Rumor Control Update

March 2, 2000

Interim Agreement on Regional Jets (LOA #79)

Minimum Growth Commitment

Here is more information on this subject. The Minimum Growth Commitment in LOA #79 is a block hour floor. The new yearly commitments are as follows:

Year	Current Contract Commitment	New Commitment	Difference in Commitment (Aircraft Block Hours)
2000	1,284,500	1,331,000	46,500
2001	1,343,880	1,351,000	7,120
2002	1,370,758	1,379,000	8,242
		Total	61,862

The current Contract requires US Airways to operate at least 1,250,000 block hours during 1999. The Company actually operated 1,331,00 block hours during 1999. The new Interim Small Jet Agreement (LOA #79) snapshots the actual level of flying during 1999 and sets 1,331,000 as the new baseline minimum level.

Under the current Contract, US Airways could reduce year 2000 flying from current levels by 46,500 aircraft block hours. The new Interim Small Jet Agreement (LOA #79) will set the new minimum to 1999 flying levels thereby protecting jobs and requiring growth beyond this floor in future years.

A correlation was made between pilot jobs and aircraft block hours in the February 26 Rumor Control Update. This does not mean that LOA #79 will require US Airways to hire additional pilots. The Minimum Growth Commitment should be viewed as a job protector, not a job creator.

Scope Protections

The Interim Small Jet Agreement (LOA #79) strengthens the scope protections by lowering the seat limit to 50 on the 35 regional jets which the Interim agreement covers. Here is how the industry currently stacks up. This information is presented with the help of ALPA E&FA.

American	Regional code share operations limited to 70 seats and fleets not to exceed an average of 50 seats. Regional carriers are limited to 40% of the block hours and 5% of the ASM's. The number of RJ's is limited to 67, and the average GCD of the RJ is limited to 550 miles.
Delta	Regional code share operations limited to 70 seats and 70,000 lbs. (with exception of 20 BAe-146 or RJ85 aircraft at ASA, as long as no reduction in Delta system scheduled block hours).
Northwest	Regional code share operations limited to certificated maximum seating capacity of less than 60 seats and maximum gross take-off weight of less than 70,000 lbs. Regional jets restricted to certificated maximum seating capacity between 45 and 55 seats and 70,000 lbs., except for Mesaba AVRO-85 and Horizon F-28 as listed in the agreement. RJ's are tied to growth of narrowbody fleet
United	Regional code share operations limited to 75 seats, 75,000 lbs. and non-jet aircraft; protection against replacement flying by regionals. Restrictions on RJ's Commitment to mainline growth. Number of RJ's limited to 63. RJ's are limited to 50 seats or less, except for the Air Wisconsin BAe-146 aircraft listed in the agreement. No reduction in pilot positions as result of regional flying.
US Airways Current	Regional code share operations limited to certificated seating of 69 seats, carriers that do not operate F-28's, RJ's limited in numbers from 12 aircraft to 35 over a 3 year period, then not to exceed 9% of US Airways fleet.

Tomorrow's Special MEC Meeting

The PIT and BOS representatives have communicated with Chip's Place on the issue of pilot ratification, LOA #79 and tomorrow's MEC meeting:

"The first issue of the meeting is to rescind LOA 79 as it currently stands. The second issue is whether the MEC can get more returns for the pilots. We think they can. At that point LOA 79 should go to membership ratification. You have never heard the BOS or PIT reps speak against membership ratification on any issue." [PIT]

"We think the LOA 79 is unacceptable in it's form and should be re-worked. We think the LOA can be improved upon with better return for the pilots. We fully support pilot ratification." [BOS]

Last week, after the Interim Small Jet Agreement (LOA #79) was presented to the MEC, the body decided to send the LOA back to get more. The MEC Chairman and the Negotiating Committee were dispatched by the MEC to Crystal City for final face to face meeting with Management. The deal did not change. In bargaining terms, it can be said that Management appears to be at a point of indifference. In other words, even with the knowledge that the Interim Small Jet Agreement (LOA #79) may be rejected by the MEC and/or pilots, no changes were agreed to.

Both PIT and BOS are expressing the opinion that the deal can be "re-worked" or improved. The state of affairs would suggest that the deal can be re-worked only if the pilots are willing to give more in some other area.

The yes/no decision is currently in the pilot's hands. The question now is will the decision on the Interim Small Jet Agreement remain with the pilots?