US Airways new strategy for survival: cut $1.5 billion a year, including $800 million in labour costs. And do it by 30 September.
That was the plan outlined by new CFO Bruce Lakefield addressing shareholders, reported by USA Today.
The company’s plan calls for slashing costs by 25% so it can initiate a lower fare structure.
The airline has already shifted to lower rates on some Philadelphia routes.
The plan moves the airline closer to business models such as America West, the profitable low-fare airline that combines hub flying with point-to-point flying, said USA Today.
The airline is pressed to pay back a $1 billion government-backed loan that requires it to show progress. The carrier has continued to lose money, however, since emerging from bankruptcy protection last year.
Report by David Wilkening
