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AFA US Airways MEC E-Line for March 20, 2003
"Voluntary Furlough 5 (VF5) and More!"

This information is also available on our Web Site http://www.afausairways.org

• Flexible Spending Accounts 2003 Information
• Voluntary Furlough 5 (VF5)
• Taxes Threaten to Ground Air Travel Industry
• Send Your Thanks to the US Military

The company that will administer our Flexible Spending Account for Plan Year 2003 is Ceridian. This has nothing to do with FLEX Spend 2002. The Company has neglected to get this information to us in a timely manner. Please follow the instructions below, and share this information with your fellow employees.

Their address, phone/FAX number, web site address, and instructions to access their site, are as follows:

Ceridian
FlexServ
P.O. Box 534134
St. Petersburg, FL 33747-4134
Phone: 1-877-799-8820
FAX:    1-877-488-6454
 
To access their web site go to:
www.ceridianfsa.com

>> Click on, "Online Services" Employers and Participants.
>> Click on FlexServ Administration.

This will bring you to a Log in screen.

-- Your log in ID# is your Social Security number. (When entering your SS#, enter as xxx-xx-xxxx using the hyphens)
-- Your temporary PIN# is the last 4 digits of you Social Security number, backwards. (Example: if the last 4 digits of your Social Security number is 1234, your pin would be 4321.)
-- Log in.

This will take you to a screen where you must change your temporary Pin number. Change the Pin to something that you can readily remember and Log in.

>> Click on the Blue link that says: 100847 US Airways, Inc. Plan Year.

The documents are in the Adobe Acrobat format (.pdf) if you wish to download and print the claim form. Or you may wish to just access your account from this page. (If you do not have the Adobe Acrobat Reader, you can download the FREE reader here - www.adobe.com)

A representative from Ceridian explained to us that you are able to submit receipts for the following:
-- Doctor's copays,
-- prescription copays,
-- out of pocket deductibles,
-- mileage to the Doctor's office or pharmacy,
-- and Dental copays.

Please contact Ceridian for any further information that you may need.

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Voluntary Furlough 5 (VF5)
(must be submitted by Noon (EST) April 2, 2003)

Inflight Services will offering approximately 650 Voluntary Furloughs effective June 4, 2003. The durations will be between 4 and 30 months. We will call this program Voluntary Furlough 5 or VF5. Although similar to previous Voluntary Furlough programs, please review the program specifics listed below.

Application forms are available HERE (http://www.afausairways.org/furlough/VF5_request.htm) and will also be available in the crew rooms and on theHub. The form must be submitted to Inflight Administration in Crystal City. In addition to the normal submission channels, you are able to submit you request electronically via theHub. The deadline for Inflight Administration to receive the form is Noon (EST) April 2, 2003. Please ensure you are using the correct updated form. It states "2003 Voluntary Furlough 5 (VF5) Program Request Form" on the top of it.

Here are some highlights of the Voluntary Furlough 5 Agreement:

** Scheduled to commence June 4, 2003

** Duration choices of VF5:

-- 4 Month VF5 beginning June 4, 2003 and ending Sept 30, 2003++
-- 6 Month VF5 beginning June 4, 2003 and ending Dec 1, 2003
-- 12 Month VF5 beginning June 4, 2003 and ending May 31, 2004
-- 18 Month VF5 beginning June 4, 2003 and ending Dec 1, 2004
-- 24 Month VF5 beginning June 4, 2003 and ending May 31, 2005
-- 30 Month VF5 beginning June 4, 2003 and ending Dec 1, 2005

++ There is a limited number of 4 Month VF5 available. Specific bidding information is available on the bid form. Additionally, the 4 Month VF5 CANNOT be extended. (Please denote a second choice on the form using '1' for your first choice and '2' for your second choice.)

