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> Siegel Accepts Award
>
> President and CEO Dave Siegel today accepted the Airline Financial Management of the Year award
> on behalf of US Airways at the World Transport Summit and 59th annual International Air
> Transport Association (IATA) luncheon meeting in Washington. The awards are presented to
> recognize excellence in boardroom leadership and strategy. The judging criteria for this award
> includes provisions for success in seeing through a major financial transaction, new strategy or
> cost initiative.
>
> After accepting the award, Siegel said US Airways went into a seven-and-one-half month
> reorganization that was "aggressive, yet doable." He offered special thanks to employees "whose
> enormous support during these difficult times enabled us to emerge from Chapter 11 on a fast
> track." Areas of competition in the category ranged from financial restructuring programs and
> new market launches to acquisitions through key transactions, and leasing and debt financing.
> G.E. Capital Aviation Services was US Airways? sponsor for the event. There were about 150 in
> attendance at the ceremony, including other airline CEOs and industry analysts. A judging panel
> included industry executives and airline consultants, and awards were presented in seven
> separate categories. IATA represents over 270 members from 143 entries.
>
> Industry News:
>
> Bloomberg News reports that United is revising its application for a $1.8 billion U.S.
> government loan guarantee to emerge from bankruptcy protection. United CEO Glenn Tilton told
> reporters at a news conference that the airline is in the process of supplementing its
> application. United filed for bankruptcy protection on Dec. 9, 2002. The board's executive
> director said at the time United would be allowed to submit a new plan as part of Chapter 11
> restructuring. United will take a new business plan to its board of directors in June and meet
> with a creditors' committee, and will then submit the revised application to the ATSB.
>
> Northwest and its Northwest Airlink affiliate, Pinnacle Airlines, have upgraded service between
> Detroit and State College, Pa. Effective Aug. 3, Northwest will replace one of the four
> 34-passenger Saab 340 turbo-prop airplane flights operating on Sundays with a 50-passenger
> Canadair Regional Jet (CRJ). Beginning Sept. 2, the flight will become a daily jet flight
> between the two cities.
>
> Separately, Northwest will add new service and resume seasonal nonstop flights from its
> Minneapolis/St. Paul and Detroit hubs to destinations in Alaska. The airline?s summer schedule
> to Anchorage and Fairbanks will be offered through Sept. 1, and will include a total of eight
> daily flights from the lower 48 states to Alaska. Northwest will also add a second seasonal
> daily nonstop between June 7 and Sept. 1 on the Minneapolis/St. Paul ? Fairbanks route.
>
> The Department of Transportation (DOT) issued a final decision approving a code share agreement
> between American and British Airways that allows cooperation on routes beyond hubs but excludes
> nonstop transatlantic flights to London. The two airlines first applied for the code share in
> November, and DOT issued a tentative decision on April 9. Unlike previous applications filed
> with the DOT, the most recent application did not request antitrust immunity.
>
> In other news, the DOT has lifted the ban on air service between the U.S. and Iraq, the first
> step toward allowing U.S. carriers to operate scheduled service to Baghdad. Following a DOT
> order issued in 1990, U.S. and foreign air carriers have been prohibited from selling any
> services in the U.S. that included a stop in Iraq. The DOT said procedures for restoring
> U.S.-Iraq air service are under review, as several airlines have applied for Baghdad flights.
>
> United has reinstated daily nonstop service between San Francisco and Seoul, becoming the only
> U.S. carrier to serve the market nonstop from the United States. The service was suspended as
> part of the airline?s post-Sept. 11 service cutbacks. United will operate the flights with
> Boeing 777 aircraft. Korean-speaking flight attendants, Korean-dubbed movies and Korean entree
> selections will be on each flight.
>
> The Air Transport Association (ATA) has announced that John M. Meenan has been named executive
> vice president and chief operating officer, effective immediately. Meenan has held leadership
> positions within the association since joining the ATA general counsel's staff in 1985, and has
> most recently served as senior vice president for industry policy, overseeing industry economic
> analysis and public communications. In his new position, Meenan will work to increase ATA's
> focus on industry issues and improve service to passenger and cargo airline members while
> continuing his involvement in industry environmental affairs, security, passenger and cargo
> facilitation, and coordination of airport policy.
