October 21, 2004
FOR IMMEDIATE RELEASE
US Airways ALPA Pilots Ratify Transformation Plan Agreement
Hollywood, FL—The US Airways pilot group, represented by the Air Line Pilots Association, International (ALPA), today ratified the US Airways/ALPA Transformation Plan Tentative Agreement by a 58% margin. This agreement supersedes the October 15, 2004 Bankruptcy Court decision that ruled in favor of the Company’s motion to impose immediate interim contractual relief on certain US Airways labor unions. Under an agreement with US Airways, this consensual agreement will become effective retroactive to October 15, 2004, subject to approval by ALPA's President and approval of the bankruptcy court. A motion seeking bankruptcy court approval of this agreement is scheduled for October 26, 2004.
The agreement, which is in effect until December 31, 2009, contains an 18% pay cut, a decrease in the Company’s contributions to the pilots’ defined contribution plan, and a modification of work rules that will significantly increase pilot productivity. It also offers returns for the pilots, including a profit sharing plan and equity participation shares.
"These provisions will provide the airline with the necessary elements required to successfully implement US Airways’ Transformation Plan, provided that other employee groups and stakeholders participate," said US Airways MEC Chairman Bill Pollock. "However, this agreement did not come without tremendous sacrifices by our membership. While the burden that the US Airways pilots have agreed to shoulder is immense, this vote signifies that our pilots acknowledge the pain and sacrifice that is required to address the reality of our situation.
"Clearly, this ratification shows that the pilots of US Airways understand why it was necessary to come to a consensual agreement with the Company. This agreement provides us with the means to survive, emerge from bankruptcy as a formidable competitor, and ultimately prosper in even the most challenging of economic environments," said Captain Pollock.
"With the $1.8 billion that this agreement provides, US Airways pilots, through previous restructuring efforts, including the termination of their defined benefit pension plan, have now provided nearly $7 billion in cost savings to US Airways through 2009," said Captain Jack Stephan, spokesman for the US Airways ALPA pilots.
"Once again, we have delivered on our commitment to participate in a plan to restore US Airways to profitability, but we can not and will not do it alone. Management and salaried employees, along with other labor groups, must also participate in the Transformation Plan. We look forward to management reaching consensual agreements with all employee groups," said Captain Stephan.
ALPA is the world’s oldest and largest pilot union, representing 64,000 airline pilots at 42 airlines in the U.S. and Canada. ALPA’s website is www.alpa.org.
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CONTACT: Jack Stephan
Air Line Pilots Assoc., Int’l.
US Airways Pilots Master Executive Council
(410) 703-9259; (412) 264-5600