Talks resume between US Airways, pilots

Monday, August 30th 2004, 10:57 am
By: News On 6

ARLINGTON, Va. (AP) _ Talks between US Airways Group Inc. and the union representing pilots have resumed, the Air Line Pilots Association said Monday.

The pilots' negotiating committee met with management Sunday, a week after talks broke down, said Jack Stephan, spokesman for the pilots' group.

The pilots offered a proposal on Saturday, and the company presented a counterproposal Sunday, said Stephan, who declined to comment on specifics.

After recessing for the night, discussions were to resume Monday, Stephan said.

US Airways has said that new labor deals with unions are necessary to avoid a return to bankruptcy court and possible liquidation. The airline has warned that bankruptcy looms if deals are not reached by at least Sept. 30.

A deal with the pilots would be the first significant step in US Airways' plans to cut costs by $1.5 billion a year, including cutting labor costs by $800 million.

The airline has sought $295 million a year in concessions from pilots.

US Airways is also seeking concessions from its flight attendants, machinists, and from the Communications Workers of America, which represents reservations agents and gate workers.