Re: Airbus on a roll

Date:         08 Dec 96 04:12:32 
From:         JW6191A@american.edu (John Witherspoon)
Organization: The American University
References:   1 2 3 4 5 6 7
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In article <airliners.1996.2690@ohare.Chicago.COM>
Joseph Edward Nemec <nemecj@mit.edu> writes:

>John Witherspoon wrote:
>
>> Moreover, if I recall correctly, the USAirways order hinges on
>> Wolf extracting wage concessions from the company's union employees.
>> If Wolf can't pull that off, the deal is off, as I understand it.
>
>Are you sure that you aren't confusing this with the American Airlines
>Boeing order? That is contingent upon the pilot's union ratifying
>their new contract with AA. (I suspect that the order is a done deal)

No.  According to the November 13 Washington Post, "[USAir's] contract
with Airbus Industrie stipulates that [USAir] can withdraw without
penalty if Wolf's team decides the airline is not financially
competitive."  It also quotes Wolf as saying, "If we are not cost-
competitive [as the result of a labor agreement], we can tear up
the contract."