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US Could Go Bankrupt, Currently Restructuring

Tue May 14, 2002 6:42 am

US Airways shares fell 17% today as the airline was under pressure to rush a restructuring plan to stop it going bankrupt. It is asking unions for big wage cuts.

Federal loan guarantees run out on June 28 2002 and US is rushing to meet that deadline. Any airline wishing for such guarantees needs to set out a restrucuring plan.

US Airways was the first big US airline to announce that it was considering such gurantees which wiped out 30% of it's value last Friday. UAL and NWA could need them soon too. US has $561 million in reserves and is using $100 million a month.

More information at the Financial Times website

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