US Airways cleared to cut pay 21 percent

[UpInArms]

http://www.chron.com/cs/CDA/ssistory.mpl/business/2849168

ALEXANDRIA, Va. -- A bankruptcy judge granted US Airways authority today to immediately cut the pay of its union workers by 21 percent, saying the airline's situation is so dire that urgent action must be taken.

The 21 percent pay cut is nearly all of the 23 percent reduction the air carrier had sought.

"Basically what we have here is a ticking fiscal time bomb," U.S. Bankruptcy Judge Stephen Mitchell said in issuing the ruling.

The temporary pay cuts are in place until Feb. 15, 2005, one month less than what the airline had sought. Mitchell also granted the airline authority to reduce the size of its jet fleet.

Under the 21 percent cut, the average US Airways salary would drop from $59,509 to $47,012. That would put US Airways below the other five major traditional carriers as well as Southwest Airlines, but higher than JetBlue and America West, two carriers US Airways now seeks to emulate.

...more...

Do you think that those employees' creditors will take 21% less on their bills?

[aden_nak]

1. I'm sure US Airways' executives took a similar pay cut.

Riiiiiight.

[barb162]

2. when you look at UA, AA, Delta, this one, I wonder when

we will have no airlines left in this country.

[UpInArms]

4. if these asshole corporations had not fought

tooth and toenail and aligned themselves with the slimiest GOP lobbying asswipes so that they didn't have to tighten security measures, much of what is going on in this country today would be quite different.

I would not be hearing:

It's all different since 9/11 - or you are such a 9/10 thinker.

These people fought Mary Schiavo and they fought the Gore Commission and then they stuck out their greedy nasty blood stained hands and got $15 Billion from the "disaster" that they had a hand in making.

I do not feel sorry for them one little bit.

We need better mass transportation solutions. How about some new rails?

[barb162]

11. you are right and I remmeber Schiavo talking about security before

9/11. The only thing I would disagree with is security should be a national/federal job and not be left up to airlines, rail, etc., especially when travel is crossing state lines. I think security should be like Israel's, a government job (versus left up to ELAL). Security is too important to be left up to corporations.

[tjwash]

3. It's the oil prices.

Jet fuel is expensive, and just a penny increase per barrel means millions of dollars in extra fuel prices for airlines.

B*'s cohorts are pocketing money hand over fist, by manipulating, and price gouging the market because of the PPB of oil, and if that means the airlines get slapped around, he probably figures oh-well.

[MidwestTransplant]

5. That will play well in PA

[chookie]

6. The keystone of Bush's economic plan:

Better get used to earning a LOT less, American workers.

[daa]

7. How in the hell can

a flight attendant or ramp worker making $24,000 live on 5K less?

[napi21]

9. It's 21% of their pay which is $1,050 not $5,000.

[mbperrin]

13. 21% of $24,000 is $5,040.

(It's more than one-fifth)

[Purrfessor]

8. Does this mean that when companies are earning record profits...

employees can go to court and have their wages automatically raised by twenty-one percent?

Just asking.

[barb162]

12. oh, wouldn't that be a good one! But I am not holding my breath.

[napi21]

10. FYI, All delta employees were told their pay reduction is 10%.

And it does include ALL executives and mgmt. too.

As far as I know, it's NOT temporary either!

[mbperrin]

14. Check out Southwest Airlines.

Southwest Airlines posts higher profits

http://cbs11tv.com/localstories/local_story_288215614.html

Oct 14, 2004 8:55 pm US/Central
DALLAS (AP) -- Southwest Airlines says its profits rose in the third quarter, despite higher fuel costs.

The low-fare carrier beat Wall Street expectations with
quarterly earnings of 119 (m) million dollars, or 15 cents per share. Revenue came in at nearly one-point-seven (b) billion dollars.

During the same period last year, Southwest earned 106 (m) million dollars, or 13 cents per share, on one and a-half (b) billion dollars in revenue. <more>