• EXPLANATION OF THE US AIRWAYS SAVINGS PLAN

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• AFA Local Numbers

EXPLANATION OF THE US AIRWAYS SAVINGS PLAN

Recently there has been concern expressed that US Airways is eliminating the Company sponsored 401(k) plan and taking control of your existing 401(k) and will control the funds Defined Contribution Plan set to begin in January 2008. The concern is that if US Airways were to re-enter bankruptcy or liquidate the plans would be terminated, similar to our Defined Benefit Pension Plan and your money would be lost. That is not the case.

The following is an explanation on the new Employee Savings Plan effective January 1, 2008. I hope this clears up any confusion from previous correspondence sent to you.  You will still be able to determine how you invest your money.  Fidelity will still be our provider.  The Company has no control over any money you invest in 401(k) plan or the Defined Contribution plan. Any money in either plan remains your no matter what happens to the Company.

This statement below is also being sent to you by the Company.. 

Effective January, 2008 the company will have consolidated all accounts from the US Airways, Inc. 401(k) Savings Plan (plan that flight attendants currently have and where their contributions are deposited.) and the US Airways, Inc. Employee Pension Plan into the US Airways, Inc. Employee Savings Plan.  This does not mean that you will no longer have a company sponsored 401(k) plan.  What it means is that the company sponsored 401(k) plan that you will be eligible for, effective January, 2008 will be called the US Airways, Inc. Employee Savings Plan.  Any money that you had in the US Airways, Inc. 401 (k) Plan (the plan you were eligible for prior to 1/1/2008) will have been transferred into the Employee Savings Plan.  You are still eligible to contribute your contributions into this plan.  Additionally the company 3% contribution to the Defined Benefit Plan, which you are eligible for beginning with the first paycheck in January, will also be deposited into the Employee Savings Plan.

When you receive statements for the Employee Savings Plan, you will notice that the contributions made to this plan, since the beginning of January, 2008, have been deposited into this plan and are represented by separate source codes.  The purpose of separate source codes is to provide you with a better way to confirm that your contributions and the company's contribution to the Defined Contribution Plan has been made to your account.  The moneys included in your new plan will also include any money you had in your old plan, the US Airways Inc, 401(k) Savings Plan.

Should you have any further questions, please contact me.

Thank you,

Paul H. Frishkorn
AFA MEC Benefits Chairperson
PFrishkorn@afausairways.org

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AFA USAirways Website

www.afausairways.org

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

Council 40 PIT 412-245-1214
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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