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FLIGHT ATTENDANT FURLOUGH DETAILS

US Airways announced today the final details of the Flight Attendant furloughs. The furloughs are part of the Company's new business plan. The plan includes furloughs, due to capacity reductions, as well as "a la carte pricing schemes".

The entire industry is under siege due to the cost of fuel. Airlines continue to sell their product at a price that does not cover the cost of producing their product. As a result, thousands of airlines employees industry wide will be furloughed over the next few months.

The Company announced on June 12, 2008 the need to reduce total East and West Flight Attendant staffing by approximately 400 Flight Attendants once the summer travel season ends. The Company also stated that staffing projections show a need to return to the current staffing levels in the spring of 2009.

During the past year, Flight Attendants have been recalled to the East. With the announced reductions, it became apparent that absent a Separation Package or Voluntary Furloughs, recently recalled Flight Attendants could be involuntarily furloughed and then recalled again in the spring.

Our Collective Bargaining Agreement (CBA) requires the Company offer system wide Separation Incentive Program (VSIP) with travel based on years of service to Flight Attendants who would not otherwise have been furloughed, prior to any involuntary furloughs.

The Company rejected the Union's request for a meaningful Separation Package (with a monetary component) based on the need to return to current staffing levels next year. The Union still believes that a monetary based Separation Package makes financial sense for the Company and the Flight Attendants.

The Company's refusal to offer a Separation Package meant the Union's next step was to propose the Company offer Voluntary Furloughs with benefits for the duration of the Voluntary Furloughs. The benefits would include medical, dental and life insurance at the active employee rate in addition to the contractually provided travel benefit. The Union believed that more Flight Attendants would accept a VF with benefits than would a VF without benefits.

The announced reduction in flying this fall and during the first quarter of 2009 will be in the CLT and PHL domiciles. Announced flying in the LGA, DCA and BOS domiciles will remain at their present levels. The Company agreed to offer a VF with the above referenced benefits, if the Union would agree to allow the Company the latitude to offer a VF on a base-specific basis rather than system wide. The Company offer included 125 VF slots with benefits for the PHL domicile and 25 VF slots with benefits to the CLT domicile.

A VF with benefits awarded by a base-specific process is not in our CBA and therefore, required the approval of the East Master Executive Council (MEC).

The Master Executive Council consists of the following members:

MEC OFFICERS:

President - Mike Flores*
Vice President- Buddy Brannon*
Secretary/Treasure- Deb McCormick*

* The MEC Officers are non-voting members with the exception of the MEC President, who can vote only in the event of a tie.

Council 41 LEC President - Alin Boswell
Council 69 LEC President - Lynne Caramello
Council 70 LEC President - John McCorkle
Council 82 LEC President - Rob Wessinger
Council 89 LEC President - Ann Crowley

The MEC held two conference calls on June 17th and June 20th, to discuss the merits of the Company's VF offer with benefits. The debate focused on whether or not a VF with benefits offered base-specific was too great a departure from existing contract language. Clearly, a VF with benefits is more attractive than a VF without benefits. I personally believed that more people would take a VF with benefits than a VF without benefits. Furthermore, I believed if more Flight Attendants were induced to take a base-specific VF with benefits it could mean fewer Flight Attendants would be involuntarily furloughed and fewer Flight Attendants would be displaced. Obviously, my beliefs were based on speculation as I can't, with certainty, predict human behavior as to how many Flight Attendants would take a VF with benefits.

Every involuntary furloughed Flight Attendant is contractually entitled to furlough pay and the continuation of active rate medical coverage for the duration of the time a Flight Attendant receives furlough pay plus sixty (60) days thereafter, and subsequent to that, eighteen (18) months of COBRA coverage. Additionally, the Company has a contractual obligation to pay moving expenses and issue settling days to displaced Flight Attendants.

The Company's offer of a VF with benefits to 150 base-specific Flight Attendants in an effort to reduce the number of Flight Attendants involuntarily furloughed and displaced was, in their words, "cost neutral", in light of the contractual requirements associated with an involuntary furlough.

During the July 20th meeting Council 70 President, John McCorkle, brought the following motion to the floor:

Q: Should the US Airways MEC accept the company's proposal, via side letter, regarding the voluntary furlough program on a base-specific offering?

The motion was seconded by Council 89 President Ann Crowley. The voting members of the MEC voted against the motion 4 to 1. Council 70 President, John McCorkle, cast the lone vote to accept the Company's base-specific VF with benefits. The majority decision was driven by the majority of the MEC to not disturb the existing Voluntary Furlough contract language. The current CBA dictates that a VF is to be offered system wide. In our Union, all decisions are decided by the majority.

The voting members of the MEC had a very difficult decision to make-alter the CBA or create a new VF side letter to address the situation at hand. It is not my job to second guess the voting members of the MEC. As MEC President, I am bound to accept, and implement, all decisions of the MEC.

The result of the MEC's decision is the Company will offer Voluntary Furloughs in accordance with the terms of the current CBA. The Voluntary Furloughs will be offered system wide and awarded by system seniority. The Voluntary Furloughs will contain no benefits other than travel.

Per the CBA, the Company will not contest unemployment for anyone awarded a VF. The Company will also offer a VSIP in conjunction with the VF.

The Company announced they will offer two types of VF as part of the VF program:

• Duration of three (3) months for fifty (50) slots with an end date of December 1, 2008.*
• Duration of eight months (8) for one hundred fifty (100) slots with an end date of April 30, 2009*

The Company has told the Union they are planning to offer another VF for one hundred (100) Flight Attendants with a duration of three (3) months beginning January 2009 and ending March 30, 2009. Details of that VF will be announced at a later date.

Details of the program announcement, request form and a FAQ are provided below:

-- 2008 Voluntary Furlough Program Request Form (BOS/CLT/DCA/LGA/PHL Flight Attendants)
-- 2008 Voluntary Furlough East Q & A
-- EAST ANNOUNCEMENT Fall 2008 InFlight Services Voluntary Furlough Program


Thank you,

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

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AFA Local Numbers
 
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

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