>
>
>
>
> US Airways Implements City Ticket Office Service Fee
>
> US Airways has implemented a $10 service fee for certain tickets purchased or changed through
> any of the airline's city ticket offices (CTOs), beginning today.
>
> "It is important to continue to offer personalized service in our key cities,"
> said Steve Tracas, US Airways vice president of sales. "CTOs provide numerous services that our
> customers value, such as the ability to make changes to reservations, have tickets reissued and
> handle group travel.
>
> "For us to continue to provide this service, it has to be done in a cost-
> effective manner. Other carriers have implemented service fees for this and other value-added
> services, and this nominal fee is in line with that trend," said Tracas.
>
> The service charge will be assessed per customer transaction, and will apply to all fares except
> negotiated corporate/group programs, schedule change reissues, award tickets and tickets subject
> to change fees.
>
> US Airways has 13 CTOs in the U.S. and Canada, with locations in Annapolis, Md., Arlington,
> Boston, Charlotte, N.C., Dayton, Ohio, the District of Columbia, New York City (2),
> Philadelphia, Pittsburgh, Raleigh-Durham, N.C., Toronto, Ontario and Winston-Salem, N.C.
>
>
>
> US Airways and Caribbean Sun Airlines to Code Share
>
> US Airways announced today that it has entered into a marketing agreement with Caribbean Sun
> Airlines, with the first code share flights to begin on June 15, 2003, offering daily connecting
> service between San Juan, Puerto Rico and the destinations of Antigua, St. Maarten, St. Kitts
> and Tortola.
>
> These code share flights are now available for purchase. The agreement provides travelers with
> the convenience of a single ticket between the U.S. and Caribbean Sun's island destinations,
> with conveniently coordinated flight schedules, through check-in, including a boarding pass for
> the connecting code share flight, and baggage checked through to the final destination.
>
> The agreement includes network expansion and affiliation through US Airways' Dividend Miles
> frequent flyer program. Beginning June 15, 2003, Dividend Miles members will be able to earn
> miles on all flights operated by Caribbean Sun. Dividend Miles members will be able to redeem
> miles on flights operated by Caribbean Sun at a later date to be announced.
>
> Caribbean Sun operates 37-seat deHavilland Dash 8-100 aircraft. Its flights will link to US
> Airways service at San Juan to Boston, Charlotte, N.C., Philadelphia and Pittsburgh. In San
> Juan, Caribbean Sun operates from the same concourse as US Airways, and utilizes the same ticket
> counter.
>
> "This code share agreement is part of our plan to extend our GoCaribbean Network to bring more
> of the Caribbean to more of our customers," said Douglas D. Leo, US Airways vice president of
> international. "With convenient connections, Caribbean Sun will provide customers with new ways
> to reach these popular and attractive Caribbean destinations."
>
> R. Allen Stanford, Chairman of Caribbean Sun Airlines said, "This agreement is an important part
> of realizing our goal to stimulate traffic to the Caribbean and we are pleased to have the
> opportunity to work with US Airways."
>
> US Airways' GoCaribbean initiative is a major marketing venture that recognizes the regional
> airline network in the Caribbean as partners, offering additional customer conveniences. Under
> this initiative, US Airways has added greater access to the Caribbean in cooperation with
> Windward Island Airways (Winair) and Caribbean Star Airlines. Combined with US Airways' mainline
> and Express operations, US Airways and GoCaribbean serves over 35 destinations in the Caribbean
> and Latin America.
>
>
>
> Chautauqua Pilots Mull Strike Vote
>
> Chautauqua Airlines pilots are threatening to strike over US Airways' "Jets for Jobs" program
> that is designed to provide jobs for furloughed US Airways pilots in exchange for allowing the
> regional partners to obtain new regional jets. The pilots claim that the airline's management
> has postponed "meaningful negotiations."


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