APFA/US Airways Bridge Term Sheet Highlights – April 20, 2012

• Early Out APFA's proposal accepted
• No Furloughs
• Wage Increases: 2.5% on effective date.  1.5% annually over next 5 years.
• Retirement: Pension plan frozen. Replaced with a 401(k) contribution.
• Current employees will receive automatic 401(k) contributions for 5 years, with no match requirement.  Contribution levels as follows:
• 9.9% age 50 +
• 6.75% age 40 – 50
• 5.5% age 39 – below
• At the conclusion of the 5 year period, all FAs would receive a 3% contribution with up to a 5.5% match.
• Active Health Benefits: Better than AA’s proposed plan
• *Retiree Health Benefits: Implementation of Voluntary Employee Beneficiary Association (VEBA)
• Bidding: Preferential Bidding System (PBS) with our input
• Reserve:
• Incorporate earlier Reserve assignment notification
• Add AM/PM Ready Reserve shifts.
• Allow Reserve pick-up on days off to be paid on top of guarantee.
• Current reserve rotation will be maintained.
• Sequence Pay Protection:  APFA proposal
• Schedule Maximum:
• Minimum of seventy (70) credit hours and a maximum of ninety (90) credit hours per bid period.
• Flex in the maximum line value by an annual amount of twenty (20) hours, but in no case more than five (5) hours during any given month.
• Incentive Pay/Per Diem: Incentive pay eliminated.  Per diem rates increased to:
• Domestic: $2.00
• International: $2.20
• International Override:
• $3.00 per hour for each international leg. Override for deadhead, trip and duty rigs and trips “not flown” consistent with CBA
• Combined Domestic & International Operation
• Current Duty Rigs Preserved
• Expedited Negotiations for New Contract:  Negotiations for a market based contract will take place immediately following a single-carrier certification.  If an agreement cannot be reached within 60 days of the certification the matter will be submitted to final binding arbitration.
• Maintain all other provisions in our current Contract including:
• Vacation accrual and pay
• Current PVDs
• Sick hour use and current sick policy
• Current Hotel language
• ATC/ Code 59
• Galley pay

* – pending further discussion with US Airways management