<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended March 31, 1996
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-5424
DELTA AIR LINES, INC.
State of Incorporation: Delaware
IRS Employer Identification No.: 58-0218548
Hartsfield Atlanta International Airport, Atlanta, Georgia 30320
Telephone: (404) 715-2600
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months, and (2) has been subject to such filing requirements
for the past 90 days. Yes X No
----- -----
Number of shares outstanding by each class of common stock,
as of April 30, 1996:
Common Stock, $3.00 par value - 51,410,440 shares outstanding
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
- -----------------------------
DELTA AIR LINES, INC.
Consolidated Balance Sheets (Unaudited)
(In Millions)
<TABLE>
<CAPTION>
March 31 June 30
ASSETS 1996 1995
- ------ --------- ---------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,056 $ 1,233
Short-term investments 504 529
Accounts and notes receivable, net 1,058 755
Maintenance and operating supplies 60 68
Deferred income taxes 210 234
Prepaid expenses and other 244 195
-------- --------
Total current assets 3,132 3,014
-------- --------
PROPERTY AND EQUIPMENT:
Flight equipment owned 7,950 9,288
Less: Accumulated depreciation 3,149 4,209
-------- --------
4,801 5,079
-------- --------
Flight equipment under capital leases 528 537
Less: Accumulated amortization 127 99
-------- --------
401 438
-------- --------
Ground property and equipment 2,590 2,442
Less: Accumulated depreciation 1,492 1,354
-------- --------
1,098 1,088
-------- --------
Advance payments for equipment 285 331
-------- --------
6,585 6,936
-------- --------
OTHER ASSETS:
Deferred income taxes 648 506
Marketable equity securities 475 398
Postemployment benefits 301 294
Cost in excess of net assets acquired, net 268 274
Non-operating property, net 148 155
Investments in associated companies 268 265
Leasehold and operating rights, net 145 177
Other 141 124
-------- --------
2,394 2,193
-------- --------
$12,111 $12,143
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated balance
sheets.
2
<PAGE>
DELTA AIR LINES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN MILLIONS EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
MARCH 31 JUNE 30
LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1995
- ------------------------------------ -------- -------
<S> <C> <C>
CURRENT LIABILITIES:
Current maturities of long-term debt $ 159 $ 151
Current obligations under capital leases 57 61
Accounts payable and accrued liabilities 1,742 1,621
Air traffic liability 1,340 1,143
Accrued vacation pay 225 167
Accrued rent 175 235
Income taxes payable 38 63
------- -------
Total current liabilities 3,736 3,441
------- -------
NONCURRENT LIABILITIES:
Long-term debt 2,462 2,683
Postretirement benefits 1,777 1,714
Accrued rent 599 556
Capital leases 391 438
Other 235 395
------- -------
5,464 5,786
------- -------
DEFERRED CREDITS:
Deferred gain on sale and leaseback transactions 817 860
Manufacturers and other credits 122 109
------- -------
939 969
------- -------
COMMITMENTS AND CONTINGENCIES (NOTES 6 AND 8)
EMPLOYEE STOCK OWNERSHIP PLAN
PREFERRED STOCK:
Series B ESOP Convertible Preferred Stock,
$1.00 par value, $72.00 stated and liquidation value;
Issued and outstanding 6,751,289 shares at March 31,
1996 and 6,786,632 shares at June 30, 1995 486 489
Less: Unearned compensation under
employee stock ownership plan 348 369
------- -------
138 120
------- -------
STOCKHOLDERS' EQUITY:
Series C Convertible Preferred Stock,
$1.00 par value, $50,000 liquidation preference;
Issued and outstanding 22,995 shares at March 31, 1996
and 23,000 shares at June 30, 1995 - -
Common stock, $3.00 par value; Authorized, 150,000,000 shares;
Issued 55,020,265 shares at March 31, 1996
and 54,537,103 shares at June 30, 1995 165 164
Additional paid-in capital 2,043 2,016
Net unrealized gain on marketable securities 132 83
Accumulated deficit (263) (184)
Less: Treasury stock at cost, 3,639,842 shares at
March 31, 1996, and 3,721,093 shares at June 30, 1995 243 252
------- -------
1,834 1,827
------- -------
$12,111 $12,143
======= =======
The accompanying notes are an integral part of these consolidated balance sheets.
</TABLE>
3
<PAGE>
DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
(In Millions, except Share Data)
<TABLE>
<CAPTION>
Three Months Ended
March 31
-------------------
1996 1995
-------- --------
<S> <C> <C>
OPERATING REVENUES:
Passenger $ 2,774 $ 2,685
Cargo 126 134
Other, net 64 83
-------- --------
Total operating revenues 2,964 2,902
-------- --------
OPERATING EXPENSES:
Salaries and related costs 1,077 1,102
Aircraft fuel 365 321
Passenger commissions 241 285
Contracted services 187 155
Other selling expenses 159 172
Depreciation and amortization 156 147
Aircraft rent 138 171
Aircraft maintenance materials and outside repairs 88 109
Passenger service 87 92
Facilities and other rent 82 110
Landing fees 59 65
Restructuring and other non-recurring charges 556 -
Other 156 133
-------- --------
Total operating expenses 3,351 2,862
-------- --------
OPERATING INCOME (LOSS) (387) 40
-------- --------
OTHER INCOME (EXPENSE):
Interest expense (56) (70)
Interest capitalized 6 8
Interest income 18 21
Miscellaneous, net (27) (10)
-------- --------
(59) (51)
-------- --------
LOSS BEFORE INCOME TAXES (446) (11)
INCOME TAXES CREDITED, NET 170 -
-------- --------
NET LOSS (276) (11)
PREFERRED STOCK DIVIDENDS (22) (22)
-------- --------
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (298) $ (33)
-------- --------
PRIMARY AND FULLY DILUTED LOSS PER SHARE $ (5.77) $ (0.66)
-------- --------
WEIGHTED AVERAGE SHARES USED IN PER SHARE COMPUTATION:
Primary 51,652,524 50,637,033
Fully Diluted 51,652,524 50,637,033
DIVIDENDS PER COMMON SHARE $ 0.05 $ 0.05
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
4
<PAGE>
DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31
---------------------
1996 1995
-------- --------
<S> <C> <C>
Statistical Summary:
Revenue Passengers Enplaned (000) 22,459 20,900
Revenue Passenger Miles (millions) 20,972 19,758
Available Seat Miles (millions) 31,634 31,571
Passenger Mile Yield 13.23 c 13.59 c
Operating Revenue per Available Seat Mile 9.37 c 9.19 c
Operating Cost Per Available Seat Mile 10.59 c 9.07 c
Operating Cost per Available Seat Mile -
Excluding Restructuring and
Other Non-Recurring Charges 8.84 c 9.07 c
Passenger Load Factor 66.30 % 62.58 %
Break-Even Passenger Load Factor 75.55 % 61.64 %
Break-Even Passenger Load Factor -
Excluding Restructuring and
Other Non-Recurring Charges 62.26 % 61.64 %
Revenue Ton Miles (millions) 2,427 2,332
Cargo Ton Miles (millions) 330 356
Cargo Ton Mile Yield 38.06 c 37.77 c
Fuel Gallons Consumed (millions) 604 609
Average Price Per Fuel Gallon 60.39 c 52.72 c
Number of Aircraft in Fleet at End of Period 539 544
Full-time Equivalent Employees at End of Period 57,278 60,315
</TABLE>
5
<PAGE>
DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
(In Millions, except Share Data)
<TABLE>
<CAPTION>
Nine Months Ended
March 31
---------------------
1996 1995
-------- --------
<S> <C> <C>
OPERATING REVENUES:
Passenger $ 8,486 $ 8,315
Cargo 389 427
Other, net 220 236
-------- --------
Total operating revenues 9,095 8,978
-------- --------
OPERATING EXPENSES:
Salaries and related costs 3,165 3,314
Aircraft fuel 1,068 1,039
Passenger commissions 765 905
Contracted services 522 397
Other selling expenses 454 487
Depreciation and amortization 476 467
Aircraft rent 417 515
Aircraft maintenance materials and outside repairs 299 332
Passenger service 282 343
Facilities and other rent 304 322
Landing fees 184 198
Restructuring and other non-recurring charges 556 -
Other 436 447
-------- --------
Total operating expenses 8,928 8,766
-------- --------
OPERATING INCOME 167 212
OTHER INCOME (EXPENSE):
Interest expense (204) (220)
Interest capitalized 20 23
Interest income 65 71
Miscellaneous, net (35) 2
-------- --------
(154) (124)
-------- --------
INCOME BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE 13 88
INCOME TAXES PROVIDED, NET (19) (45)
-------- --------
NET INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (6) 43
CUMULATIVE EFFECT OF ACCOUNTING CHANGE, NET OF TAX - 114
-------- --------
NET INCOME (LOSS) (6) 157
PREFERRED STOCK DIVIDENDS (66) (66)
-------- --------
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (72) $ 91
======== ========
PRIMARY AND FULLY DILUTED INCOME (LOSS) PER COMMON SHARE:
Before cumulative effect of accounting change $ (1.39) $ (0.45)
Cumulative effect of accounting change - 2.25
-------- --------
$ (1.39) $ 1.80
======== ========
WEIGHTED AVERAGE SHARES USED IN PER SHARE COMPUTATION:
Primary 51,484,055 50,600,736
Fully Diluted 51,484,055 50,600,736
DIVIDENDS PER COMMON SHARE $ 0.15 $ 0.15
</TABLE>
The accompanying notes are an integral part of these consolidated statements.
6
<PAGE>
DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31
---------------------
1996 1995
-------- --------
<S> <C> <C>
Statistical Summary:
Revenue Passengers Enplaned (000) 66,427 66,769
Revenue Passenger Miles (millions) 64,515 64,566
Available Seat Miles (millions) 97,251 97,660
Passenger Mile Yield 13.15 c 12.88 c
Operating Revenue per Available Seat Mile 9.35 c 9.19 c
Operating Cost Per Available Seat Mile 9.18 c 8.98 c
Operating Cost Per Available Seat Mile -
Excluding Restructuring and
Other Non-Recurring Charges 8.61 c 8.98 c
Passenger Load Factor 66.34 % 66.11 %
Break-Even Passenger Load Factor 65.03 % 64.43 %
Break-Even Passenger Load Factor -
Excluding Restructuring and
Other Non-Recurring Charges 60.68 % 64.43 %
Revenue Ton Miles (millions) 7,477 7,597
Cargo Ton Miles (millions) 1,025 1,140
Cargo Ton Mile Yield 37.99 c 37.45 c
Fuel Gallons Consumed (millions) 1,863 1,902
Average Price Per Fuel Gallon 57.30 c 54.66 c
Number of Aircraft in Fleet at End of Period 539 544
Full-Time Equivalent Employees at End of Period 57,278 60,315
</TABLE>
7
<PAGE>
DELTA AIR LINES, INC.
Consolidated Statements of Cash Flows (Unaudited)
(In Millions)
<TABLE>
<CAPTION>
Nine Months Ended
March 31
-----------------
1996 1995
-------- -------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (6) $ 157
Adjustments to reconcile net income (loss) to cash
provided by operating activities:
Cumulative effect of accounting change - (114)
Restructuring and other non-recurring charges 556 -
Depreciation and amortization 476 467
Deferred income taxes (146) (38)
Amortization of deferred gain on sale and
leaseback transactions (43) (44)
Rental expense in excess of (less than) payments (17) 9
Postemployment benefits expense less than payments (18) (14)
Pension expense less than payments (97) (71)
Compensation under ESOP 29 31
Postretirement benefits expense in excess of payments 47 55
Changes in certain assets and liabilities:
Decrease (increase) in receivables (303) 224
Decrease (increase) in other current assets (41) 3
Increase (decrease) in air traffic liability 197 (144)
Increase (decrease) in accounts payable and
accrued liabilities 121 (35)
Increase in other payables 33 51
Decrease in other noncurrent liabilities (41) -
Other, net (88) 47
------ ------
Net cash provided by operating activities 659 584
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment additions:
Flight equipment, including advance payments (381) (255)
Ground property and equipment (177) (113)
Decrease (increase) in short-term investments, net 25 (355)
Debtor-in-possession loan repayment - 115
Proceeds from sale of flight equipment 23 99
------ ------
Net cash used in investing activities (510) (509)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 24 -
Payments on long-term debt and capital lease obligations (267) (557)
Net short-term borrowings - 29
Cash dividends (83) (83)
------ ------
Net cash used in financing activities (326) (611)
------ ------
NET DECREASE IN CASH AND CASH EQUIVALENTS (177) (536)
Cash and cash equivalents at beginning of period 1,233 1,302
------ ------
Cash and cash equivalents at end of period $1,056 $ 766
====== ======
</TABLE>
8
<PAGE>
DELTA AIR LINES, INC.
Notes to Consolidated Financial Statements
March 31, 1996
(Unaudited)
1. ACCOUNTING AND REPORTING POLICIES:
The Company's accounting and reporting policies are summarized in Note 1
(page 27) of the Notes to Consolidated Financial Statements in Delta's 1995
Annual Report to Stockholders. These interim financial statements should be
read in conjunction with the financial statements and the notes thereto
included in the Company's 1995 Annual Report to Stockholders. In the
opinion of management, the accompanying unaudited financial statements
reflect all adjustments, consisting of normal recurring accruals (except
with respect to the $556 million pretax charge for restructuring and other
non-recurring charges discussed in Note 11), necessary for a fair statement
of results for the interim periods.
Effective January 1, 1996, Delta began recording revenue from charter
operations as passenger revenue. Prior to that date, revenue from charter
operations had been recorded as other operating revenue, net. Certain
amounts in the Consolidated Statements of Operations for the three months
and nine months ended March 31, 1995, and the nine months ended March 31,
1996, have been reclassified to conform with the current financial statement
presentation.
During fiscal 1996, Delta elected to adopt before its required
implementation date Statement of Financial Accounting Standards No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of" (SFAS 121).
2. INVESTMENTS IN DEBT AND EQUITY SECURITIES:
At March 31, 1996, the gross unrealized gain on the Company's investment
in Singapore Airlines Limited was $184 million and the gross unrealized gain
on the Company's investment in Swissair, Swiss Air Transport Company Ltd.
was $25 million. The $132 million unrealized gain, net of the related $77
million deferred tax provision, on these investments is reflected in
stockholders' equity.
Delta's other investments in available-for-sale securities are recorded as
short-term investments in the Company's Consolidated Balance Sheets. The
proceeds from sales of these securities during the March 1996 quarter
totaled $143 million, which resulted in a realized loss, computed on a
specific identification basis, of less than $1 million. The net unrealized
gain on short-term investments reflected in stockholders' equity at
March 31, 1996, was less than $1 million, net of the related tax benefit.
9
<PAGE>
3. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT:
Fuel Hedging
Under the Company's fuel hedging program, the Company may enter into
certain contracts with counterparties, not to exceed one year in duration,
to manage the Company's exposure to increases in jet fuel prices. Gains and
losses resulting from fuel hedging transactions are recognized as a
component of fuel expense when the underlying fuel being hedged is used.
Any premiums paid to enter into hedging contracts are recorded as a prepaid
expense and amortized to fuel expense over the respective contract periods.
At March 31, 1996, the fair value of outstanding contracts was immaterial.
The Company is exposed to losses in the event of non-performance by
counterparties to fuel hedging transactions, but it does not expect any
counterparty to fail to meet its obligations. To manage its credit risk,
the Company selects counterparties based on their credit ratings, limits
its exposure to any one counterparty under defined guidelines, and monitors
the market position of the program and its relative market position with
each counterparty.
Hull and General Liability Insurance
During the December 1995 quarter, the Company renewed its aircraft hull and
general liability insurance policies (the Policies) for the year beginning
December 18, 1995 and ending December 17, 1996. In entering into these
renewals, it was Delta's goal to maintain insurance in amounts that it
deems adequate while achieving premium savings under the Policies.
Accordingly, Delta's captive insurance subsidiary agreed to reimburse the
primary insurers for losses under the Policies in an amount not to exceed
$100 million per occurrence and $118 million in the aggregate for this
policy year. The obligations of the primary insurers in relation to the
insureds under the Policies will not be limited or reduced in any way by
this reimbursement obligation.
The reimbursement obligation of Delta's captive insurance subsidiary to the
primary insurers will be supported by letters of credit issued by one or
more third parties. The letters of credit will have an aggregate stated
amount equal to the maximum reimbursement obligation. To the extent the
primary insurers make draws under the letters of credit, Delta will be
required to reimburse the issuers of the letters of credit.
Delta will accrue amounts estimated to be payable for probable losses under
the reimbursement agreements with the primary insurers, as incurred. The
methods of making such estimates and establishing the resulting accrued
liabilities will be reviewed on an ongoing basis and adjusted as required.
10
<PAGE>
4. SALE OF RECEIVABLES:
During fiscal 1995, Delta elected to discontinue selling new receivables
under a revolving accounts receivable facility, and the Senior Certificate
related to this facility, which was in the principal amount of $229 million
at June 30, 1995, was reduced to $0 on August 14, 1995. This transaction
was recorded as a reduction of cash from operating activities in the
Company's Consolidated Statements of Cash Flows for the nine months ended
March 31, 1996, and an increase in accounts receivable on the Company's
Consolidated Balance Sheets at March 31, 1996. For additional information
regarding the sale of receivables, see Note 5 (page 30) of the Notes to
Consolidated Financial Statements in Delta's 1995 Annual Report to
Stockholders.
5. LONG-TERM DEBT:
During the March 1996 quarter, the Company voluntarily repurchased and
retired $98 million principal amount of its long-term debt. As a result of
these transactions, the Company recognized a net pretax loss of $7 million
during the quarter ended March 31, 1996; this amount is included in
miscellaneous, net in the Company's Consolidated Statements of Operations.
The Company's 1995 Bank Credit Agreement provides for unsecured borrowings
of up to $1.25 billion on a revolving basis until September 26, 2000. At
March 31, 1996, no borrowings were outstanding under the 1995 Bank Credit
Agreement, but there is currently outstanding a letter of credit in the
amount of $470 million to credit enhance the Delta Family-Care Savings
Plan's 1990 Series C Guaranteed Serial ESOP Notes, which are guaranteed by
Delta. The letter of credit, which is utilizing $470 million of the
available commitment under the 1995 Bank Credit Agreement, covers the $290
million outstanding principal amount of the 1990 Series C Guaranteed Serial
ESOP Notes, up to $148 million of Make Whole Premium Amount and
approximately one year of interest on the 1990 Series C Guaranteed Serial
ESOP Notes. For additional information regarding Delta's long-term debt,
including the 1990 Series C Guaranteed Serial ESOP Notes, see Note 4 (page
8) of the Notes to Consolidated Financial Statements in Delta's Quarterly
Report on Form 10-Q for the quarter ended September 30, 1995 and Note 7
(page 30) of the Notes to Consolidated Financial Statements in Delta's 1995
Annual Report to Stockholders. As of May 6, 1996, Delta's long-term senior
unsecured debt was rated Baa3 by Moody's and BB+ by Standard & Poor's.
During the nine months ended March 31, 1996 and 1995, Delta made cash
interest payments, net of interest capitalized, of $151 million and $159
million, respectively.
11
<PAGE>
6. AIRCRAFT PURCHASE AND SALE COMMITMENTS:
On January 29, 1996, Delta and The Boeing Company (Boeing) amended certain
contracts under which Delta purchases aircraft from Boeing. As a result of
these amendments, Delta received refunds of certain advance payments from
Boeing. These refunds were in excess of amounts Delta paid for flight
equipment, including advance payments, during the quarter ended March 31,
1996. For additional information regarding the Boeing contract amendments,
see Note 6 (page 12) of the Notes to Consolidated Financial Statements in
Delta's Quarterly Report on Form 10-Q/A for the quarter ended December 31,
1995.
