US Airways Group Inc.

2345 Crystal Dr.

Year founded: 1939

Industry: Transportation

Post 200 Category: Top 125 Companies

Revenue: $7.12 Billion

Net Income/Loss: ($611,000,000.00)

Earnings per share: ($11.19)

Dividend: n/a

Stockholder equity: ($434,000,000.00)

Auditor: KPMG LLP

Stock: UAIRQ

Assets: $8.42 Billion

Market capitalization: $82.79 Million

52-week high: 3.9 4/14/2004

52-week low: 0.58 9/22/2004

President and CEO: Bruce R. Lakefield

EVP and CFO: Ronald E. Stanley

Employees: 29500

Local employees: 1902

Description: US Airways is the nation's seventh-largest airline.

Developments: US Airways may have had to struggle harder for its survival than any other U.S. airline during the past decade. The airline filed for Chapter 11 bankruptcy protection in September after failing to secure cheaper labor contracts from its employees. It was the airline's second such filing in less than two years. Just five months before filing for Chapter 11, US Airways replaced chief executive David N. Siegel with board member Bruce R. Lakefield. After securing more than $1 billion in pay, benefit and job cuts from its workers and negotiating new aircraft lease agreements with its biggest lenders, company executives hope US Airways can emerge from bankruptcy protection by late summer. Fueling its survival was the airline's ability to secure $125 million in exit financing from each of two sources — an investment unit of Air Wisconsin, a Wisconsin regional jet operator, and an Indianapolis regional airline, Republic Airways Holdings Inc. and its majority shareholder. Republic also agreed to provide $110 million if US Airways agrees to sell to Republic some assets, including several regional aircraft. Both regional carriers want at least three seats on the US Airways board and the ability to operate more of US Airways regional flights in exchange for the investments. Last week, reports surfaced of a possible merger between US Airways and America West Holdings Corp, which began talking more than a year earlier. America West was seeking an outside investor to help fund a deal. Yet even if US Airways emerges from bankruptcy, the carrier faces steep obstacles. Employee morale continues to suffer after three rounds of pay and benefit cuts in three years. The airline has also watched a steady stream of workers leave for higher-paying jobs elsewhere. During the past year, US Airways had to replace its chief financial officer, its head of marketing and planning, and its vice president of finance and treasurer. All of the vacated positions were filled from within. Meanwhile, low-cost carriers such as Southwest, Air Tran and JetBlue continue to expand in US Airways' prime markets. Fuel prices, the second-largest expense for an airline behind labor, also remain high. However, armed with a lower cost structure, US Airways says it can compete with the low-cost carriers by offering competitive air fares while still offering traditional major airline amenities such as first-class cabins, international flights and posh airport clubs.

Executive Compensation
Former CEO: David N. Siegel
Total Cash: $198,462.00
Total Compensation: $6,391,297.00