In This Edition of the E-Line US Airways MEC has accepted a Tentative Agreement

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US Airways MEC has accepted a Tentative Agreement

The US Airways MEC accepted a Tentative Agreement that contains more contract concessions.  This Tentative Agreement was accepted by the MEC only after repeated threats of liquidation by the Company that would have resulted in loss of all employee jobs.  After discussions with the Company that began on December 17th, the MEC accepted the Tentative Agreement late on December 20th.  This Tentative Agreement will be sent to the membership for ratification.  The decision to send this Tentative Agreement out to the membership was recommended by a majority vote of the MEC.

Information regarding the Tentative Agreement will be mailed to each of you and balloting will be conducted via telephone and internet as it was in the last round of concessionary negotiations.

Management will also be taking cuts during the term of our Tentative Agreement and increases for management will be phased in as they are in the 2002 Restructuring Agreement for the flight attendants reached this past summer.  In addition, all other labor groups also reached tentative agreements with the Company.  ALPA had already ratified an agreement with the Company prior to the beginning of our discussions with the Company.

HIGHLIGHTS OF THE TENTATIVE AGREEMENT

- 2% lump sum payment on 3/1/2007 and 2% lump sum payment on 3/1/2008;
- Modify Variable Minimum Day to 5+00 hours with no floor an no ceiling and change day and night rigs (Me-Too with ALPA)
- Modification to claiming sick leave;
- Minor change to rescheduling;
- Major changes to Reserve System;
- Increase in Reserve Inviolable days to 8 days;
- Automatic release after trip assignment for Reserves (with exceptions);
- Preferential Bid System;
- Maintain the Bid Sheet;
- AA Eagle wages, work rules and benefits for Mid-Atlantic;
- Changes in Medical/Dental (same as all other employee groups with the exception of ALPA and Senior Management - higher costs for ALPA and Senior Management);
- Enhanced Profit Sharing;
- Additional Equity Participation;
- War Contingency Salary Deferral (also applies to management);
- Changes to LTD and Workers' Compensation;
- NO CHANGES TO FLIGHT ATTENDANT PENSION PLAN.

When you receive your Tentative Agreement information and ballot, please read over the information carefully and exercise your right to vote on the Tentative Agreement.

Your MEC regrets that this Tentative Agreement comes to you now, during this holiday season.

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