said it has reached a tentative agreement with its flight attendants that would save the company $94 million, helping it emerge from bankruptcy protection.
The agreement must be approved by the Master Executive Council of the airline's unit of the Association of Flight Attendants, which represents some 5,200 US Airways flight attendants. It would also need to be ratified by rank-and-file members, a process US Airways expects would be completed by year-end.
The airline declined to disclose terms of the agreement.
"Our flight attendant leaders have shown their willingness to make the tough decisions necessary to help keep our company flying and protect jobs for their members," said Bruce Ashby, a US Airways senior vice president who headed negotiations for the company. "US Airways' success depends on the cooperation of all employees, and with this agreement, we are much closer to becoming a stronger and more competitive airline."
The airline's pilots have ratified a new contract, as have three units of the Transport Workers Union. The airline also reached a tentative agreement earlier this month with the Communications Workers of America.
US Airways has asked the federal court overseeing its Chapter 11 restructuring to cancel previous labor agreements with unions that don't agree to new contracts.
The airline's agreement with its flight attendants appears to eliminate the potential for a strike. Earlier this week, US Airways' AFA members had voted to approve a strike should the bankruptcy court terminate labor contracts.
US Airways' stock was up 2 cents, or 1.9%, at $1.05.