MEC Code-A-Phone 11 Feb, Conditional Loan


Feb 11, 2003
February 11, 2003
This is Roy Freundlich with a US Airways MEC update for Tuesday, February 11, with one new item:
The Air Transportation Stabilization Board announced today that is has conditionally approved US Airways'' loan guarantee application for 900 million dollars. The Board stated that its approval is subject to several conditions before the government will activate the guarantee. This includes finalizing concession deals with workers, obtaining final bankruptcy court approval of its reorganization proposal, and resolving the pilots'' retirement plan funding issue.
The board also agreed to take a 10 percent stake in US Airways and said it may seek more agreements on other matters with the Company before the bankruptcy process ends.
The fact that the ATSB conditionally approved US Airways loan guarantee does not mitigate the excessive harm that management intends to impart on pilots'' retirement benefits. Your MEC is continuing its efforts to preserve pilots'' earned pension benefits. ALPA has filed a grievance challenging the Company''s unilateral action to terminate the pilots'' plan, and will to file an objection in the bankruptcy court by the required objection date, currently February 13, and vigorously oppose the debtors'' motion at the hearing scheduled for February 20. Other internal committee activity is also being coordinated.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.