Effective Date:

Other than as specifically modified in these documents, all terms and conditions of the AFA-US Airways Collective Bargaining Agreement effective May 1, 2000 , as amended, shall remain in full force and effect.

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 approving the May 1, 2000 AFA-US Airways Agreement, as amended, this agreement shall become effective.  Upon approval of the Bankruptcy Court, this agreement replaces the interim relief pursuant to Section1 1113(e) of the Bankruptcy Code, and such interim relief shall not longer be in effect.

Duration:

Amendable date December 31, 2009

Definitive Documentation of May 1, 2000 Flight Attendant Agreement, as amended:

The Company and the Association will complete definitive documentation, including final contract language,  of the May 1, 2000 Flight Attendant Agreement, as amended, prior to submitting the tentative agreement to the MEC, and, if so approved by the MEC, the tentative agreement will be promptly submitted to the membership for ratification. Following membership ratification, the definitive documentation of the May 1, 2000 Flight Attendant Agreement, as amended, will be submitted to the Bankruptcy Court for approval.

Post-Retirement Medical: 

Post-Retirement Medical and Dental

Clarify that if more favorable Medical/Dental plan terms, policies or arrangements are instituted for retired non-contract retirees, or are negotiated for any other organized employees, such more favorable terms, policies or arrangements will be provided to retired Flight Attendants.

The Company shall provide  a low cost “catastrophic option” for post-retirement medical coverage, available prior to and after 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. 

·        Pre-65 Retiree Medical and Dental, For Flight Attendants Retired on or before Ninety (90) Days or Three Calendar Months, whichever is later, after the Effective Date of the May 1, 2000 Flight Attendant Agreement, as amended  If the retiree’s spouse is younger than the retiree, he/she will cease to participate in retiree medical coverage upon the younger spouse’s reaching age 65.

·        The Company agrees that it will not, pursuant to Section 1114 of the Bankruptcy Code, eliminate or reduce the retiree medical benefits for Flight Attendants who retire under this provision.

·        Pre-65 Medical and Dental, For Flight Attendants Retiring after ninety (90) days or three (3) calendar months, whichever is later, after the Effective Date of the May 1, 2000 Flight Attendant Agreement, as amended. If the retiree’s spouse is younger than the retiree, he/she will cease to participate in retiree medical coverage upon the younger spouse’s reaching age 65.

·        Flight Attendants retiring before age 65 who elect at the time of retirement to participate in retiree medical benefits may use accrued sick leave up to the maximum contained in the Flight Attendant’s Sick Bank and Reserve Account on the date of retirement to fund a portion or all, at the Flight Attendant’s option, 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 May 1, 2000 Flight Attendant Agreement, as amended 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 three-fourths (3/4) the hourly rate of the Flight Attendant at the time of retirement.  The Flight Attendant will notify the Company of the number of hours of accrued sick leave  to be credited towards the monthly pre-65 retiree medical premium until the Flight Attendant’s Sick Bank and Reserve Account 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 for 100% of the sick leave in  his/her Sick Bank and Reserve Account at one-half (1/2) his/her applicable hourly rate at the time of retirement, 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.  If the retiree’s spouse is younger than the retiree, he/she will cease to participate in retiree medical coverage upon the younger spouse’s 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 May 1, 2000 Flight Attendant Agreement, as amended:

·        As of the Effective Date of the May 1, 2000 Flight Attendant Agreement, as amended, eliminate medical and dental coverage for age 65 and older retirees.  If the retiree’s spouse is younger than the retiree, he/she will cease to participate in retiree medical coverage upon the younger spouse’s reaching age 65.

·        Age 65 and older retirees participating in retiree medical coverage on the Effective Date of the May 1, 2000 Flight Attendant Agreement, as amended (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.

DISCUSS ESTABLISHING A VEBA FOR USAIRWAYS FLIGHT ATTENDANTS

Defined Benefit Plan:

During the course of the 1113(e) proceedings, Company counsel and witness discussed freezing or terminating the DB Plan for Flight Attendants.  AFA reserves the right to challenge a termination of the Plan.  However, should the Plan be terminated, AFA will receive credit for the total cost savings in the Transformation Plan negotiations.