At March 31, 1996, the Company's aircraft fleet, purchase commitments and
options were:
<TABLE>
<CAPTION>
CURRENT FLEET
-----------------------
AIRCRAFT TYPE OWNED LEASED TOTAL ORDERS OPTIONS
--------------- ----- ------ ----- ------ -------
<S> <C> <C> <C> <C> <C>
B-727-200 106 26 132 - -
B-737-200 1 53 54 - -
B-737-300 - 13 13 - -
B-757-200 45 41 86 4 29
B-767-200 15 - 15 - -
B-767-300 2 24 26 2 -
B-767-300ER 9 7 16 15 14
L-1011-1 31 - 31 - -
L-1011-200 1 - 1 - -
L-1011-250 6 - 6 - -
L-1011-500 17 - 17 - -
MD-11 4 7 11 4 21
MD-88 63 57 120 - 19
MD-90 11 - 11 28 50
--- --- --- -- ---
311 228 539 53 133
=== === === == ===
</TABLE>
The aircraft orders include eight MD-90 aircraft scheduled for delivery after
fiscal 1996 that are subject to reconfirmation by Delta. The MD-88 aircraft
options may be converted to MD-90 aircraft orders, and the B-767-300ER
aircraft options may be converted to B-767-300 aircraft orders, at Delta's
election.
Subsequent to March 31, 1996, Delta accepted delivery of one MD-11 aircraft
and one MD-90 aircraft. Additionally, Delta returned three B-727-200 aircraft
to their lessors.
12
<PAGE>
Future expenditures for aircraft, engines and engine hushkits on firm order
at March 31, 1996, are estimated to be $2.5 billion, excluding aircraft
orders subject to reconfirmation by Delta, as follows:
<TABLE>
<CAPTION>
AMOUNT
YEARS ENDING JUNE 30 (IN MILLIONS)
-------------------- -------------
<S> <C>
Remainder of fiscal year 1996 $ 190
1997 860
1998 850
1999 460
2000 70
After 2000 90
------
Total $2,520
======
</TABLE>
7. POSTEMPLOYMENT BENEFITS:
The Company provides certain benefits to its former or inactive
employees after employment but before retirement. Such benefits primarily
include those related to disability and survivorship plans. Effective July
1, 1994, Delta adopted Statement of Financial Accounting Standards No. 112,
"Employers' Accounting for Postemployment Benefits" (SFAS 112), which
requires recognition of the liability for postemployment benefits during the
period of employment.
Adoption of SFAS 112 resulted in a cumulative after-tax transition
benefit of $114 million for the nine months ended March 31, 1995, primarily
due to the net overfunded status of the Company's disability and
survivorship plans. Future period expenses will vary based on actual claims
experience and the return on plan assets.
8. CONTINGENCIES:
The Company is a defendant in certain legal actions relating to
alleged employment discrimination practices, antitrust matters,
environmental issues and other matters concerning the Company's business.
Although the ultimate outcome of these matters cannot be predicted with
certainty and could have a material adverse effect on Delta's consolidated
financial condition, results of operations or liquidity, management
presently believes that the resolution of these actions is not likely to
have a material adverse effect on Delta's consolidated financial condition,
results of operations or liquidity.
13
<PAGE>
9. STOCKHOLDERS' EQUITY:
During the March 1996 quarter, the Company issued 169,110 common shares, at
an average price of $53.08 per share, under the 1989 Stock Incentive Plan,
2,092 common shares, at an average price of $75.15 per share, under the
Dividend Reinvestment and Stock Purchase Plan, and 29 common shares, at an
average price of $74.72 per share, under the Non-Employee Directors' Stock
Plan. The Company also issued 2,223 common shares upon the conversion of
2,922 depositary shares (each of which represents 1/1,000th of a share of
Series C Convertible Preferred Stock), and 151 common shares upon the
conversion of less than $1 million principal amount at stated maturity of
the 3.23% Convertible Subordinated Notes due 2003. Additionally, during the
March 1996 quarter, the Company transferred from its treasury, at an average
cost of $67.80 per share, 50,815 common shares to the Delta Family-Care
Savings Plan and 37 common shares under the 1989 Stock Incentive Plan.
At March 31, 1996, 5,355,400 common shares were reserved for issuance under
the 1989 Stock Incentive Plan; 5,791,417 common shares were reserved for
conversion of the Series B ESOP Convertible Preferred Stock; 17,486,809
common shares were reserved for conversion of the Series C Convertible
Preferred Stock; and 10,147,579 common shares were reserved for conversion
of the 3.23% Convertible Subordinated Notes due 2003.
10. INCOME TAXES:
Income taxes are provided at the estimated annual effective tax rate, which
differs from the federal statutory rate of 35%, primarily due to state
income taxes and the effect of certain expenses that are not deductible for
income tax purposes.
The Company made income tax payments in excess of refunds received of $191
million and $25 million during the nine months ended March 31, 1996 and
1995, respectively.
11. RESTRUCTURING CHARGES:
During the March 1996 quarter, Delta recorded a $556 million
pretax charge for restructuring and other non-recurring charges. The
charges include a $452 million write-down of Delta's Lockheed L-1011 fleet
and related assets. In connection with its decision to accelerate the
replacement of its 55 L-1011 aircraft fleet, the Company performed an
evaluation to determine, in accordance with SFAS 121, if future cash flows
(undiscounted and without interest charges) expected to result from the use
and the eventual disposition of the L-1011 fleet will be less than the
aggregate carrying amount of the L-1011 aircraft and related assets. As a
result of the evaluation, the Company's management determined that the
estimated future cash flows expected to be generated by L-1011 assets will
be less than their carrying amount, and therefore the L-1011 assets are
impaired as defined by SFAS 121. When impairment of an asset exists,
entities are required to write-down the related asset to current fair market
value. The reduced carrying amount is considered the new cost basis of the
related assets under SFAS 121; accordingly, reduction of the L-1011 assets'
original cost basis of approximately $1.738 billion, including the $452
million write-down noted above, is reflected in the accompanying
Consolidated Balance Sheet at March 31, 1996. In
14
<PAGE>
determining fair market value of L-1011 assets, the Company considered
recent transactions involving sales of L-1011 aircraft and market trends in
disposition of aircraft.
The remaining $104 million in restructuring and other non-
recurring charges, net of reversals of approximately $45 million related to
the Company's $526 million restructuring charge recorded in June 1994,
represents expenses related to the continuation of the Company's Leadership
7.5 cost reduction program, including previously announced non-pilot
workforce reductions, lease termination and other costs associated with
discontinued routes and abandoned facilities.
12. SUBSEQUENT EVENTS:
On April 25, 1996, Delta's Board of Directors adopted, subject to
stockholder approval, two broad-based non-qualified stock option programs
for Delta personnel involving approximately 24.7 million shares of Delta
common stock. For additional information see Part II, Item 5 of this Form
10-Q.
On April 25, 1996, Delta's Board of Directors authorized the Company to
repurchase up to 24.7 million shares of its common stock and common stock
equivalents. For additional information see Part II, Item 5 of this Form
10-Q.
On April 29, 1996, Delta and the Air Line Pilots Association, International
entered into a new collective bargaining agreement for the Company's
approximately 8,000 pilots, which provides for, among other things, an
enhanced early retirement program for up to 500 pilots. For additional
information see Part II, Item 5 of this Form 10-Q.
At May 15, 1996, Delta had outstanding approximately $800 million principal
amount at stated maturity of 3.23 % Convertible Subordinated Notes due June
15, 2003 (the Notes). On May 15, 1996, the Company gave notice that it has
elected to redeem effective June 15, 1996 all of the outstanding Notes. For
additional information see Part I, Item 2 of this Form 10-Q.
15
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Item 2. Management's Discussion and Analysis of Financial Condition and
- ------------------------------------------------------------------------
Results of Operations
- ---------------------
FINANCIAL CONDITION
During the nine months ended March 31, 1996, Delta invested $381 million in
flight equipment, net of advance payment refunds received from Boeing (see Note
6 of Notes to Consolidated Financial Statements), and $177 million in ground
property and equipment; made payments of $267 million on long-term debt and
capital lease obligations, which included Delta's voluntary repurchase and
retirement of $216 million principal amount of long-term debt; and paid $83
million in cash dividends. The principal sources of these funds were $659
million of cash from operations, net of $229 million used to reduce to $0 the
Senior Certificate related to the sale of receivables (see Note 4 of the Notes
to Consolidated Financial Statements); $202 million from cash reserves; $24
million from the issuance of common stock; and $23 million from the sale of
flight equipment. Cash and cash equivalents and short-term investments totaled
$1.6 billion at March 31, 1996, compared to $1.8 billion at June 30, 1995. The
Company may repurchase its long-term debt and common stock (including common
stock equivalents) from time to time.
As of March 31, 1996, the Company had negative working capital of $604 million,
compared to negative working capital of $427 million at June 30, 1995. A
negative working capital position is normal for Delta and does not indicate a
lack of liquidity. The Company expects to meet its current obligations as they
become due through available cash, short-term investments and internally
generated funds, supplemented as necessary by debt financings and proceeds from
sale and leaseback transactions. At March 31, 1996, the Company had $780
million of credit available under its 1995 Bank Credit Agreement, subject to
compliance with certain conditions. For additional information regarding
Delta's long-term debt, see Note 5 of the Notes to Consolidated Financial
Statements.
At March 31, 1996, long-term debt and capital lease obligations, including
current maturities, totaled $3.1 billion, compared to $3.3 billion at June 30,
1995. Stockholders' equity was $1.8 billion at March 31, 1996 and June 30,
1995. The Company's debt-to-equity position, including current maturities, was
63% debt and 37% equity at March 31, 1996, compared to 65% debt and 35% equity
at June 30, 1995.
At March 31, 1996, there was outstanding $290 million principal amount of the
Delta Family-Care Savings Plan's Series C Guaranteed Serial ESOP Notes (Series C
ESOP Notes), which are guaranteed by Delta. The Series C ESOP Notes currently
have the benefit of a credit enhancement in the form of a letter of credit in
the amount of $470 million under Delta's 1995 Bank Credit Agreement. Delta is
required to purchase the Series C ESOP Notes in certain circumstances. For
additional information regarding the Series C ESOP Notes, see Note 7 (page 30)
of the Notes to Consolidated Financial Statements in Delta's 1995 Annual Report
to Stockholders.
At its meeting on April 25, 1996, Delta's Board of Directors declared cash
dividends of five cents per common share and $875.00 per share of Series C
Convertible Preferred Stock ($0.875 per depositary share), both payable June 1,
1996, to stockholders of record on May 9, 1996.
16
<PAGE>
Currently, Delta has outstanding approximately $800 million principal amount at
stated maturity of 3.23 % Convertible Subordinated Notes due June 15, 2003 (the
Notes). On May 15, 1996, the Company gave notice that it has elected to
redeem effective June 15, 1996 (the Redemption Date) all of the outstanding
Notes at a redemption price equal to 78.23% of the principal amount at
stated maturity of each Note, together with accrued and unpaid interest to the
Redemption Date. The redemption price, together with accrued and unpaid interest
to the Redemption Date, shall be due and payable on June 17, 1996. The Notes are
convertible by the holders thereof into shares of Delta common stock at any time
until 5 p.m. Eastern Daylight Time on June 17, 1996 at a conversion rate equal
to 12.68 shares of common stock for each $1,000 principal amount at stated
maturity of the Notes, subject to adjustment in certain circumstances. For
additional information regarding the Notes, see Note 7 (page 30) of the Notes to
Consolidated Financial Statements in Delta's 1995 Annual Report to Stockholders.
See Note 11 of the Notes to Consolidated Financial Statements in this Form 10-Q
for information regarding the Company's write-down of its L-1011 fleet and
related assets as part of a $556 million pretax charge for restructuring and
other non-recurring charges.
See Part II, Item 5 of this Form 10-Q for information regarding (1) the
Company's new collective bargaining agreement with the Company's pilots; (2) the
Board of Director's adoption, subject to stockholder approval, of two broad
based stock option programs for Delta personnel involving approximately 24.7
million shares of Delta common stock; (3) the Board of Directors' authorizing
the Company to repurchase up to 24.7 million shares of its common stock and
common stock equivalents; (4) Delta employee attendance at regularly scheduled
quarterly meetings of Delta's Board of Directors; and (5) other compensation
matters regarding Company personnel.
17
<PAGE>
RESULTS OF OPERATIONS
Three Months Ended March 31, 1996 and 1995
- ------------------------------------------
For the quarter ended March 31, 1996, Delta recorded an unaudited net loss of
$276 million ($5.77 primary and fully diluted loss per common share after
preferred stock dividend requirements) and an operating loss of $387 million.
For the quarter ended March 31, 1995, the Company recorded a net loss of $11
million ($0.66 primary and fully diluted loss per common share after preferred
stock dividend requirements) and operating income of $40 million. The March
1996 quarter results include a $556 million pretax charge for restructuring and
other non-recurring charges which are primarily non-cash expenses. For
additional information regarding these charges, see Note 11 of the Notes to
Consolidated Financial Statements in this Form 10-Q.
Excluding the effect of the $556 million pretax charge, the Company recorded
unaudited net income of $63 million ($.80 primary and fully diluted income per
common share after preferred stock dividend requirements) and operating income
of $169 million for the quarter ended March 31, 1996.
The improvement in operating results for the March 1996 quarter (excluding the
$556 million pretax charge) compared to the March 1995 quarter reflects a 2%
increase in operating revenues and a 2% decrease in operating expenses primarily
due to initiatives under the Company's Leadership 7.5 cost reduction program.
Operating revenues in the March 1996 quarter totaled $2.96 billion, an increase
of 2% from $2.90 billion in the March 1995 quarter. Passenger revenue increased
3% to $2.77 billion, reflecting a 6% increase in revenue passenger miles,
partially offset by a 3% decline in the passenger mile yield. The increase in
passenger traffic and the decrease in passenger mile yield is primarily due to
discount fare promotions resulting from the continued presence of low-cost, low-
fare carriers in domestic markets served by Delta.
Cargo revenue decreased 6% to $126 million, as cargo ton miles declined 7% while
the cargo ton mile yield increased less than 1%. The decrease in cargo ton
miles and increase in the ton mile yield are primarily due to the cancellation
of service on certain international routes and the resulting decrease in the
average cargo trip length. All other revenue, net decreased 23% to $64 million,
mainly due to a one-time refund of certain employee transportation charges and
lower revenues from certain marketing programs.
Operating expenses for the March 1996 quarter totaled $3.35 billion, an increase
of 17% from the March 1995 quarter. Operating capacity increased less than 1%
to 31.63 billion available seat miles, and operating cost per available seat
mile increased 17% to 10.59 cents. Excluding the $556 million pretax charge
recorded in the March 1996 quarter, operating cost per available seat mile
decreased 3% to 8.84 cents. Salaries and related costs decreased 2%, primarily
due to a 5% reduction in full-time equivalent employees and reductions in
related benefits costs, partially offset by accruals under the Company's profit
sharing programs. The decrease in full-time equivalent employees was primarily
due to workforce reductions under the Company's Leadership 7.5 cost reduction
program. Aircraft fuel expense increased 14%, as the average price per fuel
gallon increased 15% to 60.39 cents while fuel gallons consumed decreased 1%.
Passenger commissions declined 15%, mainly due to lower base commission rates.
Contracted services expense rose 21%,
18
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primarily the result of increased outsourcing of certain airport functions, and
higher expenses associated with inclement winter weather. Depreciation and
amortization expense rose 6%, the result of increased aircraft depreciation and
amortization due to the acquisition of additional owned aircraft and the
extension of leases on 40 B-737-200 aircraft in the June 1995 quarter which, for
accounting purposes, resulted in these leases being reclassified from operating
leases to capital leases. The increase in depreciation and amortization expense
was partially offset by certain international routes becoming fully amortized.
Other selling expenses decreased 8%, primarily due to lower advertising and
promotion expenses, partially offset by increased booking fee payments to
computer reservations system providers. Aircraft rent expense decreased 19% due
to the return of certain aircraft to lessors and the extension of leases on
40 B-737-200 aircraft as discussed previously. Facilities and other rent
decreased 25%, due to certain facilities rent accrual adjustments, the
subleasing of certain airport facilities and the reclassification of certain
unoccupied airport facilities costs to nonoperating categories. Aircraft
maintenance materials and outside repairs expense declined 19%, mainly the
result of lower engine and airframe materials usage and the elimination of
certain engine types from service due to fleet simplification. Passenger service
expense decreased 5%, the result of ongoing cost control programs. Landing fees
decreased 9%, mainly reflecting favorable rate adjustments and credits received
at certain airports. All other operating expenses increased 17%, primarily
reflecting the October 1, 1995 expiration of the exemption from the 4.3 cents
per gallon federal tax on commercial aviation jet fuel used in domestic
operations as well as higher supplies and inconvenienced passenger expenses
resulting from the inclement winter weather, partially offset by increased
services provided to outside parties.
Nonoperating expense in the March 1996 quarter totaled $59 million, compared to
nonoperating expense of $51 million in the March 1995 quarter. Interest expense
decreased 20% to $56 million, due to a lower average level of long-term debt,
partially offset by an increase in interest related to the extension and
reclassification of the B-737-200 aircraft leases previously discussed.
Interest income decreased 14% to $18 million, primarily due to lower interest
rates and a lower average level of short-term investments. Miscellaneous
expense, net increased to $27 million in the March 1996 quarter from $10 million
in the March 1995 quarter, due to equity losses from associated companies, costs
associated with the voluntary repurchase and retirement of long-term debt, and
foreign exchange losses.
Pretax losses of $446 million for the March 1996 quarter resulted in an income
tax credit of $170 million. After a $22 million provision for preferred stock
dividends, the net loss attributable to common stockholders was $298 million.
Nine Months Ended March 31, 1996 and 1995
- -----------------------------------------
For the nine months ended March 31, 1996, Delta recorded an unaudited net loss
of $6 million ($1.39 primary and fully diluted loss per common share after
preferred stock dividend requirements) and operating income of $167 million.
For the nine months ended March 31, 1995, the Company recorded net income of
$157 million ($1.80 primary and fully diluted income per common share after
preferred stock dividend requirements) and operating income of $212 million.
The results for the nine months ended March 31, 1996 include a $556 million
pretax charge for restructuring and other non-recurring charges which are
primarily non-cash expenses. For additional information regarding these
charges, see Note 11 of the Notes to Consolidated Financial Statements in this
Form 10-Q.
19
<PAGE>
Net income for the nine months ended March 31, 1995 includes a one-time $114
million after-tax benefit ($2.25 primary and fully diluted benefit per common
share) related to the adoption, effective July 1, 1994, of SFAS 112, "Employers'
Accounting for Postemployment Benefits" (see Note 7 of the Notes to Consolidated
Financial Statements).
Excluding the effect of the $556 million pretax charge, the Company recorded
unaudited net income of $333 million ($5.20 primary and $4.36 fully diluted
income per common share after preferred stock dividend requirements) and
operating income of $723 million for the nine months ended March 31, 1996.
The improvement in operating results for the nine months ended March 31, 1996
(excluding the $556 million pretax charge), compared to the nine months ended
March 31, 1995, reflects a 1% increase in operating revenues and a 4% decrease
in operating expenses primarily due to initiatives under the Company's
Leadership 7.5 cost reduction program.
Operating revenues for the nine months ended March 31, 1996 increased 1% to
$9.10 billion. Passenger revenue increased 2% to $8.49 billion, reflecting a 2%
improvement in the passenger mile yield. Revenue passenger miles remained
virtually unchanged. The improvement in passenger mile yield is primarily due
to higher average fare levels in domestic and certain international markets.
Passenger revenue for the nine months ended March 31, 1996 and 1995, was
negatively impacted by the presence of low-cost, low-fare carriers in domestic
markets served by Delta.
Cargo revenue decreased 9% to $389 million, as cargo ton miles declined 10%
while the ton mile yield increased 1%. The decrease in cargo ton miles and
increase in the ton mile yield are primarily due to the cancellation of service
on certain international routes and the resulting decrease in the average cargo
trip length. All other revenue, net decreased 7% to $220 million, mainly due to
a one-time refund of certain employee transportation charges and lower revenues
from certain marketing programs.
