Summary of Tentative Agreements on 8-27-13

The following is a summary of the changes made to the current collective bargaining agreement (“Agreement”) by two tentative agreements reached between PSA and ALPA and one tentative agreement between US Airways Group (“Group”) and ALPA. This summary does not necessarily enumerate every change to the Agreement. Provisions of the Agreement that were not changed are not included, unless necessary to provide the context for a change. It is not intended to be, nor should it be construed as, a substitute for or interpretation of the actual contractual language.

1.​Group Letter of Commitment of Large Regional Jets to PSA
• Group commits to placing no less than thirty 71-90 seat jet aircraft at PSA.
• Pilots on the PSA seniority list shall operate the aircraft.
• Commitment is in effect for the duration of the CBA.
• Commitment is binding on any successor (including Group/AMR merger).
• The dispute resolution process in PSA/ALPA contract is binding on Group.
• The Group Commitment Letter is contingent on pilot ratification of the Large Regional Jet Order Letter of Agreement (LOA #4) described below.

2.​Enhanced Career Opportunities Letter of Agreement (LOA #3)
• This LOA modifies the “Career Opportunities Letter of Agreement” (LOA #1) in the current Agreement.
• Pilots hired by US Airways pursuant to LOA #3 will be placed on personal leave with PSA until they complete or fail training. If a pilot fails, he can return to his most recent position at PSA and retain his status, domicile, longevity and seniority. If a pilot is terminated after completing training, he does not retain any rights to return to PSA.
• If a pilot meets the eligibility requirements, he will be offered an interview (previously, the pilot would be “considered” for an interview).
• Interviews will be granted in seniority order.
• Previously, one requirement was that a pilot not be “the subject of active discipline.” This term was clarified to mean he is not currently suspended.
• Exempts newly upgraded PSA captains from the requirement that they be in their current position for 12 months.
• If a pilot is not offered a position, he will be given the reasons why an offer was not made.
• If a pilot interviewed but was not offered a position prior to the effective date of LOA #3, he will be granted two additional opportunities after the effective date.
• Job offers at US Airways will be made in seniority order.
• Commitment of job offers is the lesser of 25% of positions offered in a calendar year or four positions for each month US Airways hires pilots.
• Job offer commitment extends for the life of the Agreement (2023). Previously, the commitment was for 3 pilots hired per month in 2013, 2014, and 2015, then 2 positions in 2016 and 2017.
• PSA may delay a pilot’s start of training at US Airways for PSA staffing reasons, but US Airways must still comply with the job offer commitments by the end of each calendar year.
• If a pilot declines an offer, he will not be considered for a position again until he notifies PSA and US Airways that he wishes to be considered.
• The terms of LOA #3 are binding on a successor, including the merged US Airways and American.
• After the merger, the parties will meet to discuss increasing the minimum number of jobs offered to PSA pilots, taking into account the size of PSA’s pilot force relative to the other wholly owned carriers.
• No furlough. Pilots on the seniority list as of the date of ratification of LOA #3 will not be furloughed except in case of conditions beyond PSA’s and US Airways’ control.
• LOA #3 is contingent on the ratification of LOA #4.
• LOA #3 is effective January 1, 2014 and is in effect for the duration of the CBA.
• LOA #3 is null and void if no 71-90 seat aircraft are delivered by December 31, 2015 or if the merger of US Airways Group and AMR does not occur by December 31, 2015.

