ALEXANDRIA, Va.--US Airways, hard hit by slumping travel after theSept. 11 terrorist attacks, filed for Chapter 11 bankruptcyprotection Sunday, the company said.
The airline, which had mentioned bankruptcy as a possibility afterit lost $2.1 billion during 2001, said all of its flights areexpected to continue without interruption. The Arlington, Va.-basedairline said it received $500 million in financing to keep operatingwhile it reorganizes.
"US Airways will continue to operate while we complete ourfinancial restructuring, and our customers should be confident thatwe will continue service to the more than 200 communities in ournetwork," said US Airways president and chief executive David Siegel.
The airline, the nation's seventh-largest, listed $7.81 billion inassets and $7.83 billion in liabilities. United Airlines tried to buyUS Airways two years ago, but Justice Department oppositionultimately scuttled the deal.
Although US Airways didn't lose any planes Sept. 11, its businesswas severely hurt when Reagan National Airport was shut down forthree weeks and reopened with only a limited schedule.
US Airways has since been trying to wring $950 million in costcuts from its 40,000 employees, reaching agreement last week withunions representing pilots and flight attendants.
The machinists and aerospace union said it would submit thecompany's proposal to a vote.
"Our members will not give up on US Airways, and neither shouldanyone else," Robert Roach Jr., general vice president of the union,said after the bankruptcy filing. AP
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