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July 15, 2005
Weekly Update

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

Friday, July 15, 2005

As previously announced, At ExpressJet your IAM Flight Attendant Negotiating Committee announced a tentative agreement for new contract terms between ExpressJet Airlines and its 1,200 IAM–represented Flight Attendants.   Despite the dire condition of the entire airline industry and a coordinated attack on union-won wages and benefits, the IAM was able to achieve a total compensation package that is the best in the regional industry. The Flight Attendant Negotiating Committee unanimously recommends approval of this tentative agreement.  The four-year agreement includes up to 35 percent base wage increases as well as other compensation improvements, an enhanced 401-K plan, additional job security and scheduling improvements. Complete details are available on the District 142 website, www.iamdl142.org/fa.  Membership ratification will take place at all three bases from July 18th through July 24th 2005. A separate strike vote will also be conducted with the ratification vote. Specific times and locations will be posted shortly.  Each ExpressJet Flight Attendant will receive the complete text of the tentative agreement by mail and have the opportunity to attend informational meetings to have any questions answered prior to voting. Your decision should be based on the facts presented and not on rumor.  

As previously reported, at Continental, the Company has requested mediation in the ongoing contract negotiations and federal mediator Pat Sims has been assigned.  The National Mediation Board has schedule mediation meetings July 25 and 26, 2005 in Houston, TX.  We hope this process will lead to an agreement for ratification.  We will keep you advised of all future developments as they occur.   

The union representing Northwest Airlines mechanics cannot afford to finance a major strike, one Wall Street analyst said. Fulcrum Global Partners analyst Susan Donofrio said the union had just $159,000 in December. The union has asked the National Mediation Board to declare talks at an impasse. Northwest is trying to avoid filing for bankruptcy protection and has asked the workers to take pay cuts.  Northwest mechanics are represented by the McCormick backed amfa.  McCormick also backs the uifa campaign at Continental. 

Discount carrier JetBlue Airways will begin service this fall from Airport to Florida and Puerto Rico.  Staring October 15, JetBlue will offer as many as 15 non-stop flights from to Fort Lauderdale, Orlando, West Palm Beach, Fort Myers and Tampa, with regular one-way fares starting at $89 to Florida and $124 to Puerto Rico.   Introductory fares will be even lower.   When its service starts this fall, JetBlue will have 77 daily flights to Florida, which it said is the most between the New York metropolitan area and Florida of any airline. JetBlue Airways' , N.J., service may lower prices out of the airport by as much as 50%, analysts said. 

Continental announced Tuesday that it will expand service to Florida from , and it has reduced fares from to eight Florida cities.  Continental will add eight daily roundtrip flights between and Fort Lauderdale , Fort Myers, Orlando, Tampa and West Palm Beach, beginning October 1. In total this fall, Continental will offer 35 daily roundtrip flights from to those five cities.  CO also introduced a $69-one-way fare between and Fort Lauderdale, Fort Myers, Orlando, Tampa, West Palm Beach, Daytona Beach, Miami and Sarasota.   

High fuel prices and current pension laws could force Delta Air Lines and Northwest Airlines to consider bankruptcy in the next six months, a Wall Street analyst said. The two airlines could file for bankruptcy within a year if nothing changes with the laws or fuel prices, Jamie Baker of JP Morgan said. He also expects some airlines to eventually close some hubs. 

American Airlines plans to launch service from Chicago to Delhi, India. If approved, the route will be American's longest nonstop trip. The airline hopes to start service on Nov. 15, and it will fly the 7,500 miles with Boeing 777 jetliners. 

Though labor has historically been the costliest airline expense, the price of fuel is now higher than the price of labor for some airlines. Fuel expenses in April for US Airways exceeded $147.2 million, compared with $135.5 million for labor. An Air Transport Association spokesman said carriers are retiring older planes, reducing weight onboard and hedging fuel to reduce expenses. 

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:  

Cleveland: Thursday, August 11, 4:00 pm at 669 North Rocky River Drive;

Guam: Wednesday, July 20, 4:00 p.m. at the Airport Conference Room;

Houston: Wednesday, July 27, 1:00 p.m. at 15710 JFK Blvd;

: Tuesday, August 9, 3:00 p.m. at the Wyndam Hotel.
 

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