Same tough choices
US Airways has a new chief executive, but still faces the same “tough choices,” says Airwise News.
A year after emerging from bankruptcy, US Airways still has near the highest costs in the industry. The company has said it still needs to cut costs by 25%. And it’s facing stiff competition from Southwest Airlines moving into Philadelphia.
Airwise and other sources say the new CEO, Bruce Lakefield, will almost certainly continue the philosophy of David Siegel, who resigned. That is to continue to cut jobs and ask employees to slash wages.
“There just does not seem to be a niche within which they can cover their embedded cost structures and be profitable,” said James Owers, a corporate restructuring expert at Georgia State University’s Robinson College of Business.
Report by David Wilkening
David
Have your say Cancel reply
Subscribe/Login to Travel Mole Newsletter
Travel Mole Newsletter is a subscriber only travel trade news publication. If you are receiving this message, simply enter your email address to sign in or register if you are not. In order to display the B2B travel content that meets your business needs, we need to know who are and what are your business needs. ITR is free to our subscribers.

































Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025