Agreement Side-By-Side – Key Provisions

Take a look at the side by side on some key provisions between Continental Airlines and American Airlines.

Provision

Continental

American

Scope/Outsourcing

No Change (2009 at – 45% total MX spend): All WB airframe, all engine O/H and 50% NB airframe O/H outsourced.  Currently approximately 650 base mechanics with 337 aircraft.

10% total MX (2009 at – 10.5% total MX spend): includes TAESL.  Currently approximately 5374 base mechanics with 606 aircraft.                                                                                                 Source: OALs DOT F41 and AA/TAESL AA M&E Finance

Scope/ASM Restrictions

No change: No restrictions (12.5% regional ASM% in most recent quarter)

6% cap on Eagle

Signing bonus/Lump Sup

0-5 YOS – $500, 6-12 YOS $2000, 13-30 YOS $4000, >30 YOS – $6000

NA

Additional Bonus

$1,000,000 to be distributed by Union (average of $250 per EE)

NA

Retro Pay

Pay and premiums retro to 1/1/09

N/A

Crew Chief Pay

5% of top base rate plus longevity ($1.53 as of 7/1/10)

$1.75

Line Premium

To $0.30 on 1/1/09, $0.40 on 7/1/11 and $0.50 on 7/1/12

$0.55

License premiums (2)

Increase from $3.50 to $4.25 Fac $2.13

AMT $5.00 for 2 license              Facility Mechanic $2.50

AMT Skill Positions

All AMT skills to $4.25 Tool Room skill $2.13

AMT $3.45, Facility Mechanic  skill $1.70

Taxi Run-up premium

$1.00 per hour for each shift in which technician performs taxi/run-up work

N/A

Shift Differential

0.51, 0.58 and 0.58 for relief mechanics

0.01, 0.02 and 0.03 for relief mechanics

Profit Sharing

2010 CO Plan (First dollar, 15% pretax profit)

AIP

Wage Adjustment/Protection

2.5% increases in 2011 and 2012 No wage protection

Current Agreement

Market adjustment

HNL employees will receive $2.00 per hour for a cost of living.  Form a committee to jointly determine the cost of living at the cities where technicians work- to report back to the parties within 6 months

N/A

Holidays

Increase floating holidays from 2 to 4 (paid HO); 6 statute holidays @2.5x for HW

5 paid @ 1.5 x for hours worked

Vacation

Max remains at 7 weeks @ 30 years. Additional flexibility increasing VC use as DAT days with CO approval.  May defer 3 weeks of VC per year to be paid out at retirement or separation from CO.

Less than 5 years = 40 hrs                      5 years but less than 10 = 80 hrs           10 years but less than 17 = 120 hrs        17 years but less than 25 = 160 hrs       25 years but less than 30 = 200 hrs      30 years = 240 hrs

Sick Leave Accrual

No change: 12 days at full pay per year

5 days, 40 hours per year. First 16 hours paid at ½ pay.

Sick Leave Bank

No change: Max 200 days

Max 150 days

Injury on Duty

8 hours per month accrued ID time to a maximum of 700 hours or 87.5 days (rapid re-accrual for catastrophic  illness/injury)

10 days salary continuance for each separate illness or injury on duty

OT

Eliminated 40 hours requirement; double after 12 hours

1.5 pay for all overtime

Field Trip

New flat rate of 1.75 times hourly base rate for all hours away from base

Straight time for 8 or 10 hours 1.5 OT rate for hours exceeding 8/10 hours.

Moving Expenses

Increases in moving, auto, per diem and hotel expenses not to exceed $12,000 total ($2000 increase)

12,500 if protected employee

Pension

Letter reaffirming CARP – 1.19% x FAE x YOS. Approximately $21,420 per year with 30 YOS and FAE of $60 K. 1st year credited.

1.667% x FAE x YOS Approximately $30,006 per year with 30 YOS and FAE of 60K. 1st year waiting period prior to start of credit.

401K Match

<5 years – up to $300, 5-10 YOS – 1%, 10 – 15 YOS – 2%, 15+YOS, 3% maximum match

Regular 401k No match

Retiree Medical – Pre Medicare Eligibility

No provision

Current Prefunding  Plan

Amendable

12/31/12

04/30/08