US Airways’ Streamlining Plans Won’t Fly, Say Pilots

Struggling US Airways Group Inc. unveiled a new long-term strategy Wednesday designed to return it to profitability, but pilots for the nation’s sixth-largest air carrier are already threatening to block key aspects of the plan.

The restructuring plan involves revamping its fleet by deploying regional jets, fine-tuning routes, and joining an international alliance as the airline struggles to right itself following its failed merger with United Airlines.

The move to restructure US Air gained urgency last month after federal antitrust regulators scuttled a $4.3-billion takeover bid by UAL Corp.’s United Airlines due to concerns over competition.

Within the next year, the Arlington, Va.-based carrier plans to shift to smaller regional jets for its main routes--including flights in and out of Boston, New York and Washington--in order to cut down on the number of vacant seats.

The increase in regional jet service, an area where US Airways has lagged behind Delta and Continental on the East Coast, would eventually add $132 million per year in operating profit, Chief Executive Rakesh Gangwal told financial analysts.

In order to trim costs immediately, US Airways said it planned to close its San Diego reservations center and its Albany, N.Y., overnight maintenance unit, but said it would offer affected employees jobs elsewhere in the system.

US Airways would have to gain approval from pilots to gradually increase its fleet of 59 regional jets--a major component of its revenue growth plan.

Although US Airways pilots had said Monday that they were willing, in principle, to negotiate with management on the regional jet issue, they said late Wednesday that they would not support significant portions of the proposal.

The company’s plan to replace larger aircraft with smaller ones amounts to “declaring war on the US Airways pilot group,” said Captain Chris Beebe, chairman of the Air Line Pilots Assn. council that represents US Airways’ 6,100 pilots.

Beebe added that no agreement would be reached on adding regional jets “until pay and working conditions are established for any small jets that the company plans to deploy.”

Other changes US Airways would like to make include: joining a global alliance to add more international flights; adding service to new cities on the West Coast; and slashing labor and operational costs.

US Airways shares fell 74 cents to $16.91 on the New York Stock Exchange.