Document:

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                                                                   EXHIBIT 10.37

                                                  AMENDMENT NO. 1 ("Amendment"),
                                        dated as of January 17, 2003, to the
                                        INVESTMENT AGREEMENT dated as of
                                        September 26, 2002 by and between The
                                        Retirement Systems of Alabama and
                                        US Airways Group, Inc. (the
                                        "Agreement"), by and among US Airways
                                        Group, Inc., a Delaware corporation (the
                                        "Company"), The Retirement Systems of
                                        Alabama ("RSA"), and Retirement Systems
                                        of Alabama Holdings LLC ("RSA LLC").

                The Company and RSA desire to amend the Agreement pursuant to
Section 10.06 thereof as hereinafter set forth. All capitalized terms used but
not otherwise defined herein shall have the meaning ascribed to such terms in
the Agreement.

                NOW, THEREFORE, in consideration of the premises and the mutual
agreements contained herein and for other good and valuable consideration the
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

1.      Amendments to Agreement. Effective upon the execution and delivery of
this Amendment No. 1, the Agreement is hereby amended as follows:

                (a)     Amendment to the Definition of "Investor". For all
purposes under the Agreement and this Amendment No. 1, the definition of
"Investor" in the Agreement shall be deleted in its entirety and "Retirement
Systems of Alabama Holdings LLC" shall be inserted in lieu thereof nunc pro tunc
as if RSA LLC had in all respects been the original signatory and party thereto
as the Investor and, accordingly, RSA LLC shall be treated for all purposes
thereunder as the Investor and all references therein to the Investor shall be
deemed to be references to RSA LLC.

                (b)     Amendments to Recitals.

                        (i)     The third "Whereas" clause in the recitals of
the Agreement shall be deleted in its entirety and replaced with the following:

        "WHEREAS, pursuant to the Plan, the reorganized Company intends to
cancel the existing outstanding Equity Securities of the Company upon the
Effective Date and issue (i) fifty two million four hundred thousand
(52,400,000) Class A common shares of the Company, having the terms set forth in
Exhibit A attached hereto (the "Class A Common Shares"), (ii) five million
(5,000,000) Class B common shares of the Company, having the terms set forth in
Exhibit A attached hereto (the "Class B Common Shares"), (iii) eighteen million
nine hundred fifty thousand (18,950,000) warrants, exercisable into Class A
Common Shares of the Company, having the terms set forth in Exhibit B attached
hereto (the "Class A-1 Warrants"), (iv) eighteen million nine hundred fifty
thousand (18,950,000) non-convertible Class A preferred shares of the Company,
having the terms set forth in Exhibit D attached hereto (the "Class A Preferred
Shares"), (v) seventy five thousand (75,000) non-convertible, redeemable Class B
preferred shares of the Company, having the terms set forth in Exhibit E
attached hereto (the "Class B Preferred Shares") and (vi) up to ten (10)
non-convertible Class C preferred shares of the

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Company, which shall be issued in up to four series, having the terms set forth
in Exhibit F attached hereto (the "Class C Preferred Shares");"

                        (ii)    The fourth "Whereas" clause in the recitals of
the Agreement shall be deleted in its entirety and replaced with the following:

        "WHEREAS, simultaneously with the consummation of the Plan, the Investor
intends to purchase from the reorganized Company, and the reorganized Company
intends to issue and sell to the Investor, subject to the terms and conditions
contained herein, (i) twenty million six hundred fifty two thousand five hundred
ninety three (20,652,593) Class A Common Shares, (ii) five million (5,000,000)
Class B Common Shares, (iii) one million three hundred eighty thousand five
hundred seventy (1,380,570) Class A-1 Warrants, (iv) one million three hundred
eighty thousand five hundred seventy (1,380,570) Class A Preferred Shares, and
(v) seventy five thousand (75,000) Class B Preferred Shares (such transactions
collectively, the "Investment") in exchange for the Investment Price;"

                (c)     Amendments to Section 1.01.

                        (i)     The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""Class A-2 Warrants" has the
meaning set forth in the recitals hereto."

                        (ii)    The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""Warrants" means the Class
A-1 Warrants together with the Class A-2 Warrants". Thereafter, any and all
references to "Warrants" contained in the Agreement shall be deleted and
replaced with "Class A-1 Warrants."

                        (iii)   The following sentence shall be inserted in
Section 1.01 of the Agreement in alphabetical order therein: ""CWA" has the
meaning set forth in Section 5.01(b) hereof."

                        (iv)    The following sentence shall be inserted in
Section 1.01 of the Agreement in alphabetical order therein: ""CWA Director" has
the meaning set forth in Section 5.01(b) hereof."

                        (v)     The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""Creditors' Committee
Director" has the meaning set forth in Section 5.01(b) hereof."

                        (vi)    The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""Labor Director" has the
meaning set forth in Section 5.01(b) hereof."

                        (vii)   The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""AFA" means the Association
of Flight Attendants.", and shall be replaced with the following: ""AFA" means
the Association of Flight Attendants, International."

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                        (viii)  The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""TWU" means Transport
Workers Union.", and shall be replaced with the following: ""TWU" means the
Transport Workers Union of America."

                        (ix)    The following sentence shall be inserted in
Section 1.01 of the Agreement in alphabetical order therein: ""AFA/TWU Director"
has the meaning set forth in Section 5.01(b) hereof."

                        (x)     The following sentence included in Section 1.01
of the Agreement shall be deleted in its entirety: ""Series 3 Class C Preferred
Shares" means the Class C Preferred Shares to be issued, as of the Effective
Date, to or for the benefit of employees of the Debtors that are subject to the
new or amended collective bargaining agreements between any Debtor a labor union
(other than ALPA and IAMAW)", and shall be replaced with the following: ""Series
3 Class C Preferred Shares" means the Class C Preferred Shares to be issued, as
of the Effective Date, to or for the benefit of employees of the Debtors that
are subject to collective bargaining agreements between any Debtor, on the one
hand, and AFA and TWU, on the other."

                        (xi)    The following sentence shall be inserted in
Section 1.01 of the Agreement in alphabetical order therein: ""Series 4 Class C
Preferred Shares" means the Class C Preferred Shares to be issued, as of the
Effective Date, to or for the benefit of employees of the Debtors that are
subject to the collective bargaining agreement between any Debtor and CWA."

                (d)     Amendments to Section 2.01.

                        (i)     The title of Section 2.01 of the Agreement shall
be deleted and replaced with following, "Issuance and Purchase of Common Stock,
Class A-1 Warrants and Preferred Stock."

                        (ii)    Section 2.01(a) of the Agreement shall be
deleted and replaced with the following:

        "Upon the terms and subject to the conditions set forth in this
Agreement, and in reliance upon the representations and warranties hereinafter
set forth, at the Closing, the reorganized Company will issue, sell and deliver
to the Investor, and the Investor will purchase from the reorganized Company,
(i) twenty million six hundred fifty two thousand five hundred ninety three
(20,652,593) Class A Common Shares, (ii) five million (5,000,000) Class B Common
Shares, (iii) one million three hundred eighty thousand five hundred seventy
(1,380,570) Class A-1 Warrants, (iv) one million three hundred eighty thousand
five hundred seventy (1,380,570) Class A Preferred Shares, and (v) seventy five
thousand (75,000) Class B Preferred Shares, in each case, free and clear of all
Liens, for an aggregate purchase price of two hundred forty million dollars
($240,000,000)(the "Investment Price")."

                (e)     Amendments to Section 2.02. Section 2.02(b) of the
Agreement shall be amended by adding the words "and Class B Preferred Shares"
immediately after the words "and Class A Preferred Shares" in both clause (i)
and clause (ii) and changing "and Class A Preferred Shares" to ", Class A
Preferred Shares".

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                (f)     Amendment to Section 3.05. Section 3.05 of the Agreement
shall be deleted in its entirety and replaced with the following:

