ARLINGTON, Va., April 20 (UPI) -- The head of US Airways has resigned, the apparent victim of a clash with labor unions who opposed his call for more pay cuts.
David N. Siegel, 42, president and chief executive officer, quit the nation's seventh largest airline Monday after just two years at the top and one year out of bankruptcy.
The carrier's largest investor, Retirement Systems of Alabama, promptly named Bruce R. Lakefield, 60, one of its eight US Airways board representatives, as the new CEO.
The resignation comes at a time when US Airways prepares to battle Southwest and Frontier, which start service next month in Philadelphia, the Wall Street Journal reported reported Tuesday. US Airways employs 5,500 people and has 375 flights a day at Philadelphia airport.
"Obviously, he became very wounded in the process of trying to go back for more cuts and concessions," said Kevin P. Mitchell, chairman of the Business Travel Coalition.
Analysts said Siegel spoke bluntly of the need for cost cuts and concessions from unions.
"Their biggest problem is they're not cost competitive with low-fare airlines," said aviation consultant John V. Pincavage in Westport, Conn.