Operating expenses for the nine months ended March 31, 1996 totaled $8.93
billion, an increase of 2% from the nine months ended March 31, 1995. Operating
capacity decreased less than 1% to 97.25 billion available seat miles, and
operating cost per available seat mile increased 2% to 9.18 cents. Excluding
the $556 million pretax charge recorded in the nine months ended
March 31, 1996, operating cost per available seat mile decreased 4% to 8.61
cents. Salaries and related costs decreased 5%, primarily due to a 5% reduction
in full-time equivalent employees and reductions in related benefits costs,
partially offset by accruals under the Company's profit sharing programs. The
decrease in full-time equivalent employees was primarily due to workforce
reductions under the Company's Leadership 7.5 cost reduction program. Aircraft
fuel expense increased 3%, as the average price per fuel gallon increased 5% to
57.30 cents while fuel gallons consumed decreased 2%. Passenger commissions
declined 15%, mainly due to the implementation of a maximum commission payment
on domestic tickets and lower base commission rates. Contracted services
expense rose 31%, primarily the result of increased outsourcing of certain
airport functions. Depreciation and amortization expense increased 2%, the
result of increased aircraft depreciation and amortization due to the
acquisition of additional owned aircraft and the extension of the 40 B-737-200
aircraft leases previously discussed, partially offset by the transfer of
certain ground equipment to associated companies and certain international
routes becoming fully amortized. Other selling expenses
decreased 7%, primarily due to lower advertising and promotion
20
<PAGE>
expense, partially offset by increased booking fee payments to computer
reservations system providers. Aircraft rent expense decreased 19% due to the
return of certain aircraft to lessors and the extension of the 40 B-737-200
aircraft leases previously discussed. Facilities and other rent decreased 6%,
primarily due to certain facilities rent accrual adjustments, the subleasing of
certain airport facilities and the reclassification of certain airport
facilities costs to nonoperating categories. Aircraft maintenance materials and
outside repairs expense declined 10%, mainly due to lower engine and airframe
materials usage and the elimination of certain engine types from service due to
fleet simplification.
Passenger service expense decreased 18%, the result of ongoing cost control
programs. Landing fees decreased 7%, mainly reflecting favorable rate
adjustments and credits received at certain airports. All other
operating expenses decreased 2%, primarily reflecting increased services
provided to outside parties, partially offset by the October 1, 1995 expiration
of the exemption from the 4.3 cents per gallon federal tax on commercial
aviation jet fuel used in domestic operations.
Nonoperating expense for the nine months ended March 31, 1996, totaled $154
million, compared to $124 million in the nine months ended March 31, 1995.
Interest expense decreased 7% to $204 million, due to a lower average level of
long-term debt, partially offset by an increase in interest related to the
extension and reclassification of the 40 B-737-200 aircraft leases previously
discussed. Interest income decreased 8% to $65 million, primarily due to lower
interest rates and a lower average level of short-term investments.
Miscellaneous expense, net was $35 million for the nine months ended March 31,
1996, primarily due to costs associated with the voluntary repurchase and
retirement of long-term debt and foreign exchange losses, compared to
miscellaneous income, net of $2 million for the nine months ended March 31,
1995.
Pretax income of $13 million for the nine months ended March 31, 1996, was
reduced by an income tax provision of $19 million. After a $66 million
provision for preferred stock dividends, the net loss attributable to common
stockholders was $72 million.
21
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ARTHUR ANDERSEN LLP
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Stockholders and
the Board of Directors of
Delta Air Lines, Inc.:
We have reviewed the accompanying consolidated balance sheet of DELTA AIR LINES,
INC. (a Delaware Corporation) AND SUBSIDIARIES as of March 31, 1996 and the
related consolidated statements of operations for the three-month and nine-month
periods ended March 31, 1996 and 1995 and the consolidated statements of cash
flows for the nine-month periods ended March 31, 1996 and 1995. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the financial statements referred to above for them to be in
conformity with generally accepted accounting principles.
Arthur Andersen LLP
Atlanta, Georgia
May 6, 1996
22
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
As reported on page 16 of Delta's Annual Report on Form 10-K for the fiscal year
ended June 30, 1995, and page 17 of Delta's Quarterly Report on Form 10-Q for
the quarter ended September 30, 1995, travel agents and a travel agency trade
association have filed more than 30 class action antitrust lawsuits in various
federal district courts against various airlines, including Delta, that
implemented new travel agent commission cap programs. The plaintiffs, who are
seeking unspecified treble damages under the antitrust laws and an injunction to
prevent the airlines from maintaining the new commission cap programs, allege
that the defendants conspired to reduce the commissions paid to travel agents in
violation of the Sherman Act. These cases have been consolidated for pretrial
proceedings before the United States District Court in Minneapolis which, on
September 27, 1995, denied a motion by the airline defendants to permit an
immediate appeal of the District Court's ruling denying the airlines' motions
for summary judgment. The jury trial of these actions is scheduled to begin on
September 4, 1996.
As reported on page 22 of Delta's Quarterly Report on Form 10-Q/A for the
quarter ended December 31, 1995, on November 9, 1995, ValuJet Airlines, Inc.
(ValuJet) filed a lawsuit against Delta and Trans World Airlines, Inc. (TWA) in
the United States District Court for the Northern District of Georgia alleging,
among other things, that (1) TWA breached an alleged agreement to lease certain
takeoff/landing slots (Slots) at New York's LaGuardia Airport (LaGuardia) to
ValuJet; (2) Delta tortiously interfered with the alleged contract between
ValuJet and TWA; (3) Delta and TWA conspired to restrain trade in violation of
Section 1 of the Sherman Act; and (4) Delta engaged in acts of monopolization
and attempted monopolization in violation of Section 2 of the Sherman Act.
ValuJet, which has requested a jury trial, is seeking injunctive relief,
unspecified compensatory damages, treble damages under the antitrust laws,
punitive damages, costs and attorney's fees, and such other relief as the Court
deems appropriate. On November 17, 1995, the District Court denied ValuJet's
motion for a preliminary injunction. On December 7, 1995, Delta filed its answer
denying liability and asserting various affirmative defenses. On February 15,
1996, Delta and TWA filed separate motions for summary judgment; ValuJet is
opposing these motions.
As reported on page 22 of Delta's Quarterly Report on Form 10-Q/A for the
quarter ended December 31, 1995, on January 10, 1996, a purported class action
complaint was filed against Delta and TWA in the United States District Court
for the Eastern District of New York, on behalf of persons who purchased tickets
on Delta for travel between LaGuardia and Atlanta beginning November 1, 1995.
The named plaintiff, who has requested a jury trial, makes antitrust allegations
and claims similar to those asserted by ValuJet in the lawsuit described in the
preceding paragraph. The named plaintiff seeks, on behalf of the purported
class, unspecified compensatory damages, treble damages under the antitrust
laws, injunctive relief, costs and attorney's fees, and such other relief as the
Court deems appropriate. On April 11, 1996, the United States District Court for
the Eastern District of New York granted Delta's and TWA's motions to transfer
this lawsuit to the United States District Court for the Northern District of
Georgia.
23
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Item 5. Other Information
- -------------------------
New Collective Bargaining Agreement
- -----------------------------------
On April 29, 1996, Delta and the Air Line Pilots Association, International
(ALPA) entered into a new collective bargaining agreement for the Company's
approximately 8,000 pilots. The following summary of certain provisions of the
new collective bargaining agreement does not purport to be complete, and is
subject to, and qualified in its entirety by reference to, all the provisions of
the new collective bargaining agreement, which is being filed with this Form 10-
Q as Exhibit 10.
The new collective bargaining agreement, which generally became effective May 1,
1996, has a four-year term. It provides for, among other things, (1) a 2%
reduction in base salaries for four years, after which period the 2% reduction
will be rescinded; (2) reductions in certain other pay-related areas and
benefits; (3) certain productivity improvements, including changes in staffing
requirements; (4) additional pay reductions and productivity improvements
relating to the operation of the Company's B-737-200 aircraft, subject to
certain conditions; (5) job security protections for currently active pilots and
the recall of the approximately 260 remaining pilots on furlough by July 1,
1997; (6) a prohibition on the Company's engaging in code sharing with respect
to aircraft with over 70 seats that are operated by another U.S. airline,
subject to certain exceptions; (7) restrictions in certain circumstances on the
Company's entering into new code sharing arrangements involving aircraft
operated by foreign airlines; (8) an enhanced early retirement program for up to
500 pilots; (9) pilot participation in a profit sharing program; (10) a stock
option plan for pilots providing for grants of stock options covering a total of
ten million shares of Delta common stock in three equal installments; and (11)
ALPA's right to appoint an associate non-voting member of Delta's Board of
Directors.
ALPA has the right to reopen the new collective bargaining agreement in its
entirety if there is a Change of Control (as defined) of Delta or if any
required stockholder approval of the pilots' stock option plan is not obtained.
Change of Control is defined in the new contract to include, among other things,
the acquisition by a person or entity of more than 40% of Delta's outstanding
common stock. The pilots' stock option plan and a similar stock option plan for
nonpilot personnel will be presented to stockholders for approval as one
proposal at Delta's 1996 Annual Meeting of Stockholders, which is scheduled for
October 24, 1996.
Delta believes the new collective bargaining agreement will improve the
Company's competitive position and make an important contribution to the
Company's efforts to achieve its cost reduction goals. Delta currently
estimates the new collective bargaining agreement, compared to the prior pilot
contract, will result in total savings of approximately $100 million in fiscal
year 1997, approximately $200 million in fiscal year 1998 and approximately $230
million in each of fiscal years 1999 and 2000, before considering any amounts to
be paid under the pilots' profit sharing program.
The pilots' profit sharing program generally provides for profit sharing
payments to eligible pilots for a particular fiscal year equal to the Company's
Profit Performance Level (as defined) multiplied by a pilot's Annual Base Salary
(as defined) for that year, and subtracting from that product a dollar amount
equal to the Offset (as defined). The Profit Performance Level for a given
fiscal year is the
24
<PAGE>
Company's pretax income (after giving effect to profit sharing payments and
excluding any gains or losses on the disposition of flight equipment and less
preferred stock dividends) as a percent of the Company's total operating
revenues for that year. No payments are made if the Profit Performance Level is
less than 2%; the maximum Profit Performance Payment for purposes of the pilots'
profit sharing program is 10%. The Offset for any given fiscal year is the
product of a pilots' Annual Base Salary multiplied by the lesser of (1) 5%; or
(2) the percent of annual base salary (which is currently also 5%) by which
profit sharing awards for such year are reduced for participants in the
Company's profit sharing program for noncontract published scale personnel.
In connection with the pilots' enhanced early retirement program described
above, the Company expects to record a one-time pretax charge of approximately
$300 million in the June 1996 quarter, depending upon the number of pilots
electing early retirement and other factors which are not precisely determinable
at this time. Management believes that this charge is not likely to have a
material adverse effect on Delta's consolidated financial condition or
liquidity.
The above information regarding the cost savings that Delta currently
anticipates under the new collective bargaining agreement is forward-looking,
and the actual results could differ materially from the results that Delta
currently anticipates. The specific factors and events that could cause the
actual results to differ materially from the expected results include, among
other things, (1) ALPA's exercising its right to reopen the new contract if
there is a Change of Control of Delta or any required stockholder approval of
the pilots' stock option plan is not obtained; (2) the number of B-737-200
aircraft that Delta utilizes under reduced operating costs; (3) aircraft
deployment and utilization rates; and (4) competitive factors and general
economic conditions.
25
<PAGE>
Broad Based Stock Option Programs
- ---------------------------------
On April 25, 1996, Delta's Board of Directors adopted, subject to stockholder
approval, two broad-based non-qualified stock option programs for Delta
personnel involving approximately 24.7 million shares of Delta common stock.
Under the two broad-based plans, nonqualified stock options will be granted to
Delta employees in their individual capacity. One plan is for approximately
47,000 Delta employees who are permanent full-time non-pilot personnel or non-
contract international personnel, and have one year of Delta service at the time
of each grant. The second plan is for approximately 8,000 Delta pilots.
The non-pilot and pilot plans involve stock options for 14.7 million and 10
million common shares, respectively. The size of the two plans is intended to
provide for an equivalent potential financial return for both nonpilots and
pilots as a percentage of base salary. Both plans provide for grants in three
equal annual installments at a stock option exercise price equal to the opening
price of Delta common stock on the New York Stock Exchange on the grant date.
The first grant is expected to occur soon after the Annual Meeting of
Stockholders in October 1996. Stock options awarded under these plans will
generally be exercisable beginning one year after their grant date and ending 10
years after the grant date. Stock options awarded under these plans are not
transferable other than upon the death of the person granted the option.
The pilot stock option plan is part of the new collective bargaining agreement
between the Company and ALPA. As discussed above, ALPA has the right to reopen
the new collective bargaining agreement in its entirety if any required
stockholder approval of the pilot plan is not obtained.
The stock option plans are subject to stockholder approval at Delta's 1996
Annual Meeting of Stockholders which is scheduled for October 24, 1996. Because
the two plans are related elements of Delta's program to more closely align the
interests of Delta people and stockholders and to link a portion of compensation
to performance, the two plans will be presented to stockholders as one proposal.
Stock Repurchase Authorization
- ------------------------------
On April 25, 1996, Delta's Board of Directors authorized the Company to
repurchase up to 24.7 million shares of its common stock and common stock
equivalents. Under this authorization, the Company may repurchase up to 6.2
million of these shares before the initial stock option grants under the broad-
based stock option plans become exercisable, and repurchase the remaining shares
as Delta personnel exercise their options. The stock repurchase program becomes
effective immediately. Repurchases will be subject to market conditions and may
be made on the open market or in privately negotiated transactions.
Employee Attendance at Board Meetings
- -------------------------------------
Beginning with its July 1996 meeting, Delta's Board of Directors has invited
representatives of Delta personnel to attend regularly scheduled, quarterly
meetings of the Board of Directors. As part of the recently ratified collective
bargaining agreement with ALPA, one pilot representative will attend. Other
Delta personnel will be represented through a new Delta Personnel Board Council
(Council) made up of one representative each from seven different personnel
groups:
26
<PAGE>
Airport Customer Service/Cargo; In-Flight Service; Technical Operations;
Reservations Sales; Operational Support/Clerical; Field Sales/Sales Support
Center; and Supervisory/Administrative. The Council will choose three of its
members to represent the Council at each regularly scheduled, quarterly
meeting of the Board of Directors. Neither the Council representatives nor the
pilot representative will have voting rights at Delta's Board meetings.
Other Compensation Matters
Substantially all of Delta's U.S.-based non-contract personnel participate in
the Company's profit sharing programs. Under these programs, participants may
receive, subject to certain conditions, payments that are based on the Company's
profitability during the fiscal year. During the year, the Company accrues
amounts estimated to be payable under these programs.
Effective February 1, 1996, Delta restored to the base salaries of personnel who
participate in the Company's profit sharing programs the 5% reduction in base
salaries that had been implemented on February 1, 1993. On February 23, 1996,
personnel who participate in the profit sharing programs received a lump sum
advance profit sharing payment for fiscal 1996 equal to 5% of their base
salaries from July 1, 1995 through January 31, 1996. The value of the 5% base
salary restoration and the early profit sharing payment will be offset against
any profit sharing awards earned for fiscal 1996. Therefore, these changes are
not expected to result in an increase in operating expenses for fiscal 1996.
27
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
10. Agreement dated April 29, 1996 between Delta Air Lines, Inc. and the
Air Line Pilots in the service of Delta Air Lines, Inc. as represented
by the Air Lines Pilots Association, International.
11. Statement regarding computation of per share earnings.
12. Statement regarding computation of ratio of earnings to fixed charges.
15. Letter from Arthur Andersen LLP regarding unaudited interim financial
information.
27. Financial Data Schedule (For SEC use only).
(b) Reports on Form 8-K:
During the quarter ended March 31, 1996, Delta filed a Current Report
on Form 8-K dated February 29, 1996 relating to the public offering of
$79.6 million aggregate principal amount of 1996 Pass Through
Certificates, Series A1 and A2.
28
<PAGE>
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Delta Air Lines, Inc.
------------------------------
(Registrant)
By: /s/ Thomas J. Roeck, Jr.
------------------------------
Thomas J. Roeck, Jr.
Senior Vice President -Finance
and Chief Financial Officer
May 15, 1996
- ------------
(Date)
29
<PAGE>
EXHIBIT 10
AGREEMENT
Between
DELTA AIR LINES, INC.
and
THE AIR LINE PILOTS IN THE SERVICE OF
DELTA AIR LINES, INC.
as Represented by
THE AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL
Date of Signing: April 29, 1996
Effective Date: May 1, 1996
Duration: May 1, 1996 - May 2, 2000
<PAGE>
TABLE OF CONTENTS
TITLE
<TABLE>
<CAPTION>
SECTION SECTION.PAGE
<C> <S> <C>
1 Recognition and Job Security.......................................... 1.1
2 Definitions........................................................... 2.1
3 Compensation.......................................................... 3.1
4 Minimum Pay Guarantees................................................ 4.1
5 Traveling Expenses.................................................... 5.1
6 Moving Expenses....................................................... 6.1
7 Vacations............................................................. 7.1
8 Deadhead.............................................................. 8.1
9 Miscellaneous Flying.................................................. 9.1
10 Transfer to Non Flying or Supervisory Duty............................ 10.1
11 Training.............................................................. 11.1
12 Hours of Service...................................................... 12.1
13 Leaves of Absence..................................................... 13.1
14 Sick Leave............................................................ 14.1
15 Physical Examinations................................................. 15.1
16 International Category Operations..................................... 16.1
17 Witnesses and Representatives......................................... 17.1
18 Grievances............................................................ 18.1
19 System Board of Adjustment............................................ 19.1
20 Seniority............................................................. 20.1
21 Reduction in Force, Furlough, and Recall.............................. 21.1
22 Filling of Vacancies.................................................. 22.1
23 Scheduling............................................................ 23.1
24 General............................................................... 24.1
25 Medical, Dental, Optional Life and Accident Insurance Benefits........ 25.1
26 Retirement, Basic Life Insurance, Disability and Survivor Benefits.... 26.1
27 Union Security and Check Off.......................................... 27.1
28 Effective Date, Duration and Effect on Other Agreements............... 28.1
</TABLE>
SUPPLEMENTAL AGREEMENTS
TABLE OF CONTENTS
<TABLE>
<CAPTION>
TITLE SECTION.PAGE
<S> <C>
CRAF....................................................................... CR.1
Retirement and Insurance Committee......................................... RI.1
Age 60 Transition to Second Officer........................................ AG.1
Charter.................................................................... CH.1
Sunshine Operation......................................................... SO.1
</TABLE>
i
<PAGE>
LETTERS OF AGREEMENT
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
Letter Number 1 Bank Time Use for FAE........................................... L.1
Letter Number 2 New Hire Pilot Rights........................................... L.2
Letter Number 3 Line of Time Window Expansion................................... L.3
Letter Number 4 Retirement and Insurance Committee Information.................. L.4
Letter Number 5 Disability and Survivorship Plan Long Term Disability Payments.. L.5
Letter Number 6 24.J.2. Billing................................................. L.6
Letter Number 7 Deadhead Relief Pilot Part of Crew.............................. L.7
Letter Number 8 Pilot Mailboxes................................................. L.8
Letter Number 9 MEC, Negotiating Committee Category Options..................... L.9
Letter Number 10 Family Care Savings Plan........................................ L.10
Letter Number 11 Medical Review.................................................. L.11
Letter Number 12 Pilots Returning to Line Flying Following Extended ALPA Duty.... L.12
Letter Number 13 Family Care Savings Plan........................................ L.13
Letter Number 14 Delta Pilots Medical Plan....................................... L.14
Letter Number 15 Delta Pilots Disability and Survivorship Plan................... L.15
Letter Number 16 Retirement Benefit Issues....................................... L.16
Letter Number 17 Stock Options................................................... L.17
Letter Number 18 Board Member.................................................... L.18
Letter Number 19 Instructor(s) Flying............................................ L.19
Letter Number 20 Line of Time Construction for International Flying.............. L-20
Letter Number 21 Swap with the Pot, Ultra Long Call and Jump Seat................ L-21
Letter Number 22 B-737 Displaced Pilots Pay Protection........................... L-22
</TABLE>
OTHER DOCUMENTS
TABLE OF CONTENTS
Pilots Stock Option Plan
Pilots Profit Sharing Program
ii
<PAGE>
AGREEMENT
Between
DELTA AIR LINES, INC.
and
THE AIR LINE PILOTS
in the Service of
DELTA AIR LINES, INC.
as Represented by
THE AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL
THIS AGREEMENT is made and entered into in accordance with the provisions
of the Railway Labor Act, as amended, by and between DELTA AIR LINES, INC.,
(hereinafter known as the "Company"), and the AIR LINE PILOTS in the service of
DELTA AIR LINES, INC., as represented by the AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL (hereinafter known as the "Association").
