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US Airways Fleet Service Employees Ratify Unified Contract

May 15, 2008

Fleet service employees at US Airways (NYSE:LCC) have ratified a single agreement that brings all of the airline’s ramp and baggage employees to one labor contract. US Airways now has ratified contracts with all 11,000 of its International Association of Machinists (IAM)-represented employees.

This latest contract with ramp and baggage employees provides wage increases and other improvements, and becomes amendable on Dec. 31, 2011. This was the third ratification of an agreement between US Airways and the IAM in the past six weeks.

“The unification of all of our IAM-represented employees is an important and exciting milestone for our airline,” said Doug Parker, Chairman and Chief Executive Officer, US Airways. “I am extremely proud of the hard work of the negotiating teams that led to agreements for all of our IAM employees, led by US Airways Vice President of Labor Relations Al Hemenway and IAM District Presidents Randy Canale and Tom Higginbotham.”

The new agreement covers approximately 7,700 fleet service employees, who had been working under terms of separate contracts since America West and US Airways merged in 2005. On April 8, mechanics and related employees approved a new contract, followed by IAM-represented maintenance instructors April 29. With this latest IAM ratification, the majority of US Airways represented employees are now working under the terms of unified contracts.

US Airways is the fifth largest domestic airline employing more than 36,000 aviation professionals worldwide. US Airways, US Airways Shuttle and US Airways Express operate approximately 3,800 flights per day and serve more than 230 communities in the U.S., Canada, Europe, the Caribbean and Latin America. US Airways is a member of the Star Alliance network, which offers our customers 17,000 daily flights to 897 destinations in 160 countries worldwide. This press release and additional information on US Airways can be found at www.usairways.com. (LCCG)

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