US Airways files Chapter 11
Citing an inability to obtain a further $800 million in wage concessions from its employees, US Airways filed for Chapter 11 bankruptcy Sunday afternoon, being almost exactly two years since it last filed for Chapter 11, and not quite 18 months since its exit. Its filing listed $8.8 million in assets and $8.7 million in liabilities. CEO Bruce Lakefield said the airline plans to reform itself and continue operations. "We have come too far and accomplished too much to simply stop the process and not succeed. A restructured US Airways with low costs and low fares will be a dynamic competitor."

At least for the short term, it is expected that US Airways will continue to operate its normal schedule of flights and to honor frequent flier awards. But looking further into the future, no-one knows what to expect.

Their Chairman and major shareholder, David Bronner, had said, a month ago, that no-one would offer the airline more financing (including, apparently, his own investment fund) and it might be better to close the company down to then buy selected assets cheaply and start a new airline.

Today he says "I remain convinced that a restructured US Airways with competitive costs ... is an attractive investment" and continues "There is only one way for the company to emerge from Chapter 11, and that involves lower costs, including lower labor costs."