It is hereby mutually agreed:
<PAGE>
SECTION 1
RECOGNITION AND JOB SECURITY
A. RECOGNITION
1. The Air Line Pilots Association, International, has
furnished the Company proof that a majority of the airline
pilots employed by the Company have designated the
Association to represent them and in their behalf negotiate
and conclude an Agreement with the Company as to rates of
pay, rules and working conditions covering the pilots in the
employ of the Company in accordance with the provisions of
the Railway Labor Act, as amended. This basic collective
bargaining agreement together with all effective amendments,
supplemental agreements, letters of agreement, and letters
of understanding between the Company and the Association,
collectively constitute this "Agreement".
2. Nothing in this Agreement shall be construed to limit or deny any
pilot hereunder any rights or privileges to which he may be entitled
under the provisions of the Railway Labor Act, as amended.
B. DEFINITIONS
1. "Company" means Delta Air Lines, Inc.
2. "Affiliate" means (i) any Subsidiary, Parent or division of the
Company, or (ii) any other Subsidiary, Parent or division of either a
Parent or a Subsidiary of the Company or (iii) any Entity that
Controls the Company or is Controlled by the Company whether directly
or indirectly through the Control of other Entities.
3. "Parent" means any Entity that controls another Entity.
1.1
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
4. "Subsidiary" means any Entity that is Controlled by another Entity.
5. "Control" for the purposes of this Section 1, shall exist by Entity A
over Entity B, only if A, whether directly or indirectly through the
Control of other Entities:
a. owns securities that constitute and/or are
exchangeable into, exercisable for or convertible
into more than (i) 40 percent of B's outstanding
common stock, or if stock in addition to common
stock has voting power then (ii) 40 percent of the
voting power of all outstanding securities of B
entitled to vote generally for the election of
members of B's Board of Directors or similar
governing body, or
b. has the power or right to manage or direct the management of all
or substantially all of B's air carrier operations, or
c. has the power or right to designate or provide all or
substantially all of B's officers, or
d. has the power or right to provide a majority of the following
management services for B: capacity planning, financial planning,
strategic planning, market planning, marketing and sales,
technical operations, flight operations, and human resources
activities, or
e. has the power or right to appoint or elect or prevent the
appointment or election of a majority of B's Board of Directors,
or other governing body having substantially the powers and duties
of a board of directors, or
f. has the power or right to appoint or elect or to prevent the
appointment or election of a minority of B's Board of Directors or
similar governing body, but only if such minority has the power or
right to appoint or remove B's
1.2
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
Chief Executive Officer, or President, or Chief Operating Officer,
or the majority membership of the Executive Committee or similar
committee on B's Board of Directors, or the majority membership of
at least one-half of B's Board committees.
6. "Domestic Air Carrier" means an air carrier as defined in 49
U.S.C. Section 40102(a)(2)
7. "Foreign Air Carrier" means an air carrier other than a Domestic Air
Carrier.
8. "United States" means the United States and its territories.
9. "Entity" means a natural person, corporation, association,
partnership, trust or any other form for conducting business, and any
combination or concert of any of the foregoing.
10. "Company Flying" means all flying reserved under Section 1.C. below
for performance by pilots on the Delta Air Lines Pilots' System
Seniority List ("Seniority List").
11. "International Partner Flying" means flying performed by any Foreign
Air Carrier (who is not an Affiliate) (i) under or utilizing a
designator code, trade name, brand, logo, trademarks, service marks,
aircraft livery or aircraft paint scheme currently or in the future
utilized by the Company or any Affiliate and/or (ii) as described in
(i) above on aircraft on which the Company or any Affiliate has
purchased or reserved blocked space or blocked seats for sale or
resale to customers of the Company or any Affiliate.
12. "Designated Flying" means total monthly scheduled aircraft block hours
operated by pilots on the Seniority List under the terms of this
Agreement on twin-aisle
1.3
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
equipment, between points outside the United States and between the
United States and foreign points.
C. SCOPE
Except as expressly provided in Sections 1.D. and E. below:
1. All flying performed by or for the Company or any Affiliate shall be
performed by pilots on the Seniority List in accordance with the terms
and conditions of this Agreement.
2. Paragraph 1. above includes without limitation all passenger flying,
cargo flying, freight flying, positioning flights and ferry flights
(scheduled and nonscheduled, revenue and nonrevenue) and nonscheduled
flights as defined in Section 2 of this Agreement:
a. Performed by or for the Company or any Affiliate on aircraft
owned, leased or operated by the Company or any Affiliate;
b. Performed on aircraft under the operational control of the Company
or any Affiliate (excluding advisory flight planning and following
services provided by the Company on a fee for service basis to
other air carriers);
c. Performed for the Company or any Affiliate by any Affiliate or
other air carrier;
d. Performed by any Domestic Air Carrier under or utilizing a
designator code, trade name, brand, logo, trademarks, service
marks, aircraft livery or aircraft paint scheme currently or in
the future utilized by the Company or any Affiliate;
1.4
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
e. Performed by pilots on the Seniority List for any other air
carrier.
3. There shall be no contracting, or subcontracting of any Company Flying
to any other air carrier or performance of Company Flying by pilots of
any other air carrier without the prior written consent of the Delta
MEC.
4. Nothing in this Section 1.C. shall be interpreted to cover flying
performed by an air carrier other than the Company or an Affiliate,
merely because of its participation in industry standard interline
agreements.
5. Nothing in this Section 1.C. shall be interpreted to cover flying
performed by an air carrier other than the Company or any Affiliate,
merely because of its participation in the Company's or any
Affiliate's frequent flyer miles program under which passengers of
such other carrier by frequent travel on board the aircraft of that
carrier, may earn travel or other awards.
6. Neither the Company nor any Affiliate shall establish or maintain a
pilot domicile or other base of flight operations at any point outside
the United States unless all Company Flying to and from such domicile
or base is conducted by pilots on the Seniority List who continue at
all times to be covered in all respects by this Agreement and the
Railway Labor Act.
1.5
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
D. PERMITTED ARRANGEMENT WITH DOMESTIC CARRIERS
1. Section 1.C. above shall not apply to flying performed by any Domestic
Air Carrier(s) (other than the Company) for the Company or for any
Affiliate on (i) passenger aircraft configured with 70 or fewer
passenger seats and (ii) freight aircraft with a maximum certificated
gross take off weight of 70,000 or fewer pounds, that carry freight on
or above the cabin floor ("Permitted Aircraft Types").
2. If a Domestic Air Carrier operates both Permitted Aircraft Types and
aircraft other than Permitted Aircraft Types, the exemption for that
Domestic Air Carrier provided by Section D.1. above shall not apply
unless (i) the flying on aircraft other than Permitted Aircraft Types
is not performed for the Company within the meaning of Section 1.C.,
and (ii) there is no reduction in the level of the Company's then
existing system scheduled aircraft block hours of flying as the result
of the performance of such flying on other than Permitted Aircraft
Types.
3. Section 1.C. above shall not apply to flying performed by any
Affiliate on Permitted Aircraft Types.
4. Section 1.C. above shall not apply to flying performed for the Company
by Atlantic Southeast Airlines (ASA) on up to 20 Bae 146 or AVRO RJ85
aircraft, provided that there is no reduction in the level of the
Company's then existing system scheduled block hours of flying as the
result of the performance of such flying by ASA.
1.6
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
5. Section 1.C. above shall not apply to prevent the Company or any
Affiliate from acquiring a Domestic Air Carrier that operates aircraft
other than Permitted Aircraft Types ("Acquired Airline") and operating
such Acquired Airline pending a merger of the Company and the Acquired
Airline, provided that:
a. The Company agrees to operationally merge with the Acquired
Airline and become a single carrier with a single pilot class or
craft, a single collective bargaining agreement and a single
integrated pilot seniority list, not later than six (6) months
after either the effective date of issuance of a final and binding
integrated pilot seniority list or the effective date of the
single collective bargaining agreement, whichever is later;
b. (1) The pilot Seniority Lists of the Company and the Acquired
Airline shall be integrated (i) pursuant to Association
Merger Policy if both groups are represented by the
Association, or (ii) if the pilots of the Acquired Airline
are not represented by the Association, then pursuant to a
method to be determined by the Delta MEC. However, in either
case, the integrated seniority list produced by the
Association, including any attendant conditions and
restrictions shall be subject to the approval of the Company,
and shall be submitted to the Company for approval within
nine (9) months of the date the Company or any Affiliate
acquired Control of the Acquired Airline.
1.7
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
(2) If the Company rejects the list produced by the Association,
the Association may modify the list and resubmit it within
three (3) months after the date of such rejection to the
Company for approval or at the election of the Association,
the Association and the Company shall submit to an arbitrator
mutually selected by the Association and the Company for a
final and binding decision, the choice of a list produced by
the Association and a list produced by the Company.
(3) If the Association does not resubmit a modified list within
the permitted time period or does so resubmit a modified list
but it is rejected by the Company, then the matter shall be
decided through the arbitration procedure set forth above.
(4) Notwithstanding Paragraph (1) above, if the Association does
not produce and present an integrated Seniority List to the
Company for approval within nine (9) months of the date the
Company or any Affiliate acquired Control of the Acquired
Airline, the pilot seniority lists of the Company and the
Acquired Airline shall be integrated pursuant to a method to
be determined by the Company.
c. Wages and benefits for the pilots of the Acquired Airline, to be
effective upon the integration of the two seniority lists, shall
be negotiated between the Company and the Association. Nothing
herein shall entitle either the Company or the Association to
negotiate any other provision of this Agreement except as this
Agreement otherwise permits.
1.8
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
d. During the period between the closing date of the corporate
transaction pursuant to which the Company or any Affiliate
acquires Control of the Acquired Airline and the date of
operational merger, the aircraft (including owned aircraft, leased
aircraft, and all orders and options to purchase aircraft), of
each pre-merger airline shall remain separated. Such pre-merger
aircraft of the Company will be operated by pilots on the System
Seniority List in accordance with the terms and conditions of this
Agreement. Such pre-merger aircraft of the Acquired Airline will
be operated by pilots on its seniority list. Nothing in this
paragraph d. shall apply to prevent the Company from removing any
aircraft from the fleet of either airline. In the event aircraft
are removed from either fleet prior to the operational merger the
Company and its Affiliates will make reasonable efforts consistent
with the then existing financial and operational needs of the
service, to ensure that the ratio of the total number of aircraft
block hours operated by pilots on the Seniority List to the
aircraft block hours operated by pilots of the Acquired Airline
("Block Hour Ratio") is not reduced below the Block Hour Ratio
that existed on the date the Company or any Affiliate acquired
Control of the Acquired Airline.
E. PERMITTED ARRANGEMENTS WITH FOREIGN AIR CARRIERS
1. Section 1.C. above shall not apply to International Partner Flying.
1.9
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
2. During any period of time that Designated Flying is below 15,500
hours:
a. There shall be no substitution or increase in the number of
Foreign Air Carriers performing International Partner Flying, and
b. there shall be no substitution or increase in the number of routes
over which International Partner Flying is performed, and
c. there shall be no increase in the number of flight frequencies on
routes over which International Partner Flying is performed, and
d. the number of permissible hours of international flex (excluding
training flex hours) set forth in Section 12.A.1. of this
Agreement shall be reduced to zero (international flex sanction),
and
e. for three or more consecutive months, the international flex
sanction specified in d. above shall remain in place for a period
of six months from the date Designated Flying next exceeds 15,500
hours.
3. Without the consent of the Delta MEC, neither the Company
nor any Affiliate shall enter into or maintain an agreement or
arrangement with any Foreign Air Carrier performing International
Partner Flying that permits the Company or any Affiliate to book or
ticket under the Company's or Affiliate's designator code, reserve,
block, and/or purchase for resale, more than 50% of the seats in any
month on any flight segment of such Foreign Air Carrier.
1.10
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
4. No Foreign Air Carrier shall in the performance of International
Partner Flying, take on for hire, persons, property or mail at any
point within the United States that is destined to be transported by
such Foreign Air Carrier to any other point within the United States.
<PAGE>
5. The Company shall be excused from compliance with the provisions of
paragraph 2. above in the event a circumstance over which the Company
does not have control is the cause of such noncompliance. The term
"circumstance over which the Company does not have control" includes,
but is not limited to, a natural disaster; labor dispute; grounding of
a substantial number of the Company's aircraft by a government agency;
reduction in flying operations because of a decrease in available fuel
supply or other critical materials due to either governmental action
or commercial suppliers being unable to provide sufficient fuel or
other critical materials for the Company's operations; revocation of
the Company's operating certificate(s); war emergency; owner's delay
in delivery of aircraft scheduled for delivery; manufacturer's delay
in delivery of new aircraft scheduled for delivery. The term
"circumstance over which the Company does not have control" shall not
include the price of fuel or other supplies, the price of aircraft,
the state of the economy, the financial state of the Company, or the
relative profitability or unprofitability of the Company's then-
current operations.
1.11
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
F. AFFILIATES AND SUCCESSORS
1. This Agreement shall be binding upon any Affiliate. The
Company shall not conclude any agreement or arrangement that
establishes an Affiliate unless such Affiliate agrees in
writing as an irrevocable condition of such agreement or
arrangement to be bound by this Agreement and if the
Affiliate is an air carrier or Parent or Subsidiary of an
air carrier, to operate as part of a single carrier with the
Company in accordance with the terms of this Agreement,
unless the Affiliate operates only Permitted Aircraft Types.
2. This Agreement shall be binding upon any successor, including without
limitation, any merged company or companies (as defined in Section 2.
(a) of the Allegheny-Mohawk Labor Protective Provisions), assignee,
purchaser, transferee, administrator, receiver, executor and/or
trustee of all or substantially all of the equity securities and/or
assets of the Company or any Affiliate (a "Successor") whether as a
result of a single transaction or multi-step transactions (a
"Successorship Transaction"). Neither the Company nor any Affiliate
shall conclude any agreement with a Successor for a Successorship
Transaction, or that will result in or create a Successor, unless the
Successor agrees in writing to assume and be bound by this Agreement,
to recognize the Association as the representative of the pilots on
the Seniority List consistent with the Railway Labor Act, and to agree
that the employment of such pilots will be pursuant to the terms of
the Agreement.
1.12
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
3. If an Affiliate or Successor is an air carrier that operates other
than Permitted Aircraft Types, the requirements of paragraph D.4. a-d.
above will govern the resulting operational merger.
G. CHANGE IN CONTROL
1. In the event that through a single transaction or multi-step related
transactions, any Entity acquires Control of the Company or any
Affiliate air carrier that operates other than Permitted Aircraft
Types (any such transaction, a "Change in Control"), the Association
shall have the right in its sole discretion upon written notice to the
Company within 60 days of receiving written notice of the Change in
Control, to serve a Section 6 notice to reopen this Agreement in whole
or in part, or to extend the duration of this Agreement for one, two
or three years past the amendable date.
2. The provisions in paragraph 1. above shall not apply if the
transaction that constitutes a "Change in Control" consists solely of
a corporate form restructuring that creates a Parent holding company
of the Company, whose shareholders and Board of Directors at the
closing of the transaction are substantially the same as the
shareholders and Board of Directors of the Company immediately
preceding the transaction.
3. The provisions in paragraph 1. above shall not apply to any Entity
that is an IRS qualified employee benefit plan of the Company (or a
Parent), or a trustee or other fiduciary of such plan acting in its
capacity as such, provided that the plan is one in which (i) all
pilots on the Seniority List who meet the general service requirements
applicable to all participants are entitled to participate; (ii) stock
of
1.13
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
the Company or Affiliate allocated to accounts of participants is
voted in accordance with the instructions of the participants if any
are given and (iii) the trustee voting unallocated stock is a
nationally recognized bank or financial institution. If stock in the
plan which is not required to be voted in accordance with directions
of the participants is tendered to an Entity outside the plan, such
stock shall be deemed to be no longer owned by the plan for purposes
of this Paragraph 3.
H. OPPORTUNITY TO MAKE COMPETING PROPOSAL
In the event the Company receives a proposal for a transaction that
would, if completed, result in a Successor or Change in Control, and
the Company determines to pursue or facilitate the proposal the
Company and/or Affiliate will in good faith seek to provide the
Association with the opportunity to make a competing proposal at such
time and under such circumstances as the Board of Directors of the
Company and/or Affiliate reasonably determines to be consistent with
their fiduciary duties.
I. GENERAL FURLOUGH PROTECTION
1. No pilot senior to J. R. Agne (number 8367 on the seniority
list as of January 1, 1996) shall be placed on furlough.
1.14
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
2. All pilots on the Seniority List who are on furlough shall be recalled
to service not later than July 1, 1997. The Company and the
Association shall make every reasonable effort to agree upon a
furlough recall schedule for 1996 and 1997 that is consistent with
projected operational needs, provided that recalls shall be
accomplished no later than July 1, 1997 whether or not agreement is
reached on a recall schedule.
3. The Company shall be excused from compliance with the provisions of
Paragraphs 1. and 2. above in the event a circumstance over which the
Company does not have control is the cause of such noncompliance. The
term "circumstance over which the Company does not have control"
includes, but is not limited to, a natural disaster; labor dispute;
grounding of a substantial number of the Company's aircraft by a
government agency; reduction in flying operations because of a
decrease in available fuel supply or other critical materials due to
either governmental action or commercial suppliers being unable to
provide sufficient fuel or other critical materials for the Company's
operations; revocation of the Company's operating certificate(s); war
emergency; owner's delay in delivery of aircraft scheduled for
delivery; manufacturer's delay in delivery of new aircraft scheduled
for delivery. The term "circumstance over which the Company does not
have control" shall not include the price of fuel or other supplies,
the price of aircraft, the state of the economy, the financial state
of the Company, or the relative profitability or unprofitability of
the Company's then-current operations.
1.15
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
4. The Company shall be excused from compliance with the provisions of
Paragraph 2. above, on a one-for-one basis to the extent that (i)
pilots on the Seniority List are flying beyond age 60 as a Captain or
First Officer as of July 1, 1997 as the result of a change effective
before July 1, 1997, in the mandatory age limitations of the Federal
Air Regulations and/or (ii) less than 160 pilots on the Seniority List
who will reach age 60 on or after July 1, 1997, become participants in
the Company's special early retirement program for pilots that is
being offered as part of this Agreement. If 160 or more of such
pilots become participants in the Company's special early retirement
program, then such additional pilot shall count on a one-for-one basis
to offset the numbers of pilots under (i) above.
J. ASSOCIATE NON-VOTING MEMBER OF THE BOARD OF DIRECTORS AND INFORMATION
SHARING
1. The Association shall be entitled to appoint an associate non-voting
member of the Company's Board of Directors ("Member") to attend the
regular quarterly meetings of the Company's Board of Directors. The
Member, who must be an active pilot employee of the Company, shall be
entitled to receive notice of and to participate in all such meetings
and participate in any other meetings as deemed appropriate by the
Chairman of the Board of Directors; provided, however, that the Board
of Directors may hold executive sessions of such meetings, or hold
meetings at any other time, from which such Member may be excluded.
