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Saturday Morning News

U.S. Airways Averts Strike or Shutdown

Aired March 25, 2000 - 9:01 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

MILES O'BRIEN, CNN ANCHOR: We begin with a major development that affects commercial air traffic. If you're holding a ticket with U.S. Airways today, your flight plan should be OK. A labor dispute with the flight attendants' union had threatened to shut down the airline, which is the sixth largest in the country. But a few hours ago, a breakthrough was announced in the contract negotiations.

CNN's Kathleen Koch joining us live from Reagan National Airport in Washington with details -- Kathleen.

KATHLEEN KOCH, CNN CORRESPONDENT: Miles, the official deadline was midnight, but U.S. Airways and its flight attendants were so close to a deal that they stayed at the bargaining table past 3:00 a.m. this morning.

Now both sides had been willing to play hardball to force a contract. The union's 10,000 flight attendants were promising hit- and-run sporadic job disruptions, U.S. Airways vowing to shut down the entire airline before it would let passengers be kept in limbo.

But finally, after working four years without a contract or a raise, flight attendants say this agreement is a win-win situation for everyone.

(BEGIN VIDEO CLIP)

MARK LITTLETON, ASSOCIATION OF FLIGHT ATTENDANTS NEGOTIATING COMMITTEE: We secured pay increases for our members, the protections of the Family Medical Leave Act, we secured pension improvements so that our married flight attendants are no longer penalized in the way that their pensions are distributed. We just, you know, we couldn't be more pleased. We've got job protection in the event of a merger or acquisition or a partial transaction.

The things that our members told us were most important to them, the 10,000 flight attendants at U.S. Airways, we came to a very solid agreement on. We think that our members are going to be very pleased with this agreement.

(END VIDEO CLIP)

KOCH: U.S. Airways, meanwhile, released a statement saying both sides, quote, worked extremely hard to put in place an agreement that works for our flight attendants and allows the company to compete in the marketplace.

U.S. Airways could ill afford a shutdown. The company lost $85 million in the third quarter of 1999, $47 million in the fourth quarter of 1999, and has said that it expects losses in the first quarter of this year.

Now President Clinton, who does have strike-breaking powers, sent word to both sides to stay at the bargaining table last night until an agreement could be reached. No one has commented this morning. There's no official word on whether that actually helped achieve this final deal.

Now the contract still has to be approved by the union's master council and by rank-and-file flight attendants. But, Miles, considering the very happy reception that it's getting from union leaders this morning, it seems that final approval is likely.

Reporting live at Reagan National Airport, I'm Kathleen Koch.

O'BRIEN: Now for a few numbers: More than 150,000 people travel on U.S. Airways each day. In total over the year, that's 56 million people. And if you fly U.S. Airways, there's a very good chance pass through Pittsburgh Airport, its major hub.

That's where we find CNN's Ed Garsten.

Good morning, ED.

ED GARSTEN, CNN CORRESPONDENT: Well, good morning to you, Miles.

Hard to believe that this is U.S. Air's biggest hub, 508 flights a day. Look behind me. There is nobody, nobody at the ticket counter right now on this whole terminal. There have been some folks here, though, earlier today, clutches of 10, 12 at a time that have come to check in for their flights. We are told by a major travel agent in the area that one of the reasons for that, the major reason for that, is for fear of disruption. A lot of travelers simply made alternate plans or double booked.

We talked to some passengers that were in line earlier today. Most of them felt relief, and a lot of them just simply had the attitude that all's well that ends well.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I probably would have gotten to sleep in a little longer if I had gotten my alternative flight, but it worked out, so...

UNIDENTIFIED FEMALE: I'm very relieved. As a matter of fact, I stayed up until after midnight just to make sure that they were either going to strike or not. And we were all very relieved when we found out that the deadline had been extended.

UNIDENTIFIED MALE: My other flight arrangements weren't as convenient, so it was nice finding out that I got a direct flight again.

(END VIDEO CLIP)

GARSTEN: Well, U.S. Air won't say officially how much volumes are down but does admit that passenger levels are down this morning. We're also told, though, on an official basis that no flights have been canceled out of this airport.

Ed Garsten, CNN, reporting live from Pittsburgh International Airport.

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