Collective Bargaining Agreement


Non-U.S. Tax Deferral Opportunities

January 1, 2006

Mr. Gregory E. Davidowitch, President
United Master Executive Council
Association of Flight Attendants-CWA, AFL-CIO
6250 N. River Road, Suite 4020
Rosemont, IL 60018

Re: Non-U.S. Tax Deferral Opportunities

Dear Greg:

This Letter confirms our understanding that the Company will make a good faith effort to establish arrangements that will allow internationally-domiciled Flight Attendants who do not have U.S.-source income to invest the Company Direct Contribution and Company Matching Contribution, as well as their own Earnings, to the extent possible by law and economics on a tax-deferred basis.

The Company has already engaged Towers Perrin to explore options and possible plan structures. We agree to meet with AFA-CWA to discuss the results of the Company’s research and solicit your input, on or before March 31, 2006.



/s/ Lynn Hughitt                  

Vice President-Compensation and Benefits