3.​Large Regional Jet Order Letter of Agreement (LOA #4)
• Current pay rates (longevity and annual increases) in Section 3.A.1 of the Agreement remain the same through March 31, 2018.
• Pay rates are extended until March 31, 2023 with 1% yearly increases.
• All pilots will still receive pay rate increases caused by adjustments to the blended rate resulting from the addition of large jets to the fleet.
• All pilots will still receive pay rate increases of 0.03% for each large jet added to the fleet in excess of the current 49 aircraft (this calculation is done prior to calculating the blended pay rate).
• The following pay caps and pay freezes will apply to all pilots and will occur upon the delivery of the first 71-90 seat jet aircraft (anticipated to be July 2014):
o Captain longevity pay is capped at 12 years of service or the pilot’s actual years of service, whichever is greater.
o First Officer longevity pay is capped at 4 years of service or the pilot’s actual years of service, whichever is greater.
• Pilots who decline a job offer or fail training at US Airways and return to PSA will cease to receive longevity pay rate increases and April 1 annual increases at the time they decline the offer or fail training.
• Pilots who fail to fill out the required paperwork to apply for a position at US Airways prior to December 1, 2013 or within 10 months of their date of hire will be considered to have declined a job offer. Such pilots will cease to receive longevity pay rate increases and April 1 annual increases at the time their seniority would otherwise grant them an interview at Airways.
• Pilots who do not meet the eligibility requirements for a US Airways interview described in LOA #3 are not subject to the freezes to longevity and April 1 annual increases described in the two bullet points immediately above.
• Pilots who are not offered a job at US Airways after their first interview will continue to receive April 1 annual increases, but their longevity increases will be capped at the greater of their current longevity step or at 12 years (for Captains) and 4 years (for First Officers).
• Pilots who are not offered a position at US Airways after a Repeat Opportunity as described in LOA #3 following his second interview will cease to receive longevity pay rate increases and April 1 annual increases.
• Pilots at the top of the PSA pay rate scale (18 years and above) may decline a job offer at US Airways and continue to receive 1% annual increases on April 1.
• Longevity caps and freezes apply to pay rates only, not to other accruals based on longevity such as vacation, sick leave, retirement, etc.
• Current per diem ($1.65 per hour as of 4/1/2013; $1.70 as of 10/1/2014; $1.75 as of 4/1/2016 and $1.80 as of 10/1/2017) modified to eliminate the 10/1/2017 increase to $1.80.
• Current medical insurance premium cost sharing percentage of 27% for the life of the Agreement changed to 29% on 1/1/14; 31% on 1/1/15; 33% on 1/1/16; and 35% on 1/1/17.
• Duration of the Agreement extended from 5 to 10 years.
• LOA #4 is null and void if no 71-90 seat aircraft are delivered by December 31, 2015 or if the merger of US Airways Group and AMR does not occur by December 31, 2015.

TENTATIVE AGREEMENT
​​8/27/13

LETTER OF AGREEMENT #3
ENHANCED CAREER OPPORTUNITIES
among
US AIRWAYS INC.
and
PSA AIRLINES INC.
and
THE AIRLINE PILOTS
in the service of
PSA AIRLINES INC.
as represented by
THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL

This Letter of Agreement (this “Agreement”) is made and entered into in accordance with the provisions of Title II of the Railway Labor Act, as amended, by and among US Airways, Inc. (“US Airways”), PSA Airlines Inc. (“PSA”), and the pilots in the service of PSA Airlines Inc. as represented by the Air Line Pilots Association, International (the “Association” or “ALPA”) (collectively, the “Parties”).

WHEREAS, an agreement has been reached on provisions to place Large Regional Jets at PSA and to provide for enhanced career opportunities at US Airways for the PSA pilots as well as certain other protections;

NOW THEREFORE, the Parties hereby agree as follows:

The provisions of this Letter of Agreement, upon its effective date, will supersede and render null and void in its entirety Letter of Agreement #1 (Career Opportunities Letter of Agreement) by and among the Parties to this Letter of Agreement dated April 1, 2013.

1.​The Special Selection Process.

a.​If US Airways makes the final determination, in its sole discretion, to seek to fill new pilot positions at US Airways (“New Pilot Positions”), US Airways will implement a program applicable to pilots on the PSA Pilot Seniority List (“PSA pilots”), whereby PSA pilots are given the opportunity to be considered for New Pilot Positions (the “Special Selection Process” or the “SSP”).

b. ​Nothing in this Agreement shall be construed to prohibit or in any way limit US Airways from, at any time, soliciting, accepting, or processing any new hire pilot application or inquiry from, or hiring any, pilot who is not on the PSA Pilot Seniority List, except as otherwise required by the US Airways Offer Commitment specified in paragraph 4.

c. ​Any PSA pilot who is hired by US Airways, through the SSP or otherwise, will be placed on a personal leave of absence from PSA in accordance with the provisions of Section 13 of the PSA/ALPA Collective Bargaining Agreement during initial new hire training. Such personal leave of absence will end upon the completion or termination of initial new hire training. Such pilot shall be treated by US Airways as a new hire pilot for all purposes, including, by way of example, for purposes of longevity, required training, and probationary status. A PSA pilot who fails training at US Airways will retain the right, subject to requalification, to return to his most recent position on the PSA Pilot Seniority List, status, and domicile, and with his longevity and seniority as set forth in Section 13 of the PSA/ALPA Collective Bargaining Agreement. A PSA pilot who terminates his employment with US Airways or whose employment is terminated by US Airways after completion of initial new hire training will not retain the right to return to his most recent position on the PSA Pilot Seniority List.

