US AIRWAYS could very quickly fail according to Judge Stephen Mitchell of the US Bankruptcy Court for the Eastern District of Virginia granting the company's petition to void contracts for nearly 9,000 mechanics and baggage handlers if their union rejects proposed concessions.
Now in its second Chapter 11 situation in two years poor December trading and a reluctance by both the travel trade and individual passengers to book ahead is further weakening a precarious position.
On the positive side much of the airline's workforce has taken wage cuts but at the same time a serious outbreak of ”sickies” caused loss of flights and operational problems over the holiday period. The next two or three weeks will be crucial.
http://www.usairways.com