US Air Plans to Cut Management Jobs

As the seventh largest U.S. airline readies itself for a bankruptcy meeting next Thursday, U.S. Airways announced that it plans to cut its executive payroll by 20%. This plan would reduce the pay and benefits of over three thousand company managers, and also result in many lost jobs.

According to the Washington Post, Christopher Chiames, US Airways senior vice president of corporate affairs, confirmed the news and added that the current plan is to cut approximately $45 million of its $201 million management payroll. When asked to further detail the types of cuts envisioned, Chiames declined to offer any more specific details, according to the Post.

This news is another blow to the failing airline. They have already been to bankruptcy court once this year, and claim to only have enough available cash to run through January. Executives are calling for the courts to impose automatic wage and benefit cuts for most of the airline union workers as part of the restructuring process.

U.S. Airways is just one of many large airlines that have seen their organizations crumble under the pressure of increased budget airline competition, rising oil prices, and a failure to attract new investors.