AFA - US
Airways E-Line July 18, 2002
http://www.afausairways.org/eline.htm |
Don't pass rumors.
Get the facts. Stay informed.
If you have questions or
suggestions for the Negotiating Committee, use the FORM
found on the main page of the website: http://www.afausairways.org
or call 800-531-3242. |
Contents:
Tentative
Agreement Now Posted on Website
The Tentative Agreement is
now posted on the AFA-US Airways website. First, read an introductory letter
from the AFA-US Airways Negotiating Committee. Then you'll see the the
entire Tentative Agreement including charts outlining:
* Flight Attendant Pay
Rates * US Airways National PPO - Plan Design Summary * US Airways Company-wide
Health Plan Costs * Flight Attendant Rates for Managed Dental Plan
Go
to: http://www.afausairways.org/restructure/ta_page1.html
The Tentative Agreement is
also being mailed to your home.
If you have any questions,
be sure to come to a Roadshow.
For the Roadshow Schedule,
go to: http://www.afausairways.org/Restructure/roadshow.html
US Airways enters into
service agreement with Midway Airlines
To All Employees ... Please
Post ... Special Bulletin
US Airways has signed a letter
of intent to enter into a service agreement with Midway Airlines under
which the Raleigh, N.C.-based carrier will operate as US Airways Express,
flying an all-regional jet fleet beginning in October 2002.
As part of the arrangement,
US Airways will provide stand-by transportation to passengers currently
holding Midway tickets during the suspension of Midway's operations and
transition.
US Airways also will implement
a program to allow Midway Airlines' frequent fliers to convert their credits
to Dividend Miles for future use on US Airways and partner carriers upon
completion of the agreement.
Under the eight-year service
agreement, Midway will begin operating as US Airways Express in October
2002, initially operating a fleet of five 50-seat Bombardier CRJ regional
jets, with that fleet growing to up to 18 CRJs by April 2003.
The agreement is contingent
on several factors, including Midway's successfully securing $5 million
in additional capital, acquiring additional aircraft and reaching agreements
with its units of the Air Line Pilots Association (ALPA) and the Association
of Flight Attendants (AFA) for related labor concessions and reaching an
agreement with US Airways on the issuance of warrants to purchase a substantial
minority interest over the course of the agreement.
The letter of intent also
requires that 50 percent of the pilot positions at the carrier be reserved
for furloughed US Airways pilots.
"Midway will resume flying
from Raleigh-Durham to Boston, New York LaGuardia and Washington Reagan
airports as US Airways Express beginning in October, subject to government
approvals, and as they take more regional jet deliveries, Midway will expand
its route network to strategically support US Airways service to key East
Coast markets," said Bruce Ashby, senior vice president of corporate development.
"By guaranteeing jobs to furloughed US Airways pilots, this agreement also
helps in our commitment to provide opportunities for pilots until they
can be recalled to mainline operations."
Once the agreement is implemented,
passengers flying on Midway's US Airways Express flights will be able to
earn and redeem miles in the Dividend Miles program. Operating as a US
Airways Express carrier also will enable passengers to purchase tickets
via US Airways' telephone reservations system, or on the airline's Web
site at usairways.com.
US Airways' frequent service
to and from its largest hub in Charlotte is a convenient alternative for
passengers currently ticketed to, from or connecting through Midway's hub
in Raleigh-Durham. Additionally, US Airways service through its Pittsburgh
and Philadelphia hubs, as well as nonstop services to Boston, New York
LaGuardia and Washington Reagan should provide ample capacity to handle
the passengers ticketed to the eight destinations previously served by
Midway.
Midway Airlines ticketed
customers must first visit a Midway Airlines airport ticket counter no
later than July 25, 2002, to have electronically issued tickets authorized
for use on US Airways. If the ticket was issued through a travel
agency, the customer may contact the agency for assistance. Midway Airlines
will continue to staff its reservations centers and ticket counters.
Further details are available via the Internet at midwayair.com, or by
calling Midway at 1-800-446-4392. Customers who need to rebook on US Airways
should call a dedicated reservation line at 1- 800-510-0098.