2.​Eligibility for the SSP. PSA pilots who apply and satisfy the requirements of this Paragraph 2 will be granted an interview in seniority order by US Airways for a New Pilot Position as set forth herein:

a.​completes all application forms, paperwork or other application processes which would be required at the time by US Airways of any other applicants, as those processes are amended from time to time, including any materials necessary to comply with the Pilot Records Improvement Act, and specifically indicates in the written application that he/she is a PSA pilot;

b. ​provides PSA a signed release permitting US Airways to have full access to
his/her employment and training records from PSA;

c. ​is an active and fully qualified pilot on the PSA Pilot Seniority List at the time of
his/her application for a New Pilot Position, is active at the time of the US Airways
interview offer and thereafter remains an active and fully qualified pilot on the PSA Pilot Seniority List until the time he is released to his new hire class at US Airways;

d. ​is not serving a disciplinary suspension;

e. ​must have been in his/her current position at PSA for a minimum of 12 months at the time his/her application for a New Pilot Position has been filed; except that, a pilot who has completed an upgrade to a captain position will not be required to remain in that captain position for any specified period of time, and

f.​meets all of US Airways’ hiring criteria and requirements in place at the time US Airways makes such determination, as those criteria and requirements may be amended or altered from time to time.

3. ​Repeat Opportunity.

a. ​If US Airways determines, in its sole discretion, not to offer a PSA pilot a New Pilot Position for any reason, such pilot will be advised of the reason for not receiving an offer and given one additional opportunity to reapply to participate in the SSP during the period beginning one year after that pilot’s original application for participation in the SSP and ending on the termination of the SSP program described in Paragraph 6, below, conditioned on the PSA pilot (i) making a timely application to repeat the SSP through the procedures described in Paragraph 2, above; and (ii) establishing or maintaining his/her eligibility for the SSP as described in Paragraph 2, above.

b. ​A PSA pilot who would otherwise be considered for a repeat opportunity, as described herein, will forfeit any such opportunity in the event he/she fails to submit an application to repeat the SSP before termination of the SSP, as set forth in Paragraph 6, below.

c.​Any PSA pilot who interviewed with US Airways prior to the ratification of this Letter of Agreement will be granted two opportunities to interview after ratification, if not hired after his first interview after the date of ratification.


4. ​US Airways Offer Commitment.

a. ​US Airways’ Offer Commitment, as described below, will begin with the first offer US Airways makes to any pilot to fill a New Pilot Position following the effective date of this Letter of Agreement.

b. ​US Airways’ compliance with the Offer Commitment will be measured annually, as of December 31, 2013, and each succeeding December 31 until terminated in accordance with Paragraph 6, below.

c. ​For each of the calendar years 2013 to 2023, US Airways commits to offer to PSA pilots, in seniority order, in each calendar year, the lesser of (a) twenty-five percent (25%) of all New Pilot Positions filled (subject to standard rounding) in that calendar year, or (b) four (4) New Pilot Positions times the number of calendar months in that calendar year in which US Airways actually hired pilots for New Pilot Positions. For purposes of this Agreement, a pilot will be deemed “hired” by US Airways on the first day he/she commences training.

i. ​For example, in 2014, US Airways hires a total of 62 pilots for New Pilot Positions during five (5) calendar months before December 31, 2014. US Airways will have complied with its Offer Commitment if it made no less than 16 offers (i.e., the lesser of: 4 offers x 5 months, or 25% x 62 pilots) to PSA Pilots in 2014.

ii. ​For example, in 2014, US Airways hires a total of 100 pilots for New Pilot Positions, with hiring in each month before December 31, 2014. US Airways will have complied with its Offer Commitment if it made no less than 25 offers (i.e., the lesser: of 4 offers x 12 months, or 25% x 100 pilots) to PSA Pilots in 2014.

