[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]December 28, 2002[?xml:namespace prefix = o ns = urn:schemas-microsoft-com

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[SPAN style=FONT-WEIGHT: bold]Do Not Want to Belabor the Point[o
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dear Local 40 members,[o

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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]I am, once again, compelled to write to you to give you the facts. By now, everyone should have received Mr. Siegel’s letter dated December 24, 2002 that came by US Postal Mail. With all due respect to our CEO, there are three misleading pieces of information that I, as your union representative must address.[o

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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dave states in his letter as follows:[o
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[LI class=MsoNormal style=COLOR: black; mso-list: l0 level1 lfo3; tab-stops: list .5in][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Regarding competitive medical/dental: “ For example, the typical major corporation, the employee contribution is 20% or more for the standard medical plan, and in our proposed medical plan, the contribution is STILL only 7%. So even with the changes you are now approving, your health care benefits remain at the top of those offered in corporate America.â€.[o

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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Fact:[o
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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Average Corporate America employee receives yearly increases to absorb increases in co. benefits through yearly job reviews; WE AS FLIGHT ATTENDANTS DO NOT.[o
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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]7% Medical Dave is referring to is OUR option 1 which is the only medical contribution the co. did not alter/increase. Now you have to ask yourself why? Answer: 95% of the flight attendants chose option 3, because this is where they can protect themselves and their families financially if they should have to use the medical system in the course of the year. Contributions are high (and now much higher 19.4%), but no out-of-pocket expenses going forward. If flight attendants migrate to option 1, t[SPAN style=DISPLAY: none; mso-hide: all]Tgoing forward. e high (and now much higher 19.4%), but no out-of- pocket expenseses, as well as the life insurance.w of any fli[/SPAN]hey will put their families in the most financial risk going forward as the “out-of-pocket†expenses are extremely high and unaffordable now and going forward. The Company, however, gets to save major dollars on the premium costs for the individual f/as and their families, so THAT IS WHERE THEY WANT YOU TO BE. They will open the enrollment again in January in hope that many flight attendants, once you see the increases this year and going forward in Option 2 and 3, will switch and migrate to option 1, thus putting you financially “in harms wayâ€, if you should become ill and need medical access.[o
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[LI class=MsoNormal style=COLOR: black; mso-list: l0 level1 lfo3; tab-stops: list .5in][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dave speaks about pensions costs going forward and [SPAN style=mso-spacerun: yes] [/SPAN]the co. legal obligation to contribute going forward. He also mentions the PBGC terminating the plan if the USAirways Board should decide to liquidate the Company if they do not get ratification.
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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Fact:[o
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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]If the company’s Board decides on a recommendation to liquidate this company, the PBGC will terminate the plan, WHICH MEANS THAT THE COMPANY WILL NOT CONTRIBUTE ANY MORE TO THE PLAN. IT ALSO MEANS THAT ANY CONTRIBUTIONS IN YOUR INDIVIDUAL PLAN STAYS INTACT AND GUARANTEED BY THE PBGC UNDER THEIR GUIDELINES. WHAT YOU HAVE ACCRUED YOU WILL GET UPON RETIREMENT AGE, NO MATTER WHAT YEAR YOU ARE IN. Our pension scale is very close to what we would receive in the plan if it were NOT terminated. What you need to know is that ALPA is 73% of the Company’s contributory liability over the next 7 years; IAM is approx. 14%; AFA is approx. 9%; and (other) is the remaining. What management won’t admit is that the contribution going forward on behalf of AFA will not be a problem [SPAN style=mso-spacerun: yes] [/SPAN]if our junior work force leaves the company within the 25 years due to difficult, permanent working rules and low wages, [SPAN style=mso-spacerun: yes] [/SPAN]the company will no longer have to concern themselves with contribution for flight attendants in a defined plan going forward. And beside that, flight attendants who happen to “flow†into Mid (wonderful) Atlantic don’t have a “defined pension planâ€. So, there you go; NO PROBEMO![o
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[LI class=MsoNormal style=COLOR: black; mso-list: l0 level1 lfo3; tab-stops: list .5in][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dave states: “You should trust us for the same reason that your UNION leaders have trusted us enough to sit down TWICE and CONSENSUALLY NEGOTIATE cost savings agreements. [o

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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Fact:[o
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[FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Again with all due respect….but HELLOOOOOO. We were given demands and threatened with door closure! No consensual negotiations here. All or nothing tactics. Two days is not negotiations folks just ask the other labor leaders like CWA.[o
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Also, I need to inform you that the proposal that was sent is INCOMPLETE. The medical deductibles starting in 2006 increases along with the co- pays do not reflect in this summary proposal. Also, the LTD states benefit current: maximum is $2,350, proposed:[SPAN style=mso-spacerun: yes] [/SPAN]maximum $7,500. Again, misleading. $7,500 is if your gross is $15,000 per month. Know of any flight attendant that makes $15,000 gross per month in wages??? Also, take a double look at Pre 65 retirees medical contributions and POST retirees, as well as the life insurance.[o

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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]In closing, I ask that you know the facts before you vote. Know that RSA (Retirement of Alabama) has the Federation of teachers pension (union) and also the Federal State Workers (union). I personally don’t like the idea of subsidizing their excellent retirement benefits. RSA [SPAN style=mso-spacerun: yes] [/SPAN]is not the only corporation in America that looks to invest…this is reality. Know that this company claims that their salaries will “snap back†when other labor groups “snap backâ€, their bonuses forfeited remain the same through 2003 only, and that they gave up their “whole life insurance premium and cash value policy, (keep in mind that many of these Exec. Just came on board less than a year and have NO “cash value†yet), and replaced this policy with a term life policy, and that our airline is in the best position going forward than any other major carrier today. You decide.[o

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