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Last Updated: Sunday, 12 September, 2004, 21:34 GMT 22:34 UK
US Airways seeks bankruptcy order
US Airways Airbus
Arlington-based US Airways has 28,000 employees
US Airways has filed for bankruptcy protection after failing to get unions to sign up to a cost-cutting deal.

It is the second time in two years that the airline, the seventh largest in the US, has sought such protection.

The concessions it was negotiating with staff represented more than half of a $1.5bn cost-savings plan proposed by the management.

US Airways, based in Virginia, has been trying to turn itself into a viable competitor for low-cost carriers.

It was one of the quickest to deal with the dire straits in which the aviation industry found itself after the 9/11 attacks in 2001.

"Since we still lack the new labour agreements that are needed for the transformation plan to succeed, we must preserve the company's cash resources that are required to implement the plan," the airline's chief executive Bruce Lakefield said in a statement.

"We have made the difficult but necessary decision to complete this process with the help of the court."

In its court filing, the company said flights would operate normally and customers should expect no change to their frequent flier and other programmes.


WATCH AND LISTEN
The BBC's Angela Garvey
"In terms of flights the airline insists it's still business as usual"



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