This is Gwen Outen with the VOA Special English Economics Report.

A business receives legal protection from its creditors when itdeclares bankruptcy. But what happens when a company declaresbankruptcy twice in just two years?

US Airways declared bankruptcy in August of two thousand two. Thecompany, like most airlines, suffered after the terrorist attacksthe year before. The company wanted to reorganize its debt andreduce costs.

US Airways received help from the Air TransportationStabilization Board. The government established this agency to aidairlines after the attacks of September eleventh, two thousand one.

The board agreed to guarantee nine hundred million dollars inloans for US Airways. The company received the largest loanguarantee of any airline. The guarantee made it easier for USAirways to find creditors.

In return, US Airways agreed to repay the loan or release much ofits property to the agency and the creditors.

While in bankruptcy, US Airways cut costs. It asked labor unionsto agree to a plan to reduce pay and other employment costs by onethousand nine hundred million dollars. The company told its workersthat the cuts were necessary for the airline to remain competitive.The unions agreed.

US Airways came out of bankruptcy protection in April of twothousand three. It had cut about two thousand million dollars incosts. But that still was not enough. US Airways could not make aprofit.

The company then tried to get workers to agree to new pay cutsworth about eight hundred million dollars. This time, the unionsrejected the proposal.

The company declared bankruptcy again earlier this month inAlexandria, Virginia. The announcement came days before the airlinewould have had to pay more than one hundred million dollars intoemployee retirement plans.

The government board has agreed to permit US Airways to continueits business under bankruptcy protection. But the agency hasrestricted the amount of money the company can spend.

Some experts say US Airways may be liquidated. This would meanthe end of the company and the sale of all its property.

US Airways says it will present a new financial plan by the endof the year.

Listen next week for another report about changes in the airlineindustry. This VOA Special English Economics Report was written byMario Ritter. This is Gwen Outen.