US Airways 2003 Annual Report Download - page 12

Table of Contents
despite their scheduled elimination in 2007.
At Reagan National an additional eleven roundtrips are to be awarded by the DOT, pursuant to the recently passed Vision 100–Century of Aviation
Reauthorization Act, which created additional slots for distribution by the DOT. Although US Airways is participating in the proceeding, past DOT procedure
suggests that other carriers, particularly new entrants, will secure additional service rights at Reagan National. Other low-cost low-fare new entrant carriers
also have ongoing efforts to obtain additional slots at LaGuardia.
The availability of international routes to domestic air carriers is regulated by agreements between the U.S. and foreign governments. Changes in U.S.
or foreign government aviation policy could result in the alteration or termination of these agreements and affect US Airways' international operations.
Employees
As of December 31, 2003, on a full-time equivalent basis, US Airways employed 26,700 active employees including approximately 7,000 station
personnel, 5,800 flight attendants, 5,100 mechanics and related employees, 3,400 pilots, 1,800 reservations personnel and 3,600 personnel in administrative
and miscellaneous job categories.
As of December 31, 2003, approximately 88% of the Company's active employees were covered by collective bargaining agreements with various labor
unions.
The status of US Airways' labor agreements with its major employee groups as of December 31, 2003 is as follows:
Union (1) Class or Craft
Employees (2)
Date Contract
Amendable
ALPA Pilots 3,400 12/31/08
IAMAW Mechanics and related employees 5,100 12/31/08
IAMAW Fleet service employees 4,500 12/31/08
CWA Passenger service employees 6,000 12/31/08
AFA Flight attendants 5,800 12/31/08
TWU Dispatchers and other 200 12/31/08
(1) ALPA Air Line Pilots Association, International
IAMAW International Association of Machinists and Aerospace Workers
CWA Communications Workers of America
AFA Association of Flight Attendants
TWU Transport Workers Union
(2) Approximate number of active employees covered by the contract.
Aviation Fuel
Aviation fuel is typically the Company's second largest expense. Prices and availability of all petroleum products are subject to political, economic and
market factors that are generally outside of its control. Accordingly, the price and availability of aviation fuel, as well as other petroleum products, can be
unpredictable. Prices may be affected by many factors, including: the impact of political instability on crude production, especially in Russia and OPEC
countries; unexpected changes to the availability of petroleum products due to disruptions in distribution systems or refineries; unpredicted increases to oil
demand due to weather or the pace of economic growth; inventory levels of crude, refined products and natural gas; and other factors, such as the relative
fluctuation between the U.S. dollar and other major currencies and influence of speculative positions on the futures exchanges. Because the operations of the
airline are dependent upon aviation fuel, significant increases in aviation fuel costs could materially and adversely affect liquidity, results of operations and
financial condition. Furthermore, the
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