Transformation Plan Term Sheet

Company Proposal

Transformation Plan Term Sheet November 2, 2004

Effective Date:	This Transformation Plan Term Sheet, and the terms and conditions of the AFA-US Airways Collective Bargaining Agreement effective May 1, 2000, as amended (hereafter, the “2000 AFA-US Airways Agreement”), to the extent not superseded, modified, or made irrelevant by, this Transformation Plan Term Sheet, will constitute the “2004 AFA-US Airways Agreement”. Upon ratification by AFA members, signatures of the AFA International President and the US Airways MEC President, and entry of an order or orders of the Bankruptcy Court (i) approving the 2004 AFA-US Airways Agreement; (ii) authorizing rejection of the 2000 AFA-US Airways Agreement, with such rejection occurring upon the effectiveness of the 2004 AFA-US Airways Agreement; and (iii) determining, with the consent of the parties, that no claim for damages will result from rejection of the 2000 AFA-US Airways Agreement.
Duration:	Amendable date December 31, 2009
Definitive Documentation of 2004 AFA-US Airways Agreement:	The Company and the Association will complete definitive documentation, including final contract language, of the 2004 AFA-US Airways Agreement, within sixty (60) days of the date of membership ratification and signing of this Transformation Plan Term Sheet. The definitive documentation of the 2004 AFA-US Airways Agreement will be submitted to the Bankruptcy Court promptly for approval.
Post-Retirement Medical:	Pre-65 and Post-65 Retiree Medical and Dental, For Employees Retired as of one day prior to the Effective Date of the 2004 AFA-US Airways Agreement: · The 2004 AFA-US Airways Agreement will not waive any rights US Airways has under Section 1114 of the Bankruptcy Code to reduce retiree benefits for existing retirees as of the Effective Date. Pre-65 Medical and Dental, For Employees Retiring On Or After the Effective Date of the 2004 AFA-US Airways Agreement: · Employees retiring before age 65 who elect at the time of retirement to participate in retiree medical benefits may use accrued sick pay up to the maximum contained in the Flight Attendant’s Sick Bank and Reserve Account on the date of retirement to fund a portion of the monthly pre-65 retiree medical premium (access plan). Such payouts will be available subject to required administrative setup, but no later than March 31, 2005 , and will be paid retroactively to employees retiring after the Effective Date of the 2004 AFA-US Airways Agreement and prior to the date administrative setup is completed. · For purposes of funding monthly pre-65 retiree medical premiums, an hour of sick pay will be valued at $9.75. Forty-one hours of accrued sick pay ($399.75) will be credited towards the monthly pre-65 retiree medical premium until the Flight Attendant’s Sick Bank and Reserve Account on the date of retirement are exhausted. · Should the monthly pre-65 retiree medical premium exceed the available credit, the retiree will be responsible for timely payment of the premium in excess of the credit. In the event the retiree at the time of retirement declines pre-65 retiree medical coverage, the retiree will be paid $7.90 for each hour of accrued sick leave in his/her Sick Bank and Reserve Accountat the time ofretirement, such payment to be made in equal monthly installments over a twelve-month period, beginning within thirty (30) days of retirement, or a flight attendant may receive a one-time cash payment, within thirty (30) days of his/her retirement date. A retiree who is 65 or older on the date of retirement may also elect to cash out their Sick Bank and Reserve Account as provided herein. The retiree will not thereafter be eligible to participate in pre-65 retiree medical benefits. · Pre-65 retirees will cease to participate in retiree medical coverage upon reaching age 65. · Pre-65 retirees are not eligible for retiree dental coverage. Age 65 and Post-65 Retiree Medical and Dental, For Employees Retiring On Or After the Effective Date of the 2004 AFA-US Airways Agreement: · As of the Effective Date of the 2004 AFA-US Airways Agreement, eliminate medical and dental coverage for age 65 and older retirees. · Age 65 and older retirees participating in retiree medical coverage on the Effective Date of the 2004 AFA-US Airways Agreement (closed group) will be eligible to continue prescription drug coverage through 2005 (coincident with new Medicare drug benefit). Subsidy caps and retiree contributions for 2005 will be reset to reflect prescription drug coverage only. The Company agrees to indemnify the Association from any and all liability, loss, damages, fines, penalties, excise taxes and costs, including reasonable expenses and reasonable attorneys' fees, which the Association sustains arising out of or in connection with these Company-proposed changes to Post-Retirement Medical for employees who retired prior to the Effective Date of this Agreement. The Association agrees that it will not settle a matter covered by this indemnity at the Company's cost without the Company's approval, and that the Association will provide assistance as reasonably required or requested by the Company in any matter for which such indemnity is being provided. The Company agrees to meet with the Association promptly to discuss the establishment of a VEBA for US Airways Flight Attendants. The Company will make commercially reasonable efforts to provide a lower cost “catastrophic option” for post-retirement medical coverage, available prior to Medicare Eligibility, subject to a prompt, detailed review of plan options and plan costs, with 100% of costs to be paid by the retiree. Such costs shall be determined in accordance with generally accepted actuarial methods and assumptions. At the retiree’s option, the accrued sick leave offset shall apply as described above should a retiree elect the Catastrophic Option. The Company will meet with Association upon completion of such review to discuss the plan design and costs associated with offering such an option.