Should the Defined Benefit Plan be terminated, replace the Plan with a Flight Attendant DC Plan with a TBD% 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 no later than the thirtieth of the month in which the contributions were made.

Long Term Disability:

Eligibility – implement one-year waiting period for new hires.

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).  AFA will have meaningful input into the selection of the TPA.

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 May 1, 2000 Flight Attendant Agreement, as amended, including the reasonable fees and expenses of outside legal, investment banking and other advisors, offset by any payments made to the Association during the Transformation Negotiations for such purposes.  Such payments shall be made promptly following the Effective Date of the May 1, 2000 Flight Attendant Agreement, as amended 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.  (Note:  AFA changes to the Company proposal are made to be consistent with the agreement reached on this subject with the Airline Pilots Association (ALPA) and 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%, percentage subject to valuation by AFA’s financial advisor(s) as to whether this percentage is a fair and equitable return on investment.

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:

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 Chapter 11 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:

The provisions of Section 1.D.3., as amended, will no longer apply for a period of one (1) year from the effective date of this Agreement.

LPPs:

Current Book

Equity:

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 claims to equity with respect to any new equity issued during the current Bankruptcy case.

Governance:

No change to current book

Revisions to Hourly Pay Rates:

1. Base Pay Rates [3.A]:  Freeze current base pay rates at each longevity step effective 1/01/04 through 12/31/09 .

2. Reduce pay rates at each longevity step as frozen by TBD%.  Such reduction will be in lieu of the 21%  (twenty-one per cent) reduction provided in the emergency interim relief granted by the Bankruptcy Court pursuant to the Company’s 1113(e) motion.

3. FAE (Final Average Earnings) will be as provided in Attachment B.

4.Pay raises:

-         effective January 1, 2010 :  5%

-         effective January 1, 2011 :  5%

5.Longevity step increases will remain in full force and effect.

6.Pay all flying at day rate (i.e., suspend “night pay” until 1/1/10 [3.E]

Deadhead Pay [14.A]:  Suspend 100% pay and credit for deadhead until 1/1/10 as follows:  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.  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.  In the event a Flight Attendant picks up a trip to make up time, and such trip contains a deadhead segment(s), for the purpose of calculating whether the Flight Attendant should be charged with Low Block, the trip will be considered as if deadhead time was 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.  ITD and CRAF deadhead will be paid at 100% pay and credit.  Surface deadhead will be paid at 100% pay and credit for the scheduled ground time. 

Revisions to Premium Pay Items:

1.Senior Pay Premiums will be amended to the following [3.C]:

                             Domestic      International

B737-300/-400        $1.75              $3.00

A319/A320              $1.75              $3.00

A321                        $2.25              $3.00

B757                        $2.00              $3.00

B767                        $2.50              $4.50

A330                        $2.50              $4.50

2.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

3.Holding pay [3.D]:  current book.

4.Night pay [3.E]:  suspend until 1/1/10

5.Understaffing pay [3.F]:  current book.

7. International premium pay [3.G]:  Retain current book for Transoceanic Flying.  International premium pay for non- Transoceanic International (NTI); reduced to $1.50.

8. Training Pay [3.H]:   Suspend Training Pay as provided in 3.H until 1/1/10 as follows:  (a) A flight attendant may be required to attend up to one (1) day of training and one (1) day of home study per year and will receive a flat rate of $60 per day for each day of training and/or home study.  Per diem will apply as in current book.  Thereafter, for any additional training days in the same calendar year, the flight attendant will receive three ( 3:00 ) hours pay and credit.  At the flight attendant’s option, credit for such additional day(s) may be waived.  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 and shall be paid at the same rate as the associated training event.  Any other home study program in addition to the home study noted above will be paid at a flat rate of $60 dollars per day.

