Collective Bargaining Agreement

2012-2016

International Flying Distribution

LETTER OF UNDERSTANDING--APPLICATION OF SECTION 12.B.1.b.

Dear Mr. Lum:

In the application of Section 12.B.1.b. of the Flight Attendant Agreement the parties agree that should the sixty percent (60%) Flight Attendant block hour distribution not be met, the Company is obligated to make the adjustment to meet the sixty percent (60%) requirement not later than the two schedule months following the month in which the sixty percent (60%) distribution is not met.

Notwithstanding the terms of the Flight Attendant Agreement the parties agree that there may be instances when it is beneficial to both parties to defer the adjustment one additional schedule month. Such determination shall be made based on the circumstances that exist at the time and shall not prejudice any determinations made based on any future circumstances.