Exhibit 10.2





EXHIBIT 10.2









US AIRWAYS GROUP, INC.

2010 Long Term Incentive Performance Program

(Established Effective January 20, 2010)




Section I. Purpose




The purpose of the US Airways Group, Inc. 2010 Long Term Incentive Performance Program (the
“Program”) is to




	•	 	Focus management efforts on the creation of long-term stockholder value, and







	•	 	Encourage strategic decision-making by providing rewards for the long-term achievement of
Company goals.






The Program sets forth the terms and conditions for cash Performance Grant Awards to be paid to
eligible officers under the US Airways Group, Inc. 2008 Equity Incentive Plan (the “Plan”).



Section II. Eligibility Criteria




Service Providers who are officers of US Airways Group, Inc. (the “Company”) or a Related Company
(as that term is defined in the Plan) whose responsibilities have a direct and significant impact
on Company results are eligible to participate in the Program. The Compensation and Human
Resources Committee of the Board of Directors of the Company (the “Committee”) will, at its sole
discretion, select individual officers to participate in the Program (each a “Participant”).
Participation in one Performance Cycle (as such term is defined in Section IV) under the Program
does not assure participation in any other Performance Cycle.



A person who is hired by the Company (or a Related Company) as an eligible officer or promoted to
eligible officer status (whether from a non-eligible status or another eligible officer status), in
either case after the commencement of a Performance Cycle (as such term is defined in Section IV)
shall participate in Performance Cycles on such basis, if any, as the Committee may provide.



Section III. Award Levels




Participants have the opportunity to earn cash Awards under the Program based on the achievement of
long-term Company performance and, with certain exceptions set forth in Section V, continued active
service with the Company (or a Related Company) in an eligible position through the date of payment
of the cash Award. Threshold, target, and maximum Award levels are set forth below. All Award
levels are expressed as a percentage of a Participant’s base salary, as in effect on the date of
payment of the cash Award.


 


 









 





Award Levels Expressed as 

Percentages of Base Salary




	 	 	 	 	 	 	 	 	 	 	 	 	 
	Officer Level	 	Threshold	 	 	Target	 	 	Maximum	 
	CEO
	 	 	54%		 	 	125%		 	 	200%	
	President
	 	 	49%		 	 	115%		 	 	200%	
	EVP
	 	 	43%		 	 	100%		 	 	175%	
	SVP
	 	 	30%		 	 	70%		 	 	140%	
	VP
	 	 	20%		 	 	45%		 	 	90%	






Performance below the threshold level for any Performance Cycle (as such term is defined in Section
IV) will result in no cash Award. The maximum Award for any Performance Cycle is two times the
target Award, subject to further limitations contained in the Plan.



Section IV. Award Calculation




Awards are calculated based on Total Stockholder Return (“TSR”) of the Company over the Performance
Cycle (as such term is defined in this section) relative to the TSRs of a pre-defined competitive
peer group. TSR, for purposes of this Program, is the rate of return, including both the price
appreciation of the Company’s Common Stock or a competitive peer company’s common stock and the
reinvestment of any dividends declared on such common stock, over the relevant Performance Cycle.
In order to smooth out market fluctuations, the average daily closing price (adjusted for splits
and dividends) for the common stock of the Company and of the companies in the pre-defined
competitive peer group for the three months prior to the first and last days of the Performance
Cycle will be used to determine TSR. Daily closing price of a share of common stock is the stock
price at the close of trading (4:00 p.m. Eastern Time) of the national exchange (New York Stock
Exchange, the Nasdaq Stock Market or the American Stock Exchange) on which such stock is traded.



A) Performance Cycles





A performance cycle, over which TSR is measured, is the three-year period beginning
January 1 of a given year and ending December 31 of the second following year (each a
“Performance Cycle”). The Committee, in its sole discretion, may authorize Performance
Cycles, and it is anticipated, although not assured, that a three-year Performance Cycle
will begin each January 1.




