• US AIRWAYS FLIGHT ATTENDANTS OUTRAGED BY MANAGEMENT PROFITEERING
• Accessing The Hub
• AFA Local Numbers

US AIRWAYS FLIGHT ATTENDANTS OUTRAGED BY MANAGEMENT PROFITEERING

The bloodbath US Airways employees took during the bankruptcy has turned into a river of green, lining the pockets of US Airways executives. 

On June 13, 2006 US Airways issued the following press release:

TEMPE, Ariz., June 13, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- US Airways Group, Inc. (NYSE: LCC) today reported that several of the company's executive officers have previously adopted pre-arranged stock trading programs to facilitate the exercise of options and the sale of holdings in the company's stock. The company's securities trading policy permits the enactment of pre-determined plans for trades of specified amounts of company stock in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.

(Read the full Company Press Release HERE.)

This information was released, in conjunction with SEC filings this week detailing transactions by some current US Airways executive who exercised various stock options and grants related to the merger between US Airways and America West. 

In plain English, the Company indicated that various former America West executives cashed in thousands of shares of stock received as part of the bankruptcy reorganization and merger transaction between America West and US Airways. The SEC filing is designed to protect Company executives from any charge of insider trading. 

US Airways CEO Doug Parker has been widely quoted as saying that America West was in an untenable position prior to the merger and faced an uncertain future.

This week alone, over $10 million dollars in pre-tax profits have been realized by former America West executives-ALL derived from a merger that probably saved their jobs. 

In the past several weeks other Company executives have exercise pre-arranged merger derived stock option sales which have resulted in excess of $3million dollars in pre-tax profits for those executives. 

Earlier this year the Company announced a $6 million dollar profit for Q1 2006. The profit was largely touted by Company executives as the direct result of the US Airways bankruptcy that allowed the Company to return aircraft, reduce jobs and extract pay cuts and reduced benefits from US Airways employees. 

So, based on the concessions given by labor, the loss of jobs caused by the return of aircraft during the US Airways bankruptcy which decreased capacity and therefore caused higher ticket prices, former America West managers have now been able to cash in stock and profit and keep their jobs from our sacrifices. 

AFA-CWA issued a press release denouncing both the profiteering and the slow pace of merged contract negotiations. An excerpt from the release states:

"US Airways flight attendants gave over $150 million in contract concessions, including termination of our pensions, in order for the airline to survive and be a partner in the merger," said Mike Flores, US Airways Master Executive Council President. "For former America West executives, who absent the merger would likely be in bankruptcy court themselves, to now cash in pre-arranged merger created stock options and grants is just beyond obscene."

(Read the full AFA/CWA press release HERE)

The following Associated Press story, detailing the stock transactions appeared across the nation in newspapers yesterday morning.

PHOENIX (AP) -- Some of US Airways' top executives have exercised stock options and sold shares for hefty gains this week. They are the executives' first stock sales since America West bought US Airways last fall and took the name US Airways Group Inc.

Insiders were prohibited from selling in the first six months after the merger. In that period, the Tempe-based company's stock more than doubled .Scott Kirby, the airline's executive vice president of sales and marketing, sold 115,500 shares on Monday at $46 a share, according to securities filings Tuesday. He exercised options for most of the shares, at prices ranging from $6.42 to $29.09, for a pretax gain of more than $4 million. Chief Administrative Officer Jeff McClelland sold 63,251 shares at $46.08, all acquired through option exercises. His pretax profit was $2.2 million. Jim Walsh, the airline's general counsel, sold 47,437 shares at $46.08 after exercising options. His pretax gain was $1.53 million. Chief Financial Officer Derek Kerr sold 34,924 shares at about $47, the bulk by exercising options. His pretax profit from the trades was $1.1 million. The airline said in a statement that the executives sold to diversify their assets, a common reason cited by insiders. US Airways said the executives have established pre-arranged stock-trading programs and these sales were part of them .CEO Doug Parker also has such a plan, but did not sell any stock. He has said repeatedly he has not sold a share of company stock since joining America West in 1995.

The pace of negotiations has slowed to a crawl. The outrageous excesses the current management has chosen to avail themselves of, coupled with the nonsensical proposals that seek to derail 40 years of collective bargaining at US Airways lead me to believe this management believes they can run over the will of our membership. To the newly rich US Airways management I say that is not the case.

Mike Flores, President
US Airways MEC President
AFA-CWA

~~~~~~~~~~~~~~~~~

Accessing The Hub:

http://thehub.usairways.com 
Logging in the first time your user name is u0(zero) and your five digit employee number. Your initial password is the first five digits of your social security number. Questions about the Hub? Please contact the EDS Help Desk at 336-744-6000 for assistance. More information can also be found HERE.

AFA Local Numbers

Council 40 PIT 724-695-3329
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

New Hotline Number Toll Free: 866-USA-AFA2
US AIRWAYS Benefits Information 800-872-4780

Reply to Inflight: askinflight@usairways.com