US Air Seeks to Impose New Labor Contract

US Airways Group Inc., which sought bankruptcy protection last week, said it would seek court permission Friday to impose new labor contract terms to reduce costs if tentative agreements with unions couldn’t be reached.

Chief Executive Bruce Lakefield told workers in a message that the company needed to lower costs to preserve cash. The Arlington, Va.-based carrier has sent the requests for relief to all major unions.

The Air Line Pilots Assn., which represents US Air’s 3,000 pilots, said it would resume negotiations that were suspended shortly before the carrier filed for bankruptcy.

From Bloomberg News, Associated Press

* AMR Corp.’s American Airlines, blaming higher jet fuel costs, said it was immediately raising most of its fares within North America $5 on one-way tickets and $10 round trip.