US Airways has lost a round in its attempts to outsource heavy aircraft maintenance. A federal judge ruled that the work, to be done by Singapore Airlines subsidiary ST Aerospace, would violate the contract with the International Association of Machinists. A higher appeals court will make the final decision, but if US Airways does not win the appeal, it could ground as many as 10 Airbus A319s. The outsourcing effort was a major cost-cutting move, as was US Airways' cancellation of a pilot retirement plan. It is negotiating with federal pension-protection authorities to have that action cleared.

Source: Airline Business