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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report: March 9, 1994
USAir Group, Inc.
USAir, Inc.
Delaware
(State of Incorporation of Registrants)
Commission File Numbers:
USAir Group, Inc. 54-1194634
USAir, Inc. 53-0218143
(I.R.S. Employer Identification Numbers)
2345 Crystal Drive, Arlington, VA 22227
(Address of principal executive offices)
(703) 418-5306 (USAir Group, Inc.)
(703) 418-7000 (USAir, Inc.
(Registrants' telephone numbers including area code)
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Item 5. Other Events
On March 7, 1994, USAir, Inc. disseminated two press releases
regarding projections of financial results for the quarter ended
March 31, 1994 and the year ended December 31, 1994, British
Airways' decision not to make additional investments in USAir
Group, Inc., and the initiation of negotiations with the leadership
of its employee unions regarding pay reductions and productivity
improvements. The two press releases are filed as exhibits to this
report.
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Item 7. Financial Statements and Exhibits
(c) Exhibits
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Designation Description
___________ ___________
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99 Two press releases dated March 7, 1994
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.
USAir, Inc.
By: /s/James T. Lloyd
James T. Lloyd
Executive Vice President and
General Counsel
USAir Group, Inc.
By: /s/James T. Lloyd
James T. Lloyd
Executive Vice President
General Counsel and Secretary
Dated: March 9, 1994
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Exhibit 99
USAIR PREDICTS FIRST QUARTER LOSS
ARLINGTON, VA, March 7, 1994--USAir today reported that the
negative impact of unusually severe winter weather on its
operations thus far in 1994, and continued incursions by low-cost,
low-fare airlines, cause it to expect a first quarter pre-tax loss
of approximately $200 million and a pre-tax loss for the year in
excess of the $350 million loss reported for 1993.
"While storms in January and February forced us to cancel
about eight percent of our scheduled operations, the principal
cause of our unacceptable loss is the requirement to sharply lower
fares in response to the steady expansion of low-cost carriers into
many of our east coast markets," said USAir Chairman, President and
CEO Seth E. Schofield.
Schofield also reported that British Airways has indicated
that it will not pursue further investment in USAir until it is
clear that an effective cost-reduction program is firmly in place
and USAir's financial performance improves. In the meantime, USAir
and British Airways will continue to expand their code-sharing
program from the current 34 cities to the 66 previously authorized
by the U.S. Department of Transportation. The two airlines will
also move forward with their joint efforts to develop revenue
enhancement and cost-saving synergies.
USAir also confirmed that it will hold meetings with the
leadership of its employee unions today.
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Exhibit 99
USAIR REQUESTS UNIONS TO BEGIN TALKS ON COST REDUCTIONS
ARLINGTON, VA, MARCH 7, 1994--USAir requested the leaders of
its four unions today to begin substantive talks concerning cost
reductions and productivity improvements as part of an overall plan
to return the airline to profitability.
The Company requested that discussions center on pay
reductions and productivity improvements intended to bring USAir's
operating costs closer to those of low-cost airlines that have
recently begun expanding service in many of USAir's East Coast
markets.
"Labor cost reductions are but one of many cost cutting
initiatives that we must take if USAir is to remain viable in a
low-fare competitive environment," said USAir chairman, President
and CEO Seth E. Schofield. "We recognize that we must achieve cost
efficiencies in all areas of the Company."
About 50 percent of USAir's employees are represented by four
unions: The Air Line Pilots Association, the Association of Flight
Attendants, the International Association of Machinists and
Aerospace Workers and the Transport Workers Union.
Union leaders stated that they will review the company's
request.