Such Member shall have no voting rights, but shall be entitled to
schedule agenda time to address the Board on matters of interest to
the Association and Company and shall be subject to such reasonable
confidentiality requirements as may be determined by the Company, as
well as applicable legal requirements. The
1.16
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
interpretation of the provisions of this section shall not be subject
to the grievance and or System Board of Adjustment procedures of
Section 18 and 19 of the Agreement and shall be subject to the laws
of the State of Delaware.
2. The Company will provide the Association on a periodic basis at their
reasonable request, with detailed historical operating and financial
information on the Company and when agreed to by the Company, detailed
projected operating and financial information on the Company. Access
to, use and distribution of, information provided to the Association
under this paragraph J. 2. will be conditioned upon and governed by
reasonable confidentiality agreements deemed appropriate by the
Company and Association.
<PAGE>
K. REMEDIES
The Company at the written request of the Association will arbitrate
any grievance filed by the Association alleging a violation of this
Section 1 on an expedited basis directly before the System Board of
Adjustment sitting with a neutral arbitrator.
1.17
<PAGE>
SECTION 2
DEFINITIONS
Terms used in this Agreement are defined as follows:
ACQUIRED PILOT. Any person employed by the Company as a cockpit
crewmember, whose employment with the Company commenced not earlier than
September 1, 1991 and not later than November 1, 1991, whose employment
was the direct consequence of the acquisition by the Company of certain
assets of Pan American World Airways, Inc. (under the terms of the Asset
Purchase Agreement of July 27, 1991) and who, as of July 27, 1991 held and
exercised the privilege of a seniority number on the seniority list(s) of
cockpit crew members for Pan American World Airways, Inc.
ADVANCE ENTITLEMENT. A bid award or assignment to a category position which
is anticipated to become effective on a later conversion date.
AUTHORIZED MONTHLY MAXIMUM. Shall be the upper limit of the flex cap as
determined in Section 12.A.2. and 12.A.4.
BLOCK-TO-BLOCK. That period of time beginning when an aircraft first moves
from the ramp blocks for the purpose of flight or repositioning and ending
when the aircraft comes to a stop at the ramp at the next intermediate stop
or final destination or point of departure, as the case may be.
CATEGORY. A position, or group of positions, of line pilots of common base,
equipment type and status.
CATEGORY, NEW OR REESTABLISHED. A category which has been in existence for
sixty (60) days or less.
2.1
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
CONVERSION DATE. The effective date of a category position and the
termination date of the Advance Entitlement for such category position.
CO-TERMINALS. As used in this Agreement shall include the following airport
combinations:
1. DCA/IAD
2. DFW/DAL
3. IAH/HOU
4. JFK/EWR/LGA
5. LAX/BUR/LGB/ONT/SNA
6. MIA/FLL
7. ORD/MDW
8. SFO/OAK/SJC
DESIGNATED MONTHLY MAXIMUM. The monthly maximum credit time that
determines the scheduling limits in accordance with the flex cap
rules.
DISPLACEMENT ENTITLEMENT. A bid award or assignment of a surplus position
that is anticipated on a later conversion date.
DISTRIBUTED TRAINING. Training other than training accomplished by an
Instructor in a classroom, Flight Training Device, Flight Simulator or
airplane.
DUTY HOURS. The elapsed time:
1. From the time a pilot
a. Is required to report for flight duty (one hour
prior to scheduled departure) or deadheading to or
from flight duty (thirty (30) minutes prior to
scheduled departure), or
2.2
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
b. Actually does report, whichever is later. Company requested late
reporting shall not serve to reduce the one (1) hour report time
for duty hour purposes.
c. Duty hours shall include ground travel time as provided under
Section 8.B. of this Agreement.
2. Until the time such pilot is released from such duty:
a. Thirty (30) minutes after the later time of actual block-in time
or block-in time based on scheduled elapsed time from the later of
actual or scheduled departure of the last flight segment flown or
deadheaded for domestic flights (thirty minutes (:30) for
International flights), or
b. Actual release time, whichever is later, and shall continue until
broken by a legal rest period as described in Section 12.F. (Break
in Duty Hours).
c. If a pilot reports for duty at his home domicile and does not
depart, duty hours will terminate when notification of release is
provided the pilot from Flight Control via teletype.
FLYING PAY. Equipment base pay, hourly, mileage, gross weight,
International and Specialized Navigation Procedures pay as specified in
this Agreement.
FOREIGN PILOT BASE. A station located outside the boundaries of the
contiguous forty-eight (48) United States which is the common domicile of a
pilot or group of pilots from which scheduled and non-scheduled flying is
accomplished.
INCREMENT PAY. A rate of flying pay, payable at minute rates applicable to
pilots not on salary.
INITIAL TRAINING. Training necessary to create an equipment and status
qualification.
2.3
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
INTERNATIONAL CATEGORY. A position, or group of positions, of line pilots of
common base, equipment type and status where qualification in Transoceanic
Navigation Procedures is required.
INTERNATIONAL OPERATIONS. Operations including all flights which commence
(measured at block-out time) at the airport of last departure before leaving
the boundaries of the United States as such boundaries existed January 1,
1955, and proceed to any destination outside such boundaries; any flight or
flights at or between any airport or airports outside such boundaries; and
all flights between any airport outside such boundaries which terminate
(measured at block-in time) at the first airport of arrival within such
boundaries.
INTRA-THEATRE OPERATIONS. Operations within an International Category duty
period that do not include an ocean crossing and that do not exceed
the on-duty limitations and flight time limitations outlined in Section 12.E.
and 12.M.1.(4).
LINE OF TIME. A pilot's monthly schedule as follows:
1. "Initial Line of Time" shall be a pilot's initially awarded line of
time (before move-up) as provided in Section 23.C. (Line of Time
Selection Procedures).
2. "Adjusted Line of Time" shall be the initial line of time as adjusted
by a move-up or move-ups as provided in Section 23.E. (Escalation
(Move-Ups)).
3. "Modified Line of Time" shall be an initial or adjusted line of time
as modified by the picking up of reserve time as provided in Section
23.F. (White Slip/Yellow Slip/Green Slip), as modified by approved
trip swaps, or as modified by approved personal trip drop.
4. "Composite Line of Time" shall be a line of time composed partially of
reserve time and partially of regular time.
2.4
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
5. "Supplemental Regular Line" - Reserve or open time, combined on full
bid period regular lines of time, including all the rights and
responsibilities of a regular line, and awarded in seniority
order among reserve line holders within a category.
MONTH. A calendar month, except that for pilot scheduling and pay
purposes, January, February, and March shall be considered as having
thirty (30) days each, except in Leap Year. During Leap Year, January and
March shall be considered as having thirty (30) days each.
NON-SCHEDULED FLIGHTS. Publicity; contract; charter flights not shown on a
pilot's regular line of time; scenic; attempts; rerouted flights; ferries;
engine, instrument, airplane and radio test flights; proving runs and
experimental and airway aid test flights.
OCEAN CROSSING. For the purpose of this Agreement, an ocean crossing shall
consist of a crossing of the Atlantic Ocean, a crossing of the Pacific Ocean
between the North American Continent and the Hawaiian Islands, a crossing of
the Pacific Ocean between the Hawaiian Islands and any point west of the 160
degree meridian, a crossing of the Pacific Ocean from the North American
Continent to a point west of the 160 degree meridian, a crossing from Pacific
Rim stations to Australia and/or New Zealand.
PILOT. An employee of Delta Air Lines whose name appears on the Delta Air
Lines Pilots' System Seniority List.
CAPTAIN - A pilot who is in command and who is responsible
for the manipulation of, or who manipulates, the flight controls of an
aircraft while under way, including takeoff and landing of such
aircraft; who is properly qualified to serve as and holds currently
effective airman's certificates authorizing him to serve as such pilot.
2.5
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
FIRST OFFICER - A pilot who is second in command and who is to assist or
relieve the captain in the manipulation of the flight controls of an
aircraft while under way, including takeoff and landing of such aircraft;
who is properly qualified to serve as and holds currently effective
airman's certificates authorizing him to serve as such First Officer.
RELIEF PILOT - A type-rated First Officer current on the appropriate
equipment and in the appropriate status.
SECOND OFFICER - A pilot holding a commercial license or a currently
effective flight engineer certificate, and who is subordinate in
command to the Captain and First Officer.
RELIEF SECOND OFFICER A Second Officer current on the appropriate
equipment and in the appropriate status.
UNASSIGNED PILOT - A pilot who does not occupy a category position but who
is assigned to a base.
CURRENTLY QUALIFIED PILOT - A pilot who holds the proper current
qualifications to fly revenue trips or a pilot who is scheduled to be
qualified before the first (1st) day of the month for which line of time
selections are taking place. Such qualification shall be independent of
Initial Operating Experience requirements.
PILOT BASE. A station which is the common domicile of a pilot or group of
pilots from which scheduled and non-scheduled flying is accomplished.
POSITION. A job requiring one pilot classified by category, or an instructor
pilot, or as supervisor, etc.
2.6
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
RECURRENT TRAINING (RECURRING TRAINING). Training necessary to maintain an
equipment and status qualification.
ROTATION. A trip or series of trips beginning when a pilot is scheduled to
depart his pilot base, and ending when such pilot is scheduled to receive at
his pilot base a legal off-duty period as described in Section 12.F. (Break
in Duty Hours).
SCHEDULED FLIGHT.
1. The flights included in the published schedules and extra
sections thereof.
2. Any flight shown on a pilot's regular line of time, including
deadheading.
SCHEDULED TIME. The time specified in the operating schedules used by the
Company for flying pay purposes.
SERVICE. The period of time as a line pilot, instructor pilot, or
supervisory pilot with the Company, except as otherwise provided in this
Agreement.
SMALL CATEGORY. An International Category containing fewer than 1500
scheduled credit hours per month.
STATUS. A pilot's cockpit position, or bid category position, or both, as
captain, first officer, or second officer, in descending order of rank and
authority.
TRIP. That portion of a scheduled flight normally flown by one crew.
TRIP HOURS. The elapsed time between the time a pilot is required to report
at his base, or actual report time, whichever is later, (Company-requested
late reporting shall not serve to reduce the one (1) hour report time for
trip hour purposes) and the time such pilot is released at his base for a
legal rest free from all duty with the Company:
2.7
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
1. Minimum thirty (30) minutes for Domestic and International
flights, after the later of actual block-in time, or block-
in time based on scheduled elapsed time from the later of
actual or scheduled departure of the last flight segment
flown or deadheaded, or
2. Actual release time, whichever is later.
TRIPS SHOWN. The flying pay and the pay credit for the trips shown on a
pilot's line of time.
2.8
<PAGE>
SECTION 3
COMPENSATION
A. CAPTAIN'S EQUIPMENT BASE PAY
Each pilot when serving as a captain shall be paid equipment
base pay at a minute rate. The following equipment base pay
rates will be effective on the dates indicated:
MD-11 INT'L
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.350610 2.415545
2 2.437632 2.504307
3 2.459918 2.527041
4 2.484383 2.551994
5 2.509392 2.577503
6 2.531954 2.600516
7 2.553427 2.622418
8 2.579527 2.649041
9 2.601272 2.671221
10 2.634165 2.704772
11 2.665972 2.737214
12* 2.698587 2.770483
*and thereafter
3.1
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
MD-11 DOM
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.337094 2.399591
2 2.424114 2.488354
3 2.446403 2.511087
4 2.470869 2.536043
5 2.495876 2.561549
6 2.518440 2.584565
7 2.539911 2.606467
8 2.566011 2.633089
9 2.587758 2.655269
10 2.620651 2.688820
11 2.652451 2.721258
12* 2.685074 2.754531
*and thereafter
L-1011-500 INT'L**
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.344372 2.408183
2 2.431392 2.496943
3 2.453681 2.519678
4 2.478145 2.544632
5 2.503154 2.570141
6 2.525716 2.593154
7 2.547190 2.615056
8 2.573290 2.641678
9 2.595034 2.663858
10 2.627927 2.697410
11 2.659732 2.729850
12* 2.692350 2.763121
*and thereafter
**Applies to all L-1011 models except L-1011-1.
3.2
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
L-1011-500 DOM**
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.320845 2.381218
2 2.407751 2.469863
3 2.430151 2.492711
4 2.454678 2.517729
5 2.479591 2.543140
6 2.502189 2.566189
7 2.523625 2.588054
8 2.549696 2.614647
9 2.571518 2.636905
10 2.604349 2.670394
11 2.636214 2.702894
12* 2.668851 2.736185
*and thereafter
**Applies to all L-1011 models except L-1011-1.
L-1011-1
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.307016 2.367114
2 2.331758 2.392349
3 2.354318 2.415360
4 2.378511 2.440038
5 2.403520 2.465547
6 2.426080 2.488558
7 2.447554 2.510460
8 2.473651 2.537080
9 2.495398 2.559263
10 2.528291 2.592814
11 2.560369 2.625534
12* 2.592716 2.658527
*and thereafter
3.3
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
B-767-300ER INT'L
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.164674 2.223861
2 2.186305 2.245925
3 2.208321 2.268381
4 2.230721 2.291227
5 2.253316 2.314276
6 2.274561 2.335945
7 2.293870 2.355641
8 2.318401 2.380663
9 2.337712 2.400358
10 2.368027 2.431281
11 2.398738 2.462607
12* 2.428672 2.493138
*and thereafter
B-767-300ER DOM
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.151158 2.207907
2 2.172789 2.229971
3 2.194803 2.252425
4 2.217207 2.275278
5 2.239800 2.298323
6 2.261043 2.319989
7 2.280354 2.339687
8 2.304885 2.364709
9 2.324194 2.384405
10 2.354514 2.415331
11 2.385223 2.446654
12* 2.415154 2.477183
*and thereafter
3.4
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
B-767-300
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.146965 2.203011
2 2.168594 2.225071
3 2.190607 2.247525
4 2.213007 2.270374
5 2.235607 2.293425
6 2.256849 2.315094
7 2.276158 2.334787
8 2.300689 2.359809
9 2.320000 2.379507
10 2.350318 2.410431
11 2.381027 2.441754
12* 2.410958 2.472285
*and thereafter
B-767-200
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.144929 2.200585
2 2.166405 2.222489
3 2.188425 2.244949
4 2.210987 2.267963
5 2.233547 2.290974
6 2.254751 2.312603
7 2.274054 2.332291
8 2.298516 2.357243
9 2.317814 2.376927
10 2.348260 2.407983
11 2.378978 2.439314
12* 2.408883 2.469816
*and thereafter
3.5
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
B-757-200
YEARS OF
SERVICE 5/1/96 5/1/2000
1 2.106629 2.160718
2 2.131291 2.185874
3 2.154778 2.209831
4 2.178263 2.233785
5 2.203220 2.259240
6 2.225825 2.282298
7 2.249016 2.305954
8 2.272798 2.330211
9 2.294523 2.352369
10 2.327109 2.385607
11 2.359696 2.418847
12* 2.391996 2.451791
*and thereafter
B-727-200
YEARS OF
SERVICE 5/1/96 5/1/2000
1 1.934466 1.984549
2 1.957300 2.007840
3 1.979046 2.030020
4 2.000793 2.052202
5 2.023897 2.075769
6 2.044831 2.097120
7 2.066304 2.119024
8 2.088322 2.141482
9 2.108440 2.162002
10 2.138615 2.192782
11 2.168786 2.223555
12* 2.198689 2.254055
*and thereafter
3.6
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
MD-90
YEARS OF
SERVICE 5/1/96 5/1/2000
1 1.846549 1.894153
2 1.867031 1.915044
3 1.888484 1.936926
4 1.911500 1.960404
5 1.934520 1.983884
6 1.956560 2.006364
7 1.978791 2.029040
8 2.001029 2.051722
9 2.020340 2.071420
10 2.052131 2.103846
11 2.081977 2.134291
12* 2.113380 2.166320
*and thereafter
MD-88
YEARS OF
SERVICE 5/1/96 5/1/2000
1 1.846549 1.894082
2 1.867031 1.914975
3 1.888484 1.936857
4 1.911500 1.960333
5 1.934520 1.983813
6 1.956560 2.006295
7 1.978791 2.028971
8 2.001029 2.051653
9 2.020340 2.071351
10 2.052131 2.103777
11 2.081977 2.134220
12* 2.113380 2.166251
*and thereafter
3.7
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
B-737-300
YEARS OF
SERVICE 5/1/96 5/1/2000
1 1.821473 1.868315
2 1.841857 1.889109
3 1.863064 1.910740
4 1.885895 1.934026
5 1.908731 1.957320
6 1.930477 1.979500
7 1.952493 2.001955
8 1.974515 2.024420
9 1.993542 2.043826
10 2.025075 2.075991
11 2.054706 2.106213
12* 2.085695 2.137822
*and thereafter
B-737-200
YEARS OF
SERVICE 5/1/96 5/1/2000
1 1.820535 1.867209
2 1.840922 1.888004
3 1.862129 1.909635
4 1.884960 1.932922
5 1.907795 1.956215
6 1.929542 1.978395
7 1.951560 2.000855
8 1.973577 2.023313
9 1.992606 2.042722
10 2.024140 2.074886
11 2.053771 2.105109
12* 2.084760 2.136717
*and thereafter
3.8
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
B. CAPTAIN'S HOURLY PAY
1. Each pilot when serving as captain shall be paid hourly flying pay
for each pay hour flown, payable monthly, at rates based on the speed
in miles per hour of the equipment flown at the following minute
rates:
275 UTBNI* 325 $.164167
325 375 .212000
375 473 .216667
473 500 .220833
500 and over .227500
*Up to but not including
2. In determining flight time for flying pay purposes, the
actual time from block-to-block (stop to stop) or the
scheduled time from block-to-block (stop to stop), whichever
is greater, shall be used on all scheduled and extra section
flights and the actual time from block-to-block (stop to
stop) shall be used on all non-scheduled flights as defined
in Section 2 (Definitions). The speed for pay purposes for
all such flying shall be not less than 428 MPH for MD-90,
MD-88 and B-737 equipment; 472 MPH for B-727 equipment; and
474 MPH for B-757 equipment, B-767 equipment, MD-11
equipment and L-1011 equipment.
3. For pay and flight time credit purposes, the date on which a pilot is
scheduled to originate his portion of a trip shall be
considered the date on which the trip was flown.
3.9
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
4. a. Each pilot when serving as Captain who is either
assigned to a Domestic category and flies an
International route segment, or who is assigned to
an International category, shall be paid three
dollars and fifty cents ($3.50) per hour.
b. Each pilot when serving as a Captain and assigned to an
International category and who is trained to use Specialized
Navigation Procedures shall be paid three dollars ($3.00) per hour
in addition to other rates of pay provided in this agreement.
5. When a scheduled or extra section flight does not land at a stop
scheduled on that flight for any reason, the scheduled time from
block-to-block or the actual time from block-to-block, whichever is
greater, shall be paid as though the stop had been made.
6. If aircraft other than the equipment listed above are placed in
revenue operations, prior thereto conferences shall be initiated by
either the Company or the Association under the provisions of the
Railway Labor Act, as amended, irrespective of Section 28 (Duration)
of this Agreement, for the purpose of establishing rates of pay, rules
and working conditions applicable to such new equipment. Such rates of
pay, rules and working conditions shall be effective as of the date
the equipment is placed in scheduled or non-scheduled operation by the
Company. Pilots shall fly such new aircraft in the Company's scheduled
and non-scheduled operation at such time as such aircraft are declared
airworthy by the Federal Aviation Administration whether or not rates
of pay, rules and working conditions for such equipment have been
agreed upon; provided,
3.10
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
however, that this obligation shall not continue if such rates of pay,
rules and working conditions have not been agreed upon for a period of
six (6) months after such new aircraft has been placed in operation by
the Company.
C. CAPTAIN'S MILEAGE PAY
1. Each pilot when serving as captain shall be paid monthly mileage pay
at the rate of three cents ($0.03) for each flight mile credited.
