[BR][FONT color=#0000ff size=3][STRONG]Mid Atlantic Letter [/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Attachment H. [/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Wholly Owned Carriers. [/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3]Employment and other conditions at Wholly Owned Carriers are described in Attachment B of this agreement.[/FONT][BR][BR][FONT color=#0000ff size=3]Furloughees. Employees involuntarily furloughed on or after September 1, 2001 employees will receive on-line non-revenue travel privileges for themselves and eligible family members while on furlough for a period not to exceed three (3) years following their last day of active service.[/FONT][BR][BR][FONT color=#0000ff size=3]Returns.[/FONT][BR][BR][FONT color=#0000ff size=3]The IAM will participate in a returns program as described in Attachment K.[/FONT][BR][BR][FONT color=#0000ff size=3]Labor Advisory Committee[/FONT][BR][BR][FONT color=#0000ff size=3]A Labor Advisory Committee will be established consisting of one designee from ALPA, AFA, IAM, CWA, TWU and non-contract employees for the purpose of addressing issues of common interest among all employees at US Airways. [/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Information Release[/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3]The Company will provide to the IAM on no less than a quarterly basis certain information in order to permit the IAM to monitor the employees’ investment. [/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Bankruptcy Protection[/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3]The Company will provide Section 1113 protection as described in Attachment F and G upon ratification of this agreement. [/FONT][BR][BR][FONT color=#0000ff size=3]Participation by Other Groups. This agreement shall be contingent upon the Company reaching meaningful voluntary restructuring agreements with other labor groups and MSP satisfactory to the IAM. Additionally, if restructuring occurs with no bankruptcy filing, this agreement shall also be contingent upon the Company reaching meaningful restructuring agreements aircraft lessors and vendors satisfactory to the IAM. [/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Corporate Governance. [/STRONG]The IAM will be entitled to elect and remove a member of the US Airways Group, Inc. Board of Directors on terms as described in Attachment E.[/FONT][BR][BR][FONT color=#0000ff size=3][STRONG][FONT color=#ff0066]Struck Work [/FONT][/STRONG]. Amend Agreements to provide that the Company shall not perform Struck Work of Wholly Owned Carriers and of MDA. Struck work is mechanic and related work traditionally and regularly performed by a Wholly Owned Carrier or MDA where and during the period the mechanic and related employees of that Wholly Owned Carrier or MDA are engaged in a lawful strike, and where the Company has not previously performed the work in question. There shall be no prohibition against a concerted refusal of employees of the Company to perform Struck Work. Moreover, the Company will not hire employees of Wholly Owned Carriers or MDA to perform Mechanic and Related work at the Company during a period when the Company’s Mechanic and Related employees are engaged in a lawful strike. [/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Productivity Exchange[/STRONG]. The parties agree to meet to discuss modifications to IAM's collective bargaining agreement to allow IAM represented employees to buy-back wage concessions in exchange for productivity.[/FONT][BR][BR][FONT color=#0000ff size=3]In addition, a standing committee of Union and Management Members will be established no later than January 1, 2003 with the responsibility of exploring and implementing measures to achieve cost savings by insourcing of work, improving the efficiency of operations and/or by any other methods that create cost savings for US Airways.[/FONT][BR][BR][FONT color=#ff0000 size=3][STRONG]Successorship: Amend CBA to provide as follows:[/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3]The Agreement shall be binding upon the Company and any Successor, defined as a purchaser, assignee or transferee of all or substantially all of the assets or stock of the Company or US Airways Group. Neither the Company nor US Airways Group shall enter into an agreement with a Successor which creates a Successor Transaction unless the Successor agrees, in writing, as a prior condition of the Successorship Transaction, to cause the Company and US Airways Group to continue to be bound by the Agreement, as it may be amended pursuant to the provisions of applicable law, and to cause any operating airline which obtains the assets of the Company to honor and be bound by the Agreement as it may be amended pursuant to the provisions of applicable law. [/FONT][BR][BR][FONT color=#0000ff size=3]If a Successor is an air carrier, and the Successor conducts an operational merger between the Company and the Successor or another air carrier, then the Successor will provide the Company employees with a seniority integration governed by Sections 2, 3 and 13 of the Allegheny-Mohawk Labor Protective Provision. [/FONT][BR][BR][FONT color=#0000ff size=3]Upon a change in control defined as the sale of all or substantially all of the assets or common stock of the Company or US Airways Group in a single transaction (or in multi-step related transactions) to a single purchaser (or a group of purchasers acting in concert), the hourly rates of pay under this agreement shall be increased to the rates which would have been effective following the Pay Parity Adjustment in June 2003 under the Letter of Agreement on pages 59-63 in the basic agreement. In addition to such hourly rates of pay, the IAM will have the right to extend the duration of the IAM Restructuring Agreement for one, two or three years at the IAM’s option, past the amendable date of the IAM Restructuring Agreement, with across the board wage increases of four and one half percent (4.5%) on the amendable date and on each of the three (3) annual anniversaries of the amendable date thereafter (i.e. 12/31/08, 12/31/09 and 12/31/10). For the purposes of this paragraph, Common Stock is the Common Stock of US Airways Group then outstanding and the Common Stock issuable on exchange, exercise, and/or conversion of securities of the Company or US Airways Group which are then currently exchangeable into, exercisable for, or convertible into such Common stock[/FONT][BR][BR][FONT color=#0000ff size=3][STRONG][FONT color=#ff0066]Duration Clause[/FONT][/STRONG]. The Basic Agreement, as modified herein, will remain in effect through December 31, 2008. The parties will commence bargaining for a new collective bargaining agreement no later than January 15, 2008. If the parties have not reached a tentative agreement by July 1, 2008, they will, no later than July 10, 2008, jointly apply for mediation with the National Mediation Board. In the event the parties have not reached a tentative agreement during the status quo period following the amendable date, all base rates will be increased by three (3) percent on July 1, 2009 and on each July 1st thereafter until a new agreement is signed.