Defined Benefit Plan:	The Association agrees that all benefit accruals under the current Flight Attendant Defined Benefit plan (the "Plan") shall cease effective upon notice as soon as practicable. In addition, the Association agrees that the Company may seek to terminate the Plan, and that a termination of the Plan would not violate the terms and conditions of this Transformation Plan Term Sheet and the 2000 AFA-US Airways Agreement, the 2004 AFA-US Airways Agreement or any other existing agreement between the Company and the Union. The Association further agrees that it will not seek to challenge a distress termination of the Plan. Replace the Plan with a Flight Attendant DC Plan with a 3% Employer Contribution. Company contributions are due and payable from the day following the day on which the Defined Benefit Plan is terminated (seamless transition). Flight Attendants who are on the System Seniority List as of the Effective Date of this Agreement will be immediately 100% vested in the Employer Contributions. Newly hired Flight Attendants will be 100% vested one (1) year from date of hire. Company contributions will be deposited in each Flight Attendant’s account consistent with the timing of contributions to the defined contribution plans for the Company’s other employee groups.
Long Term Disability:	Eligibility – implement one-year waiting period for new hires. Contributions: establish employee contributions at 25% of Company’s plan cost. LTD Benefit Determination and all clinical LTD reviews will be made by a third party long-term disability administrator (i.e., Retirement Board responsibilities with respect to the LTD Plan shall be eliminated). ).
Fees and Expenses:	The Company will pay the reasonable fees and expenses incurred by the Association in connection with the review, design, negotiation, approval, ratification and implementation of the 2004 AFA-US Airways Agreement, including the reasonable fees and expenses of outside legal, investment banking and other advisors, subject to the Company’s Outside Professionals Policy, offset by any payments made to the Association during the Transformation Negotiations for such purposes, subject to a cap of one million dollars ($1,000,000). Such payment shall be made promptly following the Effective Date of the 2004 AFA-US Airways Agreement as to amounts accrued as of that date; thereafter, payments shall be made promptly as to amounts accrued following the Effective Date. The obligation to make such payment shall give rise to an administrative claim in any bankruptcy of the Company.
Profit Sharing:	The Company will offer the following profit sharing program for flight attendants, subject to the following conditions: 1. AFA’s agreement to eliminate the current profit sharing provisions of the Agreement; 2. Approval by the US Airways Group, Inc. Board of Directors; and 3. If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, subject to approval as part of the Company’s confirmed plan of reorganization in such Chapter 11 case. a) Company profit sharing pool to be established at 10% of the pre-tax profit excluding unusual items (as reported, according to GAAP accounting practices) for pre-tax margins ranging from 0.1% to 5.0%; and at the above, plus 25% of any pre-tax profit excluding unusual items (as reported, according to GAAP accounting practices) in excess of a pre-tax margin of 5.0%. b) AFA’s portion of Company profit-sharing pool will be no less than 14.5%. c) An individual flight attendant’s profit sharing payment will be based on such flight attendant’s gross W-2 earnings (prior to any elective deferrals) for the prior calendar year divided by the gross W-2 earnings (prior to any elective deferrals) of all eligible flight attendants for the prior calendar year. “Eligible flight attendants” may include retired or furloughed flight attendants who had gross W-2 earnings (prior to any elective deferrals) for the prior calendar year, subject to applicable law.
Change in Control:	If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the Association agrees that the provisions of Section 30.T. as amended, will not apply with respect to any issuance of equity or redistribution of equity associated with endeavoring to achieve, or achieving, a confirmed plan of reorganization in such Chapter 11 case.
Minimum Aircraft:	If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the provisions of the Furlough Protection LOA and/or the January 2003 Restructuring Agreement regarding minimum aircraft will be suspended from the effective date of this Agreement until one (1) year after the implementation of a confirmed plan of reorganization in such Chapter 11 case, and then re-established at the lesser of: (x) 275 total aircraft (excluding SJs) or (y) the number of total aircraft then operated by the Company (excluding SJs), less ten percent (10%), rounded to the nearest aircraft.
Fragmentation:	If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the Association agrees that the provisions of Section 1.D.3., as amended, will not apply until one (1) year after the implementation of a confirmed plan of reorganization in such Chapter 11 case..
LPPs:	The provisions of Section 1.D.1. and Section 1.D.3., as amended, regarding Allegheny-Mohawk labor protective provisions will be replaced by the Allegheny-Mohawk labor protective provisions, Sections 3 and 13 only.
Equity and Governance:	Potential AFA equity participation to be determined, based on participation by other key stakeholders. If the Association elects profit sharing under the terms of “Profit Sharing” above, the Association understands that by making such election it waives all claim to equity with respect to any new equity issued during the current Bankruptcy case. Board representation, if any, will be determined pursuant to the plan of reorganization of the current Bankruptcy case.

