THE DEAL between US Airways and Airbus Industrie for up to 400 new aircraft will expire on 30 September, unless the US carrier is able to win major contract concessions with its workers.
The deadline was disclosed for the first time by senior US Airways management during a meeting called by company chairman Stephen Wolf with workers at Charlotte International, where the US airline maintains a major hub. Similar meetings, which are apparently intended to put pressure on the US Air Line Pilots Association and other labour groups, are scheduled this month.
In November 1996, US Airways agreed to a huge deal, including firm orders for 120 A319s, A320s and A321s, plus an additional 120 orders to be reconfirmed at a later date, and 160 options. It stressed that the deal was dependent upon labour concessions.
US Airways management describes its operating costs as among the highest in the industry and has been struggling vainly for several years to gain significant pay and productivity concessions from its workforce. The negotiations have been complicated in the last couple of years by the airline's return to profitability as passenger numbers and yields industry wide have given the major operators their biggest profits on record.
The list price for the 400 aircraft would top $12 billion, but neither party announced the value of the deal. Nor did they disclose that a deadline of 30 September had been set for the labour agreements.
Negotiations with the labour groups have foundered and, in January, Airbus withdrew all of US Airways' 1998 and 1999 firm delivery positions, as well as support for a planned aircraft lease. A total of 63 aircraft was affected, including 12 leased from third parties .
Also held up is a decision on whether the US carrier will buy the US Airways Shuttle operation - the resurrected Trump shuttle, which operates as a separate company and codeshares with US Airways under a long-term contract.
A deadline passed for US Airways to buy the shuttle operation, controlled by a group of New York banks. The carrier must now compete with others to make the possible acquisition. US Airways maintains its interest in buying the shuttle, saying that it "-has asked what it will cost to buy it from the current owner".
Source: Flight International
