Collective Bargaining Agreement


Duty Free Commission

October 2, 1997

Mr. Kevin Lum, President

UAL/AFA Master Executive Council

Association of Flight Attendants

6400 Shafer Court, Suite 250

Rosemont, IL 60018

Dear Mr. Lum:

During the course of discussions leading to the 1996-2001 and 2001-2006 Agreement, the Company and the Union agreed that IDFS and the Company will implement a Flight Attendant commission program designed to pay Flight Attendants a commission not to exceed eight percent (8%) of actual sales revenue collected. Total Flight Attendant commission payments for each flight will be based on two percent (2%) of actual sales revenue collected to each selling Flight Attendant, the number of which shall not exceed four (4) selling Flight Attendants, depending on the aircraft type. Actual sales revenue collected is defined as the total of cash and credit card vouchers collected for each flight by IDFS.

The above terms apply in conjunction with our current contract with IDFS. In the event such contract is renegotiated or terminated, the Company and the Union will meet to negotiate comparable alternatives for the continuation of the Flight Attendant commission program.



/s/ Sara Fields                 

Sara Fields

Senior Vice President

Onboard Service