If US Airways has a comparable
fare available from the customer's originating city, or within 200 miles
of the originating city, US Airways will confirm the reservation. If US
Airways does not have available space on the desired flight, then the Midway
customer would have to fly standby or request a refund directly from Midway.
Following are answers
to questions you may have about the Midway arrangement:
Q. Did US Airways buy
Midway Airlines?
A. No. We have entered
into a business arrangement where Midway Airlines will operate as a US
Airways Express affiliate carrier similar to the arrangements we
have with our other non-wholly-owned regional jet affiliates. Midway
will continue to be a stand-alone carrier operating regional jet flights
in a select number of markets as US Airways Express. The parties
are contemplating a potential agreement whereby US Airways may acquire
warrants to purchase a substantial minority equity position in Midway over
the term of the agreement. This agreement has not yet been reached.
Q. Is this purely a marketing
arrangement or are there financial considerations involved?
A. It is a financial relationship
so far as US Airways will pay Midway to operate as US Airways Express,
just as we have marketing deals with Mesa, Chautauqua and TransStates Airlines
to operate regional jets under the US Airways Express brand.
Q. How did this arrangement
come about? Who approached whom?
A. The relationship evolved
from our need to implement more regional jet flying, and Midway's need
to implement a new business plan.
Q. US Airways is having
its own financial difficulties, so why do this deal now?
A. This presents an attractive
opportunity to strengthen our operations and add value to our network.
US Airways' need for more regional jets is longstanding. Midway has
regional jets -- which we need to strengthen our network -- and we also
are able to offer Midway and its passengers a broader frequent traveler
program, reservations and Web site infrastructure, and overall marketing
support under the US Airways banner.
Q. Are the regional jet
aircraft that Midway will fly included in the number of regional jets agreed
upon by ALPA in its recent tentative agreement?
A. Yes, and this agreement
is conditioned on ratification of the tentative agreement by US Airways'
pilots.
Q. How does this relationship
work? Does US Airways pay Midway a fee for service or share revenue?
A. US Airways will purchase
capacity from Midway Airlines for the regional jet flights. US Airways
will market the flights as US Airways Express operated by Midway Airlines.
Q. Aside from the provision
to employ US Airways furloughed pilots, whose employees will perform the
other job functions previously handled by Midway?
A. US Airways or US Airways
Express employees, where applicable will handle these responsibilities.
For example, at Raleigh/Durham, where we currently operate 40 daily departures,
we will use our existing workforce to run the operation. If we need
additional staff, we first must give consideration to our furloughed employees
and employees who might want to transfer from another station. As
Midway grows, they will also provide preferential hiring of furloughed
US Airways flight attendants.
Q. Are you going to hire
any displaced Midway employees?
A. No.
Q. How will fares be set?
A. Midway will no longer
sell tickets. All flights will be operated as part of the US Airways
network.
Q. Will all of Midway's
regional jets fly under the US Airways Express banner?
A. Yes.
Q. How many regional jets
does Midway currently operate?
A. Midway currently has five
regional jets and is working to quickly secure additional deliveries.
Q. How many passengers
can these regional jets carry?
A. The Midway regional jets
are configured to carry 50 passengers.
Q. If a customer has a
Midway ticket, will he or she be able to use that ticket on the US Airways
Express flights or on other US Airways flights?
A. Yes. With the temporary
suspension of Midway services, all passengers currently ticketed by Midway
as of July 18, 2002, will be welcomed to travel on US Airways and US Airways
Express and be accommodated on the most convenient flight possible on a
space available basis. Passengers who need to rebook on US Airways
should call a dedicated reservation line established just for Midway passengers
at 1-800-510- 0098.
Q. When will Midway's
planes be converted to the US Airways Express livery?
A. These and other issues
will all be dealt with during the temporary suspension of Midway's service
in preparation for its October re-emergence as a US Airways Express carrier.
Have
you updated your profile yet?
The *E-Line*
now uses a new and improved list server at union voice.org. This change
will enable is to bring you improved services in the near future. But we
must have your union voice.org profile updated for this to happen. You
can join, update your profile - including changing your e-mail address
- by visiting http://www.unionvoice.org/e_line_afa_usairways/join.html |
