FOR IMMEDIATE RELEASE

Release #04.AAA3
August 23, 2004

Transformation Plan Negotiations Break Down between US Airways Pilots and Management

PITTSBURGH—Talks on Transformation Plan negotiations between the Air Line Pilots Association and US Airways broke down August 22 in Arlington, VA.

"We are disappointed that the Company’s latest proposal failed to respond in any substantive way to our proposal of August 21. Since the beginning of these talks, we have witnessed a disturbing trend by the Company to seemingly dismiss several significant proposals from our pilot negotiators. Instead, management has responded by ‘piling on’ additional demands to their counterproposals," said Captain Jack Stephan, spokesman for the US Airways ALPA pilots.

Company negotiators requested that their latest proposal be brought to the pilots’ governing body, the Master Executive Council (MEC), for consideration, citing the considerable monetary gap that still exists and their concern for the time remaining to reach consensual agreements with labor.

While no further meetings are planned between the two parties, ALPA negotiators, staff and advisors continue to meet internally. The ALPA Negotiating Committee will report to the US Airways MEC on Wednesday, August 25 at the Key Bridge Marriott in Arlington, VA. At that time, the MEC will determine an appropriate course of action.

This negotiations breakdown comes on the heels of US Airways’ announcement that it plans a major service expansion at Fort Lauderdale Hollywood International Airport. While ALPA applauds US Airways’ attempts to increase flying and to become more aggressive in the marketplace, management must first reach agreements with its labor unions on a Transformation Plan before US Airways can confidently proceed with upgrading Fort Lauderdale to a hub.

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
www.usairwayspilots.org