        "Capitalization; Securities. Upon the Closing and after giving effect to
the Confirmation Order, the Plan and the Investment, the authorized capital of
the reorganized Company shall consist solely of: (i) two hundred and five
million (205,000,000) shares of Common Stock, of which (a) two hundred million
(200,000,000) shares shall be Class A Common Shares, and (b) five million
(5,000,000) shares shall be Class B Common Shares; (ii) fifty million
(50,000,000) shares of preferred stock, of which (x) twenty five million
(25,000,000) shares shall be designated Class A Preferred Shares, (y) seventy
five thousand (75,000) of which shall be designated Class B Preferred Shares,
and (z) up to ten (10) Class C Preferred Shares, issuable in up to four (4)
series, which, in each case, will be authorized and issued or reserved for
issuance; and (iii) twenty five million (25,000,000) Class A-1 Warrants. Upon
the Closing (prior to giving effect to the Investment) there shall not be
outstanding any (A) Class A Common Shares, other than (x) up to twenty-seven
million nine hundred ninety seven thousand four hundred seven (27,997,407) Class
A Common Shares to be issued by the Company to or for the benefit of the
Constituents upon the Effective Date and (y) up to three million seven hundred
fifty thousand (3,750,000) Class A Common Shares to be issued or reserved for
issuance by the Company to members of management of the Company upon the
Effective Date; (B) Class B Common Shares, (C) Class A-1 Warrants, other than
(x) up to fifteen million three hundred forty eight thousand eight hundred sixty
(15,348,860) Class A-1 Warrants to be issued to or for the benefit of the
Constituents upon the Effective Date and (y) up to two million two hundred
twenty thousand five hundred seventy (2,220,570) Class A-1 Warrants to be issued
or reserved for issuance by the Company to members of management of the Company
upon the Effective Date; provided, that the Company may elect to have comparable
options issued in place of Class A-1 Warrants described in this subsection and
this Agreement shall be deemed to be amended to reflect such issuance, and (D)
Class A Preferred Shares other than (x) up to fifteen million three hundred
forty eight thousand eight hundred sixty (15,348,860) Class A Preferred Shares
to be issued to or for the benefit of the Constituents upon the Effective Date
and (y) up to two million two hundred twenty thousand five hundred seventy
(2,220,570) Class A Preferred Shares to be issued to members of management of
the Company upon the Effective Date. Upon the Effective Date, all authorized
Class C Preferred Shares shall have been issued to or for the benefit of the
Constituents. Upon the Closing Date, all of such outstanding securities,
including, without limitation, the Equity Securities to be issued and delivered
to the Investor pursuant to the terms hereof, shall have been duly authorized
and validly issued, fully paid, nonassessable and not subject to preemptive or
similar rights of third parties or reserved for issuance in accordance with the
terms of the Plan and Confirmation Order. The Class A Common Shares issuable
upon (i) the exercise of the Class A-1 Warrants, when issued and delivered to
the holders of the Class A-1 Warrants, and (ii) the conversion of the Class B
Common Shares, when issued and delivered to the holders of the Class B Common
Shares, shall have been duly authorized and be validly issued, fully paid,
nonassessable and not subject to preemptive or similar rights of third parties.
Upon the Closing and after giving effect to the Confirmation Order and the Plan,
(i) except for this Agreement, there shall be no voting trusts, voting
agreements, proxies, first refusal rights, first offer rights, co-sale rights,
options, transfer restrictions or other agreements, instruments or
understandings (whether oral, formal or informal) with respect to the voting,
transfer or disposition of capital stock of the Company or any Subsidiary to
which the Company or any Subsidiary is a party or by which it is bound, or, to
the knowledge of the Company, among or

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between any persons other than the Company or any Subsidiary (as the case may
be), and (ii) except as set forth herein, there shall be no options, warrants,
rights, calls, commitments or agreements of any character to which the Company
or any Subsidiary is a party, or by which the Company or any Subsidiary is
bound, calling for the issuance of shares of capital stock or other equity
securities of the Company or any Subsidiary or any securities convertible into
or exercisable or exchangeable for, or representing the right to purchase or
otherwise receive, any such capital stock or other equity securities, or other
arrangement to acquire, at any time or under any circumstance, capital stock of
the Company or any Subsidiary or any such other securities. The rights,
preferences and privileges of the capital stock of the Company shall be as set
forth in the Certificate of Incorporation (including any Certificates of
Designation, as applicable) of the Company, as amended pursuant to the Plan and
in effect upon the Closing."

                (g)     Amendment to Section 4.01. Section 4.01 of the Agreement
shall be deleted in its entirety and replaced with the following:

        "The Investor is a limited liability company formed, validly existing
and in good standing under the Laws of Delaware having all requisite power and
authority and requisite governmental licenses, authorizations, consents and
approvals to execute, deliver and perform its obligations under the Transaction
Documents."

                (h)     Amendment to Section 4.05. Section 4.05 of the Agreement
shall be amended by adding the words "and Class B Preferred Shares" immediately
after the words "and Class A Preferred Shares" in the first sentence and
changing "and Class A Preferred Shares" to ", Class A Preferred Shares".

                (i)     Amendments to Section 5.01.

                        (i)     Section 5.01(a) of the Agreement shall be
amended by replacing the number "13" with the number "15".

                        (ii)    Section 5.01(b) of the Agreement shall be
deleted in its entirety and replaced with the following:

        "As of the Closing Date and after giving effect to the Confirmation
Order and Plan, the Board shall consist of: (i) eight (8) members designated by
the Investor (each, an "Investor Director"), (ii) two (2) members, neither of
whom is an employee or an affiliate of the Company or the Investor, identified
by the CEO (as defined below) in consultation with the Official Committee of
Unsecured Creditors (the "Creditors' Committee") or the post-confirmation
committee of Unsecured Creditors, as applicable (each, an "Independent
Director"), (iii) one (1) member designated by the Air Line Pilots Association,
International ("ALPA", such member, the "ALPA Director"), in accordance with the
collective bargaining agreement between US Airways and ALPA, (iv) one (1) member
designated by the International Association of Machinists and Aerospace Workers
("IAMAW", such member, the "IAMAW Director"), (v) one (1) member designated
jointly by the AFA and the TWU, in accordance with the Series 3 Class C
Preferred Shares held by AFA and TWU (such member, the "AFA/TWU Director"), (vi)
one (1) member designated by the Communications Workers of America ("CWA", such
member the "CWA Director"), and (vii) the chief executive officer of the Company
(the "CEO")."

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                        (iii)   Section 5.01(c) of the Agreement shall be
deleted in its entirety and replaced with the following:

        "In the event of the death, disability, resignation or removal of a
member of the Board, the Person designating such member shall designate a
replacement for such director, and the Company shall cause such replacement to
be elected to the Board."

                        (iv)    Section 5.01(d) of the Agreement shall be
deleted in its entirety and replaced with the following:

        "(d) From and after the Closing Date, the reorganized Company shall
cause the following to constitute the slate of nominees recommended by the Board
for election as directors at each annual meeting of the stockholders: (i) eight
(8) Investor Directors; (ii) two (2) Independent Directors; and (iii) the CEO,
and the Company shall use its best efforts to cause the election of such
persons."

                        (v)     The existing Section 5.01(e) of the Agreement
shall be deleted in its entirety, and replaced with the following:

        "(e) In accordance with the Certificate of Incorporation, the Board
shall also consist of the following: (i) for so long as the Series 1 Class C
Preferred Share remains outstanding, one (1) ALPA Director designated and
elected by the holder of the Series 1 Class C Preferred Share; (ii) for so long
as the Series 2 Class C Preferred Share remains outstanding, one (1) IAMAW
Director designated and elected by the holder of the Series 2 Class C Preferred
Share; (iii) for so long as the Series 3 Class C Preferred Shares remain
outstanding, one (1) AFA/TWU Director designated and elected by the holders of
the Series 3 Class C Preferred Shares, and (iv) for so long as the Series 4
Class C Preferred Share remains outstanding, one (1) CWA Director designated and
elected by the holder of the Series 4 Class C Preferred Share."

                        (vi)    Section 5.01(f) of the Agreement shall be
deleted in its entirety.

                        (vii)   Section 5.01(g) of the Agreement shall be
deleted in its entirety and replaced with the following:

        "(g) Notwithstanding the foregoing provisions of this Section 5.01, upon
(i) the sale of an aggregate of fifty percent (50%) of the number of shares of
Common Stock beneficially owned by the Investor and its Affiliates as of the
Closing (the "Investor Closing Shares") and (ii) the realization of the Investor
and its Affiliates of aggregate net cash proceeds on a cumulative basis of five
hundred fifty million dollars ($550,000,000) (the "Triggering Amount") from
sales of Common Stock, Class A-1 Warrants, Class A Preferred Shares or Class B
Preferred Shares and any repayment of principal under its ATSB "at-risk" loan
participation; provided, that the Triggering Amount shall be increased by any
amounts received by the Company from the Investor in respect of the exercise
price of any Class A-1 Warrants ((i) and (ii) taken together, the "Triggering
Event"), the Investor's right hereunder to designate Investor Directors for
election to the Board shall be reduced to seven (7). Notwithstanding the
foregoing, following the Triggering Event, the total number of Investor
Directors the Investor is entitled to designate for election to the Board shall
be reduced to: (i) six (6), if the Investor and its Affiliates beneficially own
at least 34% but less than 42% of the Investor Closing Shares; (ii) five (5), if
the Investor

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and its Affiliates beneficially own at least 26% but less than 34% of the
Investor Closing Shares; (iii) four (4), if the Investor and its Affiliates
beneficially own at least 18% but less than 26% of the Investor Closing Shares;
(iv) three (3), if the Investor and its Affiliates beneficially own at least 10%
but less than 18% of the Investor Closing Shares; (v) two (2) if the Investor
and its Affiliates beneficially own at least 2.5% but less than 10% of the
Investor Closing Shares; and (v) zero (0), if the Investor and its Affiliates
beneficially own less than 2.5% of the Investor Closing Shares. Following the
Triggering Event, the Investor and its Affiliates shall be required to either
(i) sell shares of Common Stock on a proportionate basis as between shares of
Class A Common Stock and shares of Class B Common Stock, as determined by
reference to the proportion in which the Investor and its Affiliates held shares
of Class A Common Stock and shares of Class B Common Stock immediately following
the Triggering Event (the "Proportionate Amount") (rounded to the nearest whole
number of shares of Class B Common Stock), or (ii) convert the appropriate
number of shares of Class B Common Stock into shares of Class A Common Stock
simultaneously with a sale of shares of Class A Common Stock, based on the
Proportionate Amount. In the event that the number of Investor Directors the
Investor is entitled to designate is reduced pursuant to this Section 5.01(g),
the Investor shall be entitled to designate which Investor Director shall resign
from the Board. Such Investor Director shall resign from the Board no later than
the thirtieth (30th) day following the day on which the Investor's beneficial
ownership of the Investor's Closing Shares drops below the relevant thresholds
set forth above. Sections 5.01 and 5.02 shall cease, terminate and be of no
further force or effect as of September 26, 2007.

