ARLINGTON, Va., June 10, 2002—US Airways announced today that US Airways Express carrier, PSA Airlines, has reached an agreement with the Air Line Pilots Association (ALPA) that will allow the operation of regional jet aircraft.

The agreement between PSA Airlines and ALPA`s MEC is for regional jet flying to be undertaken by the carrier`s pilots. PSA Airlines—a wholly-owned subsidiary of US Airways Group, Inc.—currently operates a fleet of 30 Dornier 328 turbo-prop aircraft, serving 30 destinations centered in the Ohio Valley and in the eastern U.S.

US Airways President and Chief Executive Officer Dave Siegel said the agreement is “an important step” in preparing for US Airways` expansion of regional jet services across its U.S. network. “This agreement is mutually beneficial for both the company and its employees,” he said. “The growth of regional jet operations represents the future for US Airways. It is central to the successful restructuring of our company.”

PSA Airlines` previous agreement with ALPA did not include provisions for the operation of regional jet aircraft. The development follows an agreement in April between US Airways and ALPA to increase the number of regional jets within its US Airways Express network from 70 to 140.

US Airways is currently evaluating aircraft types, and will be making a decision shortly on its selection of regional jet equipment, delivery schedules and the number of aircraft that will be deployed in PSA Airlines. PSA Airlines, based in Dayton, Ohio, employs more than 1,500 staff and currently operates 200 daily departures.

Siegel said that US Airways is in active negotiations with regional jet manufacturers and credit providers to secure the necessary capital required to obtain more RJ aircraft. He said that the placement of RJs at PSA Airlines would be determined by US Airways` ability to secure aircraft delivery positions and financing, but that “a major impediment—the lack of a labor agreement—has now been resolved.”

PSA Airlines is one of three wholly-owned US Airways Express carriers, which, together with seven other affiliate carriers, currently operate more than 2,200 US Airways Express flights daily, serving 162 destinations in the U.S., Canada and the Caribbean.

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