ARLINGTON, Va., July 3, 2002 -

US Airways Express carrier PSA Airlines, Inc., announced today that it has reached tentative agreements with its Air Line Pilots Association (ALPA) and the Association of Flight Attendants (AFA) on US Airways` restructuring plan.

The agreements, subject to ratification by each union`s membership, cover PSA Airlines` approximately 250 pilots and 130 flight attendants. PSA Airlines` agreement with the AFA is contingent on the participation of all PSA Airlines employees in US Airways` restructuring plan.

“We are grateful for the diligence and willingness of the leadership of both unions, which characterized our discussions throughout, and which led to the conclusion of our agreements in an amicable and timely manner,” said Richard Pfennig, president and chief executive officer of PSA Airlines. “This will enable PSA Airlines, a key partner in the US Airways Express network, to contribute significantly to the successful restructuring of the company.”

PSA Airlines, a wholly owned subsidiary of US Airways Group, Inc., is based in Dayton, Ohio, and operates 200 daily departures using a fleet of 30 turbo-prop aircraft, serving 30 destinations centered in the Ohio Valley and in the eastern U.S. The carrier has more than 1,500 employees.

PSA Airlines announced last month that it had reached agreement with ALPA`s Master Executive Council allowing the operation of regional jet aircraft by the carrier`s pilots.

PSA Airlines is one of four wholly owned US Airways Express carriers, which together with seven other affiliates, 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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