EricLv2Fish
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- Aug 25, 2005
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From Corporate Communications:
Thousands of employees have spoken up following September’s combined company pass policy announcement and, in response to employees’ suggestions, several items have been reconsidered.
Jeff McClelland, chief administrative officer, explained, “In re-evaluating the initial new airline’s pass policy, we asked ourselves how we would draft it if we were starting an airline. The answer is a balance between generous pass travel for employees and fair travel for their family and friends – all with a reasonable impact our bottom line, a minimal amount of revenue dilution, and simplicity.â€
Jeff continued, “We received significant feedback after our initial announcement, causing us to take a closer look at certain elements. With today’s modifications, we feel we have made adjustments that pass the ‘look them in the eye’ test with respect to being generous and fair. The new US Airways offers one of the most generous travel programs for its employees in the industry.â€
As employees will see, the amendments below are focused on simplifying the way we do things. For example, why charge some retirees and not others? Why board some employees like active employees and some after active employees? In the name of simplicity – and to balance our employees’ suggestions with smart business practices – the benefits team will introduce the following procedures, effective on varying dates. (See charts below for expanded details.)
Retirees:
All retirees will travel at the same price as active employees – currently FREE. This eliminates the charges for those with less than 25 years. Parents of retirees will still be subject to service charges, the same as parents of active employees.
Retirees will board at a boarding priority one lower than active employees. Their eligible family members traveling unaccompanied will board at a boarding priority one lower than the retiree.
Note: boarding continues to vary between carriers, meaning travelers board first-come/first-serve within a boarding class on AWA-operated flights, and by seniority within a boarding class on US Airways-operated flights.
Long-term employees (otherwise known as: “retiree hopefulsâ€):
We will institute a "65 Point Plan" for active employees and any employees who have been furloughed or severed since Sept. 27, 2005, the date of the merger’s close. Under this plan, an employee with 10 years or more of service can have retiree flight privileges when his/her age and years of service adds up to 65.
The 50/10 program that was previously announced (meaning an employee can receive retiree flight privileges at the age of 50 with 10 years of service) will still be an option throughout 2006.
Non-Dependent Children
When we implement the first phase of the overall new pass travel program sometime in March, non-dependent children of AWA payroll employees will no longer be able to travel on an unlimited basis using Guest Pass fares. Rather only dependents under the age of 19 (or 25 and enrolled in college) will be considered eligible travelers. The non-dependent children program will not be available to any employees or retirees.
Following are additional details, as well as background on the original (September) announcement, sample issues that arose, and the revised policy.
Retirees:
Original Announcement
Considerations
Revised Policy
Retirees with fewer than 25 years of seniority would pay $15 per segment.
· Retirees are on a fixed income.
· Current AWA employees couldn’t have more than 25 years of seniority because the company started 22 years ago.
Beginning January 1, 2006 all retirees will travel at the same price as active employees – currently FREE. This eliminates the charges for those with less than 25 years. Parents are subject to paying the applicable service charge
Original Announcement
Considerations
Revised Policy
Retirees’ relative boarding priority would remain status quo (just below active employees for those with less than 20 years of seniority).
Retirees with 20 years or more would board at the active employees’ priority.
· Active employees should have priority for boarding.
· Retirees should have consistent boarding among the group.
Effective in early ’06, retirees will board following active employees, with the exception of a group of flight attendant retirees who have a specific contractual right to board like active employees. This eliminates the active boarding priority for retirees with 20 years or more.
Long-term employees (aka: “retiree hopefulsâ€):
Original Announcement
Considerations
Revised Policy
Employees could receive retiree flight benefits at the age of 50 with 10 years of service.
· Some employees have far more than 10 years of service, but aren’t yet 50 and would like to retire, or are facing furloughs.
· According to the 50/10 plan, these employees would not be eligible for retirement pass benefits, despite (in many cases) decades of service to the company.
Effective immediately, US Airways is introducing a “65 Point Plan†in which an employee with 10 years or more or service can have retiree flight privileges when his/her age and years of service add up to 65. This will also apply to any employee who has been furloughed or severed since September 27, 2005
The 50/10 policy, in which employees could have pass privileges at the age of 50 with 10 years of service, will remain in effect through 2006. After that date, the 50/10 policy will no longer apply.
