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

Friday, April 21, 2006

ExpressJet Negotiations are scheduled to resume in Washington, D.C., on April 24th, 25th and 26th, 2006. The process is governed by the Railway Labor Act and is currently in mediation.  Your Negotiating Committee wants to thank you for your continued solidarity and support, which is essential to reach an agreement that you will ratify.  We will update you with any developments as they occur.

Continental Micronesia Flight Attendants Reject Tentative Agreement By Narrow Margin – Please be advised that the National Mediation Board has called the parties to Washington, D.C., the week of April 24th, 2006, due to the members’ rejection of the tentative agreement by a narrow margin.  Your Local Committee will be in the crew room to receive your input which will assist in the resolution of the issues involved.  Your Negotiating Committee wants to thank you for your continued solidarity and support.

Continental Announces First Quarter Results - Continental Airlines, the No. 4 U.S. carrier, said its net loss narrowed to $66 million, or 76 cents a share, from $186 million, or $2.79 a diluted share, a year earlier.  Excluding special items related to stock-based compensation, pension payments and plane leases, the loss was $46 million, or 53 cents a share. That beat a Wall Street forecast for a loss of 67 cents a share, according to Reuters Estimates.  Continental said the results were helped by a reduction in labor costs after all of its major unions agreed on $500 million in annual wage and benefit cuts which the airline said were crucial to its survival.  Still, higher oil prices wiped out most of those gains. The airline said its fuel costs were $191 million higher than in the year-earlier period.  Continental, which said passenger revenues rose 18.4% to $2.7 billion, ended the period with over $2 billion in unrestricted cash and short-term investments.

American Airlines will cut 27 jetliners from its fleet by July 1st.  On Wednesday, the carrier reported a first-quarter loss, but some analysts expect it to post a profit for the full year.

Southwest Airlines reports a slight increase in first-quarter profits. The carrier earned $61 million, up from $59 million a year earlier. High fuel prices increased the company's costs.

Judge does not rule on Comair contract - A bankruptcy judge did not rule Monday on Comair's labor dispute with its flight attendants union, and gave no sign of when he might rule on Comair's request to void the contract. Comair is a unit of Delta Air Lines.

Northwest Airlines' flight attendants will start voting to ratify a tentative contract agreement May 7th. The union representing the workers reached the tentative agreement with Northwest March 1st.

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, May 9th, 3:00 p.m. at the Doubletree Hotel.

Cleveland: Thursday, May 11th, 4:00 p.m. at 669 North Rocky River Drive.

Guam: Wednesday, May 17th, 4:00 p.m. at the Airport Conference Room.

Houston: Wednesday, April 26th, 1:00 p.m. at 15710 JFK Blvd