US Airways staff agree to pay cut

A union representing 5,200 flight attendants at bankrupt US Airways have agreed to a new contract that cuts pay by nearly 10%.

The deal will help the carrier, trying to survive by cutting costs by nearly $1bn (£530m) a year, save about $94m. More than two thirds of its 28,000 staff have now accepted wage cuts. But talks are still continuing with a union representing mechanics, baggage handlers and cleaners, which has so far failed to negotiate a new contract. The seventh largest carrier in the US sought bankruptcy protection for a second time in two years last September. It had been one of the quickest to deal with difficulties faced by the aviation industry after the 9/11 attacks in 2001. But it emerged from Chapter 11 bankruptcy in March 2003 to face competition from low-cost carriers and higher fuel costs. US Airways management has said it may need to start liquidating assets if it does not receive concessions from all staff by the middle of this month.
