FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported)
August 27, 1999
US Airways Group, Inc.
(Commission file number: 1-8444)
and
US Airways, Inc.
(Commission file number: 1-8442)
(Exact names of registrants as specified in their charters)
Delaware US Airways Group, Inc. 54-1194634
(State of incorporation US Airways, Inc. 53-0218143
of both registrants) (I.R.S. Employer Identification Nos.)
US Airways Group, Inc.
2345 Crystal Drive, Arlington, VA 22227
(Address of principal executive offices)
(703) 872-5306
(Registrant's telephone number, including area code)
US Airways, Inc.
2345 Crystal Drive, Arlington, VA 22227
(Address of principal executive offices)
(703) 872-7000
(Registrant's telephone number, including area code)
Item 5. Other Events
On June 6, 1999, US Airways, Inc. ("US Airways"), a wholly-
owned subsidiary of US Airways Group, Inc., reached a tentative
agreement with its mechanics and related employees, represented by
the International Association of Mechanics and Aerospace Workers
("IAMAW"). The agreement linked compensation for US Airways'
mechanics and related employees to compensation for similar
employees at several other major domestic airlines. The agreement
also included other provisions which would help address US Airways'
personnel cost structure in comparison to other air carriers and
would increase productivity. However, while the agreement was
accepted by the IAMAW negotiating committee, it was rejected by
the membership in the ratification vote. Negotiations with the
IAMAW resumed in August 1999 with the assistance of a federal
mediator. On August 23, 1999, the IAMAW requested that the
National Mediation Board ("NMB") release the parties from
mediation. In a separate request, US Airways also sought a
release. On August 24, 1999, the NMB proffered binding arbitration
to resolve any outstanding issues. On August 25, 1999, the IAMAW
rejected the proffer. On August 26, 1999, US Airways received a
letter from the NMB commencing a 30-day cooling off period. US
Airways anticipates that this will have an adverse effect on
short-term revenues. If by the end of the cooling off period the
parties do not reach agreement, either party can resort to self-help
remedies including, without limitation, work stoppages by the
mechanics and related employees and hiring of replacement workers
by US Airways. US Airways cannot predict the outcome of such
negotiations at this time.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrants have duly caused this report to be signed
on their behalf by the undersigned hereunto duly authorized.
US Airways Group, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: August 27, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
US Airways, Inc. (REGISTRANT)
/s/ Anita P. Beier
Date: August 27, 1999 By: --------------------------------
Anita P. Beier
Vice President and Controller
(Chief Accounting Officer)
