Appendix F

Letter of Understanding - Supplemental Insurance

January 7, 2005

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: Supplemental Insurance

Dear Greg:

This confirms the understanding reached during the Section 1113(c) negotiations. Within one hundred-eighty (180) days following the Effective Date of this Agreement, the Company will evaluate and select a vendor to provide voluntary supplemental insurance benefits to Flight Attendants on the System Seniority List. The Company will consider AFA-CWA's recommendations regarding the parameters of the supplemental insurance options. AFLAC will be invited to participate in the bid. Vendor selection will be based on the Company's determination of the best combination of services and value.

Participation in the voluntary supplemental insurance benefits will be at the option of each Fight Attendant. Flight Attendants who elect to participate shall be responsible for paying the full cost of any program in which they enroll. Voluntary supplemental insurance benefits may, but are not required to, include supplemental medical insurance, homeowners insurance, automobile insurance, pet insurance, and cancer insurance. This supplemental insurance shall be offered to Flight Attendant retirees on the same basis as Flight Attendants on the System Seniority List within one hundred-eighty (180) days of the implementation of the program for Flight Attendants on the System Seniority List.

Sincerely,

Frank Colosi
Director Labor Relations
Onboard Service

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