USAirways

1. USAirways Joe Beery Sr Vice President and Chief Information Officer

2. For the Record • Yes your aircraft is very safe you have nothing to worry about • I do not control where we fly to, I can not get another flight into your city or more First Class Seats • I did not cancel your flight • I did not lose your luggage and I can not find your luggage

3. ANC YVR YEG YYC SEA FCA GEG PDX GLA BIL PQI LGW EUG FRA MFR CDG MSP BGR YUL YUL MUC BOS BHB YOW AUG MSS MAD BTV BDL BOI RKD FCO MKE OGS PWM JFK DTW MHT LEB ART AMS YYZ CLE ITH SLC ALB ALB OMA MAN ORD EWR ROC RNO DSM HYA BUF BUF SMF PHL BGM SYR CMH ACK GRR PVD PVD HVN SWF OAK ELM JHW MVY PIT BWI ERI ERI HPN IPT IAD BFD AVP ISP SFO FKL FAT DCA LGA LGA ABE IND GJT DEN SJC DUJ SCE SCE JST AOO MRY ASE CAK CAK CAK BFL TEX MCI MDT MDT CMH CMH CMH LBE LNS HGR STL COS SBP ICT MGW CKB LAS DRO RDU SLN DAY DAY BUR SHD SBY CVG SBA FLG HTS IGM FMN BKW ONT PRC HYS LWB BNA CHO LEX MHK LAX HII CRW PHF RIC GCK LGB SNA BLF SDF ORF ORF LYH CLD ROA MEM GBD PSP LAS PHX GSO SAN BDA ABQ DDC PGV TRI ATL YUM BHM TYS TYS EWN CLT AVL XNA TUS OAJ FAY GSP ILM LIT CHA CHA CAE CAE HSV FLO DFW AHN ELP AGS JAX CHS CHS HHH AUS SAV IAH MSY JAN MGM TPA MCO JAX MOB SRQ TLH GNV SAT PNS PBI LIH RSW FLL HNL OGG MIA NAS KOA FPO MEX SJD CUN PLS GYM SDQ GUA PUJ GCM CZM SJU STT GDL MBJ SAL KIN MZT BZE HMO SXM SJO BGI AUA PTY PVR EYW USAirways Who We Are 223 Total Destinations 32 Countries/Territories (Europe, Mexico and Caribbean)

4. The MergerA Tale of Two Cities(East and West)

5. Background US Airways (East) • Outsourced to Sabre/EDS since 1998 prior to Y2K • Similar to American Airlines • Limited new development, no technology refresh • Legacy systems and infrastructure • Survived 2 Bankruptcies America West (West) • EDS hosted Reservations System • Internal development in most areas • Recent upgrades were Tier 1 providers • Modern network and infrastructure in the field

6. Integration Strategy • Migrate to lower cost internally supported systems • (In sourcing) • Scale and integrate current applications • Add functionality where needed (international) • Leverage internally developed distributed applications • Americawest.com will be re-branded to USAirways.com • Americawest kiosks will be re-branded • FlightFund system will be renamed to Dividend Miles • Achieve synergy savings $100 Million

7. Challenges • Run 2 airlines daily operations • Move the from an outsourced model to a hosted model (new EDS contracts) • Ramp up staffing in the IT department • Integrate the systems and upgrade the infrastructure

8. Infrastructure • Convert from a legacy multi protocol environment to a modern IP network. • $45M Airport upgrades • 10,000 new desktops • All new switches, hubs and routers • 800 new kiosks • Voice upgrades • Call center and campus switching • 2nd Datacenter upgrades

9. Reservations System Specifications • US Airways operated with approximately 3M Passenger Name Records and 5M e-tickets. • America West operated with approximately 2M Passenger Name Records and 3M e-tickets. • Cut Over in 8 hours

10. Airline Operations • Phased approach based on Fleet type, migration happened over time. • Massive data migration • Aircraft parts • History • Migrated the dispatch center over night • Currently building a new command center

11. IT systems were merged in 25 months achieving a single operating certificate.Sept 2005 – Oct 2007

12. Lessons Learned –What Worked Well • A “needy” business group is a good indication that they are very engaged and consequently well prepared for cutover. • Small program team was able to maintain tight control over the entire program, managing changes well with a high quality of communication. • Dress rehearsals were invaluable in uncovering issues with timing, and technology. • Migrations are so complex, it’s best to have it in-house. There is an important difference between high level working knowledge and a deep understanding of how things actually work.

13. Lessons Learned – What Didn’t Work Well Training Training Training • Insufficient process testing by airport team did not reveal Agent training shortcomings prior to cutover. • Still working on the labor contracts

14. IT Strategy Today and Going Forward

15. US New Our Goal is to move more to the middle IT Investment Model IT Market Place is broken up into 4 major sectors: Hosting Sabre EDS Buy Out Source US AWA Build

16. Build vs. Buy • Build Criteria: • Significant competitive advantage • Speed of execution is desirable and the environment is very dynamic • No provider exists in the market place • Buy Criteria: • Tier 1 provider • Strong market position • Solid technology with a good investment plan

17. US New Cost and Risk $$$ Return on Investment (ROI) We will be a good “First Follower” Innovation Innovation is based on desired risk/cost and ROI. Bleeding Edge Leading Edge First Follower Late Adopter

18. Internet and Airports Build • Self Service Kiosks and Gate Readers • Internet Distribution • USAirways.com • USAirwaysVacations.com

19. Continued implementation of the ORACLE Suite. Human Capital Management - Payroll Purchasing - Fixed Assets - I-Learning I-Recruiting - Cash Mgmt - Accts Rec Contract Mgmt - Budget and Forecasting Enable self service options for Human Resource Functions. Enable all employee travel benefits on-line including family members. Provide on-line training for Airport and Reservations. Standard industry proven package Buy Employee and Back Office Buy

20. Longer Term 3 to 5 Years • We are going to have to upgrade the reservations system. There are other partners that may have options in 3-5 years, we are currently evaluating all options. • Service Oriented Architecture (SOA) will enable more seamless application integration at much lower costs (Microsoft, ORACLE). • All applications will have to operate in a handheld mobile configuration (In-flight entertainment, reservations, customer/employee notifications).

21. Where are we Today

22. The Industry • Unprecedented financial crisis because of fuel (again) • Consolidation continues • America West – USAirways (Done) • USAirways - Delta (Almost) • Delta – Northwest (Working) • USAirways – United (Almost)

23. 2008: The Price of Fuel • Fuel expense will cost the industry an additional $18 billion in 2008 versus 2007 and US Airways nearly $2 billion WTI ($/bbl)

24. Fuel Expense Mainline Passenger • US Airways’ average fuel expense per round trip mainline passenger will average approximately $300 in 2008.

25. Fuel Prices Impacting Entire Industry

26. Industry Response • Significant Capacity Reductions • All major airlines reducing U.S. capacity • Domestic Available Seat Miles (ASM) expected to be down 9% in 4Q08 and down 9% in 2009 vs. 2008 • New Revenue Streams and Cost Reductions • Baggage fees (First Bag, Second Bag, Third Bag) • Choice seating • Removal of in-flight entertainment system • Removal of ovens

27. Industry Response • Introducing a new in-flight beverage purchase program. • Amending the airline’s Dividend Miles frequent flyer program. These are aggressive responses that will have a material impact on future industry financial performance

28. Thank You