(by Geck Finn)

U.S. Airways Group Inc. said to a bankruptcy court on Monday it was going to omit its pension payment.

A $110 million pension payment won’t be made as the company seeks for ways to avoid liquidation after filing for protection from its creditors. The hearing will take place as soon as on October 7, said the judge Stephen Mitchell which presids over the case.

On Monday, the company received a permission to continue operating using a loan it secured last year with the help of a guarantee from the federal Air Transportation Stabilization Board. It still owes to the government the total of $700 million.

U.S. Airways reported it must cut costs by $1.5 billion. $800 million from the total it hopes to get from labour unions that yielded nearly $2 billion to help the company out of its first bankruptcy.