Chapter 11 for US Airways
US Airways has become the first major US airline to file for bankruptcy protection following the 11 September terrorist attacks.
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The US’s sixth biggest carrier was badly hit by the economic recession and the downturn in the aviation industry following the terrorist attacks. It will continue trading as it restructures and tries to regain profitability.
US Airways is thought to have lost over $2.1bn (£1.38bn) in the last financial year. Last month, the airline’s pilots voluntarily took pay cuts totalling $465m a year in attempts to keep the company going.
The arline is attempting to save $1.3bn in annual expenses from labour, suppliers, lenders and creditors. It has also asked the government to back a $1bn loan.
Although US Airways did not lose any planes on 11 September, its business was severely affected when its main centre in Washington DC was shut down for three weeks and operated on a limited basis when it reopened.