2. For the purpose of determining mileage to be used in mileage pay
computation for pilots when serving as captains, the pay hours flown
as determined in Paragraph B of this Section shall be used and shall
be multiplied by the pegged speed of the equipment flown.
3. Pegged speed for mileage pay computation purposes shall be as
stipulated in Paragraph B.2. of this Section.
D. CAPTAIN'S GROSS WEIGHT PAY
1. Each pilot when serving as captain shall be paid gross weight pay at
the rate of three cents ($0.03) per pay hour for each 1000 pounds of
the maximum certificated gross weight of the airplane flown.
2. For the purpose of computing gross weight, odd amounts of 500 pounds
or less shall be disregarded and odd amounts of over 500 pounds shall
be considered to be 1000 pounds.
3.11
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
3. The following weight of the Company's fleet of aircraft of a type
shall be used as the maximum certificated gross weight.
MD-11 610,000 pounds
L-1011-500 INT'L 510,000 pounds
L-1011-500 DOM 430,000 pounds
L-1011-250 INT'L 510,000 pounds
L-1011-250 DOM 430,000 pounds
L-1011 430,000 pounds
B-767-300ER 407,000 pounds
B-767-300 345,000 pounds
B-767-200 310,000 pounds
B-757 230,000 pounds
B-727 184,000 pounds
MD-90-30 156,000 pounds
MD-88 149,500 pounds
B-737-300 130,000 pounds
B-737-200 115,500 pounds
4. Where aircraft of another carrier are used, the maximum certificated
gross weight used for individual aircraft shall be the average weight
of the aircraft made available by that carrier.
E. FIRST OFFICER'S FLYING PAY
1. During his first twelve (12) months of service as a pilot with the
Company, each pilot who has completed the I.O.E. for his entry level
qualification, serving as First Officer, will receive fifty-five cents
($.55) per minute for each minute of credited time. Each pilot who has
completed one year of service with the Company as a pilot shall when
serving as first officer be paid the percentage of the total flying
pay of a captain, had his first officer time been performed as
captain, as follows:
3.12
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
MD-11, B-767,
L-1011 B-757, MD-90,
B-727 MD-88, B-737
2nd year 45.0% 45.0%
3rd year 54.0% 54.0%
4th year 62.6% 63.1%
5th year 63.6% 64.1%
6th year 64.7% 65.2%
7th year 66.0% 66.5%
8th year 67.0% 67.5%
9th year 67.2% 67.7%
10th year 67.6% 68.1%
11th year 67.7% 68.2%
12th year and thereafter 67.8% 68.3%
2. In computing the hours for each pilot serving as first officer, for
pay purposes, the method used shall be the same as that used for
captain.
3. Each pilot, who has completed one year of service with the Company as
a pilot shall, when serving as a first officer flying International
Operations or each First Officer assigned to an International category
shall be paid in addition to other rates of compensation provided in
this Agreement, his applicable percentage of captain pay as provided
in Paragraph B.4. of this Section.
F. SECOND OFFICER'S FLYING PAY
1. During his first twelve (12) months of service as a pilot with the
Company, each pilot who has completed the I.O.E. for his entry level
qualification, serving as second officer, will receive fifty-five
cents ($.55) per minute for each minute of credited time. Each pilot
who has completed one year of service with the Company as a pilot
shall when serving as second officer be paid the percentage of
3.13
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
the total flying pay of a captain, had his second officer
time been performed as captain, as follows:
L-1011, B-727
2nd year 32.0%
3rd year 36.0%
4th year 52.1%
5th year 53.1%
6th year 54.0%
7th year 54.6%
8th year 54.7%
9th year 54.8%
2. In computing the hours for each pilot serving as second
officer, for pay purposes, the method used shall be the same
as that used for captains.
3. Each pilot, who has completed one year of service with the Company as
a pilot shall, when serving as a Second Officer flying International
Operations or each second officer assigned to an International
category shall be paid in addition to other rates of compensation
provided in this Agreement, his applicable percentage of captain pay
as provided in paragraph B.4. of this Section.
G. ENTRY LEVEL PILOT PAY (SALARIED)
For the period from his date of employment as a pilot, through the
completion of Initial Operating Experience (I.O.E.) for his entry level
qualification, each pilot shall be paid at the rate of two thousand
dollars ($2000.00) per month.
3.14
<PAGE>
SECTION 4
MINIMUM PAY GUARANTEES
A. REGULAR LINE
1. Each pilot eligible for flying pay shall be guaranteed
minimum monthly flying pay, payable monthly, in an amount
equal to ten (10) hours less than the designated monthly
maximum, or his adjusted line of time projection subsequent
to the end of month changeover, whichever is less.
a. In the event such pilot is assigned to a Domestic category and in
the event more than one type of equipment is shown on his regular
line of time, this guarantee shall be prorated on the types of
equipment in the amount each type of equipment is scheduled in
relation to the total scheduled time shown on the line of time.
b. In the event a pilot receiving the regular line guarantee is
assigned to an International category that guarantee shall include
International and Specialized Navigation Procedures pay.
c. In the event a pilot receiving the regular line guarantee is
assigned to a B-767 International category that guarantee shall be
at the rate appropriate for the B-767-300ER.
2. The monthly guarantee as provided in Paragraph A.1. of this
Section shall not be reduced by such pilot flying lower
paying equipment than that shown on his line of time.
3. Except as provided in Section 12.A. (Monthly Maximum Credit Hours),
Section 18 (Grievances), Section 23.I.1.g. (Reserve Flying), and
Section 11.E.2. (Training
4.1
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
Pay and Credit) of this Agreement, each pilot who is removed from his
regular line of time shall be paid flying pay (including International
and Specialized Navigation Procedures pay if applicable) on a
scheduled basis for the trips shown and shall receive flight time
credit for the trips shown, or pay and credit as provided in this
Agreement for the trip or trips flown, whichever is greater. In
computing whichever is greater, each trip flown will be compared to
that trip shown on his line of time he would have flown and the pilot
shall receive pay and credit for the greater of the two. When a pilot
is assigned a trip under provisions of Section 23.I.1.a. (Reserve
Flying) that interferes with a trip on his regular line, this
paragraph shall apply.
4. When a pilot is awarded or assigned a regular line of time and
equipment other than the type normally used is substituted on a trip
or trips on that line of time and he flies such trip or trips, he
shall in no case be paid less than the rate applicable to the
equipment specified on the line of time for the actual or scheduled
flight time, whichever is greater, applicable to the equipment flown.
This Paragraph shall apply to a Company-approved trip swap between
regular line of time holders.
5. Beginning with the first (1st) rotation on his adjusted line of time
subsequent to the end of the month changeover, if a regular line
holder is unable to fly a rotation or portion thereof as shown on his
line of time due to a substitution of equipment on which he is not
currently qualified, cancellation, overflight, misconnects, or Federal
Air Regulations, he shall be paid and credited for the schedule time
so
4.2
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
lost. In such cases the Company may deadhead the pilot to position
him to fly any portion of his original rotation, or
a. Not later than six (6) hours from the originally scheduled report
time as shown on the pilot's line of time, assign replacement
flying originating on "A" or "B" day, and releasing not later than
four (4) hours from release of original rotation as shown on the
pilot's line of time.
(1) During the six (6) hour window from the originally scheduled
report time a pilot shall be readily available for assignment
of replacement flying. If no such flying is assigned the
pilot shall be released with no further obligation.
(2) A hotel room shall be provided for a pilot who has reported
for duty at his domicile, if the time between notification of
replacement flying and the scheduled departure of the
replacement flying is at least five (5) hours and the
replacement flying is within the same duty period based on the
report time of the original rotation.
(3) A hotel room will be provided in the event a pilot reports for
duty at his domicile, is released without having flown,
receives a legal break, followed by a new report time in the
same calendar day as his original report time and having a
release time later than the scheduled release time from the
duty period for which he originally reported.
6. For irregular operations that occur when the pilot is away from his
domicile, the provisions of Section 23.D.5. shall apply.
4.3
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
7. Any trip or trips included in a Company-approved trip swap between
regular line holders shall be considered as an integral part of that
pilot's line of time. Trip swaps will not be approved until initial
escalations have been awarded.
8. When a regular line holder, by application of Section 23.F. (White
Slip) or 23.I.1.c.e. or f., has a rotation shown on his line of time,
that rotation shall become an integral part of that pilot's line of
time unless he is displaced.
B. RESERVE LINE
1. Each pilot who is eligible for flying pay and who is the holder of a
reserve line of time for the month as provided under Section 23.C. and
E. shall be guaranteed appropriate minimum monthly flying pay, payable
monthly as follows:
<PAGE>
MD-11 Reserve Line 5 hrs. less than the designated
monthly maximum @ MD-11 rates
L-1011 Reserve Line 5 hrs. less than the designated
monthly maximum @ L-1011/1/ rates
B-767-300ER Reserve Line 5 hrs. less than the designated
B-767-300 monthly maximum @
B-767-200 B-767-300ER/B-767-300/
B-757-200 B-767-200/B-757-200/2/ rates,
B-727 Reserve Line 5 hrs. less than the designated
monthly maximum @ B-727 rates
MD-90 Reserve Line 5 hrs. less than the designated
MD-88 monthly maximum @ MD-90/MD-88/3/
rates
B-737-300 Reserve Line 5 hrs. less than the designated
B-737-200 monthly maximum @ B-737/B-737-
200/4/ rates
4.4
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
/1/This guarantee shall be prorated on the basis of the
ratio of hours flown on each type of L-1011, (L-1011, L-
1011-500) to the total hours flown. This prorated guarantee
shall apply only in the event that the L-1011-500 is
actually flown by a reserve pilot.
/2/This guarantee shall be prorated on the basis of the ratio of hours
flown on each type (B-767-300ER, B-767-300, B-767-200, B-757-200) to
the total hours flown. Except that a pilot who is assigned to a B-767
International category shall receive this guarantee at the rate
appropriate to the B-767-300ER.
/3/This guarantee shall be prorated on the basis of the ratio of hours
flown on each type (MD-90, MD-88) to the total hours flown.
/4/This guarantee shall be prorated on the basis of the ratio of hours
flown on each type (B-737-300, B-737-200) to the total hours flown.
a. In the event a pilot receiving the reserve line
guarantee is assigned to an International category,
that guarantee shall include International and
Specialized Navigation Procedures pay.
2. In any month during which a pilot holds a reserve line for a
portion of the month, this guarantee shall apply
proportionately to the number of days during which he was a
holder of such line, except when a pilot accepts a proffer
as provided in Section 23.F. the guarantee will not be
prorated, except for personal drop or MLOA as provided in
Section 23.F.3.
4.5
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
3. When a reserve line pilot, or a pilot considered as such as a result
of the application of Section 23 (Scheduling) of this Agreement, is
scheduled to fly a trip or trip sequence originating in a given month
and terminating on or after the first day of the succeeding month and
flies such trip or trip sequence into the following calendar month, he
shall not be considered to have been designated a reserve line holder
for such succeeding month on the basis of having been scheduled to fly
into the month. In such case he shall be paid and credited either for
flying performed or a reserve line holder's guarantee on the equipment
covered prorated on a daily basis, whichever is greater. Upon first
reaching his pilot base he shall revert to his current line of time.
C. UNASSIGNED PILOTS
Each unassigned pilot who is eligible for flying pay shall be
guaranteed minimum monthly pay, payable monthly, equal to the reserve
guarantee for the lowest paying category/equipment listed in Section
22.A.2.
D. PRORATION
The above monthly guarantees shall be prorated on a daily basis in any
month during which a pilot is on unpaid sick leave, leave of absence,
furlough, or voluntarily drops a portion of his line of time.
4.6
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
E. MINIMUM REPORT PAY
When a pilot eligible for flying pay reports for or flies a flight or
flights for which flying pay is paid, he shall be paid for the actual time
flown but not less than a minimum of two (2) hours flying pay at the rates
specified in this Agreement, and he shall be credited with such time toward
his monthly flying time. The provisions of this paragraph shall not apply
to a pilot who is removed from a reserve trip under provisions of Section
23.D.4.
4.7
<PAGE>
SECTION 5
TRAVELING EXPENSES
A. DOMESTIC CATEGORIES
1. a. A pilot, during the period of time beginning with scheduled or
actual reporting time, whichever is later, and continuing until
such pilot is released from duty at his base station shall receive
hourly meal allowance of one dollar and eighty cents ($1.80) per
hour. This rate applies to each hour, computed by the minute.
b. If due to extenuating circumstances crew members have been on duty
for long periods of time and have had no opportunity to eat, they
may request through Stations Operations that crew meals be boarded
at the next catering station.
(1) A Crew Meal Charge Form shall be completed and forwarded to
Flight Pay by Airport Customer Services.
(2) The pilot will be charged as follows for meals ordered:
Breakfast/Brunch, $4.00 Lunch, $6.00 Dinner, $15.00 Midnight
Snack, $3.75
2. The Company shall provide comfortable, adequate lodging at regular
layover stations as discussed with the MEC Hotel Committee and, in
addition for scheduling purposes, suitable hotel accommodations and
transportation to and from such hotel at scheduled layover points when
the scheduled block-in to
5.1
<PAGE>
SECTION 5 - TRAVELING EXPENSES (CONTINUED)
block-out break is more than five (5) hours. If ground-travel time is
required between co-terminals, the time as stipulated in Section
8.C.1. will be added to the scheduled five (5) hour block-in to block-
out time. Single room accommodations will be provided. Pilots will
check in and out of hotels so that the room clerk may know the names
of pilots occupying rooms at all times. At time of check-out, each
pilot shall pay for any incidental expenses incurred by him, such as
telephone calls, room service, etc. In the event that regularly
assigned lodging at layover stations is not available, pilots shall
receive actual reasonable expenses for other lodging .
a. When the time between scheduled block-in and scheduled block-out is
five (5) hours or more within a duty period, the Company will, upon
request, provide a hotel room at the pilot's domicile. If co-
terminals are involved, the appropriate ground travel time as
defined in Section 8.C.1. will be added to the five (5) hours
above.
3. When transportation is not provided by the Company at regular layover
stations, pilots shall be allowed actual necessary expenses for
transportation between the airport and the place of lodging.
4. Additional reasonable expenses shall be allowed covering an
extraordinary condition.
5.2
<PAGE>
SECTION 5 - TRAVELING EXPENSES (CONTINUED)
5. A pilot's expense allowance while assigned to a training school or any
other temporary duty or assignment away from his base station shall be
at the hourly rate provided in Paragraph A.1. of this Section. In
addition, single room accommodations will be provided.
B. INTERNATIONAL CATEGORIES
1. A pilot, during the period of time beginning with scheduled or actual
reporting time, whichever is later, and continuing until such pilot is
released from duty at his base, shall receive a minimum hourly meal
allowance of two dollars ($2.00) per hour. This rate shall be adjusted
semi-annually as provided in Section 16.D.1. This rate applies to each
hour, computed by the minute.
2. Additional reasonable expenses shall be allowed covering an
extraordinary condition.
3. The Company shall bear the expense of the following items if a pilot's
assignment requires a passport, visa, or vaccination shots:
a. Fees charged by the Department of State for application for a
passport.
b. Fees charged by the destination country for the application of a
visa.
c. Fees charged for required passport photographs.
d. Fees charged by a medical facility for required vaccinations.
5.3
<PAGE>
SECTION 5 - TRAVELING EXPENSES (CONTINUED)
C. FOREIGN HUB OPERATION
A Domestic Category pilot flying a foreign hub operation during the
period of time beginning with scheduled or actual reporting time,
whichever is later, and continuing until such pilot is released from
duty at his base, shall receive a minimum hourly meal allowance of two
dollars ($2.00) per hour adjusted as provided in Section 16.D.1.
5.4
<PAGE>
SECTION 6
MOVING EXPENSES
A. TRANSFER AT COMPANY REQUEST
1. Effective for pilots who become entitled to a Company paid move on or
after January 1, 1997: When a pilot is transferred at the
Company's request, he shall be entitled to the benefits specified in
the Pilot Relocation Benefits Booklet dated DOS 1995.
B. TRANSFER, SUCCESSFUL BIDDER
1. When a pilot is transferred from one pilot base to another as a result
of being the successful bidder or Voluntary Displacement, he shall
bear his own expenses, except space-available transportation shall be
furnished to him and his family to the extent permitted by law.
2. A successful bidder or Voluntary Displacement to a pilot base who is
not released by the Company within ten (10) days after the effective
date of the bid to accept such bid shall be paid reasonable actual
added expenses for himself and his family until so released.
C. NEW PILOT BASE
1. When the Company first establishes a pilot base or reestablishes a
discontinued base, such base shall be considered as a new base for a
period of twelve (12) months beginning on the date of the first
conversion of a pilot into the base, and during such twelve (12) month
period, pilots converted into such a base shall be considered as
having transferred at Company request and Paragraph A. of this Section
shall apply.
6.1
<PAGE>
SECTION 6 - MOVING EXPENSES (CONTINUED)
D. DISCONTINUED PILOT BASE OR CANCELLATION OF PERMANENT POSITION
1. a. When a pilot base is discontinued, all pilot transfers therefrom
shall be considered as having been made at Company request, and
Paragraph A. of this Section shall apply.
b. When a pilot base is discontinued, all pilots who have transferred
out of that base in the twelve (12) months preceding the
discontinuance of the base shall be considered as having moved at
Company request, and Paragraph A. of this Section shall apply.
2. When the position of a pilot is canceled as the result of a
Mandatory Displacement award and that pilot elects to displace
into a category at a different base, Paragraph A. of this Section
shall apply.
E. MOVING TIME LIMIT
If a pilot qualifies for reimbursement of expenses under the
provisions of Paragraph C. or D. of this Section he shall have
twenty-four (24) months from conversion to complete the move of
his permanent residence. If, however, a pilot who was qualified
for reimbursement of moving expenses under Paragraph C. of this
Section is, as a result of a successful bid or Voluntary
Displacement, converted into another base less than twenty-four
(24) months from the conversion that gave rise to the expense
claim, he shall reimburse the Company for moving expenses
originally allowed him.
6.2
<PAGE>
SECTION 6 - MOVING EXPENSES (CONTINUED)
F. PAY PROTECTION TRAVEL TIME
The following relocation leave provisions shall apply to any pilot
relocation covered under Paragraph A. of this Section provided the
pilot files a request for transfer leave with Crew Scheduling no
later than forty-eight (48) hours prior to the posting of
Supplemental Regular Lines for the next bid period. The transferring
pilot shall be relieved of all duty for up to seven (7) days, at the
rate of one (1) day for each four hundred (400) miles distance
between his old residence and his new residence but no more than
appropriate for the distance between the pilot's old domicile and new
domicile. A pilot shall receive pay and no credit at the rate of one-
thirtieth (1/30th) in a thirty (30) day bid period or one thirty-
first (1/31st) in a thirty-one (31) day bid period of the designated
monthly maximum per day for each day as provided by this paragraph.
