Rumor Control Update

March 13, 2000

More Scope Information

US Aiways pilots will soon be voting on the Interim Small Jet Agreement (LOA #79). Under LOA #79 an additional 35 RJ's would be permitted, and these additional 35 aircraft would be limited to certificated seating of 50 seats or less. If LOA #79 is approved, US Airways would still have the most restrictive scope language on RJ's in the industry.

The following table supplements the ALPA E&FA information as published in the March 2 Rumor Control Update. This highlights why so many RJ aircraft are currently in production:

Northwest	RJ's are defined as jets having a certificated seating capacity of between 45 and 55 seats, and a maximum certificated gross takeoff weight of less than 70,000 lbs. There is no limit on commuter RJ operations with fewer than 45 seats.
United	RJ's are defined as jets with certificated maximim seating capacity of 50 seats or fewer and a permitted gross takeoff weight at or below 60,000 lbs. Maximum number of RJ's is 65 which excludes 18 BAE-146's permitted by agreement. United pilots are currently in negotiations for a deal on 265 RJ's.
American	RJ's are defined as jets with a certificated seating capacity of at least 45 and not more than 70 seats and a certificated gross takeoff weight not in excess of 75,000 lbs. There is no limit on commuter RJ operations with fewer than 45 seats.
Delta	No special RJ definition. General restriction on aircraft with more than 70 seats. There is no limit on commuter RJ operations with 70 seats or less.
Continental	No special RJ definition. General restriction on jets with 60 seats or more. Turboprops with 80 seats or more. There is no limit on commuter RJ operations with 60 seats or less.

Pension Calculations Change

As of January 1, 2000 pension calculation methodology has changed for the better. New GATT methodolgy will replace PBGC calculation methods. Here is an example of how the benefits can change.

Pilot Joe Smith retires at age 60 with 30 years of credited service and Final Average Earnings (FAE) of $195,000.

Contractual Benefit

Due to changes in the calculation methodology, the pension benefit is increased as follows:

65% * $195,000 = $126,750 Annuity

Lump Sum PBGC Methodology

$126,750 Annuity * Old PBGC multiple provides a $1,312,144 Lump Sum

Lump Sum GATT Methodology

$126,750 Annuity * New GATT multiple provides a $1,463,733 Lump Sum

Qualified Benefit

The amount of Qualified Benefit also increases. This provides more favorable tax treatment as follows:

65% * $160,000 limit = $104,000 Qualified Portion of Annuity which can be rolled over.

Lump Sum PBGC Methodology

$104,000 Limit * Old PBGC multiple provides a $1,076,631 Qualified Lump Sum

Lump Sum GATT Methodology

$104,000 Limit * New GATT multiple provides a $1,201,012 Qualified Lump Sum