(b)  International service training shall be reduced to a home study and will be paid at a flat rate of $60 per day. In the event the Company elects not to utilize home study for International Service training, such training shall be paid at current book.  At the flight attendant’s option, credit for such International Service training may be waived.   Clarification:  A flightattendant is not required to complete International Training in order to fly NTI.  If, in the Company’s sole discretion, class attendance is required at a later date for International Training, the Company and AFA will discuss priority of award/assignment for attendance to such class, i.e., blockholders, reserves and LOD/Os.  A flight attendant who loses time as a result of the flat rate of pay in lieu of credited time will not be disciplined for Low Block

9. Jury Duty Pay [3.I]:  Suspend Jury Duty Pay as provided in 3.I. until 1/1/10 as follows:  Current book, however pay will be four hours (4:00) for each scheduled day of work lost for a flight attendant who is 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 the lower rate of pay in lieu of credited time will not be disciplined for Low Block.

10. Drug Testing Pay [3.J]:  current book.

11. LOD/O Pay [3.K]:  current book.

12. LIP Pay:  If the Company is not interested in additional language qualified Flight Attendants, AFA withdraws this proposal

13. Reserve Override [3.N]:  Reserve override suspended until January 1, 2010 ($1.00).

14.Galley Pay [3.O]:  current book.

15. Holiday Pay [3.P]:  current book.

16. Longevity Pay [3.Q]: Suspended until 1/1/10

17Bereavement 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 the lower rate of pay will not be disciplined for Low Block.

Premiums for Paid Time Off:  Until 1/1/10, suspend all premiums (including night pay) paid for claiming sick leave, vacation, bereavement leave, settling days and jury duty.  Premiums not paid are senior, aft lead, “E” galley, LOD/O and CRAF, Int’l.

Minimum Pay Guarantees:

1. Lineholder Minimum Guarantee [3.B.]: 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 through the provisions of the ETB (Electronic Trade Board) or Time Off Without Pay (TWOP) 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.

2. Reserve Minimum Guarantee [3.B.2]:  Seventy-two hours (72)  for Future Reserves and seventy-six  hours (76) for Daily Reserves at the base rate of pay, reduced pro-rata   when active for less than one full month as provided in paragraph 3.B.3..

3. Discuss updating proration chart on page 3-2.

Hours of Service:

Section 10.B.  Current book

1.Monthly Maximums [10.C]:  Eliminate all high- and low-time options no earlier than one (1) month after the effective date of the Electronic Trade Board, and the ability of the Flight Attendants to trade up and down with other Flight Attendants.  Discuss establishment of Crew Trade Desk (temporary) pending ETB.  

2.Once the options are eliminated, 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 target of 78, 83, and 88 respectively will coincide with each cap) shall constitute the monthly maximum for Flight Attendants, except as provided in paragraph 4 below, and exceeding the cap by underfly, trips picked up from other flight attendants via the ETB. 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. The monthly obligation for a flight attendant shall be his/her primary or secondary line value  

3. 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.

4. 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.  If a Flight Attendant has more time in his/her line than the monthly obligation, such Flight Attendant may downward trip improve to such lower obligation and shall not be disciplined for Low Block. 

(b)   Should a Flight Attendant have insufficient time in his/her block, she/he must make a reasonable effort to pick up the time. 

(c)    A Flight Attendant with minimum days off is not required to make an effort to pick up time. 

(d)   At any time a Flight Attendant must make up time to meet her/his monthly obligation, and she/he picks up a trip which contains a deadhead segment(s), or a trip with a split, and such trip(s) would have prior to this Agreement contained sufficient pay and credit to meet his/her obligation, the Flight Attendant will not disciplined for Low Block.

5. A lineholding flight attendant who was on the 100/105 hour option or 6-trip option on the effective date of this agreement is grandfathered in the ability to achieve a monthly maximum of 100/105 hours of Company Time, if he/she so elects.  There is no limit on the amount of time a lineholder or reserve flight attendant can pick up via the ETB.