                        (viii)  Section 5.01 of the Agreement shall be amended
by adding the following paragraph as Section 5.01(h):

        "(h) During the term of this Article V, the Investor agrees to vote all
of the shares of voting capital stock received in connection with the
consummation of the Plan (including transactions that are a condition thereto)
and then owned by it in favor of the directors nominated in accordance with
Section 5.01(d) of this Agreement at each annual meeting of the stockholders of
the Company or at any meeting of the stockholders of the Company at which
members of the Board of Directors of the Company are to be elected or whenever
members of the Board of Directors are to be elected by written consent;
provided, however, that following the initial election of the Board of Directors
of the Company on the Effective Date, the obligations set forth in this Section
5.01(h) shall be contingent and conditioned upon each of General Electric
Capital Corporation (or any affiliate thereof holding shares of capital stock of
the Company), the Air Transportation Stabilization Board (the "ATSB")(or any
entity having the right to vote shares of capital stock of the Company issued in
connection with the guarantee by the ATSB of the ATSB Loan) and the CEO each
agreeing in writing with the Investor and the Company to vote its, his or her
shares of capital stock received in connection with the consummation of the Plan
(including transactions that are a condition thereto) in favor of the directors
so nominated in accordance with Section 5.01(d)."

                        (ix)    Section 5.01 of the Agreement shall be amended
by adding the following paragraph as Section 5.01(i):

        "(i) In the event that during the term of this Article V, the Investor
sells or otherwise transfers in a private sale transaction shares of capital
stock of the Company, the transferee

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thereof shall agree to be bound by, and at the option of the Investor shall be
entitled to the rights and benefits of the Investor, under this Article V as if
such transferee were the Investor.

                (j)     Amendment to Article VI. Article VI of the Agreement
shall be amended by adding the following paragraph as Section 6.04:

        "SECTION 6.04 Material Actions. During the period from January 17, 2003
and continuing until the earlier of the termination of this Agreement or the
Closing, except as expressly contemplated by this Agreement, the Company and the
Subsidiaries shall not, without the prior written consent of the Investor, take
any action or fail to take any action (i) that would result in any of the
representations and warranties of the Company herein becoming untrue in any
material respect or in any of the conditions to the consummation of the
transactions contemplated hereby not being satisfied in any material respect, or
(ii) that would reasonably be expected to have a Material Adverse Effect."

                (k)     Amendment to Section 7.04. Section 7.04 of the Agreement
shall be deleted in its entirety and replaced with the following:

        "SECTION 7.04 Registration Rights Agreement. The Common Stock issued to
the Investor pursuant to the Plan and the Class A Common Shares issuable upon
(i) the exercise of the Class A-1 Warrants, and (ii) the conversion of the Class
B Common Shares shall be registered by the Company under the Securities Act. The
Company and the Investor shall use commercially reasonable efforts to promptly
enter into a registration rights agreement (the "Registration Rights Agreement")
on mutually acceptable terms and conditions, pursuant to which the Company shall
file a resale registration statement pursuant to Rule 415 under the Securities
Act permitting free resale of the Common Stock issued to the Investor pursuant
to the Plan and the Class A Common Shares issuable upon the exercise of the
Class A-1 Warrants and upon conversion of the Class B Common Shares promptly
after the Closing Date, and use its commercially reasonable efforts to cause to
be declared effective and, subject to the conditions set forth in the
Registration Rights Agreement, to maintain the effectiveness of such
registration statement."

                (l)     Amendments to Section 8.01.

                        (i)     Section 8.01(b) of the Agreement shall be
amended by adding the words "and Class B Preferred Shares" immediately after the
words "and Class A Preferred Shares" and changing "and Class A Preferred Shares"
to ", Class A Preferred Shares".

                        (ii)    Section 8.01(n) of the Agreement shall be
amended by replacing the number "5" with the number "8" and replacing the number
"13" with the number "15".

                        (iii)   Section 8.01 of the Agreement shall be amended
by adding the following paragraph as Section 8.01(t):

        "(t) Labor Union Waivers and Consents. The Company shall have received
all waivers and consents, if any, that may be required from its labor unions in
connection with collective bargaining agreements covering more than two hundred
(200) employees such that such that the execution, delivery, performance or
implementation of this Agreement or the

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compliance with the provisions hereof, the exercise of any rights or powers by
the Investor or the consummation of the transactions contemplated hereby or by
the Plan would not (i) trigger any "change-of-control" or other similar
provision under any collective bargaining agreement to which the Company or any
Subsidiary is a party, as such collective bargaining agreements may be amended
from time to time, or (ii) trigger any payments to, rights or remedies in favor
of, any labor union (or any member thereof) which is a party to a collective
bargaining agreement with the Company or any of its Subsidiaries, as such
collective bargaining agreement may be amended from time to time, except to the
extent that the failure to receive any such waiver or consent with respect to
clause (ii) above would not reasonably be expected to have a Material Adverse
Effect."

                (m)     Amendment to Section 8.02. The first paragraph of
Section 8.02 shall be amended by adding the words "and Class B Preferred Shares"
immediately after the words "and Class A Preferred Shares" and changing "and
Class A Preferred Shares" to ", Class A Preferred Shares".

                (n)     Amendment to Section 10.01. Section 10.01(a) of the
Agreement shall be deleted in its entirety and replaced with the following:

        "(a) The Company shall reimburse the Investor for all reasonable fees
and expenses (the "Expenses") incurred by or on behalf of the Investor in
connection with the negotiation, preparation, execution and delivery of the
Transaction Documents and the transactions contemplated thereby, including
Expenses relating to the consummation thereof and customary post-Closing matters
related thereto, including, but not limited to, reasonable fees and expenses of
its legal counsel and third-party consultants engaged by it to assist in such
transactions and reasonable fees and expenses incurred by the Investor in
connection with any due diligence, collateral reviews and field examinations,
provided, that reimbursement of Expenses by the Company to the Investor with
respect to Houlihan Lokey Howard & Zukin shall be limited to (i) monthly fees,
as set forth in the Letter Agreement between the Investor and Houlihan Lokey
Howard & Zukin dated August 26, 2002, through March 31, 2003, (ii) reasonable
out of pocket expenses through March 31, 2003, and (iii) a success fee of (a)
three million seven hundred fifty thousand dollars ($3,750,000) less (b) fifty
percent (50%) of any monthly fees reimbursed by the Company. The Investor will
render monthly invoices to the Company for Expenses reimbursable hereunder,
which, with respect to Houlihan Lokey Howard & Zukin's out of pocket expenses,
shall include appropriate supporting documentation. The Company shall pay to the
Investor or its designated affiliate all amounts due under such invoice within
ten (10) days of receipt thereof."

                (o)     Amendments to Section 10.05. Section 10.05 of the
Agreement shall be amended by deleting the word "The" immediately before the
words "Retirement Systems of Alabama" and inserting "Holdings LLC" after the
words "Retirement Systems of Alabama" in subsection (ii).

                (p)     Amendments to Signature Page. The signature page shall
be amended by deleting the word "The" immediately before the words "Retirement
Systems of Alabama" and inserting "Holdings LLC" after the words "Retirement
Systems of Alabama".

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                (q)     Amendments to Exhibit A.

                        (i)     Subsection (i) of Exhibit A to the Agreement
shall be amended by replacing the following "a majority of the holders of Common
Stock" with "the holders of a majority of the Common Stock".

                        (ii)    Subsection (iv) of Exhibit A to the Agreement
shall be amended by replacing the following "2/3 of the holders of the Class B
Common Shares" with "the holders of 2/3 of the Class B Common Shares".

                        (iii)   Subsection (vii) of Exhibit A to the Agreement
shall be deleted in its entirety and replaced with the following:

        "(vii) all Equity Securities of the Company, including, without
limitation, the shares of Class A Common Shares, Class B Common Shares, Class
A-1 Warrants, Class A Preferred Shares, Class B Preferred Shares, Series 1 Class
C Preferred Share, Series 2 Class C Preferred Share, Series 3 Class C Preferred
Shares and Series 4 Class C Preferred Share, shall be subject to the following
limitations:

        (a)             Non-Citizen Voting Limitation. In no event shall the
total number of shares of Equity Securities held by all Persons who fail to
qualify as a "citizen of the United States," as the term is used in Section
40102(a)(15) of Title 49, in any similar legislation of the United States
enacted in substitution or replacement therefore, or as interpreted by the
Department of Transportation, be entitled to more than 24.9% of the aggregate
votes of all outstanding Equity Securities of the Company (the "Cap Amount").

        (b)             Allocation of Cap Amounts. The restrictions imposed by
the Cap Amount shall be applied pro rata among the holders of Equity Securities
who fail to qualify as "citizens of the United States" based on the number of
votes the underlying securities are entitled to."

                        (iv)    The following new subsection (viii) shall be
inserted at the end of the existing Exhibit A:

        "(viii) shares of Class B Common Shares shall be convertible into shares
of Class A Common Shares on a 1:1 basis at the option of the holder thereof,
subject to equitable adjustments for stock splits, adjustments, combinations and
like transactions."

                (r)     Amendment to Exhibit B. The reference to "$9.60" in
subsection (iv) of Exhibit B to the Agreement shall be replaced with "$7.42".

                (s)     Amendment to Exhibit C. Exhibit C to the Agreement, and
all references thereto in the Agreement, shall be deleted in their entirety.

                (t)     Amendment to Exhibit D. The reference to "Series A-2
Warrants" in subsection (vi) of Exhibit D to the Agreement shall be deleted.

