May 18, 2003

This is Roy Freundlich with a US Airways MEC update for Friday, May 23.

US Airways management is making false and misleading public statements through Chris Chiames, senior vice president of corporate affairs, on the effect that proposed pension funding legislation will have on other employee pension plans. The proposed pension legislation being supported by the entire industry, except US Airways, will not and cannot result in the termination of the flight attendants’, mechanics’, or any other employee defined benefit retirement plan(s). In fact, the proposed legislation would ensure that these pension plans survive long term, along with the restoration of the pilots’ defined benefit plan. The national IAM and AFA are in support of the industry’s effort to achieve pension-funding legislation to secure all airline employee pension plans.

The termination of other employees’ pension plans was NEVER considered in the proposed pension legislation. The only effect that the legislation will have is to enact a needed change in the funding rules for all employees’ pension plans to level out the funding obligations, and to restore the pilots’ pension plan under these improved funding rules. This will result in a lower pension funding cost than what the Company said it could afford in the Plan of Reorganization’s Disclosure Statement, and save the Company over 300 million dollars during the seven-year term of the ATSB loan.

The IAM and the AFA are educating their members on the positive effect the proposed pension funding legislation will have in securing and maintaining their members’ benefits and reducing the risk of termination of their employee pension plans by US Airways management.

US Airways is contractually obligated to pursue and support legislation for the restoration of the pilots’ defined benefit plan, and management’s latest false public statements are another example of why the MEC unanimously passed a resolution of no confidence in US Airways senior management.

As management’s efforts to mislead employees and government officials on this and other issues escalate, its lack of credibility both inside and outside the Company is deepening. As a result, it is important to ensure that pension legislation contain a provision for mandatory restoration of the US Airways’ pilots defined benefit plan, in addition to ensuring other employee pensions are protected from future termination by US Airways. Management is proposing that the restoration of the pilots’ pension plan be optional to US Airways in the proposed pension legislation. It is imperative to us that restoration be mandatory.

Expect further updates on this issue shortly.

Please remember we have 1,827 pilots on furlough with 52 pilots scheduled for furlough on June 4.

Thank you for listening.
Wow the pilots are actually wanting to support the other unions? I guess only when they need something. Lets go back in the archives and see how much they supported the other unions during bankruptcy. "Either give or quit...don''t risk your fellow workers their jobs." Then the tables turned and it is all history from there on out. Hypo...nahhh, name calling isn''t polite even if it is the truth.