NEW COST CUTTING MEASURES

August 15, the airlines launched measures to simplify their procedures and identify non-profitable practices, thereby launching yet another round of cost cutting measures

US Airways announces dramatic measures to cut costs

Effective immediately, the following new set of policies was launched by US Airways regarding non-refundable tickets.

1. Non-refundable fares for US Airways domestic, Caribbean, U.S. to and from Canada, and U.S. to Europe destinations, must be used for the specifically ticketed flight and will have NO VALUE once the flight has departed.

2. Changes may be made to the non-refundable itinerary BEFORE the scheduled departure only, (including the return flight) subject to certain restrictions and fees.

3. Under the previous policy, an unused, non-refundable ticket could be applied toward the purchase of another US Airways ticket for up to one year. This is no longer the case. Non-refundable tickets not flown on or exchanged before the scheduled flight date will have NO VALUE.

4. Customers with non-refundable tickets will not be allowed to stand-by for alternate flights

5. Tour and Consolidator tickets will become non-refundable and have no value after the ticketed travel date.

6. On transatlantic flights, alcoholic beverages will no longer be offered at no cost to Economy class passengers.

7. Ticketed non-refundable fares will continue to earn full Dividend Miles credit. Effective for travel January 1, 2003 and beyond, miles and segments earned on most non-refundable fares will not count toward Dividend Miles' Chairman's Preferred, Gold Preferred and Silver
Preferred status.

Paper Tickets

Effective immediately, several major carriers are charging between $20.00 to $25.00 for paper tickets. This applies to tickets issued directly by the airlines or travel agencies. The charge will be
collected separately from the ticket and will appear as a separate charge on the credit card. The airlines prohibit us from incorporating the fee in the cost of the ticket. The carriers currently charging $20.00 for paper tickets include: American Airlines and Continental Airlines. US Airways is charging a $25.00 paper ticket fee. Other carriers are expected to follow in the near future.

Airlines Eliminate Waivers

Effective immediately, most major carriers will no longer allow waivers on published fare rules, including, but not limited to:

1. Advance Purchase/Ticketing Time Limits

2. Minimum/Maximum Stay Requirements

3. Refunding of Non-Refundable Tickets Administrative Service Charges

Airlines who have announced this policy include: American Airlines, Continental Airlines, Delta Airlines, United Airlines and US Airways. Additional carriers are expected to implement the new policy in the near future.