US Airways Proposes to Merge with Delta

(A press release by H. Travis Christ, Vice President, Sales and Marketing - US Airways)

By now you may have heard that US Airways has made a proposal to merge with Delta Air Lines. Over the coming days there will certainly be much discussion in the media about this proposal, and in advance of that I'd like to make clear our company's motivation for initiating this process and explain how we believe it would provide enormous benefits for our travel agent partners and for our mutual customers.

The merger of America West and US Airways has provided us with a sound platform to grow our business and provide additional opportunities for our customers. We believe a merger with Delta is the right type of opportunity that can positively benefit all of our stakeholders — customers, employees, and investors. The combination will help provide a stronger base from which the merged airline can compete with other domestic and international airlines.

For our mutual customers there will be benefits similar to what they've already experienced with the new US Airways:

• A much larger network of routes and frequencies to simplify their travel


• A record of reducing fares and eliminating unfriendly fare rules like Saturday- night stays


• A global frequent flyer program that will combine Dividend Miles and Delta SkyMiles balances


• Participation in one of the world's largest airline alliances, opening up even more of the world for travel


• Peace of mind that customers are building a travel rewards investment in a company that will be here for the long term, and that their miles will be here when they're ready to redeem them

Of course, we don't overlook the operational challenges inherent with this kind of transaction. Using our experience with the America West/US Airways combination we will work hard to mitigate transition difficulties, particularly with technology and at the airports. In the short term we know there will be challenges, but in the long run you will be the beneficiary of one of the largest, most convenient airline networks in the United States, designed to make travel as efficient, economical, reliable and comfortable as possible.

This process will undoubtedly take some time to reach its conclusion, but please be assured that in the meantime our current integration processes are moving full speed ahead, including moving to one reservations system, SHARES, which is scheduled for early second quarter 2007.