Revisions to Hourly Pay Rates:	Base Pay Rates [3.A]: Freeze current base pay rates at each longevity step effective 1/01/04 through 12/31/09 . Reduce pay rates at each longevity step as frozen by 15%.. Pay raises: - effective January 1, 2008: 2% - effective January 1, 2009: 5% Longevity step increases will remain in full force and effect. Pay all flying at day rate (i.e., eliminate “night pay”) [3.E] Deadhead Pay [14.A]: All deadhead time will be compensated at 50% pay, no credit; however, for the purpose of pairing construction, trips will be constructed as if deadhead time would be 100% pay and 100% credit.Notwithstanding the previous sentence, deadhead pay for a flight attendant for a non-revenue flight leg on which those pilots who belong to the flight attendant’s crew are paid as for a “live” leg (e.g., a ferry flight) will be compensated at 100% pay and 100% credit.Clarification: This 50% provision does not apply to a trip that was originally constructed without a deadhead but in operations due to weather and/or mechanical, is rescheduled to include a deadhead.
Hourly Pay Rates for New Hires and Recalled Involuntary Furloughees	For flight attendants hired after the Effective Date of the 2004 AFA-US Airways Agreement, or for flight attendants recalled from involuntary furlough after the Effective Date of the 2004 AFA-US Airways Agreement (i.e., excludes flight attendants at MidAtlantic and with six (6) or more years of mainline longevity as of the Effective Date of the 2004 AFA-US Airways Agreement, but not those joining MidAtlantic after the Effective Date of the 2004 AFA-US Airways Agreement), the following rates of pay shall apply: Year 1: $16.18 Year 2: $17.54 Year 3: $18.76 Year 4: $19.98 Year 5: $21.24 Year 6 and above: $24.75
Revisions to Premium Pay Items:	Senior Pay Premiums will be amended to the following [3.C]: Domestic International B737-300/-400 $1.75 N/A A319/A320 $1.75 N/A A321 $2.00 N/A B757 $2.25 $2.75 B767 $2.50 $4.50 A330 $2.50 $4.50 Aft Lead Premiums will be amended to the following [3.C]: Domestic International B737-300/-400 - N/A A319/A320 - N/A A321 - N/A B757 - $1.00 B767 - $1.00 A330 - $1.00 Holding pay [3.D]: current book. Night pay [3.E]: eliminate. Understaffing pay [3.F]: current book. International premium pay [3.G]: Retain current International premium pay for Transatlantic operations only. Training Pay [3.H]:A flat rate of $60 per day for training (no per diem will apply). A travel day to and from training (if such travel day(s) would be required if coming from domicile) shall be considered a day(s) in training for pay purposes. Home study will be paid at the flat rate of $60 per day (no per diem will apply). After elimination of the ITD fence, if a flight attendant requests training for transoceanic international flying, training would be provided but unpaid; however, in the case of Company-requested training (e.g., for additional reserves), the Company will pay for transoceanic international training. Clarification: A flightattendant is not required to complete International Training in order to fly NTI. Jury Duty Pay [3.I]: Current book, however pay will be four hours ( 4:00 ) for each scheduled day of work lost for a flight attendant who is unavailable for duty as a result of being called for and/or serving on jury duty. Four hours per day replaces trips missed, but all other provisions of Sec.3.I. 1 –5 remain in effect. A flight attendant who loses time as a result of jury duty will have his/her monthly obligation adjusted to replace the hours associated with any trip(s) missed with the corresponding jury duty hours. Drug Testing Pay [3.J]: current book. LOD/O Pay [3.K]: current book. Reserve Override [3.N]: Eliminate reserve override scheduled to snap back on January 1, 2006. Galley Pay [3.O]: current book. Holiday Pay [3.P]: current book. Longevity Pay [3.Q]: Eliminate scheduled snap back in 2009. Bereavement Leave [20.F]: Current book, however pay will be for a maximum of three (3) days at four hours ( 4:00 ) per day. A flight attendant who loses time as a result of bereavement leave will have his/her monthly obligation adjusted to replace the hours associated with any trip(s) missed with the corresponding bereavement leave hours.. Premiums for Paid Time Off: Eliminate all premiums paid (including night pay) for claiming sick leave, vacation, salary continuance, bereavement leave, settling days and jury duty. Premiums not paid are senior, aft lead, “E” galley, LOD/O, CRAF and International. Eliminate the 2% lump sum payments due on both March 1, 2007 and March 1, 2008.
Minimum Pay Guarantees:	Lineholder Minimum Guarantee [3.B.1.a]: 71 hours at the base rate of pay, reduced pro-rata when active for less than one (1) full month as provided in paragraph 3.B.3. A Lineholder who voluntarily gives up or trades away trips to reduce his/her projection below 71 hours will have his/her guarantee adjusted to such lower projection as provided in 3.B.1.b. Reserve Minimum Guarantee [3.B.2]: 71 hours at the base rate of pay, reduced pro-rata for on-duty days for which the Reserve is not available to fly during the month.
