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
