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

Friday, May 6, 2006

Continental announced today, that it has received notice from ExpressJet that it will be keeping the 69 regional jets that Continental recently elected to remove from the capacity purchase agreement between the two companies.  Continental will continue to sublease the aircraft to ExpressJet, but at significantly increased lease rates.  The aircraft will be withdrawn from the capacity purchase agreement over a six-month period beginning in December 2006 and ending in June 2007.  Continental expects to replace some or all of the capacity currently provided by the 69 regional jets and believes that there are ample regional jets and other aircraft available to them to replace this capacity at a lower cost.

IAM / CONTINENTAL MICRONESIA REACH NEW TENTATIVE AGREEMENT - Your IAM Flight Attendant Negotiating Committee has reached a revised tentative agreement with Continental Micronesia for a new contract.  The revised agreement addresses the flight attendant issues that gave rise to the rejection of the previous tentative agreement.  Job protection and security was achieved for all the flight attendants.  Your rates of pay and retirement have been maintained and guaranteed.  Stock options and enhanced profit sharing were maintained.  Your participation in the IAM National Pension Plan has been ensured and guaranteed.  Ratification voting will begin on Friday, May 19th and run through Friday, May 26th.  The times and location for the ratification will be forthcoming.  Your continued support and understanding of the process is appreciated.

Soaring fuel prices have pushed costs up at airlines. Every penny increase in the price of jet fuel costs carriers an additional $199 million, according to the Air Transport Association. Fuel is now the industry's largest cost category.

JetBlue Airways baggage handlers could soon decide whether or not to unionize. The International Association of Machinists & Aerospace Workers has petitioned the National Mediation Board to hold an election. A JetBlue spokeswoman said the company does not believe third-party representation is in the workers' best interest.

Some Mesaba Airlines employees are leaving the carrier ahead of anticipated pay cuts. The bankrupt airline and its unions are negotiating pay cuts, and Mesaba wants to reduce labor costs by 19.4%.

Pilots for Northwest Airlines ratified a new contract that includes a large pay cut. The agreement gives the pilots an unsecured claim in the company and will cut the carrier's costs by $358 million.

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, May 24th, 1:00 p.m. at 15710 JFK Blvd.