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THE ASSOCIATION OF FLIGHT ATTENDANTS RESPONSE TO US AIRWAYS CHAIRMAN AND CEO DOUG PARKER'S CONSOLIDATION MESSAGE

In a letter to employees (copied below) US Airways Chairman and CEO, Doug Parker, notified employees US Airways will not, for now, be part of any industry consolidation. The letter confirmed the rumors and speculation that US Airways and United Airlines had been in talks for weeks exploring a potential merger.

The letter stated that Mr. Parker while continuing to be a strong proponent of industry consolidation believes the current economic environment precludes US Airways from participating in any further industry consolidation.

Since merger speculation began, AFA has been opposed to any further consolidation involving US Airways for one simple reason- US Airways Group has not completed the existing US Airways/America West merger. The "virtual merger" of US Airways and America West continues to this day. The "virtual merger" continues to be financially and operationally costly to US Airways, its employees and customers.

Although some progress has been made, the airline still operates as two separate entities. Flight Attendants and Pilots are working under separate and distinct Collective Bargaining Agreements. Without combined single Collective Bargaining Agreements the airline is legally required to operate two airlines under two different sets of work rules, pay rates and benefit packages.

When the US Airways/America West merger was announced more than three years ago, management promised hundreds of millions of dollars in merger "synergies". The lion's share of those "synergies" was predicted to be a direct result of operating one seamless airline. The merger, once completed, would then provide cost savings and benefits to the airline's investors, customers and employees. The merger is far from complete and to date, our Flight Attendants, customers and investors have not reaped the benefits of those promised "synergies".

Now that the possibility of another merger has been put on hold, it is time for management to make good on the promises previously made to all. The Company must complete this merger and operate one airline. That can only happen as a result of reaching single Collective Bargaining Agreements. A single agreement with AFA will provide our Flight Attendants with the just rewards for the sacrifices made during bankruptcy. Those sacrifices allowed management the ability to not only promise the "merger synergies", but also paved the way for the airline to earn over one billion dollars in profits over the past two years.

For over two years AFA has been negotiating to provide those benefits to both our members.

AFA wants to send two clear messages to US Airways management:

First, AFA stands willing and able to negotiate, in good faith, a contract that will allow our members the ability to earn a living without sacrifice. Single agreements with all labor groups will finally provide the airline the ability to make good on the "synergy" promise it made to all others- as the airline can then truly operate as a single entity.

Secondly, this airline, and indeed this industry, needs to break out an Economics 101 textbook which would tell management an airline, or any company for that matter, will not survive if it charges a price or fare for a product less than the cost it incurs to produce and deliver the product. Customers are tired of being "nickled and dimed" to death by airlines. Reductions in onboard amenities, charging for checked bags and other "revenue enhancements" only change customer behavior (i.e. more carry-on bags). The incremental costs charged to customers will not produce revenue increases significant enough to offset the cost of fuel. The answer is to produce a reliable and desirable product. Once that product is established, people will pay for it. When customers see a value they will pay for it-if they don't, they will look somewhere else.

AFA will not subsidize the cost of oil. As unfortunate as it is, the price of oil is at historic highs and that impacts everyone-employees and consumers alike.

The company can vastly reduce its costs by operating one airline and operating it well. Once the Company operates a single airline the cost it must pass on to consumers will be reduced. If Mr. Parker truly believes in consolidation, then he must complete the US Airways/America West merger.

Thank you,

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

An Important Message from CEO Doug Parker
May 30, 2008

Fellow Employee:

As you know, we have been assessing our strategic options over the last several months and there has been much speculation about our airline and consolidation. With fuel in the $130 range, I thought it would be helpful to let you know where we are at this point. Hopefully that will help to relieve some of the anxiety created by rumors.

After much work and many conversations with other airlines, we have come to the conclusion that consolidation involving US Airways will not occur at this time. This is not to say that something won't occur in the future - as you know I strongly believe that consolidation is required in our industry and that US Airways would benefit from participating. Rather it is simply unlikely that anything will happen in 2008 as our industry continues to struggle with how to function in a world with $130/bbl oil prices.

This environment, while challenging, is not one that we did not anticipate. We are doing a great job of taking care of our customers and we are well prepared to withstand the current environment. Thanks to your hard work, we are #1 in on-time performance so far in 2008 and have great momentum as we head into the summer. We have more cash relative to size than most of our peers and have fewer obligations coming due in the next few years.

While we are prepared for this environment, we, like all airlines, need to adapt our plans and business models in light of much higher fuel prices. We are working a number of initiatives and you'll hear more about them in the weeks and months ahead. In the meantime, please keep up the great work. We're running one of the best airlines in the country and our customers are noticing. That is extremely important in this environment.

Thank you for your continual commitment to our passengers and to US Airways.

~~~~~~~~~~~~~~~~~

AFA US Airways Website

www.afausairways.org

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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

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