US Airways Group, Arlington, Va., "does not intend to make" $110.5 million in pension payments due Wednesday, according to a motion filed today in U.S. Bankruptcy Court in Alexandria, Va. The carrier, which filed for Chapter 11 bankruptcy protection Sunday, is negotiating to modify its combined $1.67 billion pension plans and replace the machinists' and flight attendants' plans. If those talks fail, the airline will ask the bankruptcy court to free it from collective bargaining pacts that would "intend to freeze or terminate" the machinists' and flight attendants' plans as well as make "substantial modifications" to other pension plans, according to the filing.
The motion said officials for US Airways and its affiliates in bankruptcy "currently believe that they would not be able to meet their obligations under the pension plans and survive." US Airways spokesman Matt Triaca said the airline isn't commenting beyond today's court filing as to when it might make the scheduled payments.