PS Group broke off talks with the Teamsters.

USAir Group’s $400-million merger with Pacific Southwest Airlines was thrown into doubt when PSA’s parent company, PS Group, announced that contract modification talks with Teamsters Airline Local 2707 had collapsed. The collapse comes two weeks before the April 30 merger deadline, after which either airline can back out of the deal. As a condition of completing the merger, USAir has demanded that PS Group renegotiate labor contracts with four unions representing about 4,000 employees, about 80% of whom are represented by the Teamsters. The Teamsters is the only PSA union that has not agreed to modify its contract.