CHARLOTTE, NC -- A bankruptcy judge on Thursday canceled a collective bargaining agreement between US Airways and its machinists union, providing hundreds of millions of dollars in annual savings that the airline says will prevent the need for a quick liquidation.

Video

VIDEO: Another Important Deadline For US Airways

The company says the judge's ruling will save US Airways almost $300 million, but local mechanics union President Bill Wise says it means concessions for union workers.

"The implications are going to be devastating to the workers," he said.

Those concessions include a pay cut of anywhere from six to 30 percent, reduced benefits and the loss of thousands of jobs.

"It means what you built your career on could possibly be gone," said Wise.

There is a chance the two sides can reach an agreement before the ruling goes into effect. The union is sending the "best and final" offer from the company to the rank and file for a vote.

If union members approve the new contract by January 21, the judge's ruling will be grounded.

The judge also ruled Thursday that the company could terminate the pensions of machinists, flight attendants and an additional 28,000 retirees. That will save the company a billion dollars over five years.

Passengers say they are watching the situation closely. Some say they don't want to lose US Airways, but feel for the workers who will be sacrificing so much.

"There's not that many opportunities or different choices flying out of Charlotte. It does concern me if we lose US Airways. What will replace US Airways?" said traveler Byron Sackett.

"I don't think they have any choice. It's a shame, but I don't think US Airways is going to compete if they don't have lower costs," said traveler George Schieren.