US Airways Reservations Call and Service Centers to be Consolidated in Winston-Salem, N.C.

All Employees to be Offered Positions in the North Carolina Facility

ARLINGTON, Va., Jan. 26 /PRNewswire-FirstCall/ — US Airways announced today that Winston-Salem, N.C., will be the site of its consolidated reservations call and service centers.

In accordance with the Transformation Plan agreement reached with the Communications Workers of America (CWA), the union representing US Airways’ call- and service-center employees, US Airways will consolidate existing facilities, offer all employees the opportunity to transfer with some relocation assistance, and if they choose not to transfer, provide an early- out package consisting of enhanced severance, airline pass travel, extended medical benefits, and professional outplacement and job assistance.

As a result, the company will reassign job functions at its reservations center in Greentree, Pa., its baggage service call center in RIDC Park, Findlay Township, Pa., and Dividend Miles Service Center at Smith-Reynolds Airport in Winston-Salem, to its existing reservations call center on Hanes Mall Boulevard in Winston-Salem.

“During our negotiations with the CWA, the company’s need for cost reductions, and the union’s desire for an early-out incentive program, led to discussion and eventual agreement on a plan that meets our mutual objectives,” said Kerry J. Carstairs, US Airways vice president of direct distribution. “Today’s announcement is consistent with our collective bargaining agreement and as difficult as this decision is, it is a necessary cost-savings initiative and an important step in the successful implementation of US Airways’ Transformation Plan.”

The consolidation will begin in early April and is expected to be completed by the end of the third quarter 2005. The number of employees who will transfer is to be determined. Employees will have 45 days to decide whether or not to take the early out package. Once the program closes, the company will have an additional 30 days to inform employees of when they will be released by the company.

The airline’s Senior Vice President of Corporate Affairs Christopher L. Chiames thanked state and local officials in both North Carolina and Pennsylvania for their efforts in working with US Airways. “It came down to the fact that our existing facility in Winston-Salem has the space and features necessary for a consolidated center. While both locations offered incentives, the cost-benefit analysis by the company favored retaining the Winston-Salem operation, rather than building and relocating to a new facility in Pittsburgh.” Chiames said that with the IAM’s ratification of new labor agreements on Friday, the airline can move forward on plans to keep heavy maintenance operations in both Pittsburgh and Charlotte, and is already in discussions with local officials about the scope of those operations.

US Airways currently has approximately 785 active reservations sales representatives in the Greentree center, approximately 45 employees in the baggage call center at RIDC Park, approximately 110 employees in the Winston- Salem Dividend Miles Service Center, and approximately 850 employees at the 100,000-square-foot Hanes Mall facility in Winston-Salem. The Forsyth County Board of Commissioners and the Winston-Salem City Council will, respectively, hold public hearings and votes on any incentives for which US Airways qualifies.

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