                (u)     Amendment to Exhibit E. Exhibit E to the Agreement shall
be deleted in its entirety and replaced with the following:

                                      -10-

<PAGE>

                                   "EXHIBIT E
             CERTIFICATE OF DESIGNATION OF CLASS B PREFERRED SHARES

           The Certificate of Designation of Class B Preferred Shares
                       shall include the following terms:

        (i)    The nominal value of each Class B Preferred Share will be
$1,000.00.

        (ii)   The Class B Preferred Shares will have a maturity of eight (8)
years. Upon the maturity of the Class B Preferred Shares, the Company will be
required to redeem each Class B Preferred Share in cash out of funds legally
available therefor for an amount equal to such share's nominal value plus any
accrued and unpaid dividends (the "Redemption Price").

        (iii)  From and after the Closing Date, the Company will pay cumulative
dividends on the Class B Preferred Shares on a quarterly basis, to the extent
not prohibited under applicable Law; provided, however, that to the extent the
Company is so legally prohibited from paying any such dividends or any portion
thereof, such unpaid dividends shall accrue and be paid immediately upon the
removal of such legal prohibition and, in connection therewith, the Company
shall take all action reasonably necessary to remove or diminish the scope of
such legal prohibition, including, by way of example but not in limitation
thereof, causing a revaluation of its assets. Dividends on the Class B Preferred
Shares will be paid in cash at a rate of 8% per annum (each, a "Cash Dividend").

        (iv)   At any time following the third anniversary of the Closing Date,
the Company may redeem for cash each Class B Preferred Share at a redemption
price initially equal to 102.5% of the nominal value of such Class B Preferred
Share, declining ratably to par following the ninth (9th) anniversary of the
Closing Date, plus accrued and unpaid dividends."

        (v)    In the event that the Company has not paid a Cash Dividend for
five (5) consecutive quarters (a "Payment Default"), the holders of the Class B
Preferred Shares shall have the special and exclusive class right to designate
one (1) member of the Board for so long as such Payment Default is continuing.
The Company shall take all necessary actions to effectuate such right, including
by way of example and not limitation thereof, causing the size of the Board to
be increased and/or facilitating the resignation of a director to create a
vacancy for such new director; provided that upon payment of a Cash Dividend by
the Company, such designee will resign from the Board.

        (vi)   Each Class B Preferred Share will have one (1) vote on all
matters put to the shareholders for a vote."

               (v)     Amendment to Exhibit F. Exhibit F to the Agreement shall
be deleted in its entirety and replaced with the following:

                                      -11-

<PAGE>

                                   "EXHIBIT F
             CERTIFICATE OF DESIGNATION OF CLASS C PREFERRED SHARES

           The Certificate of Designation of Class C Preferred Shares
                       shall include the following terms:

(i)     The nominal value of each Class C Preferred Share will be $0.0001.

(ii)    The Class C Preferred Shares will not pay dividends.

(iii)   Each Class C Preferred Share will have a liquidation preference of
$0.0001.

(iv)    There will be four series of Class C Preferred Shares.

        (a)    The Series 1 Class C Preferred Share shall be issued to ALPA as
the collective bargaining representative of the pilots employed by
US Airways, Inc. pursuant to the collective bargaining agreement between ALPA
and US Airways in effect as of the Effective Date (the "ALPA CBA").

        (b)    The Series 2 Class C Preferred Share shall be issued to employees
(or a representative of such employees) who are subject to the collective
bargaining agreement between the Debtors (as reorganized) and IAMAW in effect as
of the Effective Date (the "IAMAW CBA").

        (c)    The Series 3 Class C Preferred Shares shall be issued to
employees (or a representative of such employees) who are subject to new or
amended collective bargaining agreements between the Debtors (as reorganized)
and AFA and TWU in effect as of the Effective Date (the "AFA/TWU CBAs").

        (d)    The Series 4 Class C Preferred Share shall be issued to employees
(or a representative of such employees) who are subject to the collective
bargaining agreement between the Debtors (as reorganized) and CWA in effect as
of the Effective Date (the "CWA CBA")

(v)     Maturity.

        (a)    The Series 1 Class C Preferred Share will have a fixed maturity
of June 30, 2012. Upon the maturity of the Series 1 Class C Preferred Share, the
Company will be required to redeem such Series 1 Class C Preferred Shares in
cash out of funds legally available therefor for an amount equal to such share's
nominal value.

        (b)    The Series 2 Class C Preferred Share will have a fixed maturity
of June 30, 2012. Upon the maturity of the Series 2 Class C Preferred Share, the
Company will be required to redeem such Series 2 Class C Preferred Share in cash
out of funds legally available therefor for an amount equal to such share's
nominal value.

        (c)    The Series 3 Class C Preferred Shares will have a fixed maturity
of June 30, 2012. Upon the maturity of the Series 3 Class C Preferred Shares,
the Company will be required to redeem such Series 3 Class C Preferred Shares in
cash out of funds legally available therefor for an amount equal to such share's
nominal value.

        (d)    The Series 4 Class C Preferred Share will have a fixed maturity
of June 30, 2012. Upon the maturity of the Series 4 Class C Preferred Share, the
Company will be required to redeem such Series 4 Class C Preferred Share in cash
out of funds legally

                                      -12-

<PAGE>

available therefor for an amount equal to such share's nominal value.

(vi)    Voting Rights.

        (a)    The holders of the Series 1 Class C Preferred Share (voting as a
separate series) shall be entitled to designate and to vote to elect the ALPA
Director.

        (b)    The holders of the Series 2 Class C Preferred Share (voting as a
separate series) shall be entitled to designate and to vote to elect the IAMAW
Director.

        (c)    The holders of the Series 3 Class C Preferred Shares (voting as a
separate series) shall be entitled to designate and to vote to elect the AFA/TWU
Director.

        (d)    The holders of the Series 4 Class C Preferred Share (voting as a
separate series) shall be entitled to designate and to vote to elect the CWA
Director.

        (e)    No amendment shall be made to the Certificate of Incorporation or
By-Laws of the Company that would materially and adversely affect the rights of
any Series of Class C Preferred Shares without the consent of the holder of
Class C Preferred Shares so affected.

2.      No Other Amendments. Except as expressly amended, modified and
supplemented hereby, the provisions of the Agreement are and will remain in full
force and effect and, except as expressly provided herein, nothing in this
Amendment will be construed as a waiver of any of the rights or obligations of
the parties under the Agreement.

3.      Governing Law. To the extent not governed by the Bankruptcy Code, this
Amendment shall be governed by, and interpreted in accordance with, the Laws of
the State of New York applicable to contracts made and to be performed in that
State without reference to its conflict of laws rules.

4.      Descriptive Headings. Descriptive headings are for convenience only and
will not control or affect the meaning or construction of any provisions of this
Amendment.

5.      Counterparts. This Amendment may be executed in any number of identical
counterparts, each of which will constitute an original but all of which when
taken together will constitute but one instrument.

6.      Successors and Assigns. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
Company's, RSA's and RSA LLC's successors and assigns.

7.      Severability. In the event one or more of the provisions of this
Amendment should, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality, or unenforceability
shall not affect any other provisions of this Amendment, and this Amendment
shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.

                                      -13-

<PAGE>

                                     * * * *

                                      -14-

<PAGE>

        IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1
to the Investment Agreement to be executed and delivered by their duly
authorized representatives on the date first above written.

                            THE RETIREMENT SYSTEMS OF ALABAMA

                            By:  /s/ William T. Stephens
                               ---------------------------------
                               Name: William T. Stephens
                               Title: General Counsel

                            US AIRWAYS GROUP, INC.

                            By:  /s/ Neal S. Cohen
                               ---------------------------------
                               Name: Neal S. Cohen
                               Title: Executive Vice President - Finance & CFO

                            RETIREMENT SYSTEMS OF ALABAMA HOLDINGS LLC

                            By:  /s/ William T. Stephens
                               ---------------------------------
                               Name: William T. Stephens
                               Title: Secretary

                                      -15-<PAGE>

                                                                    EXHIBIT 10.7

                               SEVERANCE AGREEMENT

          Agreement dated as of April 8, 2002, between US Airways, Inc., a
Delaware corporation, having a place of business at Crystal Park Four, 2345
Crystal Drive, Arlington, Virginia 22227 (the "Company") and Michelle V. Bryan,
residing at 5629 Newington Road, Bethesda, Maryland 20816 (the "Executive").

                               W I T N E S S E T H

          WHEREAS, the Executive has assumed duties of a responsible nature to
the benefit of the Company and to the satisfaction of its Board of Directors
(the "Board");

          WHEREAS, the Board believes it to be in the best interests of the
Company to enter into this Agreement to assure Executive's continuing services
to the Company including, but not limited to, under circumstances in which there
is a possible, threatened or actual severance of employment or Change of Control
(as defined below) of the Company; and

          WHEREAS, the Board believes it is imperative to diminish the
inevitable distraction of the Executive by virtue of the personal uncertainties
and risks created by a pending or threatened severance of employment or Change
of Control and to encourage the Executive's full attention and dedication to the
Company currently and in the event of any threatened or pending Change of
Control, and to provide the Executive with compensation and benefits
arrangements upon a severance of employment which ensure that the compensation
and benefits expectations of the Executive will be satisfied and which are
competitive with those of other corporations. Therefore, in order to accomplish
all the above objectives, the Board has caused the Company to enter into this
Agreement.