6. Eighty-five (85) hours Company Time shall be the monthly maximum for Reserve Flight Attendants. (Note: additional minute is no longer required.)  At the Reserve’s option, a Reserve can go to the monthly maximum established for that month by Director of Crew Scheduling, if that maximum is higher.  A Reserve Flight Attendant who was on the 100/105 Hour Option or 6-trip option on the effective date of this Agreement is grandfathered in the ability to fly that amount of Company Time, if he/she so elects.  A Reserve flight attendant may not use sick claim hours to call out of time. A Reserve Flight Attendant may utilize the Electronic Trade Board (ETB) or Crew Trade Desk to pick up time from other Flight Attendants on day(s) off or on vacation day(s), on AVL days after being released.  Such time will be for pay, no credit and paid above guarantee.  A Reserve Flight Attendant may not use time picked up through the ETB to call out of time.  There is no limit to the amount of time a reserve flight attendant can pick up via the ETB.   
7. Schedule Adjustment Period (“SAP”) [9.C.3]:  Implement the following restrictions: Establish the SAP floor at twenty-five hours (25:00) below the applicable monthly obligation for a domicile, and the SAP ceiling at 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 60:00 – 85:00. A flight grandfathered (formerly 100/105 or 6-trip) can exceed the SAP ceiling to reach 100/105.  A flight attendant’s obligation shall be his/her original primary line value, secondary line value, or post-SAP line value, whichever is greater.
8. Flight Attendants using the Availability/Improvement List (AIL) to trip improve on a weekend trip must pick up a trip which originates on the same day as the original trip, but such trip does not have to be for the same duration.  A Flight Attendant can originate on another day only with Company consent. (back-end trip improving)
9. 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, trading trips, and trading vacations days for use 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, subject to the approval of AFA.

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 once released into such OFF days, on AVL days once the flight attendant has been released, and on vacation days, subject to buffers.

e.    Reserves may utilize the ETB to drop, pick up and/or trade days OFF, AVL, and vacation days with other reserves, or trips with other flight attendants.

f.  Company open time is picked up through the AIL.  AIL 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 by trading with other Flight Attendant(s), dropping trips to other Flight Attendants through the ETB, or dropping trips to Crew Scheduling.  A flight attendant who drops trips in accordance with this paragraph shall not be cited for low block.

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.  Flight Attendants who held the 100 – 105 hour option or the six trip option on the Effective Date of this Agreement will be grandfathered in the ability to pick up to 105 of Company Open Time in any month, and 110 in a flex up month.

j.        Lineholders may fly trips picked up from the ETB on days off or on days of vacation.

k.   There shall be no reduction in the amount of time between the request and the first trip departure associated with any trade than required by Section 9.M or 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.  The Company will implement a voice response system. Flight Attendants may not call Crew Scheduling for such information unless the voice response system is unavailable due to technical problems, or prior to implementation of the ETB, the Crew Desk, unless he/she is on a trip and needs to confirm that the trip trade is processed.

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.The 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 no credit for such time above his/her Minimum Guarantee, and the hours of such trip will not be included for LTO purposes.

10.                    Flying Obligations: 

a.       The options (50/55, 70/75, 80/85, 90/95, 100/105, four trip, five trip or six trip) will remain in place until one (1) bid month after an Electronic Trade Board (ETB), or Crew Trade Desk, is established to the satisfaction of the AFA.

b.Once the options are eliminated pursuant to (a) above, 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 to a minimum of fifty (50) (fifty-five hours in a flex up month) hours by swapping or dropping trips with other flight attendants through the ETB or other trades, or by dropping a trip to Crew Scheduling with the consent of Crew Scheduling. Dropping or picking up time through SAP or the A/IL will not reduce or increase a Lineholder’s flying obligation.

c.A Reserve flight attendant will be obligated to be available on his/her days of duty as provided in the Reserve section, unless he/she is able to drop or trade such AVL days to another Reserve flight attendant. (Discuss formula to determine maximum number of AVL days a flight attendant can drop to another flight attendant.)

11. Lineholder Minimum Days Off [10.F]:  current book.

12. Last Trip Protection [9.F.5]:  Retain current language for obligation to remain legal to originate and complete trip.  Pay protection for last trip of the month is current book.

13.Report No-Fly [10.N]:  current book.

14.Release after 3 Hour Delay [10.O]:  current book.

