USAirways Gets Some Breathing Room

Members of the machinists union at USAirways approved pay cuts. They were the last union to do so. Coupled with the bankruptcy court’s decision to allow USAirways to draw on the cash behind its federally back load guarantee, the airline has been given a few more months of life.

There’s currently no indication that they’ll return to profitability, especially since March is generally their lowpoint in cash for the year. But I don’t see an immediate liquidation threat. In other words, it should be fine to book February flights on the airline.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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  1. All the US Air Dividend Miles bonus schemes aren’t worth their weight in bytes, from my point of view. I haven’t been able to use any of my miles to acquire a coach seat anywhere in the United States for the last year. I’ve just spent an hour online trying to see if I can use these miles to go anywhere at all during the next year to no avail – unless I want to fly on Monday mornings at 6am. I am not exagerating….I can only hope this merger might loosen things up.

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