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[P align=left][FONT face=Times New Roman color=#000000 size=4]MEC CODE-A-PHONE UPDATE - [/FONT][FONT face=Times New Roman color=#000000 size=3]November 21, 2002[BR][/FONT][FONT face=Times New Roman size=3][BR]This is Roy Freundlich with a US Airways MEC update for Thursday, November 21, with two new items: [BR][BR]Item 1. The MEC convened its special meeting today in Herndon and received a report from the Negotiating Committee. The Committee reported that management terminated additional small jet relief negotiations with ALPA this afternoon after informing the Committee that management’s latest counterproposal was their final offer and asked that ALPA not present a counterproposal to it.[/FONT][BR][BR][FONT face=Times New Roman size=3]The Committee reported that ALPA’s small jet proposal to the Company gave management everything that they had requested, except the ability to put 70-seat small jets at US Airways’ current wholly-owned carriers. During negotiations, management refused to address most of the MEC’s small jet relief issues.[/FONT][BR][BR][FONT face=Times New Roman size=3]The MEC spent the remainder of the day in closed session receiving reports from the Retirement and Insurance Committee and advisors, and the Staffing Review Committee.[/FONT][BR][BR][FONT face=Times New Roman size=3]The Staffing Review Committee focused on the committee’s review of Resource Planning’s 2003 staffing plan. The Committee has serious concerns about the Company’s staffing levels, especially levels during summer of 2003, and about the assumptions that the
Company’s inputs into the staffing model.[/FONT][BR][BR][FONT face=Times New Roman size=3]The MEC also received a report from Captain Ed Bular, Vice President of Flight Operations, Captain Lyle Hogg, Senior Director of Flight Operations, and Captain Paul Morell, Director of Flight Training and Standards in closed session.[/FONT][BR][BR][FONT face=Times New Roman size=3]The meeting is scheduled to reconvene tomorrow morning at 9:30 a.m. The meeting is being held at the Days Inn Conference Center Dulles Airport. The telephone number for transportation information is 703-471-6700. Please be advised that portions of the meeting will be in closed session.[/FONT][BR][BR][FONT face=Times New Roman size=3]Item 2. The Company and ALPA have agreed to a memorandum of understanding that confirms the entitlement to retirement-related benefits for furloughees hired prior to January 1, 1998, and pilots on a leave of absence in lieu of furlough who were hired prior to January 1, 1998. These pilots are entitled to the same benefits upon reaching normal retirement age as any pilot who remains on active status and subsequently retires upon reaching normal retirement age.[/FONT][BR][BR][FONT face=Times New Roman size=3]Specifically, a furloughed pilot who was hired before January 1, 1998, is entitled to receive the following benefits, which may be amended from time to time, upon reaching normal retirement age regardless of whether s/he is recalled to active status, provided s/he accepts recall and returns to active status if a recall is offered prior to normal retirement age:[/FONT][BR][BR][FONT face=Times New Roman size=3]1. Retiree medical and dental benefits[BR]2. Retiree life insurance benefits[BR]3. Retiree pass benefits[BR]4. Credited service in the retirement income plan for all time of furlough or leave of absence in lieu of furlough.[/FONT][BR][BR][FONT face=Times New Roman size=3]Furloughed pilots must keep their current address on file with the Company. Ninety days prior to the furloughee’s benefit commencement date, the Company will forward a letter to the pilot stating a complete listing of benefits upon retirement and all forms necessary to commence receipt of those benefits.[/FONT][BR][BR][FONT face=Times New Roman size=3]Please remember we have 1,356 pilots on furlough, with 326 pilot furloughs scheduled for January 7, and 145 additional pilot furloughs anticipated through April 2003.[/FONT][BR][BR][FONT face=Times New Roman size=3]Thank you for listening.[/FONT][/P]
Company’s inputs into the staffing model.[/FONT][BR][BR][FONT face=Times New Roman size=3]The MEC also received a report from Captain Ed Bular, Vice President of Flight Operations, Captain Lyle Hogg, Senior Director of Flight Operations, and Captain Paul Morell, Director of Flight Training and Standards in closed session.[/FONT][BR][BR][FONT face=Times New Roman size=3]The meeting is scheduled to reconvene tomorrow morning at 9:30 a.m. The meeting is being held at the Days Inn Conference Center Dulles Airport. The telephone number for transportation information is 703-471-6700. Please be advised that portions of the meeting will be in closed session.[/FONT][BR][BR][FONT face=Times New Roman size=3]Item 2. The Company and ALPA have agreed to a memorandum of understanding that confirms the entitlement to retirement-related benefits for furloughees hired prior to January 1, 1998, and pilots on a leave of absence in lieu of furlough who were hired prior to January 1, 1998. These pilots are entitled to the same benefits upon reaching normal retirement age as any pilot who remains on active status and subsequently retires upon reaching normal retirement age.[/FONT][BR][BR][FONT face=Times New Roman size=3]Specifically, a furloughed pilot who was hired before January 1, 1998, is entitled to receive the following benefits, which may be amended from time to time, upon reaching normal retirement age regardless of whether s/he is recalled to active status, provided s/he accepts recall and returns to active status if a recall is offered prior to normal retirement age:[/FONT][BR][BR][FONT face=Times New Roman size=3]1. Retiree medical and dental benefits[BR]2. Retiree life insurance benefits[BR]3. Retiree pass benefits[BR]4. Credited service in the retirement income plan for all time of furlough or leave of absence in lieu of furlough.[/FONT][BR][BR][FONT face=Times New Roman size=3]Furloughed pilots must keep their current address on file with the Company. Ninety days prior to the furloughee’s benefit commencement date, the Company will forward a letter to the pilot stating a complete listing of benefits upon retirement and all forms necessary to commence receipt of those benefits.[/FONT][BR][BR][FONT face=Times New Roman size=3]Please remember we have 1,356 pilots on furlough, with 326 pilot furloughs scheduled for January 7, and 145 additional pilot furloughs anticipated through April 2003.[/FONT][BR][BR][FONT face=Times New Roman size=3]Thank you for listening.[/FONT][/P]
