US Airways Seeks to Spread Out Pension Payments

US Airways Seeks to Spread Out Pension Payments 


ARLINGTON, Va., Aug. 16  /PRNewswire-FirstCall/ -- US Airways today said it
will ask the Internal Revenue Service (IRS) for authority, as permitted under
IRS rules, to reschedule contributions to the defined benefit pension plans for
the Association of Flight Attendants (AFA) and the International Association of
Machinists (IAM), representing mechanical and related employees.

"Rescheduling these payments will help US Airways to conserve its cash so that
we have sufficient liquidity to operate the airline," said Jerry Glass, US
Airways senior vice president of Employee Relations.  "This is an important
step as we work to ensure our survival and future prosperity."

A letter has been sent to employees in both work groups explaining the
company's action. The two plans would be treated the same under the proposed
payment rescheduling.

Under IRS rules, US Airways is required to make contributions of approximately
$67.5 million total to the AFA and IAM plans for the 2004 plan year. If the
application for a waiver is approved, the company will be able to spread out
these contributions for the 2004 plan year for up to five years, rather than
the 18 months during which the contributions otherwise would have been made.

Because US Airways already has contributed $28.6 million to the AFA and IAM
plans during 2004, the company intends to apply that amount toward the last
2003 plan year payment, which is due on Sept. 15.

The proposed payment rescheduling would have no impact on retirees. For current
employees, pension benefits will still begin when an employee retires and
continue throughout the employee's lifetime. 

DATASOURCE: US Airways



CONTACT:  US Airways Corporate Affairs, [phone]



Web site:  http://www.usairways.com/ 

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