Hours of Service:	Paid greater of scheduled or actual for each trip [10.B]: A flight attendant will be paid the greater of scheduled or actual for all trips flown in a month (i.e., end of month look-back vs. trip look-back). Example: A flight attendant works four scheduled 20:00 hour trips with a combined scheduled value of 80:00 hours. The flight attendant’s actual time for each trip is 20:00 + 19:45 + 20:00 + 20:30 for a total actual time of 80:15. The flight attendant’s pay for the month would be 80:15 since the actual time exceeds the scheduled time. Monthly Maximums [10.C]: Eliminate all high- and low-time options no earlier than one (1) month after the effective date of the temporary Crew Trade Desk or implementation of an Electronic Trade Board, providing Flight Attendants the ability to trade trips with other Flight Attendants. The Director of Crew Scheduling may for each month establish the monthly pay cap of Company time at 85, 90 or 95 hours, for any domicile. Eighty-five (85), ninety (90) or ninety-five (95) hours (with an average line construction target of 78, 83, and 88 respectively). Such establishment for each month must be made prior to the construction of lines for that month. Section 9.B will be modified to allow lines of time to be constructed within a 15-hour window below the pay cap (e.g., between 70 and 85 hours for an 85-hour cap with the average target of 78), and other contract references to the pay cap to be revised as applicable. In addition, the Director of Crew Scheduling may implement a monthly flex pay cap of up to five (5) hours for flight attendants in any domicile during the month to protect coverage during irregular operations. Prior to the establishment of the Electronic Trade Board (Crew Trade Desk, if satisfactory) and the elimination of the options, the Director of Crew Scheduling may for each month, at any time prior to or during such month, increase the monthly obligation for all flight attendants in a given domicile by either five (5) or ten (10) hours (or by one (1) additional trip for flight attendants in the ITD, so long as there is a separate ITD Operation); Provided however in either case that the establishment of a revised monthly pay obligation or flex month will not result in furloughs, but would be used to balance staffing in the event of attrition or staffing shortages that might disrupt flight operations. (a) Nothing herein requires a Flight Attendant to fly on his/her minimum days off. He/she does not have to fly on a holiday he/she was not scheduled to fly (unless due to Priority of Trip Assignment). (b) A Flight Attendant will not be required to make an effort to pick up time to meet his/her monthly obligation if meeting such obligation would cause him/her to go below his/her minimum days off. Reserve flight attendants will have a maximum of 285 credited hours over any three consecutive month period. A Reserve flight attendant will be considered out of time upon achieving 285 credited hours. A Reserve flight attendant may not use sick claim hours to call out of time. A Reserve flight attendant claiming sick in any month will be capped at 95 hours for that month notwithstanding the 285 hour rolling pay cap. Schedule Adjustment Period (“SAP”) [9.C.3]: Implement the following restrictions: Establish the SAP floor at fifteen hours (1 5:00 ) below the applicable monthly obligation for a domicile, and the SAP ceiling at ten hours (10:00) above the applicable monthly obligation. Example: If the monthly obligation as established by the Director of Crew Scheduling for a domicile is 85:00, the SAP window would be 70:00 – 9 5:00 . Flight Attendants using the Availability/Improvement List (AIL) to trip improve on a weekend trip must pick up a trip touching each day of the original weekend trip, but such trip does not have to be for the same duration. In-Month ETB (Electronic Trade Board): Implement an ETB system for Trip-Trading and picking up time from other flight attendants as follows: a. The Company will provide an electronic method of picking up, dropping and trading trips by Flight Attendants on a first come first served basis as well as a bulletin board (the ETB). Prior to implementation of such electronic method, the Company may establish a Trip Trade Desk in Crew Scheduling. b. All trading/picking up through the ETB will be awarded in first come first served order, beginning at 0600 on the first day following the awarding of the reserve lines and continuing daily thereafter. c. Lineholders may drop trips to other Flight Attendants, pick up trips from other Flight Attendants, and/or trade trips with other Flight Attendants using the ETB. d. Reserves may utilize the ETB to drop, pick up and/or trade trips on INV days, on OFF days and on vacation days, subject to buffers to be established by the Company. e. Reserves may utilize the ETB to drop, pick up and/or trade days OFF or AVL days with other reserves, or trips with other flight attendants. f. Company open time is picked up through the A/IL. A/IL rules and restrictions unchanged except as provided in this Agreement. g. Lineholder and Reserve trade requests will be processed continuously though the ETB on a first come first served basis. h. Lineholders will be allowed to drop down to fifty (50:00) credited hours in a bid period (or to fifty-five (55:00) in a flex month) by trading with other Flight Attendant(s), dropping trips to other Flight Attendants through the ETB, or dropping trips to Crew Scheduling subject to Crew Scheduling consent. A flight attendant who drops trips in accordance with this paragraph will have his/her monthly obligation adjusted accordingly. i. There is no cap on the number of pay hours a Flight Attendant may gain through picking up trips from other Flight Attendant through the ETB. Trips picked up from the ETB will be pay no credit, and will not count