US Airways Outlines Concessions Request for Frequent-Fliers’ Union
ARLINGTON, Va., April 1, 2005 -- US Airways Group, Inc. (OTC: UAIRQ) today announced that the Company has submitted a request for concessions to FFOCUS, the union that represents US Airways frequent-fliers.
“There is no fun in doing this, and we take no pleasure in asking our frequent-fliers to make major sacrifices,†said US Airways President and Chief Executive Officer Bruce R. Lakefield. “However, we have come too far and accomplished too much to simply stop the process and not succeed.â€
Among the concessions requested by US Airways are the following:
• The mileage balances of all Dividend Miles members will be reduced by 15.4% immediately upon ratification by FFOCUS. A further 6.2% mileage balance reduction will take place six months after ratification, or on October 31, 2005, whichever comes first.
• Effective June 1, co-payment fee of $25 per segment will apply to Preferred First Class upgrades within North America from discounted fares. Chairman’s Preferred members will be exempt from the co-payment fee.
• Effective June 15, US Airways’ popular In-Flight Café program will be expanded to the First Class cabin on all flights within North America, and to the Main Cabin on Transatlantic flights. Transatlantic Envoy Class customers will receive a complimentary streamlined meal service.
• Effective July 1, a nominal charge will be implemented for all beverage products served in the Main Cabin on domestic flights.
In connection with the concessionary agreement, the Company will implement a frequent-flier mileage-earning plan that will allow its best customers to accrue additional miles based on the Company’s future pre-tax earnings. US Airways frequent-fliers will continue to benefit from many product offerings that are unique among low-cost carriers, including two-class service, international flights to Europe, the Caribbean, Latin America and Canada, service to airports that business travelers prefer, access to a global network via the Star Alliance, an award-winning frequent flyer program and friendly onboard service.
“Once the concessions are implemented, US Airways will be the beauty queen of the airline industry,†said Chris Chiames, US Airways senior vice president of corporate affairs.
The Company anticipates a cost savings of approximately $100 million once the changes are fully implemented. US Airways hopes that it will be able to achieve a consensual agreement with FFOCUS. Should a consensual agreement not be reached, the Company will be required to seek a judicial remedy.
Certain of the statements contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect the current views of US Airways Group (the "Company") with respect to current events and financial performance. You can identify these statements by forward-looking words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" or similar words. These forward-looking statements may also use different phrases. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to obtain and maintain any necessary financing for operations and other purposes, whether debtor-in-possession financing or other financing; the ability of the Company to maintain adequate liquidity; the ability of the Company to absorb escalating fuel costs; the Company’s ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company’s ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 proceedings on the Company’s liquidity or results of operations; the ability of the Company to operate pursuant to the terms of its financing facilities (particularly the financial covenants); the ability of the Company to fund and execute its Transformation Plan during the Chapter 11 proceedings and in the context of a plan of reorganization and thereafter; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to attract and retain customers; the ability of the Company to maintain satisfactory labor relations; demand for transportation in the markets in which the Company operates; economic conditions; labor costs; financing availability and costs; security-related and insurance costs; competitive pressures on pricing (particularly from lower-cost competitors) and on demand (particularly from low-cost carriers and multi-carrier alliances); weather conditions; government legislation and regulation; impact of the continued military activities in Iraq; other acts of war or terrorism; and other risks and uncertainties listed from time to time in the Company’s reports to the SEC. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company’s various prepetition liabilities, common stock and/or other equity securities. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
This is a press release parody, protected by the First Amendment under Hustler Magazine v. Falwell - it is not to be taken seriously or used for anything other than entertainment purposes.
ARLINGTON, Va., April 1, 2005 -- US Airways Group, Inc. (OTC: UAIRQ) today announced that the Company has submitted a request for concessions to FFOCUS, the union that represents US Airways frequent-fliers.
“There is no fun in doing this, and we take no pleasure in asking our frequent-fliers to make major sacrifices,†said US Airways President and Chief Executive Officer Bruce R. Lakefield. “However, we have come too far and accomplished too much to simply stop the process and not succeed.â€
Among the concessions requested by US Airways are the following:
• The mileage balances of all Dividend Miles members will be reduced by 15.4% immediately upon ratification by FFOCUS. A further 6.2% mileage balance reduction will take place six months after ratification, or on October 31, 2005, whichever comes first.
• Effective June 1, co-payment fee of $25 per segment will apply to Preferred First Class upgrades within North America from discounted fares. Chairman’s Preferred members will be exempt from the co-payment fee.
• Effective June 15, US Airways’ popular In-Flight Café program will be expanded to the First Class cabin on all flights within North America, and to the Main Cabin on Transatlantic flights. Transatlantic Envoy Class customers will receive a complimentary streamlined meal service.
• Effective July 1, a nominal charge will be implemented for all beverage products served in the Main Cabin on domestic flights.
In connection with the concessionary agreement, the Company will implement a frequent-flier mileage-earning plan that will allow its best customers to accrue additional miles based on the Company’s future pre-tax earnings. US Airways frequent-fliers will continue to benefit from many product offerings that are unique among low-cost carriers, including two-class service, international flights to Europe, the Caribbean, Latin America and Canada, service to airports that business travelers prefer, access to a global network via the Star Alliance, an award-winning frequent flyer program and friendly onboard service.
“Once the concessions are implemented, US Airways will be the beauty queen of the airline industry,†said Chris Chiames, US Airways senior vice president of corporate affairs.
The Company anticipates a cost savings of approximately $100 million once the changes are fully implemented. US Airways hopes that it will be able to achieve a consensual agreement with FFOCUS. Should a consensual agreement not be reached, the Company will be required to seek a judicial remedy.
Certain of the statements contained herein should be considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect the current views of US Airways Group (the "Company") with respect to current events and financial performance. You can identify these statements by forward-looking words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" or similar words. These forward-looking statements may also use different phrases. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the Company to continue as a going concern; the ability of the Company to obtain and maintain any necessary financing for operations and other purposes, whether debtor-in-possession financing or other financing; the ability of the Company to maintain adequate liquidity; the ability of the Company to absorb escalating fuel costs; the Company’s ability to obtain court approval with respect to motions in the Chapter 11 proceedings prosecuted by it from time to time; the ability of the Company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the Company to propose and confirm one or more plans of reorganization, to appoint a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the Company to obtain and maintain normal terms with vendors and service providers; the Company’s ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 proceedings on the Company’s liquidity or results of operations; the ability of the Company to operate pursuant to the terms of its financing facilities (particularly the financial covenants); the ability of the Company to fund and execute its Transformation Plan during the Chapter 11 proceedings and in the context of a plan of reorganization and thereafter; the ability of the Company to attract, motivate and/or retain key executives and associates; the ability of the Company to attract and retain customers; the ability of the Company to maintain satisfactory labor relations; demand for transportation in the markets in which the Company operates; economic conditions; labor costs; financing availability and costs; security-related and insurance costs; competitive pressures on pricing (particularly from lower-cost competitors) and on demand (particularly from low-cost carriers and multi-carrier alliances); weather conditions; government legislation and regulation; impact of the continued military activities in Iraq; other acts of war or terrorism; and other risks and uncertainties listed from time to time in the Company’s reports to the SEC. There may be other factors not identified above of which the Company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The Company assumes no obligation to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the Company’s various prepetition liabilities, common stock and/or other equity securities. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities.
This is a press release parody, protected by the First Amendment under Hustler Magazine v. Falwell - it is not to be taken seriously or used for anything other than entertainment purposes.