• Increase Funding for Your Retirement by Electing to Contribute to your 401(K)
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Increase Funding for Your Retirement by Electing to Contribute to your 401(K)

As we announced during the last State of the Airline, US Airways will be making Annual Cash Incentive Program (ACIP) or Profit Sharing payments in March 2008. These payments are 401(k) eligible if you make a separate and timely ACIP or Profit Sharing contribution election as described in this letter. This is a great opportunity to increase funding for your retirement. Here are some FAQs to help you take advantage of this extra income:

What is the ACIP and Profit Sharing deferral election?
It is a new opportunity to contribute some of your US Airways ACIP or profit sharing payments into your US Airways 401(k) Savings Plan without impacting deferrals from your regular paycheck.

I participate in my US Airways 401(k) Savings Plan. Will my current contribution elections apply to the ACIP or Profit Sharing contributions?
No. A separate contribution election must be made. If you do not complete a timely ACIP or Profit Sharing contribution election, none of your ACIP or Profit Sharing payment will be contributed into your US Airways 401(k) Savings Plan.

When can I make my election?
You will have the opportunity to make the deferral election for the ACIP or Profit Sharing Contribution between 8:30 a.m. ET on Monday, Feb. 18 and 4:00 p.m. ET on Wednesday, Feb. 27. If you make a contribution election outside this window of time, it will not be valid and you will not have any contributions made from your profit sharing or ACIP payments into your US Airways 401(k) Savings Plan.

How do I make an election to contribute some of my ACIP or Profit Sharing payments?
It's simple! Go to www.usairways401ksavingsplans.com.

• Click on the link, "ACIP/Profit Sharing Contribution Elections" located on the bottom left corner.
• After you login on NetBenefits®, select "Regular Deductions" and then enter your election in the "Profit Sharing & Bonus section.
• You may also call the Fidelity Service Center for US Airways at 1-800-354-3412 and make your contribution election.

Please note that when you contact the Fidelity Service Center for US Airways, you must specify that you are making a deferral election for the Profit Sharing or ACIP payment. You can elect to contribute on either a pre-tax, after-tax or catch- up basis. Catch-up contributions are permitted for those participants who are age 50 or older in 2008.

What percentage of my ACIP or Profit Sharing payment can I defer?
You must contribute using a whole percentage in 1 percent increments (not a partial percentage like 5.5 percent). The maximum percentage you can contribute is determined by the Plan you participate in. The US Airways, Inc. Employee Savings Plan and the Future Care: The America West Airlines 401(k) Plan permit a maximum deferral rate of 50 percent. The US Airways, Inc. 401(k) Savings Plan for Pilots permits a maximum deferral rate of 100 percent. All Plans have a maximum catch-up contribution rate of 50 percent. If you choose to make after-tax contributions, the maximum contribution rate is 50 percent for all Plans, except the US Airways, Inc. 401(k) Savings Plan for Pilots (100 percent rate limit) and the Future Care: America West Airlines 401(k) Plan, where after-tax contributions are permitted, for Pilots only.

Are deferrals from the ACIP and Profit Sharing payment eligible for company match?
If you are part of an employee group that is eligible for a company matching contribution then you will receive the appropriate match if you have pre-tax deferrals deducted from your payment.

Will I receive the company's non-elective contribution?
If you are part of an employee group that is eligible for a company non-elective contribution, you will receive a non-elective contribution regardless if you are contributing to the plan or not. The amount of the non-elective company contribution will be based on the percentage assigned to your employee group.

What if I am not currently contributing to my 401(k) account but would like to defer my ACIP or Profit Sharing Payment into my 401(k) Savings Plan?
If you are not currently contributing to the company sponsored 401(k) Savings Plan and would like to make a deferral election for this payment, then you must contact Fidelity Investments at 1-800-354-3412 and make an election. A deduction will only be taken from your special payment if you make a separate election.

What if I do not want to defer my ACIP or Profit Sharing Payment into my 401(k) Savings Plan?
If you do not want to defer your ACIP or Profit Sharing Payment then there isn't any action required on your part.

Where can I go for more information?
If you have any questions, please access the new US Airways 401(k) Savings Plan website at www.usairways401ksavingsplans.com. Click on "Login to your account" located at the top of the page. You will then be redirected to Fidelity NetBenefits® where you may then log in. You may also call the Fidelity Service Center for US Airways at 1-800-354-3412. Service Center Representatives are available 8:30 a.m. through Midnight ET, Monday through Friday.

Thank you,

Mike Flores, President
The US Airways Master Executive Council
AFA-CWA

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AFA Local Numbers

Council 40 PIT 412-245-1214
Council 41 DCA 703-212-8090
Council 69 BOS 781-289-8454
Council 70 PHL 215-492-0840
Council 82 LGA 315-736-3483
Council 89 CLT 704-527-0325

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