towards a Flight Attendant’s monthly maximum hours. A Flight Attendant may pick up or trip improve from the AIL up to 85, 90 or 95 , depending up monthly pay cap as established by the Director of Crew Scheduling for that month, plus the monthly flex pay cap hours (up to five hours), if implemented and declared by the Director of Crew Scheduling. j. Lineholders may fly trips picked up from the ETB on days off or on days of vacation. k. There shall be no less than six (6) hours prior to the request made via ETB and the first trip departure associated with fulfilling such request. This shall not result in any changes to the time requirements for trades made pursuant to Section 9.M or Section 9.F.6. l. It is the Flight Attendant’s responsibility to confirm any trip changes as a result of drops, pick ups or trades. Flight Attendants may not call Crew Scheduling for such information unless the computer system is unavailable due to technical problems with one or more of the associated Company automated systems. m. Requests to drop, pick up, or trade must be in accordance with the terms of the Agreement and legal under the Flight Attendant FARs. n. Reserves must allow a minimum of ten (10) hours rest between the latest time the Reserve could be scheduled to be released in domicile and the scheduled report of the requested trip. o. Reserves must allow a minimum of ten (10) hours rest between the scheduled release of the requested trip and the earliest time a Reserve could be required to report for duty on her/his first day of availability following the INV day or OFF day. The requested trip must be scheduled to release no later than 1800 on the last INV day so as to have at least ten (10) hours rest prior to 0400 on the first day of availability should a twenty four (24) hour reserve period be introduced. p. Time picked up through the ETB will not count towards thirty or thirty-five in seven; however, FARs such as twenty four in seven still apply. q. A Flight Attendant requesting to drop or trade a trip remains responsible for that trip until the drop or trade has been processed. Once a request is awarded or processed, it becomes part of the Flight Attendant’s regular line and conversely, once a trip is dropped or traded away, it is no longer part of the Flight Attendant’s line. r. A Reserve picking up a trip though the ETB on an INV, OFF day or on a vacation day will receive pay ~~and~~ no credit for such time above his/her Minimum Guarantee, and the hours of such trip will not be included for LTO purposes. Flying Obligations: a. A Lineholder’s flying obligation will be the published line value of his/her originally scheduled primary or secondary line. Such obligation may be reduced by swapping trips with other flight attendants through the ETB system. Dropping or picking up time through SAP or the A/IL will not reduce or increase a Lineholder’s flying obligation. b. A Reserve flight attendant will be obligated to be available on his/her days of duty. Lineholder Minimum Days Off [10.F]: current book. Last Trip Protection [9.F.5]: Retain current language for obligation to remain legal to originate and complete trip. A Reserve can not split his/her last trip of the month by calling out of time. Report No-Fly [10.N]: current book. Release after 3 Hour Delay [10.O]: current book. Reserve Days Off [11.A]: a. Reserves will have a minimum of eleven (11) Reserve Days Off per month. b. A Reserve day will start at 0001 domicile local time. A Reserve who is flown more than one (1) hour into a Reserve Day Off will remain available for that day. The flight attendant and Crew Scheduling will attempt to reach mutual agreement to have his/her Reserve Day Off reinstated at the end of the current Reserve Day Off period or a subsequent Reserve Day Off period. Depending on coverage, the reinstatement may exclude the holidays defined in Section 9.B.1.d and the three days immediately prior to and following such holidays, as well as the last four days of each month. In the event the flight attendant and Crew Scheduling cannot reach mutual agreement on the reinstatement of the Reserve Day Off in the current month, the Reserve Day Off will be reinstated in the next month. c. A Reserve cannot move Reserve Days Off unless with Company consent. d. Reserve Days Off may be traded by flight attendants without Company consent subject to a process and parameters (e.g., maintaining legality) to be mutually agreed by the Company and the Association prior to implementation. Duty Periods [10.D]: Current book, except amend the definition of “Back of the Clock” to be 0100-0459 instead of 0100-0500. Trip Rig [10.J]: current book. Duty Rig [10.K]: current book. VM Rig [10.K]: current book. Split Trips [Amend 10.Q as follows:]: All split trips to be paid actual time (i.e., no Duty, Trip or VM Rig applies, and the published VM Rig shall not be recalculated for days prior to or after the split), including Company-initiated splits. Example: A three - Duty Period (DP) trip pays 4:00 , 7:00 , & 4:00 on DP1, DP2, & DP3. Flight attendant is split off on DP2. CATS recalculates the pay as follows - DP1 = 4:00 & DP2 = actual pay. The replacement flight attendant split onto the remainder of the trip would be paid as follows - DP2 = actual pay, & DP3 = 4:00 . Combined Trips [10.R]: The Company will include combined trips in the assignment of open time process, time permitting. 35/7: Replace Section 10.G. with the following: “A flight attendant’s scheduled flight duty shall not exceed that afforded other flight crew members. A flight attendant, at his/her option, may fly up to thirty-five (35:00) actual hours in seven (7) consecutive days. Further, a flight attendant will complete his/her trip combination if the scheduled time for such trip(s) did not exceed thirty-five (35:00) actual hours in seven (7) days so long as no FAR is violated.”