All officers of the Company (or a Related Company) otherwise eligible to participate in the
Program will be eligible to participate in the Performance Cycle commencing January 1, 2010,
and ending December 31, 2012.



B) Peer Group and Award Payout Percentages





The competitive peer group consists of the following nine companies: AirTran Holdings,
Inc., Alaska Air Group, Inc., AMR Corporation, Continental Airlines, Inc., Delta Air Lines,
Inc., Hawaiian Holdings, Inc., JetBlue Airways Corporation, Southwest Airlines Co. and UAL
Corporation. Such competitive peer group is subject to modification, in the
Committee’s sole discretion, to take account of unforeseen events such as mergers,
dispositions, bankruptcies and other significant business changes.


 


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Award payout percentages will be based on the TSR of the Company relative to the TSRs of
competitive peer group companies, as follows:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Company TSR	 	Payout as a %	 	 	 
	Relative Rank	 	of Base Salary	 	 	 
	 	 	VP	 	 	SVP	 	 	EVP	 	 	President	 	 	CEO	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	1-2 of 10
	 	 	90.00	%	 	 	140.00	%	 	 	175.00	%	 	 	200.00	%	 	 	200.00	%	 	(Maximum)
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3 of 10
	 	 	75.00	%	 	 	116.67	%	 	 	150.00	%	 	 	171.67	%	 	 	175.00	%	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4 of 10
	 	 	60.00	%	 	 	93.33	%	 	 	125.00	%	 	 	143.33	%	 	 	150.00	%	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	5 of 10
	 	 	45.00	%	 	 	70.00	%	 	 	100.00	%	 	 	115.00	%	 	 	125.00	%	 	(Target)
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6 of 10
	 	 	32.50	%	 	 	50.00	%	 	 	71.50	%	 	 	82.00	%	 	 	89.50	%	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	7 of 10
	 	 	20.00	%	 	 	30.00	%	 	 	43.00	%	 	 	49.00	%	 	 	54.00	%	 	(Threshold)
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8-10 of 10
	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 	0	%	 	 






Section V. Award Payment Timing, Early Payment and Separation




If the TSR of the Company is at or above the threshold for a Performance Cycle, Awards will be paid
in cash within sixty (60) days following the end of the Performance Cycle. For example, Awards for
the Performance Cycle that runs from January 1, 2010, through December 31, 2012 will be paid no
later than March 1, 2013. To receive an Award, a Participant must be in continuous active
employment with the Company (or a Related Company) through the date of payment of the Award, unless
otherwise prohibited by law. Payments will be subject to all required federal, state, and local
tax withholding.



In the event a Participant separates from service with the Company (and all Related Companies) on
account of retirement (as defined below), Disability (as defined in the Plan) or death, the Company
shall pay to the Participant (or the Participant’s estate in the case of death), at the same time
as Awards (if any) are paid to other Participants for the same Performance Cycle, the Award that
the Participant would have earned and received (if any) with respect to solely the Performance
Cycle that ends in the calendar year in which such separation from service occurs, had the
Participant’s service continued until the Award payment date for such Performance Cycle. For
purposes of the foregoing, “retirement” shall mean the Participant’s separation from service with
the Company (and all Related Companies) after attainment of age fifty-five (55) and completion of
ten (10) years of service with the Company (or any Related Company). Awards for any other
Performance Cycles will not be earned or paid, unless otherwise required by law.


 


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If the Participant separates from service with the Company (and all Related Companies) for any
reason other than retirement, Disability or death (whether such separation is voluntary or
involuntary), no Awards will be earned or paid under the Program with respect to any Performance
Cycles, unless otherwise required by law.



Section VI. Program Administration




The Program will be administered by the Committee in accordance with the Plan and in a manner that
satisfies the requirements of Section 162(m) of the Internal Revenue Code for qualified
“performance-based” compensation.



Awards generally are calculated and distributed as provided in Sections IV and V; provided,
however, that no Award payments will be made unless the Committee certifies in writing (a) the
relative TSR ranking of the Company, (b) that all other material terms of the Program have been
satisfied and (c) that payments to each Participant in stated amounts are appropriate under the
Program.