<PAGE>

          WHEREAS, the Company and the Executive have entered into an Employment
Agreement dated as of October 31, 2001 (the "Prior Agreement"); and

          WHEREAS, the Company and the Executive desire to supersede the Prior
Agreement;

          NOW, THEREFORE, in consideration of the mutual promises herein
contained, the Company and the Executive hereby agree as follows:

1.   CERTAIN DEFINITIONS.

          (a)  The "Effective Date" shall mean the date hereof.

          (b)  The "Change of Control Date" shall mean the first date during the
Employment Period (as defined in Section 1(d)) on which a Change of Control (as
defined in Section 2) occurs. Anything in this Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive's employment
with the Company is terminated or the Executive ceases to be an officer of the
Company prior to the date on which the Change of Control occurs, and if it is
reasonably demonstrated by the Executive that such termination of employment or
cessation of status as an officer (i) was at the request of a third party who
has taken steps reasonably calculated to effect the Change of Control or (ii)
otherwise arose in connection with or anticipation of the Change of Control,
then for all purposes of this Agreement the "Change of Control Date" shall mean
the date immediately prior to the date of such termination of employment or
cessation of status as an officer.

          (c)  The "Change of Control Period" shall mean the period commencing
on the Change of Control Date and ending on the earlier to occur of (a) the
third anniversary of such date, or (b) the Executive's Normal Retirement Date.

                                        2

<PAGE>

          (d)  The "Employment Period" shall mean the period commencing on the
Effective Date and ending on the earlier to occur of (i) the third anniversary
of such date or (ii) the first day of the month next following the Executive's
65th birthday ("Normal Retirement Date"); provided, however, that commencing on
the date one year after the Effective Date, and on each annual anniversary of
such date (such date and each annual anniversary thereof shall be hereinafter
referred to as the "Renewal Date"), the Employment Period shall be automatically
extended so as to terminate on the earlier of (x) three years from such Renewal
Date or (y) the Executive's Normal Retirement Date, unless at least 30 days
prior to the Renewal Date the Company shall give notice to the Executive that
the Employment Period shall not be so extended; and provided, further, that upon
the occurrence of a Change of Control Date, the Employment Period shall
automatically be extended so as to terminate on the earlier to occur of (1) the
third anniversary of such date or (2) the Executive's Normal Retirement Date.

          (e)  "Key Employee" shall mean a senior vice president level employee
of the Company.

2.   CHANGE OF CONTROL.

          For the purpose of this Agreement, a "Change of Control" or "Change in
Control" shall mean:

          (a) The acquisition by an individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the
then outstanding shares of common stock of the Company's parent,
US Airways Group, Inc. ("Group") (the

                                        3

<PAGE>

"Outstanding Group Common Stock") or (ii) the combined voting power of the then
outstanding voting securities of Group entitled to vote generally in the
election of directors (the "Outstanding Group Voting Securities"); provided,
however, that the following acquisitions shall not constitute a Change of
Control: (v) any acquisition directly from Group, (w) any acquisition by Group
or any of its subsidiaries, (x) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by Group or any of its subsidiaries, (y)
any acquisition by any corporation with respect to which, following such
acquisition, more than 85% of, respectively, the then outstanding shares of
common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors, is then beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were beneficial
owners, respectively of the Outstanding Group Common Stock and Outstanding Group
Voting Securities in substantially the same proportions as their ownership,
immediately prior to such acquisition, of the Outstanding Group Common Stock and
Outstanding Group Voting Securities, as the case may be or (z) any acquisition
by an individual, entity or group that, pursuant to Rule 13d-1 promulgated under
the Exchange Act, is permitted to, and actually does, report its beneficial
ownership of Outstanding Group Common Stock and Outstanding Group Voting
Securities on Schedule 13G (or any successor Schedule); provided further, that
if any such individual, entity or group subsequently becomes required to or does
report its ownership of Outstanding Group Common Stock and Outstanding Group
Voting Securities on Schedule 13D (or any successor Schedule) then, for purposes
of this Section 2(a), such individual, entity or group shall be deemed to have
first acquired, on the first date on which such individual, entity or

                                        4

<PAGE>

group becomes required to or does so file, beneficial ownership of all of the
Outstanding Group Common Stock and Outstanding Group Voting Securities
beneficially owned by it on such date; or

          (b)  Individuals who, as of the date hereof, constitute Group's Board
of Directors (the "Incumbent Board") cease for any reason to constitute at least
a majority of the Group Board of Directors; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by Group's shareholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest (as
such terms are used in Rule 14a-11 of Regulation 14A promulgated under the
Exchange Act) or other actual or threatened solicitation of proxies or consents;
or

          (c)  There is consummated a reorganization, merger or consolidation,
in each case, with respect to which all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of the Outstanding
Group Common Stock and Outstanding Group Voting Securities immediately prior to
such reorganization, merger or consolidation, beneficially own, directly or
indirectly, less than 85% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case
may be, of the corporation resulting from such reorganization, merger or
consolidation (or any parent thereof) in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger or
consolidation of the

                                        5

<PAGE>

Outstanding Group Common Stock and the Outstanding Group Voting Securities, as
the case may be; or

          (d)  Approval by the shareholders of Group of a complete liquidation
or dissolution of Group or the consummation of the sale or other disposition of
all or substantially all of the assets of Group, other than to a corporation
with respect to which, following such sale or other disposition, more than 85%
of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Group Common Stock and Outstanding
Group Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Group Common Stock and Outstanding
Group Voting Securities, as the case may be.

3.   EMPLOYMENT PERIOD.

          The Company hereby agrees to continue the Executive in its employ, and
the Executive hereby agrees to remain in the employ of the Company, during the
Employment Period under the terms and conditions provided herein.

4.   TERMS OF EMPLOYMENT.

          (a)  Position and Duties.

               (i)    During the Employment Period and prior to a Change of
     Control Date, (A) if the Board determines that the Executive has been
     performing his duties in accordance with Section 4(a)(iii) hereof, it shall
     re-elect

                                        6

<PAGE>

     the Executive to the position of Senior Vice President with substantially
     similar duties to the position held by the Executive on the Effective Date,
     and (B) the Executive's services shall be performed at the Executive's
     location on the Effective Date, the Company's headquarters, or a location
     where a substantial activity for which the Executive has responsibility is
     located.

               (ii)   During the Employment Period and on and following a Change
     of Control Date, (A) the Executive's position (including status, offices,
     titles and reporting relationships), authority, duties and responsibilities
     shall be at least commensurate in all material respects with the most
     significant of those held, exercised and assigned at any time during the
     90-day period immediately preceding the Change of Control Date and (B) the
     Executive's services shall be performed at the location where the Executive
     was employed immediately preceding the Change of Control Date or any office
     or location where a substantial activity for which the Executive has
     responsibility is located.

               (iii)  During the Employment Period, and excluding any periods of
     vacation and sick leave to which the Executive is entitled, the Executive
     agrees to devote reasonable attention and time during normal business hours
     to the business and affairs of the Company and, to the extent necessary to
     discharge the responsibilities assigned to the Executive hereunder, to use
     the Executive's reasonable best efforts to perform faithfully and
     efficiently such responsibilities. During the Employment Period it shall
     not be a violation of this Agreement for the Executive to (A) serve on
     corporate, civic or charitable boards or committees, (B) deliver lectures,
     fulfill speaking engagements or teach at educational institutions and (C)
     manage personal investments, so long as such activities do not
     significantly interfere with the performance of the Executive's
     responsibilities as an employee of the Company in accordance with this
     Agreement. It is also expressly understood and agreed that to the extent
     that such activities have been conducted by the Executive prior to the
     Effective Date, the continued conduct of such activities (or the conduct of
     activities similar in nature and scope thereto) subsequent to the Effective
     Date shall not thereafter be deemed to interfere with the performance of
     the Executive's responsibilities to the Company.

          (b)  Compensation.

          (i)   Base Salary. During the Change of Control Period, the Company
shall pay the Executive a base salary (x) for the first 12 months of such period
at a rate not less than his base salary in effect on the Change of Control Date
and (y) during each succeeding 12 months at a rate not less than his base salary
in effect on the last day of the preceding 12-month period. During the Change of
Control Period, base salary shall be reviewed at least annually and shall be
increased at any time and from time to time as shall be substantially consistent
with increases in base salary awarded in the ordinary course of business to
other Key Employees of the Company and its subsidiaries. Any increase in base
salary shall

                                        7

<PAGE>

not serve to limit or reduce any other obligation to the Executive under this
Agreement. Base salary shall not be reduced after any such increase. Base salary
under Section 4(b)(i) shall hereinafter be referred to as the "Base Salary".

          (ii)  Annual Bonus. In addition to Base Salary, the Executive shall be
awarded, for each fiscal year during the Change of Control Period, an annual
bonus as shall be determined by the Board or its Human Resources Committee in
accordance with the Incentive Compensation Plan as approved by the Group Board
of Directors or other annual bonus plan hereafter approved by the Board
("Incentive Plan"). The annual bonus under Section 4(b)(ii) shall hereinafter be
referred to as the "Annual Bonus".

          (iii) Incentive, Savings and Retirement Plans. In addition to Base
Salary and Annual Bonus payable as hereinabove provided, the Executive shall be
entitled to participate during the Change of Control Period in all incentive
(including but not limited to the Long Term Incentive Plan and all stock
incentive plans), savings and retirement plans, practices, policies and programs
applicable to other Key Employees, in each case providing benefits which are at
least as favorable as the most favorable of such plans, practices, policies and
programs in effect at any time during the 90-day period immediately preceding
the Change of Control Date or, if more favorable to the Executive and/or the
Executive's family, as in effect at any time thereafter with respect to other
Key Employees.

