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twitterSubsidiary closing down
Thursday, Jan. 15, 2004 | 11:06 a.m.
ARLINGTON, Va. -- US Airways will shut down its Allegheny Airlines subsidiary by the end of March, either by merging operations into another subsidiary or by liquidation.
Allegheny Airlines, based in Middletown, Pa., near Harrisburg, employs 1,421 workers and flies 41 Dash-8 turboprop planes that each carry 37 passengers. It serves 38 cities, mostly in the mid-Atlantic region.
The job losses associated with the plan are uncertain. The airline said Wednesday its preferred path is to merge Allegheny's operations into Piedmont Airlines, another turboprop subsidiary based in Salisbury, Md.
But the airline threatened that it may have to liquidate Allegheny's operations entirely if it cannot reach agreement with its unions on a consolidation plan.
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