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Dear Members,

US AIRWAYS BIDS TO MERGE WITH DELTA AIRLINES

In a press release issued yesterday morning, US Airways announced it has made a proposal to Delta Airlines under which both companies would combine after Delta emerges from bankruptcy. US Airways has committed financing from Citigroup and has offered 8 billion dollars in cash and stock to acquire Delta Airlines. The airline will operate under the name of Delta Airlines.

Earlier this year US Airways CEO Doug Parker made inquiries to Delta CEO Gerald Grinstein proposing a merger. Those inquiries were rebuffed. Delta still continues to insist it can emerge from bankruptcy as a standalone carrier. In today" proposal US Airways has outlined specific terms to merge the carriers.

Several hurdles remain for the transaction to actually occur. The merger offer would have to be approved by the creditors committee and the bankruptcy court and pass government anti-trust scrutiny.

In a mid-day conference call, the Company told Union leaders the proposed timetable for the merger, if allowed, would be in excess of 8 months. The Company wants to continue the process of merging US Airways and America West labor contracts and operations prior to the potential Delta merger.

Delta Flight Attendants are not represented by a union and do not operate under a collective bargaining agreement. The Company has told the Unions they are no longer standing by their statement to negotiate cost neutral contracts but will agree to a negotiation process that would allow for the "higher" of the three contracts or work rules.

AFA attorneys will be briefing the MEC with respect to the fact that Delta Flight Attendants are not represented by a union.

Thank you,

The information below has been taken from the US Airways Website and other news organizations.

US Airways Proposes to Merge With Delta US Airways has announced a proposal to merge with Delta Air Lines. The transaction is valued at approximately $8.0 billion in cash and stock. The combination of US Airways and Delta would create one of the world’s largest airlines. As a combined company, the “New” Delta would be the number one airline across the Atlantic to Europe and the second largest airline to the Caribbean. The New Delta would reach more than 350 destinations across five continents, including North and South America, Europe, Asia and Africa. Learn more about the proposed merger by clicking on one of the sections below. For Customers For Employees For Investors

Webcasts & Presentations Audio Webcast US Airways at Citigroup 21st Annual Transportation Conference (Replay) 11/15/06 at 9:35 a.m. ET Audio Webcast US Airways - Delta Merger Proposal Conference Call (Replay) 11/15/06 at 8:15 a.m. ET Presentations Date Title 11/15/06 US Airways - Delta Merger Proposal HTML version of Presentation (printable)

Other Articles

US Airways Proposes to Merge With Delta- Transaction Valued at Approximately $8.0 Billion in Cash and Stock - Provides 25 Percent Premium to Current Trading Price of Delta's Prepetition Unsecured Claims - Merger Expected to Generate $1.65 Billion in Annual Synergies - Consumers Will Have the Advantages of a Larger, Full-Service Provider With the Cost Structure of a Low-Fare Carrier

Delta, USAirways, and Bankruptcy: Why It Fits - Why would anybody want to buy a bankrupt airline? Well, there are lots of good reasons, as USAirways CEO Doug Parker is well aware.

Fliers, workers up in the air - ATLANTA -- A US Airways bid to buy Delta Air Lines could have a huge impact on local travelers who fly on the 440 daily Delta and Comair flights out of Cincinnati/Northern Kentucky International Airport, as well as 8,000 local Delta and Comair workers and the economic health of the entire region.

Mike Flores, President
US Airways MEC
AFA-CWA

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AFA US Airways website

http://www.afausairways.org/

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http://thehub.usairways.com 
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AFA Local Numbers

Council 40 PIT 724-695-3329
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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