Reserve Bucket System

The following proposals are made in order to obtain an improved Reserve System, including processing lineholder AIL at 9:00 and Reserve Future at 1200. The Reserve day to be from 00:00 to 23:59 .   AFA retains the right in its sole discretion to withdraw, add or modify these proposals as we explore ramifications of any possible change, or in the event AFA believes in its sole discretion that insufficient value has been attributed to the Reserve Bucket System and related work rules.  These new reserve provisions do not apply to ITD reserves until the ITD fence is eliminated.  The Reserve Bucket System will not be implemented until the Company has the ability to process the seniority shuffle within the buckets, until Future and Daily Reserve is implemented, higher guarantee, LTO by hours for Daily flight attendants.  Reserve flight attendants previously on the 100/105 or 6-trip option on the effective date of this agreement may elect to be grandfathered until suck time as they notify the Company that they no longer wish to have such higher obligation.

1. AFA agrees to modify the current Reserve System as provided in Section 11, as amended by the Conway decision, as follows, including implementation of Reserve Bucket System in Least Time Order (LTO) with modified seniority system for Future reserves, described below:
2. Minimum Monthly Guarantee will be seventy-two (72) hours per month for Future Reserves and seventy-six (76) hours per month for Daily Reserves.
3. Future and Daily Reserve lines will be available for bid and will be awarded in seniority order.
4. Future (Not required to be in base)

a.                 No less than sixty-five percent (65%) of Reserve Flight Attendants in each domicile will be designated as Future Reserves. 

b.                Reserves holding a Future line will be available for Future trips and for conversion to Daily.

c.                 In the event it becomes necessary to protect scheduled operations, the Company may transition a Future Flight Attendant to Daily.  A Future Flight Attendant who is converted to Daily will be notified no later than sixteen hundred hours ( 16:00 ) on the day preceding, and must be in Domicile by 00:00 .  Conversion to Daily is made in inverse seniority order.  A Flight Attendant will be personally (i.e., telephone or in person) notified of his/her conversion to Daily. However, no Flight Attendant may be involuntarily converted to Daily more than two (2) times in a month, unless all available Future Flight Attendants at the domicile have assigned two times.   Senior Reserve Flight Attendants may put themselves on the list for conversion to Daily ahead of more junior Flight Attendants.

d.                A Future Flight Attendant who has been converted to Daily and who does not fly will automatically revert to Future status the following day.

e.                 A Future Flight Attendant who has completed a trip, is returning from Days Off, or other time off, will be on Future status unless converted to Daily as provided above..

f.                  A Future Flight Attendant who is not AVL, but who will be on duty the following day, may leave a list of specific trips or parameters for the type of trip he/she desires,  or may choose to answer his /her beeper at the time of Reserve processing.  A Future Flight Attendant who has not done either will be assigned the highest time trip (if more than one trip with the same amount of time for the following day, the flight attendant will be assigned the trip with the earliest departure) at his/her seniority or LTO order (whichever is applicable), will be left on Future for the following day or will be converted to Daily.   Such Future Flight Attendant will be responsible for calling the Voice Response System to ascertain his/her assignment for the following day to sign-in for his/her trip.  The Voice Response System will be updated after Reserve Processing but no later than fifteen hundred ( 15:00 ).  A Future Flight Attendant who is not available to be contacted by Future Scheduling on a day off prior to a scheduled duty day, nor who makes use of the advance contact and sign-in provisions above, and who is awarded/assigned a trip by Future Scheduling during the Reserve assignment list processing window, will be contacted by Crew Scheduling beginning at 0000 of the Flight Attendant’s duty day, or at the completion of the Flight Attendant’s uninterrupted rest period, whichever is later, for the purpose of notifying the Flight Attendant of her/his award/assignment..  Such trip may depart prior to 0900.

5. Daily Reserve Flight Attendants

Daily Reserve Flight Attendants are processed in LTO in accordance with the Conway Decision, with the following exceptions. 

