David Siegel suddenly resigned as US Airways Group president and chief executive after union resistance grew to his demands for cost cuts in the year following the carrier's emergence from eight months of bankruptcy reorganisation.
Siegel said his resignation reflects his "belief that my leaving is in the best interests of the company, as management seeks to secure the necessary changes to make the airline competitive". Siegel hoped his resignation would be "the first step in a healing process that will enable the company to complete its restructuring".
He will be replaced by US Airways director Bruce Lakefield, 60, a close ally of David Bronner the chairman of US Airways.
Bronner financed the company's exit from bankruptcy in March 2003 and recruited Siegel in 2002. Bronner said he shared Siegel's view that "this should be the start of a healing process for labour and management".
Both The Air Line Pilots Association and the International Association of Machinists had at times called for Siegel's departure. Siegel had renewed his pleas for further cost cuts when Southwest Airlines announced a major entry in May into Philadelphia, US Airways' major hub.
Siegel said in a statement: "I have great affection for the airline and its outstanding employees, and I want to see the company succeed. Unfortunately, the past two years have been difficult for all of us, and I believe our ability to move forward and make additional changes require a change in leadership."
DAVID FIELD WASHINGTON
Source: Airline Business