d. ​PSA may delay a pilot’s start of initial training at US Airways as necessary to train and staff the PSA operation, provided that the number of PSA pilots who have commenced initial training at US Airways by the end of the calendar year is no less than the number of offers of New Pilot Positions required under paragraph 4c, above.

e. ​The following conditions apply to US Airways’ Offer Commitment in any given
year:


i. ​The Offer Commitment will be fulfilled based on offers made to PSA pilots for New Pilot Positions, regardless of whether the offer(s) is/are accepted, or whether the PSA pilot fails to appear or delays appearance as scheduled for an assigned new class hire date, or fails training. For example, if US Airways has an Offer Commitment for 27 PSA pilots, and US Airways makes offers to 27 PSA pilots, but only 15 of those PSA pilots accept the offer, and three of those fail training, US Airways will have fulfilled its Offer Commitment for that calendar year.

ii. ​A PSA pilot who is offered a New Pilot Position by US Airways, but who thereafter fails to maintain his/her eligibility in accordance with Paragraph 2 above until the date of his/her assigned release by PSA will forfeit his/her offer of employment under this Agreement. Even if so forfeiting, the offer will count towards US Airways’ compliance with its Offer Commitment. For example, if the Offer Commitment is for 27 PSA pilots, and US Airways makes offers to 27 PSA pilots, but two of those pilots fail to maintain eligibility in accordance with Paragraph 2 above until the date of the assigned release by PSA, US Airways will have fulfilled its Offer Commitment for that calendar year even though two of the offers were forfeited

iii. ​US Airways may make the determination, in its sole discretion, that there is an insufficient number of qualified PSA pilot candidates in any given month in which US Airways hires pilots for New Pilot Positions. If that determination is made in any one or more months, US Airways’ Offer Commitment in the relevant calendar year shall be reduced by the number of positions that otherwise would have been offered to a PSA pilot had there been sufficient qualified PSA pilot candidates. For purposes of this Paragraph the “number of positions that otherwise would have been offered to a PSA pilot” shall be determined pursuant to the formulas provided for in Paragraphs 4.c or 4.d, as applicable, above.

iv.​A PSA pilot who is offered a New Pilot Position by US Airways but declines the offer will not be eligible for a another New Pilot Position offer until he notifies PSA and US Airways in writing that he wishes to be considered for such offer in accordance with this Letter of Agreement.

5. ​Dispute Resolution Procedure.

a. ​General. The following dispute resolution procedure shall be the sole and exclusive procedure for adjusting disputes arising out of the interpretation or application of this Agreement. The Parties agree that neither ALPA nor PSA pilots may file or pursue any grievance to arbitration arising out of US Airways’ determination that individual PSA pilots were not qualified, or for any reason were not made an offer for, a New Pilot Position. The Parties further agree that ALPA and/or PSA pilots may file and pursue grievances to arbitration regarding claims that US Airways has not complied with its annual Offer Commitment set forth in Paragraphs 4.c and 4.d above. If, as part of such grievance or arbitration, ALPA and/or PSA pilots challenge US Airways’ discretionary determination that it had an “insufficient number of qualified PSA pilot candidates in any given month” pursuant to Paragraph 4.e.iii, above, US Airways’ exercise of its discretion will be reviewed under a good faith standard.

b. ​Grievance Procedure.

i. ​Any PSA pilot, group of PSA pilots, or ALPA may file a grievance in writing arising out of the interpretation or application of this Agreement, subject to the limitations set forth in Paragraph 5.a., above. Any grievance that complies with the conditions of Paragraph 5.a, above, must be filed with the Vice President of Flight Operations of PSA or his designee, and the Vice President of Flight Operations of US Airways or his designee, within sixty (60) days of the time the affected PSA pilot(s) become aware of the alleged violation of the Agreement. The grievance must set forth a statement of facts giving rise to the grievance and the relief or remedy requested.

ii. ​Within fifteen (15) business days after the carriers receive the grievance, the Parties and the Grievant shall meet and confer to address the grievance. The meet and confer, and any subsequent meet and confers regarding the grievance, may be conducted telephonically.