1. LTO will be in hours flown instead of percentages, once the options are eliminated.  When two or more Daily Reserve Flight Attendants are in the same hourly range, trips among said Daily Reserve Flight Attendants will be awarded in seniority order.
2. Daily Flight Attendants will be responsible for Quick Calls in inverse seniority order.  Any Daily Reserve Flight Attendants may make themselves AVL for Quick Calls.
3. OPR is assigned to Daily Flight Attendants who are available and legal in accordance with Section 11.I.1.b.
4. If the Company has an overage of Flight Attendants on Daily, a Daily Flight Attendant at his/her request may be passed to Future.  Such requests will be honored in seniority order.
5. Reserve Flight Attendants may pick up trips from the Electronic Trade Board (other Flight Attendants), on days off and on vacation days without Company consent, subject to buffers.  Time picked up from the ETB shall be paid above Guarantee. Time picked up from other flight attendants cannot be used to call out of time.
6. A Reserve Flight Attendant shall be scheduled for twelve (12) days free of duty at his/her domicile each thirty day month, and thirteen (13) days free of duty at his/her domicile each thirty-one day month.. A Reserve Flight Attendant’s day off will begin at 00:00 and end at 23:59 .  Three such off days shall be non-inviolable and the remaining off days shall be inviolable.  (Discuss 00:00 v. 23:59 )
7. A Reserve Flight Attendant will be permitted one (1) pass per month, so long as there are more Reserves AVL in his/her Bucket than there are trips for that number of days. 

9. Buckets:
1. The Company will group Reserve Flight Attendants in least time order (LTO) priority as Future Reserves and Daily Reserves (each, a “Category”).
2. The Company will sort Future Flight Attendants by days of availability remaining (each such grouping a “Bucket”). There will be a one-day, two-day, three-day and four or more days of availability Buckets.  In addition, on any given day, there may be an Overflow Bucket (TBD).
3. The Company will offer Flight Attendants within a Bucket open trips that match their days of availability according to least time order (LTO).  The Company will determine how many trips there are to be flown by Flight Attendants in that bucket.  The corresponding number of Flight Attendants plus twenty percent (20%) in that Bucket will be reshuffled in seniority order and offered said trips.  Example:  There are twenty Flight Attendants available for four or more days.  They are put in least time order in the four or more day Bucket.  Crew Scheduling determines at the time of Future processing that there are ten trips for that Bucket.  Crew Scheduling will reshuffle the top twelve Flight Attendants from least time order to seniority order.  The trips will be offered in seniority order until ten of the twelve Flight Attendants have accepted a trip.  
4. Within a Bucket, the Company will process Flight Attendants with equal month-to-date time in seniority order.
5. 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.  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 in accordance with the rules on splitting and splits for days off.
6. Buckets will be processed in the order of one day of availability to four or more days of availability.
7. A Future Flight Attendant in a Bucket who did not receive an open trip during the Future Scheduling process that matched his/her days of availability will be:  (1) released until Future processing on the following day; (2) required to remain on call until Future processing is closed, (3) converted to Daily for the following day; (4) released into days off, or (5) or the Flight Attendant may request to take an open trip from a different Bucket.   Crew Scheduling will approve requests from such Flight Attendant(s) to take an open trip from a different Bucket if coverage permits and if in so doing a split trip is not created.  Such Flight Attendant will be slotted into the Bucket in least time order and then reshuffled in seniority order, if applicable. 
8. A Reserve who wishes to fly on his/her days off may request to be moved to a higher Bucket(s) if the Reserve does not get a trip in their original Bucket. They will be slotted into the higher time Bucket(s) in least time order and then reshuffled in seniority order, if applicable.   Notwithstanding such request, a Reserve maintains the right to ROC or to request to be released for days off. 
9. In Future, trips may be awarded/assigned out of Category to avoid splitting a trip.  However a trip may be split or extended into days off (OFF only, unless with the Flight Attendant’s consent on an INV day or days) to avoid a junior assignment.

The Current book Priority of Trip Assignment process will be used to assign open trips into or on days off (Section 11.D.4.b.).

a. A Reserve cannot move Reserve Days Off unless with Company consent. 

b.  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) except splits for Company convenience.

