Rumor Control Update

February 6, 2000

--------------------

New Shuttle Amalgamation Agreement

The joint Shuttle/US Airways Negotiating Committee has reached a tentative Shuttle amalgamation agreement.

The prior agreement which was previously rejected by the US Airways MEC re-defined Shuttle flying to include mainline flying which is operated under the "Shuttle" marketing identity. There are currently 14 mainline aircraft (flown by US Airways pilots) operating under the "Shuttle" marketing identity. These aircraft include 4 DC-9's and 10 737's currently operating DCA-BOS, IAD-BOS and IAD-LGA. The previously rejected agreement would have exposed this (and future) "Shuttle" flying to US2 wages and working conditions.

In the latest tentative amalgamation agreement, Management has agreed to accept ALPA's position that the System Board shall only have jurisdiction to decide whether US Airways can operate the "original" DCA-LGA and LGA-BOS Shuttle (12 aircraft and 22,000 block hours as specified in paragraph 1.(D)(4) of LOA #48 in the current US Airways pilot contract) under US2 wages and working conditions (should Management ever choose to do so). No current mainline "Shuttle" flying can be effected.

In the event that Management chooses to fly the "original" shuttle under US2 wages and working conditions... and in the event that an arbitrator agrees that they have the right to do that... then pay protection kicks in for those current US Airways pilots who choose to bid the "Shuttle" before any such decision is made by an arbitrator. "Original" Shuttle pilots on the list at the effective date of the mainline agreement (January 1, 1998) are also pay protected according to LOA #48 paragraph 2.(C).

The agreement also establishes a "Shuttle Stand-by" bid position. The standby duty day cannot exceed 12 hours without a flight assignment. The current mainline duty rigs apply. (According to the agreement, reclining chairs will be available.) [Pilots will have to furnish their own entertainment].

The amalgamation agreement will be acted upon by the US Airways MEC during a special MEC meeting to be held on February 9 and 10 at the BOS airport Hilton Hotel. The meeting begins at 1000.

If ratified by the MEC, the amalgamation agreement will establish LGA as a new US Airways domicile with the common cities of EWR and JFK. The common domicile will function similar to IAD-DCA with limo pay increased to 2 hours pay and credit between EWR-JFK and 1.5 hours pay and credit between LGA-EWR.

RJ Talks Continue

Discussions between ALPA and Management continue this week on a "mini" RJ deal for 35 regional jet aircraft. Negotiations are on-going and table positions change daily, but here is some of the latest information:

Boeing 717

The training department is evaluating the transition requirements for pilots moving from the DC9 to the B717. You may see one of these fine aircraft flying around in Boeing paint.

US Airways Hiring

Internal communications to ALPA indicate that the rate of pilot hiring is about to be significantly reduced. It appears that the number of check airmen on the B-737 and Airbus will also be reduced.

Morgan Stanley

In a SEC form 13G filing, Morgan Stanley Dean Witter has disclosed that they now own 4,250,000 shares of U. This equates to 6% of the company. They indicate that it is being held for investment purposes.

Fleet Plan

Management has indicated that there are no plans to reduce either the existing numbers of 757 or 767 aircraft. Previous plans to reduce the 767 fleet by 4 aircraft have been changed.