USAir Group and PS Group on Tuesday agreed to move up the deadline for completion of USAir's $400-million acquisition of San Diego-based Pacific Southwest Airlines from Sept. 30 to April 30.
After the April 30 deadline, either airline holding company could terminate the deal, according to PSA spokeswoman Margie Craig. The new deadline was agreed upon because the U.S. Department of Transportation earlier this month approved the deal more quickly than had been expected, Craig said.
The new deadline does cut the time that PSA management has to negotiate labor-contract modifications that USAir has demanded as part of the deal. PSA's 600 union-represented pilots and two smaller unions previously agreed to modify their labor contracts.
However, the Teamsters Union has yet to agree to modify a contract section that would protect the income of union members and extend the Teamsters' representational rights in the event PSA is acquired by another airline.
The new deadline "should not prevent the Teamsters from reaching a final decision on the proposed modifications," according to PS Group Chairman Paul C. Barkley.
PSA and PS Group shareholders approved the sale of PSA to USAir during the March 17 shareholders meetings.