iii. ​If the grievance is not fully settled as a result of the meet and confer, any of the Parties may file a written request for arbitration before a Special System Board of Adjustment established by the Parties solely for the purpose of adjusting any disputes arising out of the interpretation or application of this Agreement (the “Special System Board” or “the Board”), which Board shall have exclusive jurisdiction over any such grievance. The written request for arbitration before the Special System Board must be filed with the Vice President of Flight Operations of PSA Airlines or his designee and the Vice President of Flight Operations of US Airways or his designee, within thirty (30) days after the first meet and confer referred to in Paragraph 5.b.ii, above, unless mutually extended in writing by the Parties.

c. ​Special System Board of Adjustment Procedures.

i. ​The Special System Board has exclusive jurisdiction to consider any grievances properly submitted to it by a Party, when such grievance has not been previously settled in accordance with the terms of this Agreement, subject to the limitations set forth in Paragraph 5.a., above.

ii. ​The Special System Board will have sole and exclusive jurisdiction over
grievances arising out of disputes regarding the interpretation or application of the terms of this Agreement. Any dispute involving the interpretation or application of this Agreement may be submitted to the Board only once, and may not be submitted separately against the other carrier. The Board will not have any power to alter or amend the provisions of this Agreement, nor to propose or impose changes in rates of pay, rules, or working conditions. The Board’s remedial powers are limited to issuing relief or remedy awards only against a Party found by the Board to have acted in violation of this Agreement.

iii. ​The Special System Board shall be comprised of one neutral arbitrator.
Upon the submission of a written request for arbitration with the Vice President of Flight Operations of PSA Airlines or his designee and the Vice President of
Flight Operations of US Airways or his designee, the Parties shall, within fifteen (15) calendar days, designate the neutral arbitrator. If no neutral arbitrator is designated after fifteen (15) calendar days of the submission, the following arbitrators are deemed acceptable and the Parties shall select one arbitrator from that list to serve as the neutral arbitrator. If a selection cannot be made by agreement, then the Parties shall alternately strike names from the list until one remains and such remaining arbitrator shall serve as the neutral arbitrator. If the alternate strike selection is not accomplished within seven (7) calendar days after the Parties fail to agree on a neutral arbitrator (such seven days to commence on the first day following the fifteen (15) calendar days specified above, unless the Parties otherwise agree) because one or more Party(ies) has failed to participate in the alternate strike procedure, the other Party(ies) may contact an arbitrator in sequence and commence the scheduling of the hearing.

1. Dana Eischen
2. Josh Javits
3. Richard Kasher
4. Edward Krinsky
5. Gil Vernon


iv. ​In addition, the Parties will agree upon the date(s) the neutral arbitrator will hear the case, which shall be within ninety (90) days of contacting the neutral arbitrator. In the event the neutral arbitrator does not have any dates available within the succeeding ninety (90) days, a date will be chosen within the next thirty (30) days, or the Parties will agree upon another neutral arbitrator under the same schedule outlined above.

v. ​The neutral arbitrator shall hear and decide the case to be determined, and will render the Special System Board’s decision in writing as promptly as possible. The written decision shall be final and binding and conclusive on the Grievant and the Parties.

vi. ​The expenses and reasonable compensation of the neutral arbitrator will be borne equally between the carriers and ALPA, each to bear one-third. Each of the Parties will assume the compensation, travel expense and other expenses of the witnesses called by it. Grievants, witnesses, and representatives who are the employees of PSA or US Airways shall receive Space Positive Company Business transportation for traveling to and from the location of the hearing.

vii. ​The Special System Board shall meet in the city where the general offices of US Airways are maintained, unless the Parties agree otherwise.

viii. ​The Board will hear cases in an order agreed upon by the Parties; however, in the event the Parties cannot agree upon which cases shall be presented first, the Parties will alternate, on a one-for-one basis, the selection of cases.


ix. ​PSA pilots with a grievance before the Special System Board may be represented at Special System Board hearings by such person or persons as they may choose and designate. The Parties may be represented by such person or persons as they may choose and designate. Evidence may be presented either orally or in writing, or both. All witnesses testifying orally or by deposition shall do so under oath. All written submissions to the Special System Board shall be addressed to the neutral arbitrator with one (1) copy to each of the Parties.

x. ​The Special System Board may, on request of the neutral arbitrator or any Party, summon any witness employed by any of the Parties and who may be deemed necessary by both any Party to the dispute and the neutral arbitrator, provided such summons does not unnecessarily interfere with the operations of US Airways or PSA.

xi. ​Each and every witness summoned by the Special System Board or called by any Party shall be free from retaliation or adverse action by the Parties because of his/her giving testimony in good faith.

xii. ​The expense of stenographic services necessary to transcribe Board proceedings shall be borne equally by the Parties, one-third each.

