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June 3, 2002
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AFA - US Airways E-Line June 3, 2002
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Contents:

Action Alert: Call/Fax your US Senators 

In the previous Action Alert of May 24, 2002, we asked you to contact Senator Robert Byrd (D-WV), Chairman of the Senate Appropriations Committee. For those few who heeded the call to action: Thank you! (If you haven't contacted Senator Byrd yet, you can still help by going to:  http://www.unionvoice.org//campaign/support_loan_guarantee

We are being heard. But now we need to get the message to the other US Senators. 

Here's What's At Stake! 
US Airways CEO David Siegel is going through our system talking to employees about the financial troubles from the hit our industry took after September 11. The public's reluctance to fly has been most pronounced on the East Coast where our flights are concentrated and because our operations at Reagan Washington National Airport were restricted for so many months. 

The US House of Representatives has already passed an emergency supplemental bill with a provision that severely limits US Airways' opportunity to obtain the loan guarantee before October 1st that it needs to recover from its economic losses as a result of September 11th. 

If Congress prohibits the government from issuing loan guarantees prior to October 1st, our company will literally run out of cash - and that means significant job cuts and service disruptions in many of the more than 200 communities US Airways serves. 

Send a strong message to your US Senators. They need to hear from the real people who make US Airways work everyday. 

Background information: ATSB
The Air Transportation Safety and Stabilization Act was signed into law in the Fall of 2001. The bill provided funding for immediate cash relief to the airlines who were financially impacted in the aftermath of September 11th. The bill also established and funded the ATSB, or Air Transportation Stabilization Board, which was authorized a total of 10 Billion dollars to be used to provide federally guaranteed loans to aid the airlines in their recovery efforts. 

The Air Transportation Stabilization Board established a statutory deadline of June 28, 2002 for airlines to apply for these loans 

On April 18, 2002 US Airways officials announced their intention to apply for a federally guaranteed loan, stating they would complete the filing by the deadline of June 28th. 

US Airways suffered a disproportionate negative impact from the terrorist attacks as a result of the extended
closure of Reagan National Airport, the number of shorthaul routes in our system, and because our business is anchored in the northeast where the attacks took place. 

US Airways' new management team, recognizing this dire situation, has undertaken drastic restructuring plans which include significant contributions from all stake holders. Labor is the biggest contributor in this restructuring plan. 

Supplemental Appropriations Bills Might Prevent Loans

On May 24th, the U.S. House passed HR 4775, the Supplemental Appropriations bill which, if enacted, would prevent the government from guaranteeing any more loans until October 1, 2002. 

Given US Airways' financial condition, the airline expects to have a liquidity problem long before October 1st without the loan. 

The U.S. Senate will take up their version of the Supplemental Appropriations bill THIS week of June 3rd. Their bill also delays the availability of funding until October 1st, and reduces the amount of total funds available for federally guaranteed loan from $10 billion to $4 billion. 

If the Senate passes their version of the bill, the air transportation system in the Northeast United States, and the livelihood of 40,000 US Airways employees, could be thrown into disarray as the result of a Chapter 11 filing by US Airways. 

Every US Airways employee must contact his/her U.S. Senators to ask that "Section 1004 of the Supplemental Appropriations Bill be struck." Make certain your Senators know that no changes should be made to the original ATSB loan guarantee program (if the language is struck, the existing law will prevail and the funds will remain accessible to the Company through the loan guarantee process). 

Ask your Senators if you can count on their support to strike the language related to the airline loan guarantee program. 

Who to Call/Fax - What to say 

Try to call the offices of your U.S. Senators, preferably the local, state or district offices. These telephone numbers can be found in the phone book under United Stated Government, Congress - U.S. 

Alternatively, you can contact your Senator via the U.S. Capitol switchboard at 202-224-3121. 

As the U.S. Mail/FedEx is still encountering extensive delays on its way to the Capitol, consider requesting a fax number so you can fax any correspondence you want your Senators to have. You may also go to the on-line U.S. Senate website to obtain the information. http://www.senate.gov 
 

Here's a suggested script to follow when CALLING your US Senators: 
The text is also posted on the website HERE: http://www.afausairways.org/Legislative/june02.html

Hello. My name is _____________ and I am a flight attendant with USAirways and a voter in the Senator's state. I am calling today and urging her/him to support any efforts that would strike "Section 1004 of the Supplemental Appropriations Bill", language that would limit funding available for the Air Transportation Stabilization Board and that would restrict the release of those funds to October 1, 2002. If such provisions are not stricken from the bill, USAirways will most likely be forced to file bankruptcy, which would result in the loss of thousands of jobs. My job and the jobs of thousands of people depend on the Senate striking this language. Please tell the Senator it is urgent that she/he support efforts to strike this language from the supplemental appropriations bill. 

(Please thank the person for their time.) 
 
 

Here's a suggested letter to use when FAXING your US Senators: (The text is also posted on the website:HERE: http://www.afausairways.org/Legislative/june02.html)
 

Dear Senator _____: 

I am a flight attendant with USAirways, a member of the Association of Flight Attendants, AFL-CIO, and a registered voter in your state. I am writing today about an issue of the most urgent nature regarding the Supplemental Appropriations bill and provisions related to the Air Transportation Safety and System Stabilization Act (ATSA). I strongly urge you to support any efforts in the Senate to strike "Section 1004 of the Supplemental Appropriations Bill.", language in the legislation related to the airline guaranteed loan process. 

Last fall, the Senate overwhelmingly supported a financial assistance package for the airline industry in regard to the harsh economic impact inflicted on the industry due to the September 11th attacks. My airline, USAirways, suffered a disproportionate impact from the attacks due to the closure of Reagan National Airport and because the majority of our business is anchored in the northeast portion of the country, where the attacks had the largest impact on airline travel. In light of the negative financial impact on the carrier, USAirways has outlined a drastic restructuring plan which includes significant contributions from everyone at USAirways. This restructuring plan will return our company to profitability. 

However, as part of the restructuring plan, USAirways needs access to the loans available through the ATSA. If Congress were to now to pull-back from it's intent of providing needed assistance to the nation's airlines, it would result in devastating consequences for my company. If Congress reduces the amount of available money and limits the opportunity to obtain the loan guarantee before October 1st, our company will literally run out of cash and be forced to pursue bankruptcy. Such an action would result in the elimination of thousands of USAirways employees, air service disruption in hundreds of communities served by USAirways, and would lead to a severe economic impact on untold numbers of families and communities. 

Without the loan guarantee, my future, the future of the 40,000 other employees, and the future of the airline is in jeopardy. I encourage you to stand up and support me and the other employees of USAirways by changing these harsh provisions and restore the original intent of the ATSA. I hope we can count on your support. 

Respectfully, 
 
 

Every US Airways employee and their families has a stake in this issue. Contact everyone you know. Have them call their U.S. Senators to ask that "Section 1004 of the Supplemental Appropriations Bill be struck." Make certain your Senators know that no changes should be made to the original ATSB loan guarantee program (if the language is struck, the existing law will prevail and the funds will remain accessible to the Company through the loan guarantee process). 

Without the loan guarantee, our future, the future of the 40,000 other employees, and the future of our airline is in jeopardy. Please fax or call your Senator TODAY. 

Thank you. 


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Christopher Atwood
Association of Flight Attendants
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