US Airways 2003 Annual Report Download - page 20

Table of Contents
that prohibit the use of a connecting segment coupon that is part of a through-fare ticket where the passenger does not fly or intend to fly the entire ticketed
itinerary. Plaintiffs allege monopolization and restraint of trade in violation of federal antitrust laws. They seek recovery of treble damages from all named
defendants in the amount of $390 million and an injunction prohibiting future enforcement of the rules at issue. On May 16, 2002, the court denied the
defendant airlines' motion for summary judgment and granted the plaintiffs' motion for class certification in each of the cases. On May 31, 2002, US Airways
Group and US Airways filed a petition with the United States Court of Appeals for the Sixth Circuit seeking a discretionary review of the certification order.
On November 21, 2002, the petition for permission to appeal the class certification decision was denied. On December 4, 2002, Delta and Northwest filed a
rehearing petition seeking en banc review of the initial Sixth Circuit denial. On February 24, 2003, Northwest and Delta's petition for rehearing en banc was
denied. Notwithstanding the district court's denial of summary judgment and the petition, US Airways Group and US Airways believe the claims are without
merit and intend to pursue a vigorous defense. The automatic stay under section 362(a) of the Bankruptcy Code has been lifted since the Company's
emergence from bankruptcy on March 31, 2003.
The Company has been named as a defendant, along with most of the major domestic, several national and a number of international carriers, in a class
action lawsuit on behalf of all United States-based travel agents filed in federal district court for the Northern District of California. The complaint alleges
violation of the federal antitrust laws with respect to commission rate reductions and/or commission cap reductions implemented by various airlines beginning
in or around September 1997, in or around October 1999, in or around August 2001, in or around March 2002 and continuing through the date of the filing of
the complaint. Plaintiffs seek unspecified damages for lost commissions as well as injunctive relief, costs and attorneys' fees and other relief. On June 30,
2003, the Bankruptcy Court issued a contempt order and awarded sanctions against Tam Travel Agents for knowingly and willfully violating the discharge
injunction contained in the Plan of Reorganization. Plaintiff's counsel subsequently filed a stipulation of dismissal of the claims in federal district court for the
Northern District of California.
The Company has been named as a defendant, along with most of the major domestic carriers, in a class action lawsuit on behalf of certain Ohio-based
travel agents, captioned as Paula Fausky d/b/a TIMELESS TRAVEL, et.al vs. American Airlines, et.al, and filed in federal court for the Northern District of
Ohio, Eastern Division. The complaint alleges violation of the federal antitrust laws with respect to commission rate reductions and/or commission cap
reductions implemented by various airlines beginning in or around 1995, in or around mid to late September of 1997, beginning in October of 1998, beginning
on October 7, 1999, and beginning in August of 2001. Plaintiffs seek unspecified damages for lost commissions as well as injunctive relief, costs and
attorneys' fees and other relief. On June 12, 2003, plaintiffs filed a Motion of Voluntary Dismissal of the complaint against the Company in federal district
court for the Northern District of Ohio, Eastern District.
In May 1995, US Airways Group, US Airways and the Pilots Retirement Plan were sued in federal district court for the District of Columbia by 481
active and retired pilots alleging that defendants had incorrectly interpreted the plan provisions and erroneously calculated benefits under the Pilots
Retirement Plan. The plaintiffs sought damages in excess of $70 million. In May 1996, the court issued a decision granting US Airways' motion to dismiss the
majority of the complaint for lack of jurisdiction, deciding that the dispute must be resolved through the arbitration process under the RLA because the Pilots
Retirement Plan was collectively bargained. The plaintiffs appealed the district court's dismissal and in February 1999, the U.S. Court of Appeals upheld the
district court's decision originally granted in May 1996 in the defendants' favor. In May 1999, the plaintiffs filed a petition for certiorari with the U.S.
Supreme Court. In
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