Rumor Control Update

January 19, 2000

Today, the MEC concluded a special MEC meting in Washington, DC. Action was taken on three (3) issues:

• Settlement of the Rescheduling Grievance
• Continuation of Small Jet Talks
• Western States Code-Share and New Scheduling Issues

Settlement of the Rescheduling Grievance

The rescheduling grievance settlement clarifies the company's responsibility to pay protect pilots that are rescheduled, and provides a detailed definition of the terms. The signed settlement agreement will be distributed soon to all pilots. The settlement language includes a list of examples which will help explain how various rescheduling scenarios are paid.

As part of the settlement the Company has agreed that once a pilot departs his residence to report for a trip (which cancels while the pilot is enroute to the airport), a show no go pay of 2+00 will be paid "even if he were notified prior to his actual report at his domicile."

Continuation of Small Jet Talks

The MEC voted to continue talks about small jets. ALPA secured the following before returning to the table to talk about small jets. The Company has agreed to the following:

• Agreed to re-implement contract Section 25(D)5(d&e) Regular Reserves Who Make Themselves Available to Daily Scheduling (volunteer for trips which open in less than 9 hours). ALPA has scheduled a meeting with the FAA to verify that this procedure is ok. If the FAA permits, regular reserves may once again volunteer for short notice trips but some procedure to give Regular Reserves a "PT" will be necessary.
• Agreed to re-implement LOA #72 "R to S" Transition subject to FAA approval.
• Agreed to conduct new discussions regarding the percentage of "R to S" reserves.
• Agreed to conduct new discussions regarding definition of "adequate coverage."
• Agreed to settle the "Fly Now - Pay Later" grievance in ALPA's favor.
• Agreed that new hire pilots on observation flights will not be given jumpseat priority over other US Airways pilots.
• Agreed to hold in abeyance the decision to remove crew tracking from the domiciles until an ALPA/company Task Force addresses the issue.
• Agreed to allow "S" reserves to bid for their "Protected Times" on a monthly basis.
• Agreed to allow ALPA to review crew scheduling training procedures and materials.

The Negotiating Committee is re-entering negotiations and has been charged to negotiate the small jet issue to secure appropriate protections, limitations and returns to include but not limited to:

1. Reset of the minimum block hour guarantee contained in LOA #52.
2. Adjusted minimum captain/no furlough clause
3. Increased growth (increased block hour and fleet plan protections)
4. Bi Directional flow through
5. Parity review modifications

Western States Code-Share and New Scheduling Issues

Finally, Management and ALPA have reached an agreement on LOA #77 & 78.

LOA #77 American Eagle Code Share provides appropriate scope protections for US Airways pilots by limiting the agreement to the western geographic region of the U.S., limiting code-share aircraft to 69 actual seats, and provides that the agreement is not precedent setting.

LOA #78 (January 2000 Scheduling Clarification) contains additional scheduling provisions and procedures which will:

1. Allow reserve pilots to voluntarily fly into a scheduled day off. (at pilot's option)
2. Provides Vacation Line Adjustment for secondary lineholders.
3. Allows more flexibility for lineholder monthly projection adjustments.
4. Allows lineholders to split for 30 in 7 before or after a line trip as a matter of contract right (similar to the ability of a reserve to split to maximize time).
5. Allow pilots to substitute on the last leg of a trip prior to a deadhead. (FOM will be changed).

LOA's #77 and #78 are tied together. YOU will be be receiving a ratification ballot in the mail soon. The MEC is recommending a vote IN FAVOR of ratification of these two side-letters.

LOA #77 will allow the Company to replace Trans States with American Eagle as a code share partner in several western cities and at the same time protect our scope clause by limiting the code share to 1). aircraft with less than 69 actual seats and 2). turboprops only. This agreement should increase feed in US Airways western cities and may allow for more flying opportunities to those places.

The MEC has tied LOA #78 to the code share permissions of LOA #77. You will cast a single ratification vote for both side-letters.