Scheduling:	Scheduling Committees [9.A]: current book. Line Construction Parameters [9.B]: Lines may be constructed separately from pilots with a minimum of eleven (11) calendar days off in each bid period at the flight attendant’s crew base. Modify target line construction averages consistent with changes to Hours of Service section above. Monthly Bid and Line Award Process [9.C]: Retain current process until implementation of Pref Bid System. Open Time at Start of Month [Amend 9.B.4]: No restriction on the amount of open time at the start of the month (eliminates the current 10% floor).. Time Off Without Pay: Any lineholding Flight Attendant shall have the option to drop a trip to Crew Scheduling providing there is sufficient reserve coverage for Time Off Without Pay (TWOP). The determination of “sufficient reserve coverage” shall be made at the sole discretion of Crew Scheduling. Such trip drop requests shall be considered in seniority order and shall be awarded upon the closing the A/IL the day before such trip originates. A flight attendant who drops a trip in this manner shall be considered to have voluntarily reduced his/her flying obligation for the month, unless allowed to make up the time at his/her option and with the concurrence of Crew Scheduling. This provision is intended to be used as a means of balancing reserve utilization. Lineholder Obligation for Trips [9.F.1]: A lineholding Flight attendant needs to be obligated and legal for every trip included in his/her line. This does not preclude a flight attendant’s use of vacation, sick leave, SAP, the A/IL or the ETB system, but once any trip has been added, dropped, traded or other credited time has been used, the flight attendant is obligated to be available to fly each trip and cannot create an illegality through his/her actions either in the current or the next month of flying. Future and Daily Scheduling Process: a. The Company will group Reserve flight attendants in highest-to-lowest priority as Reserves on duty and Reserves on a Reserve Day Off (each, a “Category”). b. The Company will sort each Category by days of availability remaining for Reserves in that Category (each such grouping, a “Bucket”). c. The Company will offer flight attendants within a Bucket open trips that match their days of availability (i.e., flight attendants that are legal to originate and to complete the entire trip) according to month-to-date time, with lowest time flight attendants being offered trips first. There will be no passing. Notwithstanding the above, flight attendants who are being junior assigned on days off will be assigned within Bucket in inverse seniority order, not by lowest time. d. Within a Bucket, the Company will process flight attendants with equal month-to-date time in seniority order. In Future Scheduling only, when there are more flight attendants in a Bucket than open trips to be covered in that Bucket, the Company will offer trips in seniority order among the same flight attendants who would otherwise be offered trips due to least time ordering. e. The Company may offer flight attendants in a Bucket open trips from a different Bucket if there are no flight attendants available in that Bucket to cover such open trips. There will be no passing. In making such decisions, the Company will seek to minimize split trips and/or flying into days off. If no flight attendants are legal or available to complete an open trip, the trip shall be split to avoid the conflict. f. A flight attendant for whom no open trip is available in the Future process may be held by the Company for the Daily process to ensure coverage of late-opening trips. This provision will not apply to Daily Scheduling. g. In Future Scheduling, trips may be awarded/assigned out of Category to avoid splitting a trip. However, a trip may be split or extended into days off to avoid a junior assignment. Reserve Report Time [11.J]: current book. Monthly Lead In/Lead Out [9.H]: Current book. Assignment of Open Time Priority [9.D]: Open time will be assigned in the following priority: 1. Flight attendant using A/IL or ETB to pick up time 2. Reserve with lowest LTO in domicile that is below monthly guarantee 3. Reserve with lowest LTO from other domicile that is below monthly guarantee 4. Reserve on day off (in inverse seniority order) 5. Lineholder on day off (in inverse seniority order)
International:	Eliminate the separate International Transoceanic Domicile(s) (ITD). Flight attendants must be trained for international flying and current in such training to fly international trips. The Company and the Association agree to update the CRAF Letter (LOA 27) to allow for the operation of any type of aircraft in the fleet. The Company agrees to resolve the ITD Global and Supplemental Bid issues with the elimination of the ITD fence. A transoceanic international duty period without an IRO pilot may be scheduled for 14 hours on duty, and the crew may remain on duty for 16 hours in actual operation. A transoceanic international duty period staffed with an IRO pilot may be scheduled for 16 hours on duty, and the crew may remain on duty for 18 hours in actual operation.
