This is from the company's employee news bulletin dated 13 June 2002
Sorry about the length, but it explaines the term pass/service charge issue.
Pass Travel Improvements
The following message to employees from President and CEO Dave Siegel was sent as a Special Bulletin on Thursday, June 13:
Dear US Airways Colleagues:
Changing the corporate culture of our company has been a stated priority for me, and that message has clearly resonated with many of you. I have tried to convey that such an undertaking will take time, but that I am dedicated to not only talking about it, but taking steps ï¿½ large and small ï¿½ to demonstrate my commitment to that task. Along those lines, I am pleased to announce changes to the Employee Travel program effective August 1, 2002.
ï¿½ Free term pass travel in coach for all active employees
No further payroll deductions will be taken for travel privileges beginning August 1. And there will be no employee charge for pass travel in 2003. You, your spouse or domestic partner, parents and other eligible family members will have unlimited flight privileges at no charge. (Please note that domestic partners, while eligible for travel privileges, continue to be subject to tax on imputed income according to IRS regulations.)
Employees and eligible family members using the ï¿½service chargeï¿½ method of pass travel will automatically be converted to free term pass.
ï¿½ Reduced rates for tickets on US Airways
Employees will be eligible to buy ID
-20 tickets. This is a 20 percent discount on most fares that have an advance purchase requirement. These reduced-rate tickets are not stand-by. You will travel as a revenue passenger, board with the same priority as all of our ticketed customers, and will earn Dividend Miles for your travel. There is no limit to the number of tickets that you can purchase under this program for travel by yourself and your family members eligible for pass travel.
-90 tickets and companion passes, which are based on the Y-Class walk-up fares, the discount pricing for the ID
-20 will apply to publicly available advance purchase fares, making these even better values and costing you less than most discounted on-line travel rates. To book these fares, simply call US Airways Reservations and identify yourself as an employee seeking to purchase a ticket using your ID
-20 discount. As always, please use discretion and call reservations during non-peak hours.
Our eventual goal is to allow you to book these discounted tickets directly from usairways.com, but we did not want to hold up the program while we work through those technical issues. (Once booking is available through usairways.com, you will also be able to obtain the 20 percent discount on E-Savers and other web fares.)
Please note: Even while flying on an ID
-20 revenue ticket, you should be prepared to show your US Airways ID
to confirm your eligibility. Also, these tickets are for personal leisure travel and cannot be used in conjunction with any business-related travel or on behalf of any company or organization. And finally, only employees can actually purchase the tickets on behalf of their family members.
In addition, the same rules that apply to our customers also will apply to our employee reduced-fare tickets. These seats may be capacity controlled, require advance purchase, minimum stays and other restrictions. Tickets are also subject to all taxes/surcharges/fees, etc. that revenue passengers pay. Reduced rate tickets are not available for First Class domestic or International First or Envoy Class travel.
ï¿½ Four free First-Class upgrades
We realize that many employees already have paid for all or most of their 2002 term pass privileges through payroll deductions. The real benefit of free term pass travel will be realized next year and in following years. Refunding payments to employees is not an option this year considering our current financial condition and associated administrative complications.
So in recognition of amounts paid by employees to date, the company, this year only, will issue each employee four free First-Class segment upgrades for domestic pass travel (including Canada, Central America and the Caribbean). The First-Class upgrades will be mailed directly to employeesï¿½ homes and must be used by December 31, 2003. The free First-Class upgrades are non-refundable and non-transferable and apply only to pass travel.
ï¿½ Ability to pay by credit or debit card.
US Airways is extending a new convenience to employees. Beginning August 1, companion passes, First-Class upgrades, ID
-90s and the new discounted ID
-20 tickets can be purchased by credit or debit card.
I hope you and your family enjoy these pass travel program improvements.