ARLINGTON, United States (AFP) - A bankruptcy judge approved a 21 percent pay cut for US Airways' unionized employees, agreeing to the company request for urgent steps to keep the carrier operating.
Judge Stephen Mitchell agreed to waive the company's labor agreements and grant a 21 percent reduction of wages through February 15, according to the Association of Flight Attendants, one of the unions in the case.
US Airways had been seeking a 23 percent pay cut.
The judge also agreed to allow outsourcing of the heavy maintenance for four months for the carrier's Airbus aircraft.
"Our request for interim relief was a regrettable but necessary step to build cash and assure our customers of our ability to continue operations," US Airways chief executive Bruce Lakefield said.
Lakefield said the decision along with an agreement allowing the airline to tap a government loan for operation cash "provides us with an opportunity to successfully complete our Transformation Plan."
US Airways filed for Chapter 11 protection in September, less than 18 months after emerging from its 2002 bankruptcy filing, after failing to win sufficient concessions from its unions.