1000 Rosedale Ave.
Middletown, PA 17057
717.948.5400
Date: August 7, 2003 Interoffice
Correspondence
To: All Employees
From: Keith D. Houk
Subject: Update
As you know, the airline industry continues to suffer through these very difficult economic times. US
Airways’ revenue continues to come in far below previous estimates. The revenue shortage is due to
many factors including the continued decline in air travel, lower yields, and significantly increased fuel
prices. Despite all that we have done, and recognizing that many of you have made sacrifices to
support the needs of our Company, we are forced to continue to look for more ways to cut our
operating costs.
As announced several weeks ago, Allegheny does not anticipate receiving RJ’s in the near future. Many
of our current aircraft leases expire shortly resulting in a significant planned reduction to our fleet. We
will return six aircraft by the end of 2003 and anticipate additional aircraft returns in early 2004. The
reduction in fleet will necessitate a reduction in staffing.
Accordingly, on September 1, 2003, we will close our Maintenance base in Binghamton, New York.
Many of our maintenance employees will be provided the opportunity to bid on positions in other
locations but unfortunately, it will create much turmoil for our employees and their families. We will
continue to have flight crews and customer service personnel based in that city and at this point, there
are no plans to change that structure. Additionally, on September 1 st , we will reduce our staffing in
Philadelphia by 8%. Through turnover and a voluntary time off program, we are hoping there will be
few, if any, involuntary reductions.
Allegheny is entering a difficult period in our history, however, I am confident that if we continue to
make the necessary changes, Allegheny will survive and again become a profitable and successful
regional carrier.
Middletown, PA 17057
717.948.5400
Date: August 7, 2003 Interoffice
Correspondence
To: All Employees
From: Keith D. Houk
Subject: Update
As you know, the airline industry continues to suffer through these very difficult economic times. US
Airways’ revenue continues to come in far below previous estimates. The revenue shortage is due to
many factors including the continued decline in air travel, lower yields, and significantly increased fuel
prices. Despite all that we have done, and recognizing that many of you have made sacrifices to
support the needs of our Company, we are forced to continue to look for more ways to cut our
operating costs.
As announced several weeks ago, Allegheny does not anticipate receiving RJ’s in the near future. Many
of our current aircraft leases expire shortly resulting in a significant planned reduction to our fleet. We
will return six aircraft by the end of 2003 and anticipate additional aircraft returns in early 2004. The
reduction in fleet will necessitate a reduction in staffing.
Accordingly, on September 1, 2003, we will close our Maintenance base in Binghamton, New York.
Many of our maintenance employees will be provided the opportunity to bid on positions in other
locations but unfortunately, it will create much turmoil for our employees and their families. We will
continue to have flight crews and customer service personnel based in that city and at this point, there
are no plans to change that structure. Additionally, on September 1 st , we will reduce our staffing in
Philadelphia by 8%. Through turnover and a voluntary time off program, we are hoping there will be
few, if any, involuntary reductions.
Allegheny is entering a difficult period in our history, however, I am confident that if we continue to
make the necessary changes, Allegheny will survive and again become a profitable and successful
regional carrier.
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