The Update Message from the International Association of Machinists representing Continental, ExpressJet and
Continental Micronesia
Flight Attendants in the 2339 Local Lodges

Friday, June 9, 2006

Continental Airlines announced that it has ordered 10 additional Boeing 787 Dreamliner aircraft, bringing the total number ordered to 20. That makes Continental the largest U.S. customer for Boeing’s newest wide body aircraft.
        In addition, the company will acquire 24 more Boeing Next-Generation 737 (737NG) aircraft, bringing the total number of Boeing 737NGs in its fleet to 213 when these aircraft, and pre-existing firm order 737NG aircraft, are delivered.
        “These aircraft will give us the ability to seize long-haul market opportunities, remove less efficient aircraft from our fleet and maintain our role as a global network leader. We continue to target 5 to 7 percent annual growth in capacity. Our fleet plan remains flexible, permitting us to respond appropriately to market conditions,” Continental’s CEO, Larry Kellner, explained.
        This new order will bring Continental’s firm commitments for new aircraft to 88 (20 Boeing 787s, two Boeing 777s and 66 Boeing 737s). The first of the 20 Boeing 787 aircraft is scheduled for delivery in 2009, and the first additional 737NG will be scheduled for delivery in 2008.

IAM District 142 Elections take place this month at your Local Lodge monthly business meetings. If you are voting by absentee ballot, be sure to mail your ballot back to your Local Lodge in time for it to be counted on the day of your monthly business meeting in June. You can also vote, in-person, at your Local Lodge monthly business meeting. Voting will end at the conclusion of each meeting and votes will be counted by the tellers in each Local Lodge. Total results will be announced in early July, after all Local Lodges have held their June monthly business meetings and the District 142 Trustees have verified all election results from the Local Lodges. Please exercise your right to vote and participate in your monthly Local Lodge business meeting.

Minnesota Governor Signs Law to Allow IAM Pensions - Thanks to the efforts of District 77 Business Representative Julie Anderson and the District 77 staff, all state, city, and municipal employees in Minnesota will now have the opportunity to negotiate contributions to the IAM National Pension Plan.
IAM public sector employees in Minnesota were previously restricted to a single state-run retirement plan. But on June 1, 2006, following research and lobbying efforts by Anderson and the District 77 staff, Minnesota Governor Tim Pawlenty signed the Omnibus Retirement Bill into law which included the language change needed to allow IAM bargaining unit members to participate in the IAM National Pension Fund.

Northwest Attendants Reject Contract Agreement - Northwest Airlines flight attendants rejected a contract that would have lowered their pay. The company has asked a bankruptcy judge to allow it to impose its own terms on the workers and for an injunction that would prevent the workers from going on strike.

Airlines Focus On Operating Profitable Flights - Many airlines are posting better financial results after five years of losses. Carriers are now focusing on making each flight profitable by decreasing capacity, boosting revenue and becoming more efficient. The airlines' combined mainline operating fleet fell 21% in 2005 from 2000, according to the Air Transport Association. Some airlines reported higher revenue per available seat mile for May.

Delta Weighs Terminating Larger Pension Plan - Delta Air Lines will decide soon whether to terminate a pension plan covering current and retired ground workers and flight attendants. The airline has already indicated it will try to terminate the pilots' pension plan. Delta Chief Executive Gerald Grinstein this week lobbied for pension reform legislation in Washington.

We would like to encourage all members to attend your Local Lodge business meeting. Each base must have a quorum to conduct business. The following is a schedule for upcoming meetings:

:       Tuesday, June 13th, 3:00 p.m. at the Doubletree Hotel.

Cleveland:  Thursday, July 13th, 4:00 p.m. at 669 North Rocky River Drive.

Guam:          Wednesday, June 21st, 4:00 p.m. at the Airport Conference Room.

Houston:     Wednesday, June 28th, 1:00 p.m. at 15710 JFK Blvd.