Siegel Resigns, US Airways Hands Reins To Director Lakefield
US Airways president and CEO David Siegel yesterday resigned amid financial turmoil and deteriorating labor relations at the seventh-largest U.S. carrier. He was replaced immediately by Bruce R. Lakefield, chairman of the board of directors' finance and strategy and human resources committees. Lakefield previously served as chairman and CEO of Lehman Brothers International until his retirement in 1999. He became a US Airways director last March when the company emerged from bankruptcy protection.
Siegel said his decision stemmed from the "belief that my leaving is in the best interests of the company" and that the airline's "ability to move forward and make additional changes require a change in leadership." He said he hoped his decision marks "the first step in a healing process that will enable the company to complete its restructuring."
Though Lakefield has no direct airline management experience, US Airways chairman David Bronner said he is "an experienced and seasoned executive."
That view was shared by Steve Tracas, the carrier's former vice president of sales. "David Siegel did a good job in reducing costs, handling the necessity of bankruptcy and securing the loan from the Air Transportation Stabilization Board," he said. "But change is good and now allows a new leader to come in and work with labor and other members of management to bring US Airways to the next level."
Lakefield is said to be one of Bronner's closest advisors and an effective liaison between labor and management. His task of returning US Airways to financial stability won't be easy. For starters, it will require more concessions from employees who may be more willing to work with new leadership. Lakefield also must find a strategy to contain Southwest's growth in Philadelphia, effectively deploy dozens of new regional jets, convince corporate clients to stay or return to the airline and interface with domestic and international alliance partners.
US Airways is the second major carrier this year to replace its CEO with an existing board member. Delta Air Lines on Jan. 1 gave the top job to Gerald Grinstein following Leo Mullin's resignation.