US Airways, pilots seal regional jet service pact

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ARLINGTON, Va., June 10 (Reuters) - US Airways Group Inc. (U), battling to
stay in the skies after taking a hit from the Sept. 11 attacks, said on
Monday it reached a pact with the Air Line Pilots Association (ALPA) that
will allow it to spread its regional jet aircraft business across the United
States.

The deal is a major milestone for US Airways as it put to rest concerns
among pilots who perceived regional jet aircraft services as making them
work more without any incentives.

US Airways Express carrier PSA Airlines currently operates a fleet of 30
Dornier 328 turbo-prop aircraft, serving 30 destinations centered in the
Ohio Valley and in the eastern United States.

PSA Airlines' previous agreement with ALPA did not include provisions for
the operation of regional jet aircraft. In April US Airways and ALPA had
agreed to increase the number of regional jets within its US Airways Express
network from 70 to 140.

The latest agreement between PSA Airlines and ALPA is for regional jet
flying to be undertaken by US Airways pilots.

US Airways said it is currently evaluating aircraft types, and will be
making a decision shortly on its selection of regional jet equipment,
delivery schedules and the number of aircraft that will be deployed in PSA
Airlines.

US Airways President and Chief Executive Officer Dave Siegel said in a
statement the airline is also "in active negotiations" with regional jet
manufacturers and credit providers to secure the necessary capital required
to obtain more regional jet aircraft.

PSA Airlines, based in Dayton, Ohio, employs more than 1,500 staff and
currently operates 200 daily departures.

PSA Airlines is one of three wholly owned US Airways Express carriers,
which, together with seven other affiliate carriers, currently operate more
than 2,200 US Airways Express flights daily, serving 162 destinations in the
United States, Canada and the Caribbean.

Shares of US Airways -- which earlier on Monday asked the government to
guarantee 90 percent of a $1 billion loan that it would use to help salvage
its business -- ended off 4 cents, or 1.27 percent, at $3.10.


©2002 Reuters Limited.

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