          (iv)  Welfare Benefit Plans. During the Change of Control Period, the
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs applicable to other Key Employees (including,
without limitation, medical, prescription, dental, disability, salary
continuance, employee life, group life, accidental death and travel accident
insurance plans and programs), in each case providing benefits which are at
least as favorable as the most favorable of such plans, practices, policies and
programs in effect at any time during the 90-day period immediately preceding
the Change of Control Date or, if more favorable to the Executive and/or the
Executive's family, as in effect at any time thereafter with respect to other
Key Employees.

          (v)   Expenses. During the Change of Control Period, the Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by the Executive in accordance with the most favorable policies,
practices and procedures of the Company and its subsidiaries applicable at any
time on or after the Effective Date to other Key Employees of the Company and
its subsidiaries.

          (vi)  Fringe Benefits. During the Change of Control Period, the
Executive shall be entitled to fringe benefits, including but not limited to
space positive and space available travel privileges in all classes of service
and cabins on

                                        8

<PAGE>

all air carriers owned by the Company and any of its affiliates (including all
carriers owned by any individual, entity or group that has entered into an
agreement the consummation of which constitutes a Change of Control, or which
otherwise caused a Change of Control) ("Travel Privileges"), in each case
providing benefits which are at least as favorable as the most favorable of such
plans, practices, policies and programs in effect at any time during the 90-day
period immediately preceding the Change of Control Date or, if more favorable to
the Executive and/or the Executive's family, as in effect at any time thereafter
with respect to other Key Employees.

          (vii) Vacation. During the Change of Control Period, the Executive
shall be entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company and its subsidiaries as in
effect at any time during the 90-day period immediately preceding the Change of
Control Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter with respect to other Key Employees.

5.   TERMINATION.

     (a)  Mutual Agreement. During the Employment Period, the Executive's
employment hereunder may be terminated at any time by mutual agreement on terms
to be negotiated at the time of such termination.

     (b)  Death or Disability. This Agreement shall terminate automatically upon
the Executive's death. If the Company determines in good faith that the
Disability of the Executive has occurred (pursuant to the definition of
"Disability" set forth below), it may give to the Executive written notice of
its intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the 90th
day after receipt by the Executive of such notice given at any time after a
period of six consecutive months of Disability and while such Disability is
continuing (the "Disability Effective Date"), provided that, within the 90 days
after such receipt, the Executive shall not have returned to full-time
performance of the Executive's duties. For purposes of this Agreement,
"Disability" means disability which, at least six

                                        9

<PAGE>

months after its commencement, is determined to be total and permanent by a
physician selected by the Company or its insurers and acceptable to the
Executive or the Executive's legal representative (such agreement as to
acceptability not to be withheld unreasonably). During such six month period and
until the Disability Effective Date, Executive shall be entitled to all
compensation provided for under Section 4 hereof, to the extent applicable.

     (c)  Cause. During the Employment Period, the Company may terminate the
Executive's employment for "Cause." For purposes of this Agreement, "Cause"
means (1) a reasonable good faith determination by the Company that the
Executive engaged in an act or acts of personal dishonesty intended to result in
substantial personal enrichment of the Executive at the expense of the Company,
(2) repeated violations by the Executive of the Executive's obligations under
Section 4(a) of this Agreement which are demonstrably willful and deliberate on
the Executive's part and which are not remedied in a reasonable period of time
after receipt of written notice from the Company or (3) the conviction of the
Executive of a felony.

     (d)  Good Reason. During the Employment Period, the Executive's employment
hereunder may be terminated by the Executive for Good Reason. For purposes of
this Agreement, "Good Reason" means:

          (i)  with respect to the termination of the Executive's employment
          other than during the Change of Control Period:

               (1)    any reduction by the Company of the Executive's rate of
                      base salary, as in effect on the Effective Date or as the
                      same may be increased from time to time;

               (2)    any material and substantial diminution in the Executive's
                      position, authority, duties or responsibilities as
                      contemplated by Section 4(a)(i) of this Agreement, or any
                      other action by

                                       10

<PAGE>

                      the Company which results in a material and substantial
                      diminution in such position, authority, duties or
                      responsibilities, excluding for this purpose an isolated,
                      insubstantial and inadvertent action not taken in bad
                      faith and which is remedied by the Company promptly after
                      receipt of notice thereof given by the Executive;

               (3)    any demotion of the Executive to a position lower than
                      Senior Vice President; or

               (4)    any failure by the Company to comply with and satisfy
                      Section 11(c) of this Agreement, and

          (ii) with respect to the termination of the Executive's employment
          during the Change of Control Period:

               (1)    the assignment to the Executive of any duties inconsistent
                      in any respect with Executive's position (including
                      status, offices, titles and reporting relationships),
                      authority, duties or responsibilities as contemplated by
                      Section 4(a)(ii) or (iii) of this Agreement, or any other
                      action by the Company which results in a diminution in
                      such position, authority, duties or responsibilities,
                      excluding for this purpose an isolated, insubstantial and
                      inadvertent action not taken in bad faith and which is
                      remedied by the Company promptly after receipt of notice
                      thereof given by the Executive;

               (2)    (x) any failure by the Company to comply with any of the
                      provisions of Section 4(b) of this Agreement, other than
                      an isolated, insubstantial and inadvertent failure not
                      occurring in bad faith and which is remedied by the
                      Company promptly after receipt of notice thereof given by
                      the Executive or (y) any failure of the Company to pay
                      Base Salary or Annual Bonus in accordance with Sections
                      4(b)(i) and (ii), respectively, and any failure by the
                      Company to maintain or provide the plans, programs,
                      policies and practices, and benefits described in Sections
                      4(b)(iii) - (vii) on the most favorable basis such plans,
                      programs, policies and practices were maintained and
                      benefits provided during the 90-day period immediately
                      preceding the Change of Control Date, or if more favorable
                      to the Executive and/or the Executive's family, as in
                      effect at any time thereafter with respect to other Key
                      Employees;

                                       11

<PAGE>

               (3)    the Company's requiring the Executive to be based at any
                      office or location other than that described in Section
                      4(a)(ii)(B) hereof, except for travel reasonably required
                      in the performance of the Executive's responsibilities;

               (4)    any purported termination by the Company of the
                      Executive's employment otherwise than as expressly
                      permitted by this Agreement; or

               (5)    any failure by the Company to comply with and satisfy
                      Section 11(c) of this Agreement.

For purposes of this Section 5(d)(ii), any good faith determination of "Good
Reason" made by the Executive on or after the Change of Control Date shall be
conclusive.

          (e)  Notice of Termination. Any termination during the Change of
Control Period by the Company for Cause or by the Executive for Good Reason
shall be communicated by Notice of Termination to the other party hereto given
in accordance with Section 12(b) of this Agreement. For purposes of this
Agreement, a "Notice of Termination" means a written notice which (i) indicates
the specific termination provision in this Agreement relied upon, (ii) sets
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the provision so
indicated and (iii) if the Date of Termination (as defined below) is other than
the date of receipt of such notice, specifies the termination date (which date
shall be not more than fifteen (15) days after the giving of such notice). The
failure by the Executive to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason shall not waive any
right of the Executive hereunder or preclude the Executive from asserting such
fact or circumstance in enforcing his rights hereunder. Any termination other
than during the Change of Control Period by the Company for Cause or by the
Executive for Good Reason shall be communicated by

                                       12

<PAGE>

written notice (which written notice shall not constitute a Notice of
Termination hereunder) to the other party hereto given in accordance with
Section 12(b) of this Agreement.

          (f)  Date of Termination. "Date of Termination" means the date of
receipt of the Notice of Termination or any later date specified therein, as the
case may be; provided, however, that (i) if the Executive's employment is
terminated by the Company other than for Cause or Disability, the Date of
Termination shall be the date on which the Company notifies the Executive of
such termination and (ii) if the Executive's employment is terminated by reason
of death or Disability, the Date of Termination shall be the date of death of
the Executive or the Disability Effective Date, as the case may be.

          (g)  Dispute Concerning Termination. If within fifteen (15) days after
any Notice of Termination is given, or, if later, prior to the Date of
Termination (as determined without regard to this Section 5(g)), the party
receiving such Notice of Termination notifies the other party that a dispute
exists concerning the termination, the Date of Termination shall be extended
until the earlier of (i) the date on which the Change of Control Period ends or
(ii) the date on which the dispute is finally resolved, either by mutual written
agreement of the parties or by a final judgment, order or decree of an
arbitrator or a court of competent jurisdiction (which is not appealable or with
respect to which the time for appeal therefrom has expired and no appeal has
been perfected); provided, however, that the Date of Termination shall be
extended by a notice of dispute given by the Executive only if such notice is
given in good faith and the Executive pursues the resolution of such dispute
with reasonable diligence; and provided further, this Section 5(g) shall be
applicable only for terminations of employment occurring during the Change of
Control Period.

                                       13

<PAGE>

          (h)  Compensation During Dispute. If a purported termination occurs
during the Change of Control Period and the Date of Termination is extended in
accordance with Section 5(g) hereof, the Company shall continue to pay the
Executive the full compensation in effect when the notice giving rise to the
dispute was given (including, but not limited to, Base Salary) and continue the
Executive as a participant in all compensation, benefit and insurance plans in
which the Executive was participating when the notice giving rise to the dispute
was given, until the Date of Termination, as determined in accordance with
Section 5(g) hereof. Amounts paid under this Section 5(h) are in addition to all
other amounts due under this Agreement and shall not be offset against or reduce
any other amounts due under this Agreement.

