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Head of US Airways steps down amid discord with union leaders

US Airways president and chief executive David Siegel, whose demands for cost cuts created animosity with union leaders, resigned Monday from the nation's seventh-largest airline.

He will be replaced by Bruce Lakefield, a member of US Airways' board of directors and a close ally of US Airways chairman David Bronner, who has enjoyed better relations with labor groups.

Siegel said his resignation reflects a "belief that my leaving is in the best interests of the company, as management seeks to secure the necessary changes to make the airline competitive."

"I have great affection for the airline and its outstanding employees, and I want to see the company succeed. Unfortunately, the past two years have been difficult for all of us, and I believe our ability to move forward and make additional changes require a change in leadership," Siegel said.

Siegel led the company out of bankruptcy protection a year ago. The company cut costs by nearly US$2 billion a year, including about US$1 billion in concessions from labor groups.

But union groups were critical of Siegel's leadership. Late last year, the Air Line Pilots Association called for Siegel's resignation.

When Siegel said earlier this year that another round of cost cuts of more than US$1 billion would be needed to keep the company afloat, nearly all labor groups balked at entering a new round of talks.

A spokesman for the US Airways unit of the pilots' union said pilots welcomed the change.

"Basically we're pleased that Dr. Bronner listened," spokesman Jack Stephan said. "A leadership change is a very important first step toward what we've been hammering as our mantra: the need to change the corporate culture."

Bronner said Siegel "has done an admirable job leading the company through a critical period, securing necessary cost cuts and new financing, making the tough decisions that needed to be made in a restructuring, and building a business plan that has put the company back on the right path."
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