lenders to get the guarantees. US Airways is hardly out of the woods. Unions representing mechanics, ramp workers and customer service agents remain at odds with the airline over important issues. Last week, a top official of the International Association of Machinists and Aerospace Workers took a none-too-subtle swipe at Siegel, who took the airline's top job in March. "It pains me to see people who have only been on the scene a few months say it is up to labor to save the carrier," Tom Buffenbarger, the union's international president, said at a union meeting in Charlotte. "People who just showed up at US Airways do not know how to save this carrier, but our members do." But if flight attendants follow the pilots in ratifying a new contact, it will put additional pressure on the I.A.M. and Communications Workers of America to reach a deal, said Scott Hamilton, editor of the online newsletter Airline Monitor. Besides cutting labor costs, the pilots' deal gives US Airways the green light to pursue measures that Siegel says are vital to boosting the airline's revenues. US Airways can operate as many as 465 small jets ranging from 44 to 78 seats. The airline initially will use the planes to replace turboprop commuter planes that feed US Airways' hubs and major airports. Also, the contract enables the airline to go ahead with a "code share" agreement with United Airlines. The deal lets the carriers sell seats on each other's flights, coordinate schedules and offer frequent flier miles for either airline's program. -- Steve Huettel can be reached at huettel@sptimes.com or (813) 226-3384.
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From the Times Business report
From the AP
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