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Voluntary Separation Travel Clarification
Flight attendants participating in the Voluntary Separation Incentive Program will be able to add eligible family members to their travel privileges when a major life event occurs e.g. birth of child, marriage, etc.
More information can also be found at http://www.afausairways.org/Furlough/vsp2003.html
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New Sick Policy
AFA and the Company have met several times since the beginning of this year to discuss the new sick policy that was negotiated as part of the December 2002 Restructuring Agreement. There are many disputes between AFA and the Company regarding interpretation of what was actually negotiated. AFA and the Company have been unable to reach agreement on this issue and the Company has advised AFA of their intent to implement the new sick policy on April 1, 2003.
What the Company is going to actually implement is unknown at this time since the Company has not provided AFA with examples of how they plan to implement the sick policy. It is baffling to AFA that the Company is planning to implement something which we do not believe they actually understand themselves. AFA will file an MEC grievance on this issue and it will have to be resolved in arbitration. We will update you as soon as we have additional information.
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US Airways Cuts 4 Percent of Flights
Thursday March 27, 2:17 pm ET
By Jonathan Stempel - Reuters
NEW YORK (Reuters) - US Airways Group Inc. (OTC BB:UAWGQ.OB - News) on Thursday said it would cut about 4 percent of its flights, joining several major rivals in paring back schedules as the Iraq war causes a steep falloff in travel.
The No. 7 U.S. carrier said the cutbacks, which mostly affect off-peak flights, would not impede its planned emergence from Chapter 11 bankruptcy protection by Monday. No jobs will be lost from the cutbacks, which will last about one month and begin next week, it said.
"This is a short-term reduction. It's not affecting jobs," a U.S. Airways spokesman said. Before considering layoffs, "we (would) want to see what further impact the war has on our bookings."
The cutbacks affect about 5 percent of U.S. Airways' available seat miles. Domestic flight cuts will be effective from April 2 to May 3. They will affect mostly evening flights from Pittsburgh and Charlotte, North Carolina. U.S. Airways Express is also cutting flights.
Transatlantic flight cuts will be effective from April 1 to April 30. Flights from Pittsburgh to London's Gatwick Airport will be suspended, as will four weekly flights between Pittsburgh and Frankfurt and two weekly flights between Philadelphia and Amsterdam.
"Because of the war in Iraq, we have adjusted our operation in a way that limits the impact to our customers," B. Ben Baldanza, senior vice president of marketing and planning, said in a press statement. Since the Sept. 11 attacks, U.S. Airways has cut available seats by 28 percent, he said.
In its annual report, also filed on Thursday, the Arlington, Virginia-based company said it was considering pay deferrals for many of its workers, who numbered 37,100 as of Dec. 31. The carrier said the war allows it to implement a 5 percent pay deferral for up to 18 months for union, management and administrative employees.
OTHER CARRIERS CUT BACK
In the last week, most major U.S. carriers have curbed schedules, particularly on international routes.
Northwest Airlines Corp. (NasdaqNM:NWAC - News) and Continental Airlines Inc. (NYSE:CAL - News) said they would cut a respective 4,900 and 1,200 jobs. Delta Air Lines Inc. (NYSE:DAL - News) this month began a voluntary leave program in a bid to avoid forced layoffs.
The Air Transport Association, the airline trade group, on Wednesday said passenger traffic dropped 10 percent last week, when the Iraq war began. Domestic bookings for the next 60 to 90 days are down 20 percent and international flight reservations have plummeted 40 percent.
Before it can emerge from Chapter 11, U.S. Airways needs approval of a scaled-down pilot pension plan from the Pension Benefit Guarantee Corp. and the U.S. bankruptcy court in Alexandria, Virginia. A court hearing is set for Friday.
"We are on target for emergence on Monday," the spokesman said. U.S. Airways sought protection from creditors in August.
U.S. Airways shares traded at about 10 cents, down less than a penny.
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