Vacation:	Accrual [7.A]: Modify vacation accrual schedule to the following: Days of Hours Completed Years of Service Accrual @ 3:45 Rate 1 – 7 years 7 26:15 8 – 14 years 14 52:30 15 or more years 21 78:45 Vacation will be accrued for each month in which the flight attendant is available to fly for at least fifteen (15) days during such calendar month. Pay and Credit [7.B, 7.D]: Vacation periods bid in the annual vacation bid process must be bid in blocks of seven (7) or more consecutive calendar days and will be paid at three hours and forty-five minutes (3:45) base pay and credit per day. Notwithstanding the above, should a flight attendant’s total accrual, including any excess vacation days (as described below), not be divisible by seven (7), the additional days may be bid either as (x) in one (1) separate block with more than two (2) days and less than seven (7) days; or (y) be combined with a block of seven (7) days to make a block of more than seven (7) days and less than fourteen (14) days. All awarded vacation periods in a given month will begin on one or more pre-determined days of the week. A flight attendant whose request to cancel an awarded vacation is granted, or a flight attendant whose request to shift an awarded vacation is granted, is required to cancel or shift the entire vacation period. No premium pay will be paid to a flight attendant on vacation. Current Vacation in Excess of Initial Conversion: a. Flight attendants will bid and be awarded 2005 vacation based on the new vacation accruals established in this agreement. b. A flight attendant’s 2004 accrued vacation in excess of the amounts that would have been accrued in 2004 for use in 2005 under the Company’s August 18, 2004 proposal will remain as accrued vacation; however, flight attendants will only be able to bid up to five (5) days of any such excess accrual in 2005 and each year thereafter until exhausted. c. Carry Over Days and Unused Filler Days will be placed in a bank to be accessed in the same manner as the above excess accrual. Vacation Adjustments [7.C]: Current book until implementation of Pref Bid System. Annual Vacation Bid [7.D]: Current book, but modify to account for seven-or-more day block(s) and conversion of excess vacation (see above). Modify 7.D.6. to provide for a flight attendant on paid or unpaid medical or maternity leave to carry over all accrued and unused vacation until he/she returns from leave. Vacation Limits and Carry Over [7.E]: Current book, but modify to account for seven-or-more day blocks and conversion of excess vacation (see above). Vacation Filler Days [7.F]: Eliminate. Vacation Pay Out [7.G]: Current book. Vacation Advance Paycheck [7.H]: Current book. Vacation Start for Reserve [7.I]: Current book, except vacation period will begin 0001 instead of 1500 to match change to Reserve duty day (see above). Vacation Buyback [7.J]: Current book, but add: 7.J.11. A Flight Attendant may only pick up a trip over his/her vacation day(s) from the A/IL and may not pick up a trip over his/her vacation day(s) from another Flight Attendant. Vacation ITD [7.M]: Eliminate with removal of ITD fence. Flight Attendants retiring or terminating their employment before the effective date of this Agreement, shall have all accrued vacation paid out at rates in effect for 2004. Flight attendants retiring or terminating their employment on or after the effective date of this Agreement, shall have all accrued vacation paid out at rate in effect for 2005.
Sick:	Sick Leave Notification [8.A]: Current book, however clarify that a flight attendant who is unable to report to work for 14 days following the origination of a sick call will be required to notify his/her supervisor/supervisory team. Sick calls lasting more than 14 days will require medical documentation to support the flight attendant’s need for a leave of absence. Current and Reserve Sick Banks [Replaces 8.B.2]: Each flight attendant’s sick bank as of the Effective Date of this Agreement (including reserve) shall be split into two accounts: a Current Sick Bank and a Reserve Sick Bank. a. The Current Sick Bank has a maximum accrual of 60:00 hours. All remaining hours shall be place in the Reserve Sick Bank which has a maximum accrual of 1,500:00 hours. Notwithstanding the previous sentence, a flight attendant with more than 1,560:00 hours at the time of conversion will have any such excess hours placed into his/her Reserve Sick Bank. b. A flight attendant can only access his/her Reserve Sick Bank in the case of prolonged illness or injury lasting more than 21 days (i.e., with appropriate documentation, the flight attendant may be placed on “MES”, “MAS” , “LFP” or “PCP” status. ), or in the case of a flight attendant cashing out unused sick bank hours described in “Post-Retirement Medical” below. A flight attendant being otherwise compensated for OJI or LTD cannot access his/her Reserve Sick Bank (i.e., no double-dipping). c. The initial Current Sick Bank will be established for each flight attendant at the lesser of a) his/her sick leave accrual at the time of such establishment (target 1/1/05); or b) sixty (60:00) hours. d. At the time of conversion to the new Current/Reserve Sick Bank system the Company will convert a flight attendant’s existing sick hours in excess of 60:00 hours into Reserve Sick Bank hours. e. At the commencement of each calendar year, each flight attendant’s Current Sick Bank shall be replenished by removing from the Reserve Sick Bank the lesser of a) his/her sick leave accrual at the time of such replenishment; or b) the amount required to add to his/her Current Sick Bank to achieve the maximum accrual of sixty (60:00) hours. f. A flight attendant not available at the start of a calendar year shall have his/her Current Sick Bank prorated accordingly, i.e. it shall be replenished from his/her Reserve Sick Bank at the rate of 5 hours for each month remaining in the year, once he/she has returned to active status. Sick Leave Accrual [8.B.1]: A flight attendant shall accrue five hours ( 5:00 ) of sick leave credit for each month for which he/she is on an available status during the month. Notwithstanding the above, there shall be no sick leave accrual for any month during which a flight attendant reports sick or is on an unavailable sick status (e.g. MAS, MES, MAT, MED, LFP, LFL, PCP, PCL). Such accrual shall be reflected in the flight attendant’s Reserve Sick Bank unless his/her Reserve Sick Bank has reached its maximum accrual. Sick Leave Accrual Records [8.B.3]: current book. Claiming Sick Leave – Lineholders [Replaces 8.E.1]: a. A lineholding flight attendant will be charged with trips missed from his/her primary or secondary line of flying, or trips picked up through SAP, A/IL or ETB, for each day he/she is unable to report for