US Airways 2005 Annual Report Download - page 15

Table of Contents
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 the Company's international operations.
The DOT has proposed far-reaching changes to the regulations that define what constitutes a U.S. airline. The proposed rule, expected to be finalized in
spring 2006, significantly increases the amount of foreign influence/control permitted in the management of U.S. carriers than currently is allowed. These
changes could result in new competition and/or new airlines starting service. Additionally, the United States and the European Union have agreed on a
significant liberalization of transatlantic air service rights. If implemented, US Airways could face new competition on many of its transatlantic routes.
Employees and Labor Relations
The Company's businesses are labor intensive. In 2005, wages, salaries and benefits represented 20% for US Airways Group, 21% of AWA's operating
expenses and 19% of US Airways' operating expenses. As of December 31, 2005, the Company employed approximately 36,600 active full time equivalent
employees. As of December 31, 2005, AWA employed approximately 12,100 active full time equivalent employees including approximately 1,900 pilots,
2,500 flight attendants, 2,600 passenger service personnel, 1,800 fleet service personnel, 800 maintenance personnel and 2,500 in administrative and various
other job categories. As of December 31, 2005, US Airways employed approximately 20,100 active full time equivalent employees including approximately
2,700 pilots, 4,600 flight attendants, 3,800 passenger service personnel, 4,200 fleet service personnel, 2,600 maintenance personnel and 2,200 in
administrative and various other job categories. As of December 31, 2005, US Airways Group's remaining subsidiaries employed approximately 4,400 active
full time equivalent employees including approximately 900 pilots, 500 flight attendants, 1,500 customer service personnel, 400 maintenance personnel and
1,100 in administrative and various other job categories.
A large majority of the employees of the major airlines in the United States are represented by labor unions. As of December 31, 2005, approximately
80% of the Company's active employees were represented by various labor unions.
The status of AWA's and US Airways' labor agreements with its major domestic employee groups is as follows:
Contract
Union Class or Craft Employees(1) Amendable
AWA:
Air Line Pilots Association ("ALPA") Pilots 1,900 12/30/2006
Association of Flight Attendants-CWA ("AFA") Flight Attendants 2,500 05/04/2004(2)
International Brotherhood of Teamsters ("IBT") Mechanic and Related 800 10/07/2003(3)
Transport Workers Union ("TWU") Fleet Service 1,800 06/12/2005(4)
TWU Dispatch 40 04/01/2008(5)
Airline Customer Service Employee Association — IBT and CWA (the "Association") Passenger Service 2,600 12/31/2011(6)
IBT Stock Clerks 60 04/04/2008
US Airways:
ALPA Pilots 2,700 12/31/2009
AFA Flight Attendants 4,600 12/31/2011
International Association of Machinists & Aerospace Workers ("IAM") Mechanic and Related 2,600 12/31/2009
IAM Fleet Service 4,200 12/31/2009
IAM Maintenance Training Specialists 30 12/31/2009
9