ARLINGTON, Va. - US Airways Group is replacing its president and chief executive, David Siegel, as it tries to secure deep cost cuts from employees and avoid a return trip to bankruptcy court.

Siegel will be replaced by Bruce Lakefield, 60, a member of the airline's board and a close ally of US Airways chairman David Bronner, who has enjoyed better relations with labor groups. Siegel had tangled with the airline's labor unions, which had been seeking his resignation.

Siegel led the company out of bankruptcy protection a year ago after eight months in Chapter 11. The company slashed costs by nearly $2 billion a year, including about $1 billion in concessions from labor groups, but analysts have said the company's still-steep employee costs hamper its competitive standing against discount carriers.

When Siegel said earlier this year that another round of cost cuts of more than $1 billion would be needed to keep the company afloat, only the pilots agreed to new talks. Earlier this month, the pilots' union replaced several members of its negotiating committee as some factions within the union sought a tougher stance in negotiations.

Jack Stephan, spokesman for the US Airways unit of the pilots' union, welcomed the change.

"Basically we're pleased that Dr. Bronner listened," Stephan said. "A leadership change is a very important first step toward what we've been hammering as our mantra: the need to change the corporate culture."

Stephan called Lakefield "a man of integrity, business acumen ... and I think he has a track record of team building."

Joe Tiberi, a spokesman for the International Association of Machinists, said the change in leadership does not affect the union's stance on negotiations. He said the union is willing to discuss cost savings under the existing labor agreement but will not renegotiate the contract.

In the past, Tiberi said, Bronner has been willing to consider suggestions from the union that were rejected by Siegel's management team.

Bronner and Lakefield assumed their roles on the board as US Airways emerged from bankruptcy last year. Bronner heads the Retirement Systems of Alabama - an agency with a history of relatively unconventional investments for a public pension fund - which bankrolled US Airways' emergence, with the help of a $900 million federally guaranteed loan.

Lakefield served as chairman and CEO of Lehman Brothers International from 1995 to 1999, when he retired.

Last month, US Airways restructured the terms of its government-backed loan to avoid a potential default. Auditors have expressed concern that the airline may face another bankruptcy filing.

The airline, which has major hubs in Philadelphia and Pittsburgh, has struggled to compete against low-fare carriers, particularly Southwest, which dethroned US Airways as the largest carrier in Baltimore and is preparing to launch service from Philadelphia.