Let us illustrate the 65 Point Plan: Jane is a 28-year customer service agent, but she’s a youthful 48 years old. According to the previous plan, she’d have to work for two more years before enjoying retiree flight privileges. Now, she can enjoy them immediately. Her coworker Joe has 12 years of service and is 53. He too can leave the company with retiree flight privileges
Conversely, John is 58 and has eight years of service. He does not apply for retiree flight privileges when he leaves the company because he doesn’t meet the minimum of 10 years of service. Had he worked for two more years, however, he would have qualified because he’d have reached 10 years of service.
Please note, the 65 Point Plan is for pass privileges only, meaning an employee can’t retire with other retirement benefits (sick leave buy-out, medical, etc.) until they’re of actual retirement age, which is generally 55 in the East. The distinction is moot for AWA employees, whose retirement benefits consist entirely of flight privileges, but it is an important distinction for employees of the “old†US Airways.
Non-dependent Children
Original Announcement
Considerations
Revised Policy
Employees’ “non-dependent children†up to age 35 would travel unlimited at a Guest Pass fare.
· Virtually no other airlines include non-dependents as eligible travelers.
· Allowing non-dependent children to travel at Flexi fares dilutes revenue (meaning they’d otherwise be buying a revenue ticket).
Effective in early ’06, non-dependent children will not be eligible; rather only dependent children under age 19 (or age 25 if they’re enrolled in college full-time and are still claimed as dependents) can travel unlimited. Those dependents travel for free.
The ability to have a special travel program for non-dependent children was unique to AWA employees. US Airways did not have a pass policy for non-dependents and a more detailed analysis of the revenue dilution of such a program led us to conclude that we should not continue this program. So, it will not be in place for former US Airways employees and it will end for former AWA employees.
Look for far more details to come, including the next phase of the pass policy implementation. In the meantime, employee comments are welcome at Row23Middle@usairways.com.
Thousands of employees have spoken up following September’s combined company pass policy announcement and, in response to employees’ suggestions, several items have been reconsidered.
Jeff McClelland, chief administrative officer, explained, “In re-evaluating the initial new airline’s pass policy, we asked ourselves how we would draft it if we were starting an airline. The answer is a balance between generous pass travel for employees and fair travel for their family and friends – all with a reasonable impact our bottom line, a minimal amount of revenue dilution, and simplicity.â€
Jeff continued, “We received significant feedback after our initial announcement, causing us to take a closer look at certain elements. With today’s modifications, we feel we have made adjustments that pass the ‘look them in the eye’ test with respect to being generous and fair. The new US Airways offers one of the most generous travel programs for its employees in the industry.â€
As employees will see, the amendments below are focused on simplifying the way we do things. For example, why charge some retirees and not others? Why board some employees like active employees and some after active employees? In the name of simplicity – and to balance our employees’ suggestions with smart business practices – the benefits team will introduce the following procedures, effective on varying dates. (See charts below for expanded details.)
Retirees:
All retirees will travel at the same price as active employees – currently FREE. This eliminates the charges for those with less than 25 years. Parents of retirees will still be subject to service charges, the same as parents of active employees.
Retirees will board at a boarding priority one lower than active employees. Their eligible family members traveling unaccompanied will board at a boarding priority one lower than the retiree.
Note: boarding continues to vary between carriers, meaning travelers board first-come/first-serve within a boarding class on AWA-operated flights, and by seniority within a boarding class on US Airways-operated flights.
Long-term employees (otherwise known as: “retiree hopefulsâ€):
We will institute a "65 Point Plan" for active employees and any employees who have been furloughed or severed since Sept. 27, 2005, the date of the merger’s close. Under this plan, an employee with 10 years or more of service can have retiree flight privileges when his/her age and years of service adds up to 65.
The 50/10 program that was previously announced (meaning an employee can receive retiree flight privileges at the age of 50 with 10 years of service) will still be an option throughout 2006.
