AP is reporting that a bankruptcy judge has granted US Airways the authority to immediately cut the pay of union employees by 21 percent as part of its effort to restructure its assets and save the troubled airline from going out of business. Reuters has a background story on US Airways' application for the cut here.

UPDATE: AP now has a story on today's ruling here, quoting US Bankruptcy Judge Stephen Mitchell as saying "Basically what we have here is a ticking fiscal time bomb." The text of Mitchell's order is not yet available online. The airline had sought a 23% reduction, which union officials had argued would have restored 1982-level pay rates.

UPDATE-2: US Airways has issued this statement on the decision.