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US Air back on its heels.

Article Excerpt
After completing a fast-track bankruptcy reorganization last year and apparently regaining its footing under the leadership of CEO David Siegel, US Airways now faces its biggest challenges.

The seventh-largest U.S. airline must confront serious financial impediments and competitive pressures--both old and new--that threaten to shrink the airline and lessen its appeal to corporate travel buyers. If it is to maintain its current role in the market, US Airways must survive a Southwest AMines attack on its Philadelphia hub, find a new middle ground with increasingly irate labor unions and make good on a federally backed loan. The degree to which its network could change remains unclear. In the most extreme scenario, corporate buyers lose a major East Coast supplier.

To avoid that fate and meet financial requirements on a $900 million federal loan guarantee approved last February, US Airways is considering the sale of certain assets. Potentially on the block are the East Coast shuttle, regional operations, certain airport slots and facilities and perhaps even one of its hub operations.

A source familiar with the airline's situation said the company has not yet decided to sell any...

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