Non-Dependent Children
When we implement the first phase of the overall new pass travel program sometime in March, non-dependent children of AWA payroll employees will no longer be able to travel on an unlimited basis using Guest Pass fares. Rather only dependents under the age of 19 (or 25 and enrolled in college) will be considered eligible travelers. The non-dependent children program will not be available to any employees or retirees.
Following are additional details, as well as background on the original (September) announcement, sample issues that arose, and the revised policy.
Retirees:
Original Announcement
Considerations
Revised Policy
Retirees with fewer than 25 years of seniority would pay $15 per segment.
· Retirees are on a fixed income.
· Current AWA employees couldn’t have more than 25 years of seniority because the company started 22 years ago.
Beginning January 1, 2006 all retirees will travel at the same price as active employees – currently FREE. This eliminates the charges for those with less than 25 years. Parents are subject to paying the applicable service charge
Original Announcement
Considerations
Revised Policy
Retirees’ relative boarding priority would remain status quo (just below active employees for those with less than 20 years of seniority).
Retirees with 20 years or more would board at the active employees’ priority.
· Active employees should have priority for boarding.
· Retirees should have consistent boarding among the group.
Effective in early ’06, retirees will board following active employees, with the exception of a group of flight attendant retirees who have a specific contractual right to board like active employees. This eliminates the active boarding priority for retirees with 20 years or more.
Long-term employees (aka: “retiree hopefulsâ€):
Original Announcement
Considerations
Revised Policy
Employees could receive retiree flight benefits at the age of 50 with 10 years of service.
· Some employees have far more than 10 years of service, but aren’t yet 50 and would like to retire, or are facing furloughs.
· According to the 50/10 plan, these employees would not be eligible for retirement pass benefits, despite (in many cases) decades of service to the company.
Effective immediately, US Airways is introducing a “65 Point Plan†in which an employee with 10 years or more or service can have retiree flight privileges when his/her age and years of service add up to 65. This will also apply to any employee who has been furloughed or severed since September 27, 2005
The 50/10 policy, in which employees could have pass privileges at the age of 50 with 10 years of service, will remain in effect through 2006. After that date, the 50/10 policy will no longer apply.
Let us illustrate the 65 Point Plan: Jane is a 28-year customer service agent, but she’s a youthful 48 years old. According to the previous plan, she’d have to work for two more years before enjoying retiree flight privileges. Now, she can enjoy them immediately. Her coworker Joe has 12 years of service and is 53. He too can leave the company with retiree flight privileges
Conversely, John is 58 and has eight years of service. He does not apply for retiree flight privileges when he leaves the company because he doesn’t meet the minimum of 10 years of service. Had he worked for two more years, however, he would have qualified because he’d have reached 10 years of service.
Please note, the 65 Point Plan is for pass privileges only, meaning an employee can’t retire with other retirement benefits (sick leave buy-out, medical, etc.) until they’re of actual retirement age, which is generally 55 in the East. The distinction is moot for AWA employees, whose retirement benefits consist entirely of flight privileges, but it is an important distinction for employees of the “old†US Airways.
Non-dependent Children
Original Announcement
Considerations
Revised Policy
Employees’ “non-dependent children†up to age 35 would travel unlimited at a Guest Pass fare.
· Virtually no other airlines include non-dependents as eligible travelers.
· Allowing non-dependent children to travel at Flexi fares dilutes revenue (meaning they’d otherwise be buying a revenue ticket).
Effective in early ’06, non-dependent children will not be eligible; rather only dependent children under age 19 (or age 25 if they’re enrolled in college full-time and are still claimed as dependents) can travel unlimited. Those dependents travel for free.
The ability to have a special travel program for non-dependent children was unique to AWA employees. US Airways did not have a pass policy for non-dependents and a more detailed analysis of the revenue dilution of such a program led us to conclude that we should not continue this program. So, it will not be in place for former US Airways employees and it will end for former AWA employees.
Look for far more details to come, including the next phase of the pass policy implementation. In the meantime, employee comments are welcome at Row23Middle@usairways.com.
