US Airways Group, Inc.

US Airways, Inc.

2345 Crystal Drive

Arlington, VA 22227

 

Ms. Patricia Friend

President

Association of Flight Attendants, International

1275 K Street, NW

Washington, DC 20005

 

Ms. Karen Lascoli

President

US Airways MEC

Association of Flight Attendants

One Thorn Run Center, Suite 320

1187 Thorn Run Road Extension

Coraopolis, Pennsylvania 15108

 

Re: Restructuring Program

 

Dear Ms. Friend and Ms. Lascoli:

 

The modifications to the 2000 Flight Attendant Agreement (the “Modifications”) reached in connection with the 2002 Restructuring Program of the US Airways Group, Inc. and US Airways, Inc. (together, the “Company”) were agreed to by AFA in furtherance of the Company’s effort to successfully restructure its operations and capital structure and in consideration of the Company’s waiver and agreements herein. The Modifications were embodied in the revised collective bargaining agreement between AFA and the Company described as the “AFA Restructuring Agreement.”

 

This Letter of Agreement is a part of the Modifications and the AFA Restructuring Agreement, and is effective only if and when the AFA Restructuring Agreement becomes completely and unconditionally effective, and there are no conditions subsequent to its continuing effectiveness.

 

The Company believes that:

 

·        The Modifications are based on the most complete and reliable information available to the Company;

 

·        The Modifications permit the Company to avoid irreparable harm and provide for all the appropriate modifications to the 2000 Flight Attendant Agreement that are necessary to permit the successful restructuring and reorganization of the Company.

 

·        The balance of equities favors the AFA Restructuring Agreement and the Company’s adherence thereto.

 

The Company agrees that if a petition for bankruptcy is filed with respect to either US Airways Group, Inc. or US Airways, Inc., during the calendar year 2002 (the “Filing”):

 

1.                  Neither the Company nor any affiliate will file or support any motion pursuant to 11 U.S.C. Sections 1113, 1113 (e), 1114, 1114 (h) or any other provision of the Bankruptcy Code, seeking rejection or modification of, or relief or interim relief from, the AFA Restructuring Agreement.(a “Motion”).

 

2.                  The Company and its affiliates will actively oppose any such Motion if filed by another party.

 

3.                  It is expressly recognized and agreed that if the AFA Restructuring Agreement is not completely and unconditionally effective, and the 2000 Flight Attendant Agreement therefore remains effective without the Modifications, the above two paragraphs are inapplicable and have no force or effect, and the Company may make or refrain from opposing any such Motion with regard to the 2000 Flight Attendant Agreement.

 

In the event that the Company files a petition for bankruptcy and US Airways determines to request additional modifications to the AFA Restructuring Agreement to support reduced cash flows, to secure debtor-in-possession financing, and/or attract capital, the Company and AFA will meet to negotiate regarding such additional modifications to the mutual satisfaction of both parties within fifteen days of such determination. Neither party will be required to reach agreement regarding such modifications and the failure to reach such agreement will not affect the commitments in this letter.

 

Please indicate your agreement to the foregoing by signing below.

 

 

 

Yours truly,

 

 

 

David Siegel

President and Chief Executive Officer

US Airways Group, Inc.

US Airways, Inc.