Posted on: Tuesday, April 20, 2004

US Airways CEO resigns amid worker mistrust

By Keith L. Alexander
Washington Post

US Airways Group Inc. president and chief executive David N. Siegel abruptly resigned yesterday in the midst of a painful restructuring of the airline, which emerged from bankruptcy only 13 months ago.

Siegel, 42, whose management style earned him the mistrust of workers, said in a statement that his departure was "in the best interest of the company, as management seeks to secure the necessary changes to make the airline competitive."

He was replaced by Bruce R. Lakefield, 60, a US Airways board member. Lakefield was chairman and chief executive of Lehman Brothers International from 1995 to 1999.

Siegel's resignation comes as the struggling airline is facing a pivotal battle with low-fare carrier Southwest Airlines, which begins flying next month out of Philadelphia International Airport, a key US Airways hub. US Airways has also been hit by other low-cost carriers that have increased service on lucrative routes, such as JetBlue Airways. The carrier has not made a profit from operations since emerging from bankruptcy.