May 15, 2003—US Airways today announced it has signed a Memorandum of Understanding (MoU) with Lufthansa Airlines, covering the establishment of a long-term strategic alliance.

US Airways President and CEO David Siegel said, “This new alliance with Lufthansa comes at a very exciting time for US Airways, as we begin implementing the business goals we set forth during our restructuring. We are the biggest carrier on the East Coast, and bring to Lufthansa our base of four million active frequent flyers and feed traffic. Our customers will see new destinations and additional customer service benefits - enhancements we plan to multiply as we move towards membership in the Star Alliance.”

“We are looking forward to working with US Airways to improve the travel options of our customers by enhancing access to both parties’ extensive networks, code-sharing, joint promotions, and customer services such as through-check-in, lounge access and mileage accrual,” said Juergen Weber, Chairman and CEO of Lufthansa German Airlines, adding “US Airways has indicated its interest in also joining the Star Alliance and we strongly support their participation in Star as well. This is a newly invigorated company, one with a clear focus on providing world-class service to its customers in a way that ensures the success of the business - priorities which we share.”

US Airways is the nation’s seventh-largest airline, serving nearly 200 communities in the U.S., Canada, Mexico, the Caribbean and Europe. Its transatlantic service operates primarily from its new international terminal in Philadelphia, the fifth-largest metropolitan area in the U.S. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate over 3,300 flights per day.

From its Frankfurt and Munich hubs, Lufthansa provides one of the most extensive global networks of any major airline, flying to 340 destinations in nearly 90 countries worldwide, including 18 cities throughout North America.

Reporters needing additional information should contact US Airways Corporate Communications at (703) 872-5100.

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