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] Current book

Amend Section 10.G. as follows: 

7. 1. A Flight Attendant’s scheduled flight duty shall not exceed that afforded other flight crew members.  Further, a flight attendant will complete his/her trip combination if the scheduled time for such trip(s) did not exceed thirty (30:00) actual hours in seven (7) days.

G.2. 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.

G.3. A Flight Attendant, at his/her option, may exceed thirty-five actual hours in seven consecutive days.  A Flight Attendant will complete his/her trip combination so long as no FAR is violated.

Scheduling:

1.  Scheduling Committees [9.A]:  current book. 

2. Line Construction Parameters [9.B]  Current book

3. Monthly Bid and Line Award Process [9.C]:  Retain current process.

4. Open Time at Start of Month. Amend 9.B.4 as follows:  After the scheduled time at each flight attendant domicile is divided into lines in accordance with Section 2.J.1, Paragraph A. above and this Paragraph B, the remaining time shall be open time.  After secondary lines are awarded, flight attendants awarded such lines can augment those lines with Company Time on a first-come/first-served basis by contacting Crew Scheduling accepting trips in open time up to the monthly pay cap.  This augmentation must be completed prior to processing the AIL for the first day of the effective month.  After a secondary lineholder has augmented his/her line, the value of such augmented line shall be his/her monthly obligation.

5. 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).  Such trip drop requests shall be considered in seniority order and shall be awarded upon the closing the AIL 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.

6. Reserve Report Time [11.J]:  Modify Work and Conduct Rules so that Reserve Flight Attendants can live within 90 minutes by surface transportation from their domicile.
7. The Company agrees to honor previous agreements for the implementation of CATCREW screens (Seniority screen, quick call screen and screen to monitor passed-down trips.)
8. Monthly Lead In/Lead Out [9.H]:  Current book.
9. Lineholder Obligation for Trips [9.F.1]:  A flight attendant awarded a primary or secondary line cannot create a conflict via the ETB with trips awarded in his/her primary or secondary line.

Assignment of Open Time Priority [9.D and 11.D]:  Current Book 

International:

Eliminate the separate International Transoceanic Domicile(s) (ITD).  Effective date to be discussed.  Discuss rebid of options should the effective date of ITD elimination not coincide with the beginning of a specific calendar year. 

A International Transoceanic (IT) crew shall fly IT flying only for that trip; the crew cannot be assigned NTI or domestic flying.

When a IT crew is scheduled for a period of fourteen hours one minute (14+01) to sixteen (16+00) hours, actual eighteen (18+00) hours, provided such on-duty period contains no more than two flight segments, there must be on additional REQ flight attendant (Note:  the LOD/O will not be included as part of the REQ crew.)

An on-duty period containing an NTI flight(s) must have rest provided for the flight attendants in scheduled or actual operations that is no less favorable than the pilots.

The 30/35 in 7 consecutive days rule may be waived at the flight attendant’s option in TI and NTI as in domestic, or any combination thereof.  (Eliminate exception in Sec.12.E.4.e.)

IT lines for flight attendants may include NTI flying.  IT lines will be built with no more than six IT trips using the same crew complement.  NTI trips with the same crew complement may be included to make the lines legal.  Approval from the Flight Attendant Scheduling Committee will continue to be needed if such lines are different from the pilots.

The monthly trip pairings and primary lines shall be the same as the pilots in that domicile.

Discuss transition of ITD fence removal.

Discuss transition of LOD/O’s with ITD fence removal.

Flight attendants must be trained for international flying and current in such training to fly international trips.

Maintain 12.B.3.b. (Reserve rest)

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, in accordance with the letter dated March 12, 2003 from Ernie Pickell, Director Labor Relations – Flight, to Perry Hayes, MEC President and in accordance with Flight Attendant Duty Time and Rest Requirements Under FAA Rules Effective 2/1/96 Part 121 and 135 Operations.

The Company agrees to resolve the ITD Global and Supplemental Bid issues with the elimination of the ITD fence.

A transoceanic international duty period with or 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.

After completion of line construction for the pilots, separate lines of pure NTI flying will be constructed for the flight attendants with any remaining open NTI time.

