US Airways Circles for Time

The carrier is in round-the-clock negotiations with two unions, hoping to win concessions without using the court to impose them. The Communications Workers of America, which represents 5,800 customer service and reservation agents, and the Air Line Pilots Association, which represents 3,200 pilots, are both in talks to cut their pay.

"Clearly, there are consequences if we can't get a deal done," said Jack Stephan, spokesman for the pilots union. "We're still negotiating."

But other work groups are not even at the negotiating table, which means the airline will almost certainly need the court to impose lower labor costs on some groups. The Association of Flight Attendants, which represents 5,500 employees, and the International Association of Machinists, which represents 4,800 employees, have rejected management's last proposal on wage concessions.

As the days pass, the situation at US Airways grows more dire and management's demands for concessions increase. With the 1113(e) motion, the company hopes to achieve $38 million in monthly cost reductions from work groups. And it needs that cost savings fast -- by Oct. 14 -- to keep in line with the terms of an interim financing agreement with the government.

Through Oct. 15, the carrier can tap the $750 million in cash that serves as collateral for a $900 million loan guarantee from the Air Transportation Stabilization Board. As a result, the ATSB is closely monitoring US Airways, forcing it to keep a weekly minimum cash balance or run the risk of defaulting on the loan and potentially forcing the airline to cease operations.

According to union documents, the carrier must have $550 million in cash for the week ending Oct. 1. But in October, US Airways must stop the bleeding and begin generating cash -- no mean feat during a seasonally slow fall period. For the week ending Oct. 8, it must have $575 million in cash on hand, with $585 million the week ending Oct. 15, when the carrier's interim agreement with the ATSB expires.

What happens after the agreement expires is up in the air. In the meantime, US Airways' future is in the hands of a bankruptcy court judge.