** Must be in an "active" and "available" status at the beginning of voluntary furlough

** Unlimited on-line travel privileges for eligible family members, except for companion passes and registered companions

** Continued current group health and welfare benefits for first 120 days of voluntary furlough

** Sick bank and vacation day(s) accrual the month of June 2003 only

** Continued seniority and longevity accrual

** May retire with benefits from a voluntary furlough status

** No entitlement to furlough pay if awarded a voluntary furlough

** US Airways will not contest unemployment claims for flight attendants participating in VF5

Paul Kinsey
Manager Inflight Performance and Staffing

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Taxes Threaten to Ground Air Travel Industry

Congress makes a tough business even tougher with taxes that amount to 26 percent of the cost of airline tickets

By The Detroit News

War with Iraq promises to deepen the crisis among U.S. airlines, and the federal government needs to speed up relief. A good start would be revising many of the aviation taxes -- both hidden and visible -- that drive up the cost of tickets.

Air taxes and fees last year amounted to 26 percent of a $200 round-trip ticket -- up from 7 percent in 1972. Part of the increase is related to 9-11, when security demands increased.

But now the government treats airlines as more of a cash cow than a critical industry that needs help. By imposing air surcharges, Congress pockets general fund money to spend elsewhere in something of a shell game.

Air security is a vital national goal, of course. And that's the point: Protected airspace is a publicly owned asset. So it seems reasonable to fund air security from core federal funds, not from a suffocating blanket of surcharges.

In better economic times, airlines shouldered much of the cost, ultimately borne by passengers.

But travel is down more than 20 percent since 9-11. And it will sink further this week if the war in Iraq begins.

Air travel taxes include a ticket tax, flight segment tax, security surcharge, facility charge, departure tax, arrival tax, customs user fee, fuel tax and others.

The issue here is less giving airlines a break and more getting off their back in tough times. A lesson can be drawn from the infamous federal boat tax that slapped a 10 percent surcharge on certain pleasure boats in the 1980s. Boat sales sank dramatically and -- in 1993 -- the tax was repealed before it destroyed the luxury boat industry entirely.

If any industry deserves attention, it's the airlines -- the country's speedy long-haul mass transit. Commercial aviation drives up to 10 percent of the U.S. economy and 11 million jobs.

Already, some major carriers are in trouble. On Monday, American Airlines, the largest U.S. carrier, began negotiations with the last of its unions over proposed pay cuts of $1.8 billion a year. Drastic trims are needed to keep American from going belly up, the carrier says.

United Airlines, the second largest carrier, is already bankrupt. It wants to reject current labor contracts with its five unions. If a bankruptcy judge agrees, United would be free to impose new terms to save money (and the airline itself).

Some airlines were in financial trouble before 9-11, and in some ways the industry is sorting itself out. But this is not a "normal" market, notes the Air Transport Association, which represents major carriers.

Costs like security and fuel have increased, while business has dropped. Normal business practices cannot be expected to restore profits and put the industry on a sound footing. Meanwhile, to continue providing service, airlines have taken on $100 billion in debt.

In a worst case war scenario, airlines would lose another $13 billion this year.

After 9-11, the federal government backed loans to assist the airlines. Now it's time for a look at other policies. The airlines, for example, are still paying out hundreds of millions of dollars for airport security even though, technically, the job belongs to the new Transportation Security Agency.

And the Transportation Department was silly to stall an alliance between Northwest, Continental and Delta Airlines -- a pact designed to improve both service and efficiency. The Bush administration must get a handle on all the pieces that go into a sound air transit policy.

With war imminent, a good start would be reviewing the air tax structure. Many tariffs should be suspended -- at least temporarily -- with the government paying directly for securing the country's publicly owned airspace.

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Send Your Thanks to the US Military More than 7million people have signed "Defend America's Online Thank You Note" to the men and women of the U.S. military.

Add your thanks by signing the Online thank you note at http://www.defendamerica.mil/nmam.html.

(because of increased traffic at this site, please keep trying if unsuccessful)

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