6.   OBLIGATIONS OF THE COMPANY UPON TERMINATION.

          (a)  Death.

          (i)    If the Executive's employment is terminated during the
                 Change of Control Period by reason of the Executive's
                 death, this Agreement shall terminate without further
                 obligations to the Executive's legal representatives under
                 this Agreement, other than those obligations accrued or
                 earned and vested (if applicable) by the Executive as of
                 the Date of Termination, including, for this purpose (1)
                 the Executive's full Base Salary through the Date of
                 Termination at the rate in effect on the Date of
                 Termination, disregarding any reduction in Base Salary in
                 violation of this Agreement (the "Highest Base Salary"),
                 (2) the product of the Annual Bonus paid to the Executive
                 for the last full fiscal year and a fraction, the
                 numerator of which is

                                       14

<PAGE>

                      the number of days in the current fiscal year through the
                      Date of Termination, and the denominator of which is 365
                      and (3) any compensation previously deferred by the
                      Executive (together with any accrued interest thereon) and
                      not yet paid by the Company and any accrued vacation pay
                      not yet paid by the Company (such amounts specified in
                      clauses (1) through (3)) are hereinafter referred to as
                      "Accrued Obligations" and such amounts specified in
                      clauses (1) and (3) are hereinafter referred to as
                      "Termination Obligations"). Anything in this Agreement to
                      the contrary notwithstanding, the Executive's family shall
                      be entitled to receive benefits in accordance with the
                      most favorable plans, programs, practices and policies of
                      the Company and its subsidiaries in effect during the
                      90-day period immediately preceding the Change of Control
                      Date, or if more favorable to the Executive and/or the
                      Executive's family, as in effect at any time thereafter
                      with respect to other Key Employees.

               (ii)   If the Executive's employment is terminated by reason of
                      the Executive's death other than during the Change of
                      Control Period, this Agreement shall terminate without
                      further obligations to the Executive's legal
                      representatives under this Agreement other than the
                      Termination Obligations.

               (iii)  All such Accrued Obligations and Termination Obligations
                      shall be paid to the Executive's estate or beneficiary, as
                      applicable, in a lump

                                       15

<PAGE>

                      sum in cash within 30 days of the Date of Termination or
                      the date of termination (as applicable).

               (b)    Disability.

               (i)    If the Executive's employment is terminated during the
                      Change of Control Period by reason of the Executive's
                      Disability, this Agreement shall terminate without further
                      obligations to the Executive, other than those obligations
                      accrued or earned and vested (if applicable) by the
                      Executive as of the Date of Termination, including for
                      this purpose, all Accrued Obligations. Anything in this
                      Agreement to the contrary notwithstanding, the Executive
                      shall be entitled after the Disability Effective Date to
                      receive disability and other benefits in accordance with
                      the most favorable plans, programs, practices and policies
                      of the Company and its subsidiaries in effect during the
                      90-day period immediately preceding the Change of Control
                      Date, or if more favorable to the Executive and/or the
                      Executive's family, as in effect at any time thereafter
                      with respect to other Key Employees.

               (ii)   If the Executive's employment is terminated by reason of
                      the Executive's Disability other than during the Change of
                      Control Period, this Agreement shall terminate without
                      further obligations to the Executive under this Agreement
                      other than the Termination Obligations.

                                       16

<PAGE>

               (iii)  All such Accrued Obligations and Termination Obligations
                      shall be paid to the Executive in a lump sum in cash
                      within 30 days of the Date of Termination or the date of
                      termination (as applicable).

               (c)    Cause; Other than for Good Reason. If during the
Employment Period the Executive's employment is terminated for Cause or the
Executive terminates his employment other than for Good Reason, this Agreement
shall terminate without further obligations to the Executive under this
Agreement other than those obligations accrued or earned and vested (if
applicable) by the Executive through the Date of Termination or the date of
termination (as applicable), including for this purpose, the Termination
Obligations. All such Termination Obligations shall be paid to the Executive in
a lump sum in cash within 30 days of the Date of Termination.

               (d)    Good Reason; Other Than for Cause or Disability.

                      (1) If, during the Employment Period and prior to a Change
          of Control, the Company shall terminate the Executive's employment
          other than for Cause, Disability or death or if the Executive shall
          terminate his employment for Good Reason, the Executive shall be
          entitled to:

                      A.     to the extent not theretofore paid, the Executive's
                          annual rate of base salary as in effect immediately
                          prior to the date of termination; and

                      B.     a lump sum in cash within 30 days after the date of
                          termination equal to the product of two (2) times the
                          sum of (x) the Executive's annual rate of base salary
                          as in effect immediately prior to the date of
                          termination, and (y) the Executive's "target bonus"
                          under the Incentive Plan for the year in which the
                          date of termination occurs; and

                      C.     in the case of compensation previously deferred by
                          the Executive, all amounts previously deferred
                          (together with

                                       17

<PAGE>

                          any accrued interest thereon) and not yet paid by the
                          Company, and any accrued vacation pay not yet paid by
                          the Company; and

                      D.     if such termination should occur prior to October
                          31, 2003, continuation of health insurance on the same
                          basis such benefits were provided to the Executive on
                          the Effective Date, or, if more favorable to the
                          Executive and/or the Executive's family, as in effect
                          at any time thereafter with respect to the Executive,
                          with such benefits to continue for the life of the
                          Executive; provided, however, that if the Executive
                          becomes eligible for health insurance through a
                          subsequent employer, the Company's provision of such
                          benefits shall be secondary to the benefit coverage of
                          the subsequent employer.

                      (2) If, during the Employment Period and on and after a
          Change of Control Date, the Company shall terminate the Executive's
          employment other than for Cause, Disability, or death or if the
          Executive shall terminate his employment for Good Reason:

                      (i) the Company shall pay to the Executive in a lump sum
          in cash within 30 days after the Date of Termination the aggregate of
          the following amounts:

                      A.     to the extent not theretofore paid, the Executive's
                          Highest Base Salary through the Date of Termination;
                          and

                      B.     the product of (x) the Annual Bonus paid to the
                          Executive for the last full fiscal year ending during
                          the Change of Control Period or, if higher, the Annual
                          Bonus paid to the Executive during the last full
                          fiscal year ending during the Change of Control Period
                          or, if higher, a constructive annual bonus calculated
                          at the "target bonus" level under the Incentive Plan
                          in effect immediately preceding the Change of Control
                          Date (the highest Annual Bonus determined under this
                          clause (x) shall hereinafter be referred to as the
                          "Recent Bonus") and (y) a fraction, the numerator of
                          which is the number of days in the current fiscal year
                          through the Date of Termination and the denominator of
                          which is 365: and

                                       18

<PAGE>

                      C.     the product of (x) three and (y) the sum of (i) the
                          Highest Base Salary and (ii) the Recent Bonus; and

                      D.     in the case of compensation previously deferred by
                          the Executive, all amounts previously deferred
                          (together with any accrued interest thereon) and not
                          yet paid by the Company, and any accrued vacation pay
                          not yet paid by the Company; and

                      (ii) The Company shall:

                      A.     for a period of three years following the Date of
                          Termination or such longer period as any plan,
                          program, practice or policy may provide, the Company
                          shall continue benefits to the Executive and/or the
                          Executive's family at least equal to those which would
                          have been provided to them in accordance with the
                          plans, programs, practices and policies described in
                          Sections 4(b)(iii)(with respect to any retirement
                          plans), (iv) and (vi) of this Agreement as if the
                          Executive's employment had not been terminated and as
                          if the Change of Control Period expired on the 3rd
                          anniversary of the Date of Termination, and for
                          purposes of eligibility for retiree benefits pursuant
                          to such plans, practices, programs and policies, the
                          Executive shall be considered to have remained
                          employed until the 3rd anniversary of the Date of
                          Termination; and

                      B.     the Company shall provide continuation of Travel
                          Privileges for the life of the Executive which are at
                          least as favorable as the benefits provided pursuant
                          to the most favorable of such plans, practices,
                          policies and programs in effect at any time during the
                          90-day period immediately preceding the Change of
                          Control Date or, if more favorable to the Executive
                          and/or the Executive's family, as in effect at any
                          time thereafter with respect to other Key Employees.

          (e)  Notwithstanding any other provisions of this Agreement to the
contrary, (1) upon termination of the Executive's employment for any reason
following the 5th anniversary of the Executive's date of employment, the
Executive shall be entitled to the Travel Privileges described in 6(d)(2)(ii)(B)
above; and (2) upon termination of the

                                       19

<PAGE>

Executive's employment for any reason after October 31, 2003, the Executive
shall be entitled to continuation of health insurance on the same basis such
benefits were provided to the Executive on the Effective Date or, if more
favorable to the Executive and/or the Executive's family, as in effect at any
time thereafter with respect to the Executive, with such benefits to continue
for the life of the Executive; provided, however, that if the Executive becomes
eligible for health insurance through a subsequent employer, the Company's
provision of such benefits shall be secondary to the benefit coverage of the
subsequent employer.

7.   NON-EXCLUSIVITY OF RIGHTS.

     Nothing in this Agreement shall prevent or limit the Executive's continuing
or future participation in any benefit, bonus, incentive or other plans,
programs, policies or practices, provided by Group, the Company or any of its
subsidiaries and for which the Executive may qualify, nor shall anything herein
limit or otherwise affect such rights as the Executive may have under any stock
option, restricted stock or other agreements with Group, the Company or any of
its subsidiaries. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any Plan, policy, practice or program of
Group, the Company or any of its subsidiaries at or subsequent to the Date of
Termination shall be payable in accordance with such plan, policy, practice or
program.