6. ​Effective Date and Termination of this Agreement. This Letter of Agreement is contingent upon the ratification of Letter of Agreement #4 (Large Regional Jet Order) between PSA and its pilots as represented by ALPA. This Letter of Agreement will become effective on January 1, 2014 and shall continue in full force and effect for the same duration, and subject to the same amendable date as, the PSA Pilot Collective Bargaining Agreement, except that this Letter of Agreement will be null and void in its entirety if either (1) no 71-90 seat jet aircraft deliveries, pursuant to the Large Regional Jet Commitment Letter between US Airways Group and ALPA dated ____, occur by December 31, 2015 or (2) the “Agreement and Plan of Merger made on February 13, 2013, between US Airways Group, Inc., AMR Corporation and AMR Merger Sub, Inc.” (the “Merger”) is not closed by December 31, 2015. In the event that no such deliveries occur by December 31, 2015 or the Merger is not closed by December 31, 2015 and this Letter of Agreement is thereby rendered null and void, Letter of Agreement #1 (Career Opportunities Letter of Agreement) by and among the parties to this Letter of Agreement will be re-instated.

7. ​Effect of Merger (including the Agreement and Plan of Merger made on February 13, 2013, between US Airways Group, Inc., AMR Corporation and AMR Merger Sub, Inc. (the “Merger”)). The provisions of this Letter of Agreement will be binding on any successor of US Airways, including a successor that results from the operational merger of US Airways and American Airlines, and US Airways will require that any such successor agree in writing to be bound by this Letter of Agreement. Moreover, within 30 days after the issuance by the Federal Aviation Administration of a single operating certificate as a result of any such merger, the Parties will meet and discuss increasing the minimum number of positions under paragraph 4c of this Letter of Agreement, taking into account the size of the PSA pilot force relative to the other wholly-owned subsidiaries and PSA’s operating requirements.

8. ​Limitations. US Airways’ and PSA’s obligations, as described herein, are limited solely to the SSP. This Agreement does not constitute an agreement with respect to (i) any collective bargaining agreement between US Airways and the pilots in the service of US Airways, as represented by the US Airline Pilots Association, or (ii) any other obligation of PSA or US Airways to pilots in the service of PSA or to ALPA, except as provided in paragraph 9, below.

9.​No Furlough. No pilot on the PSA Seniority List as of the date of ratification of this Letter of Agreement will be furloughed, except that such furlough protection shall not apply in circumstances where the non-compliance is caused in substantial part by Conditions Beyond PSA’s and US Airways’ Control. “Conditions Beyond PSA’s and US Airways’ Control” shall include, but not be limited to, the following: (1) an act of God; (2) a strike by any other PSA or US Airways employee group or the employees of a Commuter Air Carrier operating pursuant to an authorized codeshare arrangement with US Airways; (3) a national emergency; (4) involuntary revocation of the PSA’s or US Airways’ operating certificate(s); (5) grounding of a substantial number of the PSA’s or US Airways’ aircraft; (6) a reduction in PSA’s or US Airways’ operation resulting from a decrease in available fuel supply caused by either governmental action or by commercial suppliers being unable to meet PSA’s or US Airways’ demands; and (7) the unavailability of aircraft scheduled for delivery.

​

IN WITNESS WHEREOF, the Parties hereto have signed this Agreement this __ day of
_______, 2013.

FOR US AIRWAYS, INC. ​​​​​FOR THE AIR LINE PILOTS
ASSOCIATION, INTERNATIONAL


____________________________ ​​​​________________________
Name ​​​​​​​​Captain Donald L. Moak
Title ​​​​​​​​President



FOR PSA AIRLINES INC.


____________________________
Keith D. Houk
President