US Airways Group Inc.
2345 Crystal Dr.
Arlington, Va. 22227
www.usairways.com Year founded: 1939 Industry: Transportation Revenue: $6.85 Billion Net Income/Loss: $1.46 Billion Earnings per share: $20.77 Dividend: n/a Stockholder equity: $172.00 Million Auditor: KPMG LLP Stock: UAIR Assets: $8.56 Billion Market capitalization: $215.52 Million 52-week high: 32 8/25/2003 52-week low: 3.7 4/13/2004 President and CEO: Bruce R. Lakefield CFO: Neal S. Cohen Employees: 31700 Local employees: 1995 Description: US Airways is the nation's seventh-largest airline. Developments: Last year started out as a promising one for US Airways. The airline emerged from Chapter 11 bankruptcy protection in March after shedding nearly $2 billion in debt. Yet now it appears the airline did not reduce costs enough and is still struggling to return to profitability. Last year's profit stemmed from restructuring in bankruptcy that dramatically slashed its costs and debt. US Airways is trying to cut costs by at least an additional 25 percent by December. With all that chopping, a rift developed between senior managers and the labor leaders who said the airline was mismanaged. Late last year the pilots called for the resignation of president and chief executive David N. Siegel and this month, in a surprise move, he did resign and was replaced by a director, Bruce R. Lakefield, whose operational experience is in financial services, not airlines. US Airways executives say the industry has changed dramatically, with cheap-ticket, low-cost airlines expanding even quicker along US Airways' routes. In May, Southwest and Frontier airlines both plan to begin flying out of Philadelphia International Airport, one of US Airways' most profitable hubs. The airline is trying to cut its costs in order to maintain the level of cash required by the federal government in exchange for backing $800 million worth of the airline's loans. US Airways has even considered selling off several plum assets, including its Northeast shuttle between Boston, New York and Washington, or one of its hubs, which also include Charlotte and Pittsburgh, to raise cash. In December, US Airways hired Wall Street investment bank Morgan Stanley to identify potential buyers. Since then, though, the airline has downplayed selling assets, focusing instead on exacting cuts and concessions from its labor unions. Siegel had said earlier, before resigning, that he expected US Airways to remain independent for at least a while. But, he said, the stronger companies will inevitably buy the weaker in the near future because the industry still has too many airlines. Executive Compensation
President and CEO: David N. Siegel
Total Cash: $600,000.00
Total Compensation: $10,906,010.00 CFO: Neal S. Cohen
Total Cash: $394,250.00
Total Compensation: $4,417,388.00 Executive Vice President: Alan W. Crellin
Total Cash: $425,665.00
Total Compensation: $2,817,150.00
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