8.   FULL SETTLEMENT.

     The Company's obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others. In no
event shall the Executive be

                                       20

<PAGE>

obligated to seek other employment or take any other action by way of mitigation
of the amounts payable to the Executive under any of the provisions of this
Agreement. The Company agrees to pay, to the full extent permitted by law (a)
all legal fees and expenses, as incurred by the Company, the Executive and
others, which the Executive may reasonably incur as a result of any contest
(regardless of the outcome thereof) by the Company or others of the validity or
enforceability of, or liability under, any provision of this Agreement (other
than Section 6(d)(1) and 6(e)) or any guarantee of performance thereof
(including as a result of any contest by the Executive about the amount of any
payment pursuant of Section 9 of this Agreement) and (b) all legal fees and
expenses, as incurred by the Company, the Executive and others, which the
Executive may reasonably incur as a result of any contest by the Company or
others of the validity or enforceability of, or liability under, Section 6(d)(1)
and 6(e) of this Agreement or any guarantee of performance thereof but only, in
the case of this clause (b), if the Executive prevails on at least one material
issue in such contest plus, in the case of clauses (a) and (b), interest at the
applicable Federal rate provided for in Section 7872(f)(2) (or any successor
provision thereto) of the Internal Revenue Code of 1986, as amended (the
"Code").

9.   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

          (a)  Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by the Company
to or for the benefit of the Executive (whether paid or payable or distributed
or distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this Section
9, including, but not limited to, any amounts in respect of (i) options to
acquire shares of Group common stock, and (ii) restricted shares of

                                       21

<PAGE>

Group common stock (a "Payment"), would be subject to the excise tax imposed by
Section 4999 (or any successor provision thereto) of the Code or any interest or
penalties with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with respect
to such taxes), including, without limitation, any income and employment taxes
(and any interest and penalties imposed with respect thereto) and Excise Tax,
imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon Payments.

          (b)  Subject to the provisions of Section 9(c), all determinations
required to be made under this Section 9, including whether a Gross-Up Payment
is required and the amount of such Gross-Up Payment, shall be made by a firm of
independent public accountants selected by Group prior to the Change of Control
(the "Accounting Firm") which shall provide detailed supporting calculations
both to the Company and the Executive within fifteen (15) business days of the
receipt of notice from the Executive that there has been a Payment, or such
earlier time as is requested by the Company or the Executive. In the event that
the Accounting Firm is serving as accountant or auditor for the individual,
entity or group effecting the Change of Control, the Executive may appoint
another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to
this Section 9, shall be paid

                                       22

<PAGE>

to the Executive within five (5) days of the receipt of the Accounting Firm's
determination. If the Accounting Firm determines that no Excise Tax is payable
by the Executive, it shall furnish the Executive with a written opinion that
failure to report the Excise Tax on the Executive's applicable federal income
tax return would not result in the imposition of a negligence or other penalty.
Any determination by the Accounting Firm shall be binding upon the Company and
the Executive. As a result of the uncertainty in the application of Section 4999
of the Code (or any successor provision thereto) at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
(together with interest and penalties incurred by the Executive in connection
therewith) that has occurred and any such Underpayment shall be promptly paid by
the Company to or for the benefit of the Executive.

          (c)  The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten (10) business days after the Executive knows
of such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the thirty-day period following the date
on which he gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect

                                       23

<PAGE>

to such claim is due). If the Company notifies the Executive in writing prior to
the expiration of such period that it desires to contest such claim, the
Executive shall:

          (i)  give the Company any information reasonably requested by the
          Company relating to such claim,

          (ii) take such action in connection with contesting such claim as the
          Company shall reasonably request in writing from time to time,
          including, without limitation, accepting legal representation with
          respect to such claim by an attorney reasonably selected by the
          Company,

          (iii) cooperate with the Company in good faith in order effectively to
          contest such claim,

          (iv) permit the Company to participate in any proceedings relating to
          such claim; provided, however, that the Company shall bear and pay
          directly all costs and expenses (including additional interest and
          penalties) incurred in connection with such contest and shall
          indemnify and hold the Executive harmless, on an after-tax basis, for
          any Excise Tax or income tax, including interest and penalties with
          respect thereto, imposed as a result of such representation and
          payment of costs and expenses. Without limitation on the foregoing
          provisions of this Section 9(c), the Company shall control all
          proceedings taken in connection with such contest and, at its sole
          option, may pursue or forgo any and all administrative appeals,
          proceedings, hearings and conferences with the taxing authority in
          respect of such claim and may, at its sole option, either direct the
          Executive to pay the tax claimed and sue for a refund or contest the
          claim in any permissible manner, and the Executive agrees to prosecute
          such contest to a determination before any administrative tribunal, in
          a court of initial jurisdiction and in one or more appellate courts,
          as the Company shall determine; provided, however, that if the Company
          directs the Executive to pay such claim and sue for a refund, the
          Company shall advance the amount of such payment to the Executive, on
          an interest-free basis and shall indemnify and hold the Executive
          harmless, on an after-tax basis, from any Excise Tax or income tax,
          including interest or penalties with respect thereto, imposed with
          respect to such advance or with respect to any imputed income with
          respect to such advance; and further provided that any extension of
          the statute of limitations relating to payment of taxes for the
          taxable year of the Executive with respect to which such contested
          amount is claimed to be due is limited solely to such contested
          amount. Furthermore, the Company's control of the contest shall be
          limited to issues with respect to which a Gross-Up Payment would be
          payable hereunder; whereas the Executive shall be entitled to settle
          or contest, as the case may be, any

                                       24

<PAGE>

          other issued raised by the Internal Revenue Service or any other
          taxing authority.

          (d)  If, after the receipt by the Executive of an amount advanced by
          the Company pursuant to Section 9(c), the Executive becomes entitled
          to receive any refund with respect to such claim, the Executive shall
          (subject to the Company's complying with the requirements of Section
          9(c)) promptly pay to the Company the amount of such refund (together
          with any interest paid or credited thereon after taxes applicable
          thereto). If, after the receipt by the Executive of an amount advanced
          by the Company pursuant to Section 9(c), a determination is made that
          the Executive shall not be entitled to any refund with respect to such
          claim and the Company does not notify the Executive in writing of its
          intent to contest such denial of refund prior to the expiration of
          thirty (30) days after such determination, then such advance shall be
          forgiven and shall not be required to be repaid and the amount of such
          advance shall offset, to the extent thereof, the amount of Gross-Up
          Payment required to be paid.

10.  CONFIDENTIAL INFORMATION.

          The Executive shall hold in a fiduciary capacity for the benefit of
the Company all confidential and proprietary information, relating to Group, the
Company or any of their subsidiaries, and their respective businesses, which
shall have been obtained by the Executive's employment by the Company or any of
its subsidiaries and which shall not be or become public knowledge (other than
by acts by Executive or his representatives in violation of this Agreement).
After termination of the Executive's employment with the Company, the Executive
shall not, without the prior written consent of the Company, communicate or
divulge any such information to anyone other than the Company and those

                                       25

<PAGE>

designated by it. Notwithstanding the foregoing, the Executive or his
representatives may disclose any such information if such information is
compelled by legal process, provided that if Executive is so compelled, he shall
provide the Company with prompt notice so that it may seek a protective order or
other remedy. In any event, Executive shall furnish only that portion of the
confidential information that is legally required to be disclosed. In the event
the Executive breaches any provision of this Section 10, any payments or other
benefits promised under this Agreement shall be forfeited. Such a forfeiture
shall not limit the Company from seeking any other contractual or equitable
remedies available to it which are appropriate under the circumstances. The
Executive expressly consents to the award of injunctive relief in the event a
violation of this Section 10 is alleged by the Company.

11.  SUCCESSORS.

     (a)  This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive's legal
representatives.

     (b)  This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

     (c)  The Company shall require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, "Company" shall mean

                                       26

<PAGE>

the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

12.  MISCELLANEOUS.

     (a)  This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware, without reference to principles of conflict
of laws. The captions of this Agreement are not part of the provisions hereof
and shall have no force or effect. This Agreement may not be amended or modified
otherwise than by a written agreement executed by the parties hereto or their
respective successors and legal representatives.

     (b)  All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

     If to the Executive      If to the Company:
     -------------------      -----------------

     Michelle V. Bryan        US Airways, Inc.
     5629 Newington Road      2345 Crystal Drive
     Bethesda, MD 20816       Arlington, Virginia  22227
                              Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

     (c)  The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

                                       27

<PAGE>

     (d)  The Company may withhold from any amounts payable under this Agreement
such Federal, state or local taxes as shall be required to be withheld pursuant
to any applicable law or regulation.

     (e)  The Executive's failure to insist upon strict compliance with any
provision hereof shall not be deemed to be a waiver of such provision or any
other provision hereof.

     (f) Words or terms used in this Agreement which connote the masculine
gender are deemed to apply equally to female executives.

     (g)  This Agreement supersedes any prior employment agreement between the
Company and the Executive, including but not limited to the Prior Agreement, and
contains the entire understanding of the Company and the Executive with respect
to the subject matter hereof.

                                       28

<PAGE>

     IN WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant
to the authorization from its Board of Directors, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

                                         EXECUTIVE

                                         -------------------------------------
                                         Michelle V. Bryan

                                         US AIRWAYS, INC.

                                         -------------------------------------
                                         Jennifer C. McGarey
                                         Vice President, Deputy General Counsel
                                         and Secretary

                                       29

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