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US Airways to Transfer 90 From Phila. Regional Service

Posted on: Friday, 8 July 2005, 21:00 CDT

Jul. 8--US Airways Group Inc., operating under bankruptcy protection, will transfer nearly 90 employees from a regional service in Philadelphia to similar operations in other cities, the parent company said yesterday.

All but one of the jobs will be shifted from subsidiary PSA Airlines Inc. to Air Wisconsin Airlines Corp., a holding company that recently signed an agreement to operate US Airways Express flights in Charlotte, N.C.; Dayton, Ohio; and Knoxville, Tenn., according to David Castelveter, a US Airways spokesman.

PSA Airlines is based in Ohio and operates US Airways Express service in Philadelphia and Charlotte.

It disclosed the transfers in a June 29 layoff notice to the Pennsylvania Department of Labor and Industry, saying it would "permanently" reduce its Philadelphia crew by 59 pilots, 29 flight attendants, and one other employee, effective on or before Sept. 1.

The notice is required under federal law for large numbers of job cuts or layoffs.

Castelveter said the change was effectively a transfer, not a layoff. He said PSA Airlines was still hiring pilots and flight attendants and expected to maintain its current payroll of about 1,550 people.

All but one of the PSA Airlines employees "have already bid at the other sites and they transferred," Castelveter said.

Air Wisconsin, based in Appleton, Wis., describes itself as the country's largest independently held regional airline. It has partnerships with both US Airways and United Airlines.

In a separate corporate development, America West and US Airways said Tudor Investment Corp. agreed to provide $65 million to help finance the planned merger of the two airlines.

Tudor, a Greenwich, Conn., hedge fund, will receive 3.9 million shares, or a 6 percent stake, in the combined airline once the merger is completed, US Airways said in a statement.

The merger, financed by more than $1.5 billion from outside investors, suppliers and others, will allow US Airways to emerge from bankruptcy protection.

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Source: The Philadelphia Inquirer

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