U.S. Airways Continues to Stumble

US Airways has sought bankruptcy protection for the second time in two years, after failing to persuade its unions to sign up to $800m-worth of pay cuts. Other big airlines, such as Delta, may follow suit. The industry has never been in a worse state

US Airways had been the first big airline to seek chapter 11 protection after the September 11th 2001 hijackings that clobbered the industry. It used its court protection to slash its debt and leasing costs and to cut overall annual costs by $1.9 billion. However, the savings have not been enough, and the airline said earlier this year that it would turn itself into a low-cost, no-frills outfit in a bid to keep flying.

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