NEW YORK (Reuters) - Leaders of US Airways Group Inc.'s pilots union late Monday rejected the carrier's latest contract proposal, a blow to the No. 7 U.S. airline's attempt to avoid a second bankruptcy filing.þþThe union's 12-member executive committee rejected a motion to send the Arlington, Virginia-based carrier's latest proposal to members for ratification, union spokesman Jack Stephan said in a statement, posted on the Air Line Pilots Association's Web site.þþUS Airways did not immediately return a call for comment. Before the union's statement, airline spokesman David Castelveter had said US Airways was hoping for a tentative agreement.þþUS Airways has been scrambling to agree on concessions with its unions, ahead of a possible default at the end of the month on its U.S.-guaranteed loans.þþSince emerging from Chapter 11 bankruptcy protection in the spring of 2003, US Airways has been hurt by high fuel prices and competition from low-cost carriers such as Southwest Airlines Inc. N)þþThe airline has been seeking $800 million of union givebacks, including $295 million from its pilots union, and $1.5 billion of overall cost savings.þþStephan said the executive committee meeting adjourned at 10:30 p.m. EDT. He urged pilots concerned about the ``ramifications'' of the decision to call their local representatives.þþUS Airways shares fell 22 cents to $2.35 in Friday trading on the Nasdaq. They rose 27 percent last week on investor optimism the airline was making progress in contract talks. þþþþ
Source: NY Times
