Title: US Airways to Reduce Pittsburgh Service in Early 2008
Date: 10/3/2007 12

00 PM
Flights Continue to Destinations Customers Fly Most; Operations Control
Center; Maintenance Base Remain in Pittsburgh
TEMPE, Ariz., Oct. 3 /PRNewswire-FirstCall/ -- US Airways (NYSE: LCC)
today announced it plans to reduce mainline flying in January from 31 to 22
daily flights, focusing on customers' preferred destinations, as the airline
continues to maximize the financial stability of its Pittsburgh operation. As
part of the new schedule, regional flying to smaller cities is expected to be
reduced from 77 to 46 daily flights. Most of the expected reductions for
smaller cities reflect decisions that we expect to be made by independent
regional carriers that develop their own plans and schedules. These carriers
have not finalized their schedules so the overall level of Express flying may
change.
With the reduced schedule, the airline's flight crew base will close and
approximately 500 pilots and flight attendants will now bid for trips that
originate from other domiciles within the US Airways system. Also with the new
schedule, US Airways mainline airport agents and ramp employees will take over
customer service and ground-handling duties for 350 US Airways Express
employees at wholly owned carrier PSA Airlines, Inc. Those Express employees,
along with about 100 US Airways mainline airport employees, will be offered
jobs elsewhere throughout the US Airways system.
"We've worked very carefully over the past two years to make the right
decisions at Pittsburgh for our customers and the airline as a whole, always
mindful of the impact those decisions may have on our employees," said Doug
Parker, US Airways chairman and CEO. "Unfortunately our ability to operate
profitably from Pittsburgh has been sharply eroded over the past few years and
the hub lost more than $40 million over the past 12 months alone. We need to
acknowledge the economic realities of today and move forward so that our
Pittsburgh service provides a positive contribution to our system as a whole.
Even after these flight reductions, US Airways will still fly more flights to
more cities from Pittsburgh than any other airline.
"This was a very difficult decision, primarily because of the impact it
has on an outstanding group of US Airways and PSA employees. We are committed
to ensuring that all affected employees are treated fairly and
compassionately. We are offering jobs elsewhere on the US Airways system to
all affected ground employees, and those who choose not to accept such a move
will be offered severance pay," Parker said.
The airline reaffirmed its commitment to build a new 600-employee
Operations Control Center at Pittsburgh, and the airline will continue to
employ 730 mechanics at its heavy maintenance base at the Pittsburgh airport.
"US Airways has a proud history in Pittsburgh and will continue to be a major
employer in the area," Parker said.
The airline's reduced schedule, which takes effect Jan. 6, 2008, is
highlighted below.
Customers
Customers will continue to fly to the most popular destinations from
Pittsburgh, including larger East and West Coast business markets such as Los
Angeles, San Francisco, New York, Washington, D.C., and Raleigh-Durham, and US
Airways hubs in Philadelphia, Charlotte, N.C. and Phoenix. Non-stop service to
Florida will also continue. The expected reductions for smaller cities
reflect decisions that we expect to be made by independent regional carriers
to reduce flying. About half of the expected reductions will be made by
regional carriers that operate as independent franchises. See the attached
schedule for a complete list.
Employees
There will be no pilot or flight attendant furloughs as a result of
today's announcement, but the closing of a crew base means pilots and flight
attendants who live in Pittsburgh and fly trips that originate in Pittsburgh
will now bid for schedules that originate in other bases, including Charlotte,
Philadelphia, New York LaGuardia, Boston and Washington, D.C. The airline
expects that most, if not all, Pittsburgh-based pilots and flight attendants
will continue to live in Pittsburgh and commute to these other bases to fly
their schedules.
The US Airways mainline ground jobs will be eliminated and those employees
will be offered jobs elsewhere throughout US Airways' system. Approximately
350 employees of US Airways' wholly owned subsidiary PSA, which operates as US
Airways Express, will also be offered jobs elsewhere in the airline's system
or be placed on furlough.
The airline will continue to be a major employer in Pittsburgh with
approximately 1,800 jobs remaining in the area as part of the airline's heavy
maintenance base, operations control center and remaining airport personnel.
Facilities
Today the airline leases 29 gates and with the new schedule, its gate
usage requirements will be lower. US Airways will meet with PIT airport
officials in the near future to discuss its current and future space
requirements. The airline will maintain its frequent flyer club, heavy base
maintenance operation and operations control center in Pittsburgh.