duty due to illness or injury and his/her Current or Reserve Sick Bank, as applicable, shall be reduced accordingly. The claim will be paid with accrued Current or Reserve Sick bank hours, or will be unpaid time, depending on status. Such flight attendant may pick up from the ETB to increase his/her time for the month, but may not use the ETB to trade with another flight attendant over the day(s) of the sick claim. The flight attendant will be restricted from flying over the period of time he/she reports sick regardless of available sick bank. b. A lineholding flight attendant who is unable to report for duty due to sickness or injury shall not be eligible for any premiums (Senior, Aft, “E” Galley, LOD/O, CRAF, and Internationa.) c. A lineholding flight attendant eligible to claim sick time from his/her Reserve Sick Bank will be required to claim sick to a minimum of 71 hours and will be permitted to claim up to a maximum of 100 hours. d. A lineholding flight attendant who calls in sick must claim the sick time. If such sick claim is without pay during a month, the flight attendant will have such sick time without pay subtracted from his/her Minimum Guarantee for that month. Claiming Sick Leave – Reserves [Replaces 8.E.2]: a. A flight attendant on reserve status will be charged with three hours and thirty minutes (3:30) or trips missed, whichever is greater, and his/her Current or Reserve Sick Bank, as applicable, reduced accordingly for each day he/she is unable to report for duty due to sickness or injury. Sick claims will be applied after the completion of the month and will therefore not affect a flight attendant’s LTO (least time order). Claims will be paid with accrued Current or Reserve Sick bank hours, or will be unpaid time, depending on status. The flight attendant will be restricted from flying over the period of time he/she reports sick regardless of available sick bank. b. A flight attendant on reserve status who is unable to report for duty due to illness or injury shall be eligible for a sick claim at his/her base hourly rate and will not be eligible for any premiums. c. A Reserve flight attendant may not reduce the amount of his/her sick claim. An active, available flight attendant will be charged sick for applicable sick claims until his/her Current Sick Bank is exhausted. d. A Reserve flight attendant eligible to claim sick time from his/her Reserve Sick Bank will be required to claim sick to a minimum of 71:00 hours and will be permitted to claim up to a maximum of 100:00 hours. e. A Reserve flight attendant who reports sick must claim the sick time. If such sick claim is without pay during a month, the flight attendant will have such sick time without pay subtracted from his/her Minimum Guarantee for that month. Low Time: A flight attendant who claims sick without pay during a month of flying and is paid below his/her applicable obligation (in the case of a Lineholder) or Minimum Guarantee (in the case of a Reserve), requires a prompt review with his/her Inflight Supervisor to review the reason(s) for such time off without pay claim(s), and such flight attendant may be placed on MES or MED status, or other inactive status, as circumstances warrant. Flight Attendant Furloughed or on Leave Retains Sick Credit [8.C]: Current book. Sick Relinquished When Terminated [8.D]: Current book. Sick Claim Processing [8.E.3]: Current book. Sick Make Up [8.F]: Eliminate. Sick Guarantee [8.G]: Current book. Doctor’s Statement [8.H]: Replace 8.H with the following: 1. A doctor's statement may be required of a flight attendant for any sick occurrence in excess of three (3) occurrences during any continuous active twelve (12) month period. A flight attendant who has been so notified and who does not produce such statement when required by management for a sick claim(s) may lose eligibility to access his/her Current Sick Bank for compensation for such sick claim(s). 2. Notwithstanding the above, the Company may require a physician's written confirmation of illness or injury or make personal inquiries of the type or nature of such illness or injury when a supervisor can demonstrate he/she has reasonable cause to believe that an individual flight attendant's use of sick leave may have been for other than legitimate reasons. Further, the cost of such physician's confirmation, pursuant to Paragraph H.1. above and this Paragraph, shall be borne by the Company with the understanding that a flight attendant may be required to see a physician of the Company's choice and at a time dictated by the Company. A flight attendant who has been so notified and who does not produce such statement for a sick claim(s) may not be eligible to access his/her Current Sick Bank for compensation for such sick claim(s). 3. The provisions of this Section are established to ensure that a flight attendant shall not be required to fly while he/she is legitimately ill or disabled. A flight attendant who uses sick leave for other than legitimate illness or disability may be subject to disciplinary action based on the facts involved. Picking up Trip from Sick Status [8.I.1]: Replace Section 8.I.1 with the following: “A flight attendant shall not be permitted to pick up any remaining portion of his/her bid trip or series of trips (i.e., trips awarded through the primary line, secondary line, or SAP processes), or a trip he/she picks up from the A/IL or the ETB process, upon returning from sick. Sick and Crew Movement [8.I.2]: Current book. Rapid Reaccrual [8.J]: Eliminate. Advance of Future Accrual [8.K]: Current book. Inflight Supervisors and management will maintain confidentiality of any medical information provided by flight attendants.
Seniority:	Amend Section 16.G.1. Transfer to Non-Flying Duties as follows: a. A Flight Attendant transferred to non-flying or supervisory duties, including a Flight Attendant or Flight Attendant supervisor transferring to the position of manager or above, or a Flight Attendant who held such position, including supervisor, manager or above, on the effective date of this Agreement, shall retain and continue to accrue seniority for competitive bidding and longevity purposes for the period of six (6) months from the effective date of this Agreement, or from the effective date of the transfer, whichever is later. Thereafter, all classification seniority accrued hereunder will be frozen, unless he/she returns to the bargaining unit in the aforementioned period of time. A furloughed flight attendant who accepts such position shall also be subject to the provisions of this section. A Flight Attendant who returns to the bargaining unit as provided herein may return to the domicile at which he/she was located or any domicile to which he/she may have been transferred during such absence. b. Delete paragraph