6.3
<PAGE>
SECTION 7
VACATIONS
A. ELIGIBILITY AND DURATION
1. Pilots shall receive vacation periods and Vacation Bank Hours as
stipulated below. Pilots shall also receive any increased vacation
time established by the Company for its domestic ground personnel
during the term of this Agreement. A pilot shall be removed from any
rotation which is scheduled totally or partially within the vacation
period.
a. The anniversary year, beginning on April 1 and ending with March
31 of the following year, shall be used for vacation purposes.
b. A pilot shall at his option receive a minimum of forty-eight (48)
hours free from all duty prior to the beginning of his primary
vacation period.
c. Each pilot with less than one year's employment with the Company
as of April 1 of any year shall receive vacation and Vacation Bank
Hours during the succeeding year in accordance with the following
schedule:
7.1
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
<TABLE>
<CAPTION>
VACATION
DAYS
EMPLOYED BETWEEN INCLUDING VACATION
FOLLOWING PERIODS 48 HOURS BANK HOURS
OF PREVIOUS YEAR
<S> <C> <C>
April 1-April 15 16 56:00
April 16-May 15 15 52:30
May 16-June 15 14 49:00
June 16-July 15 13 45:30
July 16-August 15 11 38:30
August 16-September 15 10 35:00
September 16-October 15 9 31:30
October 16-November 15 8 28:00
November 16-December 15 7 24:30
December 16-January 15 5 17:30
January 16-February 15 4 14:00
February 16-March 15 3 10:30
March 16-March 31 0 0:00
</TABLE>
d. As of April 1 of each year each pilot who has more than one year of
employment with the Company shall be entitled to vacation and
Vacation Bank Hours in accordance with the following schedule:
<TABLE>
<CAPTION>
LENGTH OF EARNED VACATION
CONTINUOUS SERVICE EARNED VACATION BANK HOURS
THROUGH FOR SUCCEEDING FOR SUCCEEDING
MARCH 31 VACATION YEAR VACATION YEAR
<S> <C> <C>
1 - 4 Years 2 Weeks + 48 Hrs 56:00
5 - 10 Years 3 Weeks 73:30
11 - 17 Years 4 Weeks 98:00
18 - 24 Years 5 Weeks 122:30
25 Years or more 6 Weeks 147:00
</TABLE>
7.2
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
2. a. Vacations shall not be cumulative. Subject to the provisions of
7.A.2.b., up to one half of a pilot's earned vacation, rounded up
to the nearest whole week, may be liquidated from his accrual for
the following April 1 - March 31 vacation year provided the pilot
so notifies the Company prior to October 1 and stipulates the
number of weeks he desires to liquidate in this manner. Such
vacation to be liquidated will be excluded from the vacation period
selection in Paragraph B. of this section and will be paid on
December 15 of the vacation year during which the vacation would
otherwise have been taken. A means will be provided for such
notification. All remaining vacation must be taken within one (1)
year of the date of his eligibility provided Company operations
permit. If Company operations will not permit a pilot to take his
annual vacation, and the forty-eight (48) hour period prior
thereto, within one (1) year of the date of his eligibility, he
shall have the option of being granted such vacation and forty-
eight (48) hour period prior thereto during the succeeding year or
of being paid for his vacation and the forty-eight (48) hour period
if applicable prior thereto in lieu thereof. However, a pilot who
returns to flying status from extended sick leave/disability during
the last two (2) months of the vacation year shall have the option
of taking any remaining vacation, during the current vacation year
to the extent the calendar permits or of being paid for his
vacation.
7.3
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
b. Vacation may not be liquidated under the provisions of 7.A.2.a.
when:
(1) On October 1 there are pilots on furlough, (other than a
furloughee(s) who elected to bypass recall), who have not
received a recall notice which would return him to active
status prior to the following April 1, or
(2) On October 1 projections indicate there will be a pilot(s) on
furlough during the vacation year starting the following April
1.
3. Vacation time due a pilot under Paragraph A. of this Section
shall be proportionately reduced for all leaves of absence
or furloughs in excess of an aggregate of thirty (30) days.
4. A pilot who acquires additional vacation day(s) as provided for in
this Agreement shall have three hours and thirty minutes (3:30)
credited to his Vacation Bank for each additional day. With the
exception of vacations within the December bid period and/or within
the period January 1 through January 10, such additional vacation days
may at pilot option be placed at either end of a vacation period.
B. VACATION PERIOD SELECTION
1. Pilots taking two (2) weeks or more will be permitted to divide their
vacation into two (2) separate periods (consisting of seven (7) day
increments), pilots taking three (3) weeks or more will be permitted to
divide their vacation into three (3) separate periods (consisting of
seven (7) day increments), and pilots taking four (4) weeks or more
will be permitted to divide their vacation into four (4) separate
periods (consisting of seven (7) day increments), subject to the
following provisions:
7.4
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
a. A pilot taking vacation will be required to select a primary
period of not less than seven (7) days exclusive of the forty-
eight (48) hour period.
b. Secondary vacation awards (minimum of seven (7) days) will be made
to the extent possible after all primary selections have been
awarded.
c. Tertiary vacation awards (minimum of seven (7) days) will be made
to the extent possible after all primary and secondary selections
have been awarded.
d. Quaternary vacation awards (minimum of seven (7) days) will be
made to the extent possible after all primary, secondary, and
tertiary selections have been awarded.
e. There will be a minimum of seven (7) days between vacation
periods.
2. The preference of vacation periods shall be granted each pilot on the
basis of the category held or the category resulting from a conversion
of an Advance Entitlement effective January 31 of each year, taking
into consideration the requirements of the Company. Such awards shall
be made in seniority order among pilots in each category with
consideration being given the period preference expressed by such
pilots.
a. Primary vacation periods will be posted for bid at each base not
later than January 1 of each year, and bids will be submitted by
January 8 of each year. The resulting primary vacation schedule
for each base shall be awarded and posted by January 15 of each
year.
b. Secondary vacation periods will be posted for bid at each base not
later than January 15 of each year and bids will be submitted by
January 22 of each
7.5
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
year. The resulting secondary vacation schedule
for each base shall be awarded and posted by January 29 of each
year.
c. Tertiary vacation periods will be posted for bid at each base not
later than January 29 of each year and bids will be submitted by
February 5 of each year. The resulting tertiary vacation schedule
for each base shall be awarded and posted by February 12 of each
year.
d. Quaternary vacation periods will be posted for bid at each base
not later than February 12 of each year and bids will be submitted
by February 19 of each year. The resulting quaternary vacation
schedule shall be awarded and posted by February 26 of each year.
3. If a pilot does not select sufficient vacation period preferences, a
vacation period shall be assigned to such pilot.
C. CHANGE IN VACATION PERIODS
1. A means shall be provided by which a pilot may indicate his desires to
move up to a higher choice than he achieves on the initial (January
15, January 29, February 12, and February 26) awards, if such vacation
period(s) become available as determined by the Company. A pilot may
express such vacation move-up preferences at any time after the awards
of primary, secondary, tertiary, and quaternary periods but no later
than thirty (30) days prior to the beginning of the bid period
containing the awarded vacation he desires to change.
2. Known available vacation periods for all months remaining in the
vacation year will be awarded in accordance with system seniority no
later than five (5) days prior to the closing of the initial line of
time bids for the subsequent month. Pilots
7.6
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
competing to improve their primary vacations shall have priority over
pilots competing to improve their secondary, tertiary, or quaternary
vacations, regardless of what created the available vacation
period(s); and similarly, pilots competing to improve their secondary
vacations shall have priority over pilots competing to improve their
tertiary vacations. Quaternary vacations will have the lowest priority
in the improvement sequence.
3. A pilot who bids into a category and has not taken his vacation(s)
shall compete for a newly available vacation(s) among the pilots in
his new category. If such newly available vacation is not awarded
under paragraph C.1. of this Section, the newly available vacation
may, at Company option, be assigned in inverse order of seniority to
pilots who have changed category. Pilots whose vacations must be
rebid will be provided computer notification of the requirement to do
so.
4. A pilot who is involuntarily displaced in accordance with Section
22.H. of this Agreement shall retain his previously awarded
vacation(s) and shall be permitted to compete for improved vacation
periods in accordance with Paragraph C. of this Section.
5. Vacation periods available for move-up shall be awarded in accordance
with seniority preference, provided that:
7.7
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
a. The number of vacation days as provided in Section 7.A.1. that a
pilot desires to move up shall not exceed the number of days of
the newly available vacation period. However, vacation bank or
supplemental vacation days added to a Section 7.A.1 vacation shall
not be a consideration in the vacation move-up award process.
b. A pilot who has been awarded a split vacation shall not be
permitted to move up so as to receive more than four (4) vacation
periods in a vacation year, unless his receiving more than four
(4) vacation periods results from a carryover vacation.
6. A pilot who has been awarded an Advance Entitlement or a Voluntary
Displacement and whose vacation period will interfere with his
training, shall, at his option, re-bid the vacation or be paid for the
vacation at the rate appropriate to his accrual.
D. ADJUSTMENTS AND POSTPONEMENTS
1. Minor adjustments in the starting date of a pilot's vacation period
may be effected by mutual agreement between the pilot and the Company.
2. Due to unusual circumstances or Company requirements, and by mutual
agreement between the pilot and the Company, a pilot's vacation may be
postponed. Such vacation period shall be considered vacated and such
pilot shall compete for a vacation in accordance with Paragraph C. of
this Section.
7.8
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
E. CANCELLATION OF VACATION
1. Every effort shall be made to avoid canceling a pilot's vacation, and
furthermore, every reasonable effort shall be made to recall a pilot
from furlough before a non-furloughed pilot has a vacation period
canceled.
2. If Company operations necessitate cancellation of a pilot's vacation,
such pilot shall receive at least thirty (30) days notice of such
cancellation, except that in an emergency precluding thirty (30) days
notice, the pilot shall be notified promptly, followed by letter of
confirmation at the earliest possible date. A vacation once canceled
shall not be reinstated without the pilot's consent except upon thirty
(30) days advance notice in writing.
3. A pilot whose vacation is canceled shall not displace a more junior
pilot from his vacation period, but shall be awarded a substitute
vacation according to Paragraph C. of this Section.
4. If the number of vacations in a category must be reduced, as opposed
to the cancellation of the vacation of a specific pilot, the pilots in
such category shall be afforded the option, in order of seniority, to
mutually agree with the Company to a cancellation. When such option is
not exercised by a sufficient number of pilots, cancellation shall
take place in inverse order of seniority among the pilots in the
affected category.
F. VACATION PAY
1. Vacation Bank Hours due each pilot will be deposited in the
pilot's individual Vacation Bank.
7.9
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
2. A pilot shall receive vacation pay, up to the number of hours
available in the pilot's Vacation Bank as follows:
a. A pilot holding a regular line of time shall be paid, credited,
and his bank shall be debited on a minute for minute basis for the
rotations shown on his line of time occurring totally or in part
within the vacation period.
b. A pilot on reserve, or any unassigned pilot, will be paid,
credited and his bank shall be debited on a minute for minute
basis for each reserve day on call within the vacation period as
shown on his line of time, at a daily rate equal to the reserve
guarantee for the month in which the vacation is taken, divided by
nineteen (19) in a thirty (30) day month or the reserve guarantee
for the month in which the vacation is taken, divided by twenty
(20) in a thirty-one (31) day month as appropriate.
c. Any pilot shall be paid and credited, and his vacation bank shall
be debited, on a minute for minute basis, up to a maximum of the
number of minutes available in the pilot's vacation bank, for any
rotation for which the pilot has been granted a personal drop, if
the pilot so requests during the bid period in which the personal
drop was taken.
d. Any pilot shall be paid and credited, and his vacation bank shall
be debited, on a minute for minute basis, up to the number of
minutes available in the pilot's vacation bank for any rotation
which is removed from the pilot's regular line as a result of
Recurring Training if the pilot so requests during the bid period
during which the Recurring Training takes place.
e. Any pilot shall be paid and credited, and his vacation bank shall
be debited, on a minute for minute basis, up to the number of
minutes available in the pilot's vacation bank for any on-call
reserve day during which the pilot(s) monthly projection and
guarantee has been reduced as a result of Recurring Training or
Personal Drop, provided the pilot so requests during the bid
period during which Recurring Training or Personal Drop takes
place.
7.10
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
3. A pilot shall be paid for all Vacation Bank Hours remaining in his
bank as of March 31 of each year. Such hours shall be paid at the
pilot's earned rate (exclusive of any pay and no credit) for the month
of March of the terminating vacation year.
4. In the event a pilot's service is terminated by reason of his
retirement, voluntary resignation with notice, on account of inability
to maintain physical qualifications, or death, he shall be paid for
any hours remaining in his Vacation Bank. In addition, he shall be
paid for accrued Vacation Hours for service rendered after April 1 to
date of termination, on a prorata basis, if termination is by reason
of retirement or his inability to maintain qualifications as a pilot,
or death. All earned or accrued vacation hours under the provisions
of this paragraph will be paid at the earned rate for the last bid
period for which the individual performed service as a pilot.
7.11
<PAGE>
SECTION 8
DEADHEAD
A. DEADHEADING BY AIR
1. When a pilot deadheads by air to or from protecting a flight, such
pilot shall receive flight pay and flight time credit at full
applicable rates for each hour of such deadhead time based on the
equipment used on the flight protected. When deadheading by air, Duty
Hours shall begin thirty (30) minutes before scheduled departure time
or actual reporting, whichever is later, and shall terminate at the
same time specified for flights in Section 2 (Definitions), under Duty
Hours, of this Agreement. In the event such deadheading occurs during
a rotation to cover a layover or at the conclusion of a rotation, the
pilot(s) shall be scheduled to deadhead on the first available flight.
2. The Company shall not deadhead pilots on an air carrier that is
experiencing a labor dispute (strike) except in emergency
situations. This does not preclude such deadheading as may be
required to prevent disruption of the Company flight schedules.
B. DEADHEADING BY SURFACE TRANSPORTATION
Except as provided in Paragraph C. of this Section, when at Company
request, a pilot deadheads by surface transportation to or from
protecting a flight, trip and duty hours shall include ground travel
time incurred between airports, and such pilot shall receive pay for
such surface deadheading at the rate of ten dollars ($10.00) per hour.
Such surface deadheading shall be deemed to commence at the scheduled
time of departure of the surface transportation utilized, and shall be
8.1
<PAGE>
SECTION 8 - DEADHEAD (CONTINUED)
deemed to terminate at the time of scheduled arrival of the surface
transportation utilized at the point of destination. It is not
intended that surface transportation utilized between airports and
layover facilities be deemed "deadhead by surface transportation."
C. GROUND TRAVEL TIME BETWEEN AIRPORTS
1. When at Company request, a pilot deadheads by surface transportation
between airports listed in this paragraph, other than when traveling
to or from the layover facility, Trip and Duty Hours and ground travel
time at the rate of ten dollars ($10.00) per hour for such pilot shall
be paid based on the times specified as follows:
Fort Lauderdale-Miami - :45 (forty-five minutes) either way
Dallas/Fort Worth-Love Field - :25 (twenty-five minutes) either way
Houston Intercontinental/Houston Hobby -:45 (forty-five minutes)
either way
Midway-O'Hare - 1:10 (one hour and ten minutes) either way
Newark-Kennedy - 1:20 (one hour and twenty minutes) either way
Newark-LaGuardia - 1:20 (one hour and twenty minutes) either way
LaGuardia-Kennedy - :45 (forty-five minutes) either way
Los Angeles-Burbank - 1:15 (one hour and fifteen minutes) either way
Los Angeles-Ontario - 1:30 (one hour and thirty minutes) either way
Los Angeles-Santa Anna - 1:30 (one hour and thirty minutes) either way
Los Angeles-Long Beach - 1:00 (one hour) either way
San Francisco-Oakland - 1:00 (one hour) either way
8.2
<PAGE>
SECTION 8 - DEADHEAD (CONTINUED)
San Francisco-San Jose - 1:00 (one hour) either way
Burbank-Ontario - 2:00 (two hours) either way
Burbank-Orange County - 2:00 (two hours) either way
Burbank-Long Beach - 1:30 (one hour and thirty minutes) either way
Ontario-Orange County - 1:15 (one hour and fifteen minutes) either way
Ontario-Long Beach - 2:00 (two hours) either way
Orange County-Long Beach - :45 (forty-five minutes) either way
Oakland-San Jose - 1:30 (one hour and thirty minutes) either way
Washington National-Dulles - :45 (forty-five minutes) either way
2. In the event the Company utilizes two or more airports at other pilot
domiciles, conferences may be initiated by either the Company or the
Association under the provisions of the Railway Labor Act, as amended,
irrespective of Section 28 (Duration) of this Agreement for the
purpose of establishing ground travel time between airports.
D. OFF-ROTATION DEADHEAD
1. When a rotation begins with a deadhead segment, the pilot may report
for duty at the airport of departure of the first non-deadhead segment
of such rotation as follows:
a. One (1) hour prior to scheduled departure of the first non-
deadhead segment in a Domestic category or the first non-deadhead
segment of an International category if the segment does not
include an ocean crossing.
8.3
<PAGE>
SECTION 8 - DEADHEAD (CONTINUED)
b. One hour and thirty minutes (1:30) prior to scheduled departure of
the first non-deadhead segment of an International category that
includes an ocean crossing.
c. A pilot electing to report at the airport of the first non-
deadhead segment shall be responsible for his transportation to
that airport. Such pilot is required to advise Crew Scheduling
during the twenty-four (24) hour period immediately preceding the
scheduled report for the deadhead that he intends to report to the
airport of departure of the first non-deadhead segment.
2. When a rotation ends with a deadhead segment, the pilot may deviate
from such deadhead segment but shall then be responsible for any
alternative transportation to another airport.
3. Off-rotation deadhead as provided in 8.D.1. and 2. will have no affect
on the pay and credit of a rotation, however, the allowable on-duty
hours for a pilot who reports at the airport of departure of the first
non-deadhead segment will be determined using the actual report time
at the airport of departure of such first non-deadhead segment.
8.4
<PAGE>
SECTION 9
MISCELLANEOUS FLYING
A. PAY AND CREDIT
1. Each pilot eligible for flying pay shall be paid flying pay in
accordance with the pay differentials outlined in this Agreement on
all scheduled flights and for all non-scheduled flights.
2. When a pilot who is eligible for flying pay is scheduled by the
Company and is available but not used, and any official or employee of
the Company other than a regularly assigned pilot serves as such pilot
on any such scheduled trip, flying pay at regular rates for such trip
shall be credited and paid to the pilot or pilots assigned to the
pilot base from which the flight is made and who normally would have
made the flight.
B. CREW REQUIREMENTS
With the exception of training flights, a minimum of three (3)
qualified pilots shall be utilized on all four engine, B-727 and
L-1011 aircraft whereon line pilots are used.
C. PROFESSIONAL AND PERSONAL FLYING
This Agreement contemplates that each pilot shall devote his
entire professional flying service to the Company. However,
nothing in this Agreement shall prohibit any pilot from
affiliating with the Armed Services of the United States.
D. CERTIFICATE REQUIREMENTS
1. A pilot must have all required pilot and medical certificates in his
possession prior to reporting for flight duty.
9.1
<PAGE>
SECTION 9 - MISCELLANEOUS FLYING (CONTINUED)
a. Upon the completion of an FAA medical examination, a pilot must
fax or mail a copy of the most current medical certificate to
Aircrew Records, Dept. 061, ATL. It must be received on or before
the 25th of the month during which his medical certificate
expires.
b. A pilot shall not be paid or credited for any rotation or
guarantee unless these certificates are valid, and correctly
documented in DBMS.
(1) If a pilot is involved in an extraordinary situation, only
his Chief Pilot, System Manager - Flight Operations, or
Director -Flight Operations & Chief Pilot may waive these
requirements.
9.2
<PAGE>
SECTION 10
TRANSFER TO NON-FLYING OR SUPERVISORY DUTY
A. SENIORITY
1. Any pilot transferred to non-flying or supervisory duty shall retain
and continue to accrue seniority, provided that such pilot maintains
at all times a valid airline pilot competency certificate or
certificates. If such pilot should permit his specified certificate or
certificates to lapse, he shall retain the seniority already accrued
to the time of such lapse, and shall have a period not to exceed one
(1) year in which to regain such specified certificate or
certificates. His seniority shall commence to reaccrue from the date
his certificate or certificates are regained.
2. When a pilot is transferred to non-flying or supervisory duty on
account of sickness or injury, or becomes sick or injured while on
such non-flying or supervisory duty, he shall continue to accrue
seniority during such period of sickness or injury whether or not he
is able to maintain the airline pilot certificate or
certificates required for his status for a continuous period of ten
(10) years.
3. Except as provided in Section 11.B.5.a. and 11.B.8. when a pilot
engaged in non-flying or supervisory duty returns to flying duty, he
shall be permitted to exercise his system seniority in any pilot
category to displace any more junior pilot.
10.1
<PAGE>
SECTION 10 - TRANSFER TO NON-FLYING OR SUPERVISORY DUTY (CONTINUED)
B. PAY AND CREDIT
Any supervisory pilot, check airman, or instructor returning to line
flying shall be credited for flight time limitation purposes at the
rate of one-thirtieth (1/30th) of the designated monthly maximum for
each day spent as a supervisor, check airman, or instructor.
