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US Airways offers new profit sharing plan in exchange for labour concessions.

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

US Airways is to offer its employees a more attractive profit-sharing plan as it tries to secure further labour concessions in an attempt to avoid bankruptcy.

The airline is looking to save USD1.5bn by the end of the summer 2004 with half of that figure expected to come from labour concessions. US Airways has said that the cuts are necessary to allow the airline to compete with low-cost carriers.

The new profit sharing plan would give employees 10% if profit margins are between 0-5% and 25% for margins exceeding 5%, reports Reuters.

Unions have yet to respond to the new proposal.

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Publication:Airline Industry Information
Date:Aug 9, 2004
Words:122
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