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

Friday, November 24, 2006

Continental Airlines, concerned about being dwarfed by larger competitors, would consider a merger if necessary to maintain its competitiveness, its chief executive said. "If the landscape of the US airline industry does indeed change, we'll do what we need to do to act in the best interests of you (employees), our customers, our shareholders and the communities we serve," CEO Larry Kellner said in a recorded message to employees. US Airways last week made an $8 billion bid for larger, bankrupt rival Delta Air Lines. Analysts expect the offer to spark counter-bids or other combinations. The statement positions Continental, the number 4 US carrier, as another potential player in industry deal-making, alongside United Airlines. Discount carrier Southwest Airlines has expressed interest in picking up assets that might have to be unloaded following a deal. But unlike United, which has long been a proponent of consolidation, Continental would be a reluctant participant, concerned about the implications of staying on the sidelines, analysts speculate. "The creation of a competitor even larger than American Airlines would not be good for us in the long run," Kellner said. "Our preference is to remain independent and continue our growth plan."

Continental Flight Attendants Receive Pension Information – For several weeks, IAM District 142 and Local Lodge Representatives have been present in the , Houston & Cleveland crew rooms to share information and educate members on the benefits of transitioning to the IAM National Pension Plan (NPP). Information regarding the Continental Airlines Retirement Plan (CARP) has also been discussed and has brought several key points into focus. First, all Flight Attendants will receive full vesting credit for all prior airline service. This means that the years of service you accrued at prior airlines that were eventually merged into Continental count toward your vesting in the NPP. Secondly, CARP’s years of service is capped at 30 years. If you have been at Continental 30 years or longer, you are no longer accruing any additional benefit for each year of service you remain employed after 30 years. Lastly, by transitioning to the NPP, you will begin to accrue an additional pension benefit that you can receive when you retire. If you are vested in CARP and the NPP you will receive two checks upon retirement: one from CARP and another from the NPP. Learn more about what you have to gain by transitioning to the IAM National Pension Plan. Visit the NPP website at www.iamnpf.org for more information.

Spanish Leadership Class Premiers at WWW Center – The IAM's first leadership program conducted entirely in Spanish took place last week at the William W. Winpisinger Center in Hollywood, Maryland. Twenty-four IAM members from thirteen states participated in Spanish Leadership I – Liderazgo I. “This class builds on the IAM's commitment to making first class education and training available to all IAM members,” said IP Tom Buffenbarger. “Our union is strengthened when all IAM members know their responsibilities and can defend their rights in the workplace. I am very proud of these members and their participation in this historic program.”

The Winpisinger Center's 2007 calendar includes two sessions of Spanish Leadership I. Local and District Lodges are encouraged to enroll members in these and other Winpisinger Center programs for 2007 as soon as possible.  URL for the Winpisinger Center is: http://winpisinger.iamaw.org

We invite all Flight Attendants to visit our new District Lodge 142 website. While there, please update your address and email information through the online forms.

The new website address is: www.iamdl142.org/fa

Groups Weigh In On Proposed Bid For Delta – Some Delta Air Lines bondholders have organized an informal group to urge the airline to fully consider US Airways' takeover bid. Meanwhile, the head of Delta's pilots union says a merger could lead to large cutbacks and lacks substantial benefits. In a flier directed to Delta employees, US Airways says a merger would be better for all parties.
 
Bid For Delta Aggravates Comair’s Labor Issues – US Airways' hostile bid for Delta Air Lines creates uncertainty for Delta's Comair unit. If the bid succeeds, Comair could be shut down, some analysts say. Meanwhile, Delta Air Lines is trying to gain support from creditors to fend off the US Airways proposal.

Cleveland:  Thursday, December 14th, 1:00 p.m. at 669 North Rocky River Drive.

Houston:     Tuesday, December 19th, 1:00 p.m. at 15710 JFK Blvd.

Guam:          Wednesday, December 20th 4:00 p.m. at the Airport Conference Room.