New USAir proposal


Well-known member
May 2, 2002
Total Time
Ok WO's lets take alook at this at see what we can figure out..

The Negotiating Committee presented management with a counterproposal today on the pilots contributions to US Airways restructuring. Highlights of the proposals provisions include the following:

Pay Rates

• On the effective date of the restructuring agreement (proposed July 1, 2002) the hourly pay rates that were in effect on June 30, 2002 would each be reduced to the rates that were in effect on April 30, 2001. These are the pay rates prior to the parity adjustments on May 1, 2001 of plus 16.99 percent and May 1, 2002 of plus 16.09 percent.

• The parity review scheduled for May 1, 2003, and Letter of Agreement 47, as amended, would be canceled.

• Hourly pay rates would increase by 5.4% on May 1, 2003, compounded 4.3% on May 1, 2004, and 3% on each succeeding May 1 during the term of the Agreement. (The Agreement term would include any status quo period.) Additionally, these hourly pay rates as increased would be increased by an additional compound amount on May 1 of each year if the Company’s financial performance exceeds stated targets.

• On December 31, 2009, hourly pay rates in effect on June 30, 2002 would be restored if they were greater than the actual hourly rates of pay in effect on December 30, 2009.


• US Airways Express operators would be allowed to operate up to the total number of Small Jets (certificated for a maximum of 50 seats and 65,000 pounds) equal to the number of aircraft, Group 2 or higher in the Company’s active fleet.

• Any additional aircraft larger than these 50-seat Small Jets but smaller than Group 2 would be placed at US Airways under rates of pay to be negotiated.

• Once the Company’s active fleet includes at least 315 Group 2 or higher aircraft, the Company would be able to add 2 additional Small Jets for each additional Group 2 or higher aircraft in the Company’s active fleet above 315, and one additional Small Jet for each Group 3 aircraft in the Company’s active fleet.

• US Airways would be allowed to code share with flights of other Domestic Carriers (in addition to flights that operate as US Airways Express), under terms and conditions consistent with similar industry agreements.

• Furlough protection would cover pilots with seniority dates prior to January 1, 1998, subject only to a new force majeure event.

• Establish minimum scheduled block hours on Group 2 aircraft and higher, subject only to a new force majeure event.

• Improved fragmentation protection provisions and contingent acquisition rights in the case of a merger or fragmentation.

Protections, Returns, Governance

• Bankruptcy protections for pilots that state the Company will not seek or support relief from pilots, in the event the Company files for Chapter 11 bankruptcy.

• The proposal also contains certain governance, stock positions, and old option provisions in return for the offered givebacks. This includes a substantial amount of equity participation, resetting the option price for first though fourth grants for those on the seniority list on July 1, 2002, as well as certain other rights to reflect the pilots' economic stake in the airline.


• If approved and ratified, the effective Date of the Contract would be July 1, 2002. The amendable date of the 1998 US Airways pilot collective bargaining agreement (the “Agreement�) would then be extended to December 31, 2009.