July 15, 2004

Dear Council 70 Flying Partners,

Quick update:

Last week the MEC met via phone conference. The Agenda for that conference call was to receive a report from our financial advisor, Dan Aiken. Mr. Aiken's report was to then be followed by a vote on whether or not we would enter into an unprecedented third round of concessionary negotiations with management.

Mr. Aiken's report was both comprehensive and eye opening. Mr. Aiken is extremely knowledgeable of the airline industry, of our competition and of the flight attendant profession. I can say without the slightest reservation that he is superior to previous financial analysts we have had to deal with.

The vote that was on the agenda did not take place. Instead, I made a motion to put off the vote until after the MEC had an opportunity to meet and speak with our CEO, Mr. Bruce Lakefield and his right hand man, Mr. Bruce Ashby. My reasoning for this was simple, I, as your representative, could not take the horrific vote in front of me, even with all the information I now had at my disposal, without first receiving some assurances on your behalf from both our CEO, Mr. Lakefield, and the Company's new lead negotiator, Mr. Ashby. Although I came to see the reasoning for meeting I felt, no matter how dire the situation the Company may or may not be in, it would be both foolish and futile to meet for a third time if it were only to deal with those who had already proven, beyond a shadow of a doubt, to be less than honest and less than knowledge to what will actually work towards saving costs rather than just be abusive.

Yesterday, July 14, 2004, the MEC met with Mr. Lakefield and Mr. Ashby. During what was an open forum type discussion I was able to bring forth several issues of concern and receive the assurances I needed to even entertain a vote. Although I certainly cannot tell management who they can or cannot have represent them in negotiations, I could on your behalf make a plea as to what would be a step in the right direction to start the promised corporate culture change of working together. I also sought assurances that certain previously negotiated "hot" issues (read as Reserve, sick and early out) would not only be addressed but done so in a manner of co-operation and that our ideas on how to correct certain things would not just be heard but also be researched and taken seriously. A few other things I brought forth on your behalf touched on issues that needed to be addressed PRIOR to entering into discussions such as "Me Too's" and receiving items promised in previous negotiations but ignored because they may advantage a FA.

The response from Messrs. Lakefield and Ashby was both open and positive. I still do not know the depth of Mr. Lakefield but there is something about this guy that seems credible and even someone we may be able to work with. I know for a fact that he is nothing like his predecessor and hope that once he learns the airline industry inside and out and once he learns to be a part of our family he will be a welcomed asset.

After Messrs. Lakefield and Ashby departed the MEC entered into discussion for several hours, which ended in a vote by the majority to engage in "Cost Saving" negotiations.

As a reminder, Management stated that they needed concessions in the following five dimensions:

-- Rates of pay -

-- Seniority -

-- Benefits -

-- Productivity/Work Rules -

-- Scope -

While I do believe we accomplish something of importance yesterday, I do not want you to think for a moment that this means we will okay. Let there be no doubt that these are Concessionary negotiations. We will do the best we can to retain what we have but at the end of these negotiations it will be YOU who will have to make the hardest vote of your careers. Until I have more information I feel I must ask all of you to try and be patient with me I promise you are my most important concern. Try to stay upbeat and professional for our passengers. Continue to support and protect each other and our profession. As always hope for the best but be prepared for the worst.

Please remember that whenever there is division among our ranks it ultimately weakens our position for negotiations, thereby hurting ALL Flight Attendants. In the future I will be addressing several fallacies that help cause a burr among our ranks, which results in division and ultimately a weakened position at the negotiating table.

It seems only appropriate that the first one be a fallacy about concessions and jobs. Here it is:

Fallacy # ONE: "Concessions saves Jobs"

This is incorrect. "Concessions" is NOT synonymous with "saving our jobs."

While it is debatable that giving concessions may or may not save our Company it is a complete fallacy that by giving concessions we will save the jobs we have today.

The very definition of "Concessions" means you will either reduce something or you will lose it altogether. Therefore the job/career you have today and the job you may think you will be saving by giving concessions will not look or feel like the same job.

The Union Busters have done an excellent job playing on our fears and would love for you to gullibly believe for yet a third time that "Concessions saves jobs."

Fact is, with "maybe" the exception of the title of "US Airways Mainline Flight Attendant," things are not "Saved" as the result of concessions...they are lost.

We have now agreed to engage in cost cutting/concessionary discussions. But before we ever VOTE ON THEM, we had better be darn sure that our hard earned dollars are used wisely. It is one thing to give in an attempt to save our Company, it is quite another thing to restructure our careers just so management can pay for their mistakes or give themselves bonuses.

Yes, we had better be real sure we have crossed all the "T's" before we ever again consider another FOR vote because when you are talking concessions... the THIRD TIME is NOT the charm!

Please know that I brought forth a motion to make sure you would be kept informed and updated throughout the negotiations process. It was amended and passed that the Company's opener and AFA's response would be given to you in its entirety. And that you would receive weekly, if available, updates from the MEC President on any negotiation hi-lights. I brought the issue forward before allowing a vote to enter into negotiations because I want you to know as much about what is happening as I do. That is the only way you can make an informed vote. Please know that your negotiating committee will use all the brainpower and creative "outside-the-box" thinking to do the best we can to keep the cuts as painless as possible. If any of you have ideas on how to save the Company money without it adversely impacting us please email your ideas to me. Although I will be very busy in the coming months and may not be able to get right back to you please know this, I will read and entertain any ideas you may have especially if they work to our advantage.

Your have already

Please know that we, the Negotiating committee and MEC, already have some outstanding ideas on how to fix things and/or how to address cost cutting issues. Some of these ideas may be creative and outside the box. We just need someone who understands our job and will listen to our ideas.

That is all for now.

Take Care and Fly Safe,

Mollie McCarthy

LEC President

Council 70 - PHL/PHW

"LATE ITEM"

-- For Immediate Release --

July 15, 2004

David Kameras - AFA International

US Airways Flight Attendants Will Discuss Cost-Saving Alternatives

WASHINGTON, DC - The US Airways Master Executive Council of the Association of Flight Attendants-CWA, AFL-CIO, reached a decision yesterday and agreed to discuss cost-saving changes within the context of their current flight attendant agreement. The MEC has advised the company that it is not interested in discussing JetBlue work rules or America West pay rates as suggested by the company.

The decision to engage in discussions with the company is conditioned upon the company's willingness to make positive changes to both the sick and reserve systems currently in place, as well as provide a fair and equitable profit-sharing plan as an integral part of any agreement that would be presented to the flight attendants at US Airways for ratification.

The MEC met with CEO Bruce Lakefield and Senior Vice President Bruce Ashby in a closed session in Coraopolis, PA, on July 14. The two executives committed to working to correct problems that have arisen since the company's recent restructuring.

More than 46,000 flight attendants, including the 5,200 flight attendants at US Airways, join together to form AFA, the world's largest flight attendant union. AFA is part of the 700,000 member strong Communications Workers of America, AFL-CIO.

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