US Airways Pilots Ratify 5-Year Pact

US Airways Group Inc. pilots ratified a new five-year labor contract with the airline, opening the way for the company to lower its costs and proceed with the purchase of new Airbus Industrie planes. The Air Line Pilots Assn., which represents 4,800 US Airways pilots, said 84% of pilots voting opted to approve the contract. About 88% of the union members voted, ALPA spokesman Mike Oakey said. After 18 months of sometimes contentious labor negotiations, the agreement may allow the Arlington, Va.-based airline to enter a period of relative labor calm, giving Chief Executive Stephen Wolf the opportunity to pursue his plan for reducing costs and expanding the airline. US Airways shares rose $1 to close at $46.88 on the New York Stock Exchange. Wolf has said the airline--the nation’s fifth-largest--would pursue the purchase of 120 Airbus Industrie planes if the pilots approved the contract. The airline has already made arrangements for the delivery of 30 of those planes by 2000, part of an order of up to 400 aircraft worth as much as $14 billion. Under the proposed contract, pilots’ pay would be pegged at the industry average plus 1% by 2001. The pilots also would receive stock options.