US Airways Files Motion For Interim Relief Under Section 1113(e)

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Share Name	Share Symbol	Market	Type
US Airways Grp Cla (MM)	NASDAQ:UAIR	NASDAQ	Common Stock

US Airways (NASDAQ:UAIR)
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US Airways Files Motion For Interim Relief Under Section 1113(e) Company seeks to build cash for slow winter season but will continue to negotiate with unions pending Court ruling ARLINGTON, Va., Sept. 24 /PRNewswire-FirstCall/ -- US Airways Group, Inc. today filed a motion seeking interim relief from the company's collective bargaining agreements with the Air Line Pilots Association (ALPA), Association of Flight Attendants (AFA), Communications Workers of America (CWA), International Association of Machinists and Aerospace Workers (IAM), and certain units of the Transport Workers of America (TWU), under Section 1113(e) of the U.S. Bankruptcy Code. The motion was filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, which is overseeing US Airways' Chapter 11 restructuring. In its motion, the company emphasized that the request for interim relief is made in order to maintain US Airways as a going concern and "preserve approximately 34,000 jobs, preserve air service to hundreds of communities, build the cash reserves needed for the winter, give customers comfort that there is adequate cash for continued operations, and ultimately, avoid the threat of liquidation." "We have had constructive discussions this past week with all of our labor groups and we will continue to seek consensual agreements with our unions, pending the Court's ruling on the motion," said Bruce R. Lakefield, US Airways president and chief executive officer. "Nevertheless, we must move quickly to secure cost reductions, build cash reserves and send the signal to our financial partners and our customers that we will actively manage this restructuring and not allow the company to be swept up in speculation about our future." The interim relief request seeks $38 million per month in cost reductions from labor groups, effective immediately upon the Court's approval. In addition, US Airways will implement capital expenditure reductions and a series of actions to be announced shortly to reduce non-labor and management costs and generate an additional $5 million per month of savings. These actions do not require court authorization. US Airways told the court that it meets the "irreparable harm" standard for interim relief and must secure cost savings immediately because financial projections show that in order to avoid a cash crisis in early 2005, it must accrue roughly $200 million in additional cash. "Over the next six months, we will be faced with significant aircraft lease payments, the traditional seasonal slowdown in both business and leisure travel, and the likely sustained impact of high fuel prices. Waiting for a cash crunch to be right in front of us is simply too late, and if we were forced to implement interim relief at a later date, the pay cuts would be deeper and even more painful. While I don't relish asking US Airways employees to make sacrifices, securing this short-term relief while we continue to negotiate new permanent labor agreements will allow us to complete an orderly restructuring and implementation of our Transformation Plan," said Lakefield. US Airways is the nation's seventh-largest airline, serving nearly 200 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways, US Airways Shuttle and the US Airways Express partner carriers operate over 3,300 flights per day. For more information on US Airways flight schedules and fares, contact US Airways online at http://www.usairways.com/, or call US Airways Reservations at 1-800-428-4322. Certain of the statements contained herein should be considered "forward- looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect the current views of US Airways Group (the "company") with respect to current events and financial performance. You can identify these statements by forward-looking words such as "may," "will," "expect," "intend," "anticipate," "believe," "estimate," "plan," "could," "should," and "continue" or similar words. These forward-looking statements may also use different phrases. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the company's operations and business environment which may cause the actual results of the company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the company to continue as a going concern; the ability of the company to obtain and maintain any necessary financing for operations and other purposes, whether debtor-in-possession financing or other financing; the company's ability to obtain court approval with respect to motions in the Chapter 11 proceeding prosecuted by it from time to time; the ability of the company to develop, prosecute, confirm and consummate one or more plans of reorganization with respect to the Chapter 11 proceedings; risks associated with third parties seeking and obtaining court approval to terminate or shorten the exclusivity period for the company to propose and confirm one or more plans of reorganization, for the appointment of a Chapter 11 trustee or to convert the cases to Chapter 7 cases; the ability of the company to obtain and maintain normal terms with vendors and service providers; the company's ability to maintain contracts that are critical to its operations; the potential adverse impact of the Chapter 11 proceedings on the company's liquidity or results of operations; the ability of the company to operate pursuant to the terms of its financing facilities (particularly the financial covenants); the ability of the company to fund and execute its Transformation Plan during the Chapter 11 proceedings and in the context of a plan of reorganization and thereafter; the ability of the company to attract, motivate and/or retain key executives and associates; the ability of the company to attract and retain customers; the ability of the company to maintain satisfactory labor relations; demand for transportation in the markets in which the company operates; economic conditions; labor costs; financing availability and costs; aviation fuel costs; security-related and insurance costs; competitive pressures on pricing (particularly from lower-cost competitors) and on demand (particularly from low-cost carriers and multi-carrier alliances); weather conditions; government legislation and regulation; impact of the Iraqi war and the Iraqi occupation; other acts of war or terrorism; and other risks and uncertainties listed from time to time in the company's reports to the SEC. There may be other factors not identified above of which the company is not currently aware that may affect matters discussed in the forward-looking statements, and may also cause actual results to differ materially from those discussed. The company assumes no obligation to update such estimates to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law. Similarly, these and other factors, including the terms of any reorganization plan ultimately confirmed, can affect the value of the company's various pre-petition liabilities, common stock and/or other equity securities. Accordingly, the company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities. DATASOURCE: US Airways Group, Inc. CONTACT: David Castelveter of US Airways, +1-703-819-3177 Web site: http://www.usairways.com/

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UAIR US Airways Grp Cla (MM)