Vacation:

1. Accrual [7.A]:  Modify vacation accrual schedule to the following effective January 1, 2005 for vacation taken in 2006:

No premium pay (A, B, E, LOD/O and Int’l.) will be paid to a flight attendant on vacation effective January 1, 2005 .

2. Vacation Daily Rate   7 or more days at 4+30 per day
3. Vacation Daily Rate    less than 7 days at 3+00 day
4. Current Vacation in Excess of accrual chart above

1.  Vacation earned in 2004 and bid and awarded for 2005 will be paid and credited at the lower rates as provided herein. 

Vacation days awarded for 2005 will not be reduced.

b. No change to carry over days and unused filler days.

5. Vacation Adjustments [7.C]:  Current book, except amend 7.C.3. Vacation Adjustments for Reserve Flight Attendants: A reserve Flight Attendant, at his/her option, may slip his/her days off without pay to provide time off before or after vacation periods of seven (7) or more days

5.6.Annual Vacation Bid [7.D]:  Current book, including 7.D.6, Amend 7.D.5. by adding:  A Flight Attendant may swap a vacation period(s) with another Flight Attendant via the ETB Such ETB swaps do not require notification of the Flight Attendants’ supervisors. 

7. Vacation Limits and Carry Over [7.E]:  Current book.
8. Vacation Filler Days [7.F]:  Current book.
9. Vacation Pay Out [7.G]:  Current book.
10. Vacation Advance Paycheck [7.H]:  Current book.
11. Vacation Start for Reserve [7.I]:  Current book, except vacation period will begin 0001 instead of 1500 to match change to Reserve duty day, if agreed (see above).
12. Vacation Buyback [7.J]:  Current book, but add:  7.J.11.  A Flight Attendant who picks up a trip(s) from another Flight Attendant on his/her vacation day(s) may do so without Company consent.
13. Vacation ITD [7.M]:  Eliminate with removal of ITD fence. DISCUSS
14. Flight Attendants retiring or terminating their employment before January 1, 2005 , shall have all accrued vacation paid out at rates in effect for 2004.  Flight attendants retiring or terminating their employment on or after January 1, 2005 , shall have all accrued vacation paid out at rate in effect for 2005.

Sick:

1. Sick Leave Notification [8.A]:  Current  Pending arbitration

2. 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 120:00 hours.  All remaining hours shall be place in the Reserve Sick Bank with no maximum accrual. 

b.      A flight attendant can only access his/her Reserve Sick Bank in the case of prolonged illness or injury lasting more than 14 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”. 

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) one hundred twenty (120:00) 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 120:00 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 (120:00) 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.

3. 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.

4. Sick Leave Accrual Records [8.B.3]:  current book.

5. Claiming Sick Leave – Lineholders [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.  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 if he/she has sufficient sick leave to cover the trip being charged. 

b.      A lineholding flight attendant who is unable to report for duty due to sickness or injury shall not be eligible for any premiums (A, B, E, LOD/O, CRAF, Int’l.).

c.       Current book. 

d.       Current Book.  A lineholding flight attendant who calls in sick must claim the sick time.  A flight attendant who claims sick time off without pay during a month will have such time subtracted from his/her applicable minimum monthly guarantee for the month.  If such sick calls bring the flight attendant below 71+00, then the flight attendant will be allowed to fly back the time he/she is unable to claim.

e.       Current Book

6. Claiming Sick Leave – Reserves [Amend 8.B.2 as follows]:

a.       A flight attendant on reserve status will be credited  with three hours and thirty minutes (3:30) or trips missed, whichever is greater, and his/her Current or Reserve Sick Bank, as applicable sick leave accrual reduced accordingly for each day he/she is unable to report for duty due to sickness or injury and will not be eligible for any premiums.   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.  The flight attendant will be restricted from flying over the period of time he/she reports sick regardless of available sick bank sick if he/she has sufficient sick leave to cover the trip being charged. 

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 (A, B, E, LOD/O,  CRAF Int’l.).

c.       For sick leave accrual charges, a reserve flight attendant will only be charged for day(s) on which he/she was or would have been called. In no event shall he/she be charged more than fifteen (15) days per calendar month.

d.Current Book