US Airways Files Chapter 11

September 13, 2004

US Airways Files Chapter 11
September 13, 2004 – US Airways filed for Chapter 11 Bankruptcy protection on Sunday, Sept 12. This is the second time in the last 25 months that the airline has gone to court for protection from creditors.

US Airways said it has cash to continue operating. Chapter 11 bankruptcy protection should allow the airline to restructure and reduce debts while continuing day-to-day operations. The airline reports that tickets will be honored, and refunds and exchanges will be made in accordance with current US Airways policies. Customers may find the latest information at a special Web site created by the carrier at http://www.transformingusairways.com/.

"We are confident our efforts will allow us to leverage our strengths and return to profitability," CEO Bruce Lakefield said in letter.

Under Chapter 11, US Airways hopes to accomplish what it couldn’t outside court: Negotiate concessions that will give it the lower operating costs now benefiting the discount carriers with which it competes.

Berkely advises tour operators that customers seeking coverage for US Airways trips should be advised that purchasing your NTA Travel Protection Plan now will not protect them if their trip is cancelled due to US Airways ceasing operations, as the filing for bankruptcy protection has occurred. However, travelers who are now purchasing the NTA Travel Protection Plan would still have coverage if their trip were to be cancelled due to any other covered reasons listed in the plan (such as illness, injury or death).

To read a letter to NTA tour operators from Berkely on this matter, click here.

If you have further questions at contact NTA at 800-682-8886 or 859-226-4444 or Berkely at 800-388-1470.