There are four separate provisions to LOA 44 that the Company may invoke if certain criteria are met. These four provisions may be invoked together or separately and always apply to specific bases, positions, and equipment. They are: flex cap, vacation cash-out, positive paybank cash-out, and increasing positive paybank cap to 37:30. Each will be discussed separately.

Flex cap. This allows the Company to build blocks in excess of 85 hours and pilots are allowed to exceed 85 hours up to the monthly-determined flex vlaue. This flex value can be up to five hours. If the flex value for a givien month is determined by the Company to be three hours, then the new pay cap (flex cap) will be 88 hours. Also pilots may exceed flex cap by the same rules which allow exceeding 85 hours in a non-flex cap month. Essentially take all the rules governing 85/90 hour flying and wherever it says "eighty-five (85)," substitute the flex cap for the month and wherever it says "ninety (90)," substitute 90 plus the determined flex value for the month.

Vacation cash out. This provision allows a pilot, at his or her option, to sell back vacation in a month where s/he has vacation scheduled. S/he may sell back a maximum of seven days per year and receive that money in the next month’s paycheck. S/he may fly a regular month as if there were no vacation days in his/her line. This option is available through Future Crew Scheduling.

Positive paybank cash out. This provision allows a pilot to sell back to the Company up to 10 hours of positive paybank per year. The amount of money will be included in the pilot’s pay and s/he will now be allowed to deposit further time in positive paybank up to the current maximum for his/her base/equipment/position. All that need be done to accomplish this is to submit a PE–39 claim form.

Increased paybank. Pilots in affected positions will be allowed to increase their paybanks to a new maximum of 37:30. All the rules that apply to positive paybank still apply except substitute 37:30 wherever the Contract says 27:30. Once a base/equipment/position has been designated as increased paybank in a given month, that base/equipment/position maintains that status for the rest of the calendar year. Pilots in that affected base/equipment/position can at any time for the rest of the calendar year maintain their positive paybanks up to the new maximum of 37:30 whether they take advantage of the provision in the month of designation or not. They must, however, return their paybanks to a maximum of 27:30 immediately in the new calendar year, as per Section 12(N)3 of the Contract, unless they are re-designated for the next year. This aspect of continuing a designation for an entire calendar year applies only to this provision.

In December 1998, all bases/equipment/positions were designated for the increased paybank. Thus every pilot at US Airways was allowed to maintain a positive paybank up to 37:30 at the end of December’s pay month. However only a limited number of bases/equipment/positions were designated for January. These are:

If you are not in the above positions, and your paybank is in excess of 27:30 as of December 31,1998 you must adjust your January flying to bring your positive paybank back to 27:30 or below or you will be in violation of the Contract.