November 18, 2005

File:    CO-18

2005-157

Continental Negotiations Update

To All Continental Airlines Flight Attendants:

Negotiations continued under the auspices of the National Mediation Board (NMB) in Manassas VA, November 14-17, 2005. On Tuesday, November 15, 2005, the Chairman of the Board Ms Read Van de Water addressed the Union and the company's negotiating committees. Ms Van de Water stressed the need and the urgency to conclude the negotiations as soon as possible. She stated, in the event the parties fail to reach an agreement, the NMB is prepared to move the process to the next step under the Railway Labor Act (RLA). This final step is the 30-day cooling off period at the end of which the parties can resort to self help.

As previously presented to the membership, Steps 1 through 12 under the RLA, outline the process of reaching a new agreement. Step 12 is SELF HELP – At the end of the 30-day “cooling off” period, the Union and the company are free of any legal restraint. The company has the option of imposing its own work rules and wages. The Union has the option of accepting those rules and wages, or electing to strike.

CEO Larry Kellner, in a message to our membership, emphasized the need to conclude the negotiations. During these sessions we have tried to conclude an agreement but the parties failed to do so by the end of sessions on Thursday November 17, 2005. The major issues remaining are retirement, wages, commuter policy, and crew rest.

The company must understand these issues must be addressed in a positive manner if we are to conclude an agreement and avoid a more disastrous situation.

The NMB has scheduled a final session at its offices in Washington, DC for the week of December 5, 2005. The NMB also requested that the Industry Update and wage and benefit comparisons that were presented to the negotiating committee be distributed to all the flight attendants by way of placing the documents in your V-files.

Your patience and understanding of the process is appreciated. Your support and solidarity will help us conclude these negotiations. We will continue to keep you advised of all future developments as they occur.

Sincerely and fraternally,

                                                             William O'Driscoll            

                                     PRESIDENT-DIRECTING GENERAL CHAIRPERSON                          

 Brent Thompson                                  Art Teolis                            Julie Frietchen

   Brian Wozniak                 Larry Newcomb

GENERAL CHAIRPERSONS

      Robert Korzuch II                             Ed Miller                            Rosalie Canton

PRESIDENT LL #2339N                       PRESIDENT LL #2339C                     PRESIDENT LL #2339H

                              Ernie Dominguez                                   Sheila Hammond

                                        BASE CHAIRPERSON           NEGOTIATING COMMITTEE MEMBER