US Airways hopes to become competitive with low-cost carriers

Cuts in pay and other compensation could average more than 20% of the packages enjoyed by top management.

The US's seventh largest airline filed for bankruptcy protection for the second time in two years last month.

The latest proposed measures would see one-tenth of its 3,700 management and non-union jobs being shed.

Pension plans

The firm said chief executive Bruce Lakefield's salary package of about $425,000 will not be reduced as it was cut substantially from the amount earned by his predecessor, David Siegel.

The airline said pay cuts, including holding back rises, would mean a reduction in salary of more than 20% for senior officers.

Managers at a lower level and non-union employees would take a 5% cut in wages.

The firm - which employs 28,000 staff - will also reduce pension contributions, and change retiree medical, dental and life insurance benefits.

The Arlington-based airline is still trying to win more than $800m in concessions from its unionised workers, including pay cuts.

US Airways is talking to pilots and other key union groups, including flight attendants, reservation workers and mechanics.

Hurricanes hit earnings

On Thursday, it will ask a bankruptcy judge to impose temporary pay cuts of 23% on all union workers, along with cuts to retirement plans.

It says if it wins the pay concessions from workers the savings would see it through to spring otherwise it may go bust by February.

The airline, which has been trying to turn itself into a viable competitor against low-cost carriers, expects to lose $600m this year.

US Airways lost $20m in revenues in recent weeks following Hurricanes Frances and Ivan, which hit Florida and the US Gulf Coast.