Contents:

• US Airways' "Business/Restructuring Plan" 
• Special MEC Advisory Committee to Meet with Company
• MEC to Consider "Business/Restructuring Plan" 
• It's not too late to update your profile

On Thursday, May 16, your MEC, together with the other labor groups at USA, attended management's presentationof its "Restructuring Plan." An outline of the Plan was set forth in CEO Dave Siegel's Special Bulletin for 5/16/02, which should have been posted in each base (and which was sent out in AFA E-lines late last week). 

Among the points made in management's presentation to the labor groups were the following: 

• USA is seeking a $1 billion federal loan guarantee from the Airline Transportation Stabilization Board (ATSB). 
• The Plan has a duration of seven years and calls for concessions from from all "stake holders," i.e., labor, management, aircraft manufacturers, suppliers, vendors, etc. 
• The company expects Labor, which represents approximately 50% of the company's operating costs, to give $950,000,000 per year in concessions. Concessions would come from wages, pensions, health and welfare benefits, and productivity improvements. 
• Concessions would not be spread equally across labor groups, but would be commensurate with current wage levels. In other words, the lowest paid employees would be the least impacted. 
• The Plan promises to protect work force levels to avoid or minimize furloughs. 
• The 7-year Plan would include some sort of profit-sharing plan. 
• There would be dramatic increases in regional jets. The Plan calls for an additional 150 RJ's on top of the 140 already agreed to by ALPA. 
• US Airways intends to work out a code-sharing alliance with another domestic and/or international carrier.
• The Plan calls for improvements in scheduling and "hubbing" in CLT, PIT and PHL, and strengthening our position in LGA, DCA, BOS, and the spoke cities. 
• Tentative agreements on labor concessions need to be in place by mid-June.

Special MEC Advisory Committee to Meet with Company

A Special MEC Advisory Committee has been established to meet with the company over the Re-structuring Plan starting tomorrow, May 16. The Committee consists of MEC President Karen Lascoli, BOS LEC President, Buddy Brannon, PIT LEC President, Teddy Xidas, and AFA attorneys Ben Elliott and Stephani Brown. 

AFA has also retained outside financial advisors to help evaluate the company's financial condition and to cost out proposals in the discussions. AFA has also called in outside counsel to advice the MEC on questions related to bankruptcy. 

Following tomorrow's meeting with management, we will provide you with more information. Until then, don't pass rumors, get the facts. Stop speculation by reading the AFA E-Line, checking our website: www.afausairways.org , or calling our Hotline at 800-654-3143. 

If you have questions, call your Local Council or email the MEC: answers@afausairways.org. 
 
 

MEC to Consider "Business Plan" 

A Special Meeting of the MEC is being called for May 22 and 23, 2002 in Washington, DC. 

The agenda: 

• The discussion, review, and consideration of the US Airways, Inc. proposed "Business Plan". 

Date: Thursday, May 23, 2002 
Time: 10:00 am 
Place: AFA International Office 
Address: 1275 K St NW, Suite 500, Washington, DC 

Note: Meetings of the MEC are open to all members in good standing. Please realize, though, that the MEC has the option to close their meetings if they deem it necessary. 
 

The *E-Line* now uses a new and improved list server at union voice.org. This change will enable is to bring you improved services in the near future. But we must have your union voice.org profile updated for this to happen. You can update your profile - including changing your e-mail address - by visiting your very own subscription management page listed below OR go to: http://www.unionvoice.org/e_line_afa_usairways/join.html