The US Airways pilot group,
represented by the Air Line Pilots Association, International,
today ratified the US Airways/ALPA Transformation Plan Tentative Agreement
by a 58% margin. This agreement supersedes the October 15, 2004 Bankruptcy
Court decision that ruled in favor of the Company’s motion to impose
immediate interim contractual relief on certain US Airways labor unions.
Under an agreement with US Airways, this consensual agreement will become
effective retroactive to October 15, 2004, subject to approval by ALPA’s
President and approval of the bankruptcy court. A motion seeking
bankruptcy court approval of this agreement is scheduled for October 26,
2004. The agreement, which is in effect until December 31, 2009, contains an 18%
pay cut, a decrease in the Company’s contributions to the pilots’ defined
contribution plan, and a modification of work rules that will
significantly increase pilot productivity. It also offers returns for the
pilots, including a profit sharing plan and equity participation shares.

“These provisions will provide the airline with the necessary elements
required to successfully implement US Airways’ Transformation Plan,
provided that other employee groups and stakeholders participate,” said US
Airways MEC Chairman Bill Pollock. “However, this agreement did not come
without tremendous sacrifices by our membership. While the burden that the
US Airways pilots have agreed to shoulder is immense, this vote signifies
that our pilots acknowledge the pain and sacrifice that is required to
address the reality of our situation.

“Clearly, this ratification shows that the pilots of US Airways understand
why it was necessary to come to a consensual agreement with the Company.
This agreement provides us with the means to survive, emerge from
bankruptcy as a formidable competitor, and ultimately prosper in even the
most challenging of economic environments,” said Captain Pollock.

“With the $1.8 billion that this agreement provides, US Airways pilots,
through previous restructuring efforts, including the termination of their
defined benefit pension plan, have now provided nearly $7 billion in cost
savings to US Airways through 2009,” said Captain Jack Stephan, spokesman
for the US Airways ALPA pilots.

“Once again, we have delivered on our commitment to participate in a plan
to restore US Airways to profitability, but we can not and will not do it
alone. Management and salaried employees, along with other labor groups,
must also participate in the Transformation Plan. We look forward to
management reaching consensual agreements with all employee groups,” said
Captain Stephan.
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