[/FONT][BR][BR][FONT color=#ff0066 size=3][STRONG]Scope and Job Security. Add to Scope Clause in Article 2(B) of the basic agreement:[/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3]The Company will maintain a fleet size of 275 Total Aircraft (inclusive of maintenance and spares) (if no bankruptcy petition is filed) or 245 Total Aircraft (inclusive of maintenance and spares) (if a bankruptcy petition is filed). Additionally, [FONT color=#9999cc][STRONG]the Company agrees that it will not furlough employees on the Seniority List as of the effective date of this Agreement as the direct result of the reduction of Mainline Aircraft below 275 (or 245 in the case of bankruptcy) because of the introduction of New Aircraft[/STRONG]. [/FONT][/FONT][BR][BR][FONT color=#0000ff size=3]For purposes of this provision, Total Aircraft refers to the total of both Mainline Aircraft and New Aircraft; Mainline Aircraft refers to aircraft of the type currently flown by the Company (or on firm order) as of the effective date of this agreement; the term New Aircraft refers to aircraft of the type not currently flown (or on firm order) by the Company as of the effective date of this Agreement.[/FONT][BR][BR][FONT color=#0000ff size=3]The Company will meet and confer with the Union by January 1, 2004 regarding bringing in-house avionics and composite work where the Company has the necessary facilities and equipment, provided limited employee familiarization and/or training is required.[/FONT][BR][BR][FONT color=#0000ff size=3]Attachment B [/FONT][BR][BR][FONT color=#0000ff size=3][STRONG]Employment and other conditions at Wholly Owned Carriers[/STRONG][/FONT][BR][BR][FONT color=#0000ff size=3]A. US Airways shall request PSA, Piedmont, and Allegheny (hereafter Wholly Owned Carriers) to make job offers and employ furloughed Employees who apply for Wholly Owned Carrier Vacancies in accordance with the following provisions. It is recognized, however, that US Airways does not control the hiring and employment policies of the Wholly Owned Carriers, and thus cannot be responsible for their compliance with these provisions. US Airways will request that the Wholly Owned Carriers indicate, in writing, within seven (7) days of the agreement between the Company and the Union, whether they will comply with the provisions below.[/FONT][BR][BR][FONT color=#0000ff size=3]1. Employees who are furloughed on or after the effective date of this agreement who desire transfer to a Wholly Owned Carrier Vacancy will be required to notify the Wholly Owned Carrier and submit their application to the Wholly Owned Carrier. Employees who are on furlough as of the effective date of this agreement who are interested in applying for Vacancies at the Wholly Owned Carrier must submit their application to the Wholly Owned Carrier within forty-five (45) days of the date that the Wholly Owned Carrier notifies the Employee that it will begin to accept applications. Applications must include all locations for which the employee is applying.[/FONT][BR][BR][FONT color=#0000ff size=3]2 The Wholly Owned Carrier will be requested to offer employment to any qualified furloughed Employee who has applied under the terms stated in item (1) above prior to employing anyone else in that Vacancy. As employment opportunities become available, the Wholly Owned Carrier will be requested to offer such positions in relative seniority order to qualified Employees who have submitted applications in accordance with this Agreement.[/FONT][BR][BR][FONT color=#0000ff size=3]3. Furloughed Employees who accept positions at the Wholly Owned Carrier under these terms will be entitled to such seniority and terms and conditions of employment as are applicable in the CBA or employment policies of the Wholly Owned Carrier. Severance allowance, and any other benefits to which these Employees are entitled under the US Airways CBA shall not cease, or be adversely affected, upon the effective date of hire at the Wholly Owned Carrier.[/FONT][BR][BR][FONT color=#0000ff size=3]4. Wholly Owned Carriers will be requested to release Furloughed Employees who accept recall or transfer back to US Airways positions in order to comply with report dates pursuant to the terms of the US Airways CBA. [/FONT][BR][BR][FONT color=#0000ff size=3]5. In addition to the above and as a condition to this agreement between the Company and the Union the President of Mid Atlantic Airways (MDA) will be asked to provide a letter to IAM addressing MDA’s commitments, if any, regarding union recognition, the bargaining process for a first contract and hiring procedures. This letter will be provided to the Union prior to concluding the agreement between the Company and the Union. For Company employees hired by MDA, Severance Allowance and any other benefits to which these Employees are entitled under the US Airways CBA shall not cease, or be adversely affected, upon the effective date of hire at MDA.[/FONT][BR][BR][FONT color=#0000ff size=3]B. Furloughed Employees working at a Wholly Owned Carrier will continue to be considered on furlough from US Airways and will accrue US Airways seniority under the terms of the US Airways CBA applicable to Furloughed Employees.[/FONT][BR][BR][FONT color=#0000ff size=3]II. Definitions[/FONT][BR][BR][FONT color=#0000ff size=3]The following definitions apply to certain terms used in this Agreement.[/FONT][BR][BR][FONT color=#0000ff size=3]1. Employees. The term Employees refers to Mechanic and Related employees of US Airways represented by the IAM.[/FONT][BR][BR][FONT color=#0000ff size=3]2. Vacancies. The terms vacancies refers to vacant job positions in the Mechanic and Related craft or clas[BR][/FONT]