Section VII. Absence of Program Funding; No Equity Interest




Benefits under the Program shall be paid from the general funds of the Company (or the Related
Company), and a Participant (or the Participant’s estate in the event of death) shall be no more
than an unsecured general creditor of the Company (or the Related Company) with no special or prior
right to any assets of the Company (or the Related Company).



Nothing contained in the Program shall be deemed to give any Participant any equity or other
interest in the assets, business or affairs of the Company or any Related Company. It is not
intended that a Participant’s interest in the Program shall constitute a security or equity
interest within the meaning of any state or federal securities laws.



Section VIII. No Transferability




A Participant shall not have any right to transfer, sell, alienate, assign, pledge, mortgage,
collateralize or otherwise encumber any of the payments provided by this Program.



Section IX. No Employment Rights




This Program is not intended to be a contract of employment. Both the Participant and the Company
and all Related Companies have the right to end their employment or other service relationship with
or without cause or notice.



Section X. Interpretation, Amendment and Termination




The Committee shall have the power to interpret all provisions of the Program, which
interpretations shall be final and binding on all persons. The provisions of this document shall
supersede all provisions of any and all such prior documents relating to the Program and its
subject matter. However, if the provisions of this document conflict with any provision of the
Plan, the provisions set forth in the Plan shall govern in all cases. The laws of the State of
Delaware shall govern all questions concerning the construction, validity and interpretation of the
Program, without regard to such state’s conflict of laws rules.


 


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Notwithstanding anything herein to the contrary, if the Participant is a “specified employee” on
the date of the Participant’s “separation from service,” as defined in the Treasury Regulation
Section 1.409A-1(h) (a “Separation from Service”), any benefit or payment that constitutes
non-exempt “nonqualified deferred compensation” (within the meaning of Section 409A of the Internal
Revenue Code (“Section 409A”)) shall be delayed in order to avoid a prohibited payment under
Section 409A(a)(2)(B)(i), and any such delayed payment shall be paid to the Participant in a lump
sum during the ten (10) day period commencing on the earlier of (i) the expiration of the six-month
period measured from the date of the Participant’s Separation from Service, or (ii) the
Participant’s death. To the greatest extent permitted under Section 409A, any separate payment or
benefit under the Program will not be deemed to constitute “nonqualified deferred compensation”
subject to Section 409A and the six-month delay requirement to the extent provided in the
exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other
applicable exception or provision of Section 409A.



The Committee reserves the right to amend or terminate the Program at any time, with or without
prior notice; provided, however, that all amendments to the Program shall preserve the
qualification of Awards under the Program as “performance-based” compensation under Section 162(m)
of the Internal Revenue Code. Notwithstanding the foregoing, (a) except as provided in Section IV
with respect to the calculation of TSR and in the following clause (b), the Committee may not amend
the Program in a way that would materially impair the rights of a Participant with respect to a
Performance Cycle that already has begun at the time of such amendment, except to the extent
necessary to preserve the qualification of Awards as “performance-based” compensation under Section
162(m) of the Internal Revenue Code or unless such Participant has consented in writing to such
amendment; and (b) in the event of any act of God, war, natural disaster, aircraft grounding,
revocation of operating certificate, terrorism, strike, lockout, labor dispute, work stoppage,
fire, epidemic or quarantine restriction, act of government, critical materials shortage, or any
other act beyond the control of the Company, whether similar or dissimilar (each a “Force Majeure
Event”), which Force Majeure Event affects the Company or its Related Companies or other
affiliates, the Committee, in its sole discretion, may (i) terminate or (ii) suspend, delay, defer
(for such period of time as the Committee may deem necessary), or substitute any Awards due
currently or in the future under the Program, including, but not limited to, any Awards that have
accrued to the benefit of Participants but have not yet been paid, subject to Section 409A and the
regulations and guidance promulgated thereunder.




 


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