C. PHYSICAL FITNESS
Any disputes arising hereunder concerning the physical fitness of such
non-flying or supervisory pilot shall be settled in accordance with
Section 15 (Physical Examinations) of this Agreement.
10.2
<PAGE>
SECTION 11
TRAINING
A. GENERAL
1. a. Pilot training shall include ground training, flight simulator
training, aircraft flight training, proficiency
checks/evaluations, and any other training or qualifying required
by Federal Aviation Regulations, Company policy, or provisions of
this agreement.
b. Airport and route qualification shall be excluded from the
provisions of this paragraph. The requirements of Paragraph D.2.
shall not apply here.
2. When a pilot undergoes training away from his domicile, positive space
transportation or extra crew member authority shall be provided
between any Delta station and the training facility.
a. For the purpose of scheduling travel, determining contractual and
F.A.R. compliance, training pay, and expenses, a pilot undergoing
training away from his domicile shall be considered to have
traveled from his domicile to the training site and subsequently
back to his domicile and his schedule shall so reflect.
b. Positive space transportation shall be provided to pilots training
at a site away from their domicile for the purpose of
transportation to and from the training facility and any Delta
station during a scheduled duty free period of forty-eight (48)
hours or more.
3. During certification events there shall be no simultaneous training at
any other crew member station (First Officer, Second Officer).
11.1
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
4. Where deplaning facilities are available, only pilots occupying the
specific cockpit positions for which they are being trained or checked
shall be on board the aircraft during training, other than during the
ferry of the aircraft to and from the airport at which training will
take place. This does not preclude a pilot remaining on board the
aircraft at his request.
5. A pilot shall be advised of any unsatisfactory report prepared during
any phase of his training program, and shall at his request be
provided a copy of any such report.
6. If requested by the pilot, a Delta pilot representative of his choice
who is a currently qualified Captain on the appropriate
equipment may be present in the cockpit as an observer on any
proficiency training or evaluation.
7. No pilot employed by the Company shall be required to pay for training
or checking required by the Company for the purposes of procuring or
maintaining the pilot's or the Company's airline certificates or other
licenses.
8. Subject to the provisions of 11.D.12.b., Distributed Training,
including examinations, as developed with MEC Training
Committee input and as approved by the FAA, may be instituted to
selectively replace and/or supplement, or be in addition to, ground
school. The provisions of 11.D.1. and 2. shall not apply to
Distributed Training.
B. INSTRUCTORS/EVALUATORS
1. a. All training and checking of pilots on the Delta Air Lines Pilots'
System Seniority List in an airplane (other than initial flight
training conducted by the factory or manufacturer for the Company)
shall be performed by pilots presently on such list.
11.2
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
b. All Captain and First Officer evaluations of pilots on the Delta
Air Lines Pilots' System Seniority List shall be performed by
pilots presently on such list.
2. a. A change of aircraft or simulator instructors shall be granted at
a pilot's request. Such request may be verbal as expressed to the
instructor or other appropriate authority, and must then be
confirmed by the pilot as soon as possible in writing, stating the
reason or reasons therefor.
b. A change of Line Check Pilot performing supervised operating
experience shall be granted provided the trainee so requests after
the operating experience begins.
3. a. Non-seniority list simulator instructors for Captain and First
Officer training shall meet the following requirements:
(1) ATP Certificate
(2) Qualified by the FAA to provide simulator instruction on the
aircraft on which they will instruct
(3) Certified flight instructor (CFI) or instrument ground
instructor (IGI)
(4) Minimum 2000 hours experience as a pilot.
b. Non-seniority list simulator instructors for Second Officer
training shall meet the following requirements:
(1) Flight engineer certificate with turbo jet rating
11.3
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
(2) Minimum 1000 hours experience as a flight engineer, flight
engineer instructor or pilot.
4. Non-seniority list simulator instructors shall not perform
any flight duty as a crew member.
5. a. Each active line pilot serving as an instructor shall return to
line flying on a rotation by rotation basis so as to fly thirty-
six (36) duty periods per year. Such line flying must be
accomplished in a category where there is a category position
holder who is junior to the instructor.
b. Instructors shall White Slip a rotation(s) in seniority order in
the pre-month White Slip process outlined in 23.F.1. In the event
such instructor fails to be awarded a rotation in the pre-month
White Slip process, he will be permitted to select a rotation(s)
from the open time immediately prior to the construction of SRLs.
Instructors may also White Slip rotations in seniority order at
any time during the month.
6. A Simulator Instructor or Proficiency Check Pilot who is awarded a
line of time may, in the same bid period, perform simulator and level
5 or higher Flight Training Device (FTD) instruction on their days
off.
7. Maneuver training that requires a level five or higher flight training
device (FTD) will be performed by a simulator instructor.
8. An instructor returning to the line on a permanent basis may:
a. Return to any category for which a more junior pilot has been
converted or has received an Advance Entitlement as a result of a
bid award during the period of absence from the category, and the
returning pilot shall be subject
11.4
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
to the provisions of Section 22.F. appropriate to that entitlement
award. Further, the provisions of this paragraph shall apply if,
upon the pilot's return to the line on a permanent basis, his
seniority will allow him the position or the Advance Entitlement
selected, subject to the following conditions:
(1) Where the more junior pilot has been converted the returning
pilot shall enter the new category immediately upon his
return;
(2) Where the more junior pilot holds an Advance Entitlement, the
pilot returning shall enter the category he occupied prior to
his absence and subsequently shall be converted into the
category for which he holds an Advance Entitlement in
seniority sequence with those pilots being converted under
that bid award.
b. Provided he can hold that position, return to the category from
which he was removed without incurring a freeze or,
c. If unable to apply a. or b. above, exercise his seniority system
wide without incurring a freeze.
11.5
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
9. If recurring difficulties with a particular instructor are identified,
there shall be a meeting between the Vice President - Flight
Operations, the MEC Chairman and the MEC Check and Training Committee
Chairman. The purpose of this meeting shall be to identify the nature
of the recurring difficulties, the number of such occurrences and
suggested corrective action. Corrective action may range from
counseling of the instructor to removal from instructor duties. It is
understood by the parties that the choice of corrective action taken,
if any, shall be at the sole discretion of the Vice President - Flight
Operations, or his designee.
10. The Company shall not use for the purpose of training Delta pilots
more than one hundred and ten (110) full time equivalent non-seniority
list simulator instructors, exclusive of Second Officer non-seniority
list simulator instructors.
C. CHECK PILOTS
1. A Line Check Pilot authorized to conduct Pilot in Command line checks
and/or proficiency checks shall have a minimum of one thousand (1000)
flight hours of experience as Pilot in Command on Delta Air Lines, or
shall have one thousand (1000) total flight hours of experience as
Pilot in Command and/or Second in Command on the type aircraft on
which he serves as Line Check Pilot. Specific exceptions to the
requirements of this paragraph may be mutually agreed upon by the
Company and the Delta MEC Chairman.
2. A Proficiency Check Pilot shall have a minimum of one thousand (1000)
hours of FAR 121 pilot in command and/or second in command experience
of which five hundred (500) hours must have been acquired at Delta Air
Lines.
11.6
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
D. SCHEDULING RULES
1. Except as otherwise provided in this Section, all pilots undergoing
training shall be removed from regular flying for the duration of
their training period. Such training period shall include any travel
time as defined in paragraph A.2.a. of this Section.
2. All training shall be posted not later than the seventh (7th) calendar
day prior to the initial line of time awards for the subsequent month,
except training resulting from regulatory age limit down bid from
Captain or First Officer to Second Officer, recency, re-establishing
recency and special purpose operational training (SPOT) required due
to a pilot not meeting consolidation of skills required pursuant to
Federal Aviation Regulations. In the event a training slot is vacated
subsequent to this deadline the vacated slot may be filled by proffer
to the appropriate Advance Entitlement holders.
a. Notification of eligibility for recurrent training as defined in
Section 2 (Definitions) will be given not later than sixty (60)
days prior to the start of the first bid period in which training
may take place.
b. Not later than thirty (30) days prior to a bid period in which
recurrent training may take place a pilot may designate five (5)
consecutive days during which no recurrent training will be
scheduled (i.e., if recurrent is to be scheduled for July, the
pilot must designate his five (5) days not later than May 31st).
11.7
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
c. Not later than thirty (30) days prior to a bid period in which
recurrent training may take place, a pilot shall advise Crew
Scheduling of any leave of absence or other planned period of
unavailability during the bid period in which he is eligible for
training.
d. During the period beginning thirty (30) days prior to the bid
period in which recurrent training may be scheduled and ending
when the recurrent schedule is posted, a pilot shall not modify
his availability with regard to any activity for which he had
control.
e. Except in the case of a personal emergency, a pilot shall not
engage in any activity so as to interfere with his posted
recurrent training schedule so long as such activity is within his
control.
3. Pilots shall be scheduled for aircraft flight training during the
hours of daylight (off to on) exclusive of briefing and debriefing
unless the pilot has received instruction in a simulator of the same
type aircraft.
4. Training time, beginning with a pilot's reporting time for a training
period and ending when he is released from training at the end
of the period, shall be counted as duty time for purposes of duty time
limitations only.
5. A pilot receiving ground or flight training at his domicile shall not
be required to perform any duty for ten (10) hours before such
training and he shall be paid as per paragraph E. of this section.
11.8
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
6. Each pilot undergoing training shall receive a minimum of ten (10)
hours free of duty between training periods. When deadheading to
ground or flight training, a pilot shall not be required to report for
training earlier than ten (10) hours after arriving at the base where
training will be conducted, except when deadheading to ground training
which encompasses a training period of five (5) hours or less the
maximum hours on duty, including deadheading and classroom activity
shall not exceed ten (10) hours. When deadheading to a period of
ground training which encompasses a training period of five (5) hours
or less, a pilot shall not be required to depart his base earlier than
0800 pilot's local domicile time. In such event, the pilot shall not
be required to remain in training beyond 1800 pilot's local domicile
time that day. Under no circumstances shall the provisions of this
paragraph regarding deadheading and training on the same day be used
for flight simulator training, aircraft flight training, or
proficiency checks.
7. Training shall not be scheduled to exceed eight (8) hours in any
twenty-four (24) hour period.
8. Flight simulator time shall not be considered as flight time.
Required flight simulator training shall be considered time on duty
only for the purpose set forth in Section 12.E. (Maximum Duty Hours)
and Section 12.F. (Break in Duty Hours) of this Agreement.
9. Training periods in a flight simulator or in a level five or higher
FTD shall not normally exceed four (4) hours per day, and total
training periods shall not normally exceed eight (8) hours in any
twenty-four (24) hour period.
11.9
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
10. A pilot shall not be required to take qualification curriculum
(initial, transition, upgrade or requalification) flight simulator
training between the hours of 0100 and 0500 including any briefing or
debriefing time.
11. A pilot shall not be required to take recurring training session
flight simulator training between the hours of 0100 and 0500 pilot's
local domicile time including any briefing and debriefing time.
12. a. All non-distributed ground training for AQP approved training
programs shall be designed so that the subject matter is
adequately presented within the normal classroom schedule
(maximum eight (8) hour classroom day excluding lunch break and
maximum five (5) days during any consecutive seven (7) day
period). A pilot shall not be required to attend recurring
training ground school between the hours of 0100 and 0500 pilot's
local domicile time. All ground training courses for non-AQP
approved training programs shall be designed so that the subject
matter is adequately presented within the normal classroom
schedule (maximum eight (8) hours during any day and five (5)
days during any seven (7) day period).
b. Effective 1/1/97 one day (eight hours of course material) of each
training period (non-recurring and/or recurring training) may be
Distributed Training. A portion of the aircraft systems and
operation specifications training will be retained for the
classroom.
11.10
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
13. If the recurring training session of any pilot is interrupted as a
result of facility or equipment unavailability, it shall be the option
of the Company to extend such recurring training session in order to
complete the training sequence. If such extension of the training
period results in a conflict with the days designated under Paragraph
D.2.b. (Blocked Days) of this Section, the pilot shall be released
from training unless he waives the provisions of Paragraph D.2.b. Any
pilot who is released from a recurring training session prior to
completion, in order not to violate his Blocked Days, may be
reassigned to a recurring training session at the discretion of the
Company to avoid a lapse of qualification. Any pilot so assigned
shall be paid in accordance with the provisions of Paragraph E.1. of
this Section.
14. Commencing with the first day of the training period each pilot
undergoing any combination of ground, simulator or flight training
shall be given one 24 hour period free of duty beginning at midnight
in each seven day period.
15. In the event a pilot completes training and is not converted into his
new category, and more than thirty (30) days have elapsed since the
completion of his most recent operating experience, he shall be
granted additional operating experience as soon as practical but in no
case later than thirty (30) days from such request. Such additional
operating experience shall be requested by the pilot through his base
Chief Pilot.
E. PAY AND CREDIT
1. Pilots scheduled for non-recurring training other than non-recurring
Distributed Training shall be paid and credited as follows:
11.11
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
a. A regular line of time holder on increment pay shall
be paid and credited for trip(s) shown on his line
of time during each period of continuous training,
or one thirtieth (1/30) of the designated
monthly maximum in a thirty (30) day bid period or
one thirty-first (1/31st) in a thirty-one (31) day
bid period per day on the highest paying equipment
shown on his line of time, for each day or portion
thereof during each continuous period of training,
whichever he selects.
(1) In the event a pilot flies a portion of a rotation outside a
training period, he shall be paid and credited for trips shown
for the portion of the rotation not flown due to training. The
"trips shown" portion allocated to training pay will be
determined prior to any portion of the rotation being flown
and will not change. However, the pilot shall be paid and
credited in the aggregate no more than the total credited
value of the scheduled rotation unless:
(a) The total value of the complete rotation, computed after
flying is accomplished (using actual times for the portion
flown and scheduled times for the portion not flown), is
greater than the published value of the scheduled
rotation. In such case the pay for the flown portion will
be the value of the complete rotation after flying is
accomplished less the value allocated to "trips shown"
above.
(b) Deadheading is involved which was not scheduled on the
original rotation, in which case the portion including
deadheading shall be paid and credited as if it were a
separate rotation.
11.12
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
(2) A regular line holder removed from his schedule for training
may pick up open time (White Slip) and shall be paid and
credited for both the trips he was removed from and the White
Slip trips flown.
b. A reserve line of time holder on increment pay shall be paid and
credited one-thirtieth (1/30) in a thirty (30) day bid period or
one thirty-first (1/31st) in a thirty-one (31) day bid period of
the designated monthly maximum per day for each day or portion
thereof during each continuous period of training at the rates for
the highest paying equipment shown on his line of time.
c. A composite line of time holder on increment pay who undergoes
training in one month that encompasses both a regular and reserve
line of time shall be paid and credited for either trips
shown on his regular line of time or one thirtieth (1/30)
in a thirty (30) day bid period or one thirty-first (1/31st) in a
thirty-one (31) day bid period of the designated monthly maximum
per day for each day or portion thereof during the training
period, whichever is greater.
11.13
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
d. An unassigned pilot on increment pay shall be paid and credited
one thirtieth (1/30) in a thirty (30) day bid period or one
thirty-first (1/31st) in a thirty-one (31) day bid period of the
designated monthly maximum per day at the rate of the
category on which his unassigned guarantee is based for each day
or portion thereof during each continuous period of training.
e. A salaried pilot shall be credited one-thirtieth (1/30th) in a
thirty (30) day bid period or one thirty-first (1/31st) in a
thirty-one (31) day bid period of his designated monthly maximum
and paid a prorata share of his monthly income for each day of
training or portion thereof through the completion of his initial
operating experience for his entry level qualification.
2. A pilot on increment pay who is undergoing a recurring training
session other than Distributed recurring training, shall be paid but
not credited two hours and forty-five minutes (2:45) per day for each
day or portion thereof at the rates for the highest paying equipment
shown on his line of time. Any recurring training session which
exceeds six (6) days, exclusive of travel and Distributed Training,
shall be paid in accordance with the provisions of paragraph E.1. of
this Section.
a. A regular line holder who has a rotation removed from his line of
time as a result of recurring training shall have his projection
and guarantee reduced by the amount of the rotation dropped.
11.14
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
b. A reserve line holder or unassigned pilot who is removed from a
reserve on-call day as a result of training shall have his
guarantee reduced by one-thirtieth (1/30th) or one thirty-first
(1/31st) as appropriate for each reserve on-call day dropped.
3. A pilot shall receive one (1) hour of training pay and no credit for
each Distributed Training day.
4. When training is suspended for a period of less than four (4) days,
such days will be considered training days and the pilot will qualify
for the provisions of Paragraph E. 1. of this Section.
5. Trips shown as used in Paragraph E.1. shall include any trip(s)
dropped prior to and/or subsequent to training due to the application
of Federal Aviation Regulations.
6. A pilot who flies a trip on or into a calendar day and then
subsequently enters into training on the same calendar day, or vice
versa, shall add the training day to the time flown on that day for
pay and credit calculations under Paragraph E.1.
7. When receiving supervised operating experience as required under
Federal Aviation Regulations, or when receiving additional operating
experience, a pilot shall be paid and credited for the trip(s) flown
at rates appropriate to the aircraft on which such experience is
received, unless the pilot requests to receive pay and credit for
trips dropped, at rates appropriate to the aircraft on such trip(s)
dropped. Such supervised operating experience or additional operating
experience shall not of itself qualify such pilot for the reserve
guarantee under Section 4.B. or C. (Minimum Pay Guarantees) of the
Agreement.
11.15
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
8. If the recurring training session of any pilot is extended beyond the
period originally scheduled as a result of facility or equipment
unavailability, and the pilot incurs a trip conflict not present under
his original schedule, then his entire recurring training sequence,
including travel to and from a training facility away from the pilot's
domicile, shall be paid under the provisions of Paragraph E.1. of this
Section.
9. Any pilot failing to satisfactorily complete a proficiency check/LOE,
or any pilot requiring training to proficiency following a LOFT,
CRM/LOS session, or maneuvers validation will be retained under his
appropriate line of time guarantee, excluding sick leave, for a period
of thirty (30) calendar days or until disposition of his case by the
Company, whichever is later.
10. When a pilot is functioning as a Check Pilot during supervised
operating experience, the First Officer scheduled for the rotation(s)
shall be paid and credited for any part of the rotation from which he
is removed. At the discretion of the Line Check Pilot the First
Officer may be removed from the entire rotation, or any portion
thereof. Each pilot who is removed from his rotation(s) under the
provisions of this paragraph shall receive pay and credit on a
scheduled basis for the trips shown, or pay and credit as provided in
this agreement for trips flown, whichever is greater.
11. Volunteer line pilots may be used to complete the required crew
complement during simulator and/or level five or higher FTD training
and evaluations. Such pilots will receive pay and credit at rates
appropriate to their category as follows:
11.16
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
a. Regular and reserve line pilot volunteers who are on their days
off will receive two hours and forty-five minutes (2:45) pay and
no credit for each simulator and/or FTD training period.
b. Reserve pilot volunteers who are on their on-duty days will
receive five (5) hours pay and credit for each simulator and/or
FTD training period.
12. Non-Seniority List Instructors may be used to complete the required
crew complement during simulator training and/or level five or higher
FTD exclusive of checking and rating functions.
F. ATP RATING AFTER FIVE YEARS
1. If a pilot has not previously qualified as a captain for Delta Air
Lines, and whether or not such pilot has bid or been awarded a
category position as a captain, such pilot upon the completion of five
(5) years of service with the Company as a pilot shall be given the
opportunity to acquire captain qualifications.
a. Such pilot shall meet the requirements of Federal Aviation
Regulations and shall have successfully completed the written
examination required by the Federal Aviation Administration for an
Airline Transport Pilot Rating.
b. The Company shall not be obligated to qualify more than fifty (50)
pilots during any calendar year to meet the requirements of this
paragraph.
11.17
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
c. If, because of operational requirements, the Company is unable to
meet the requirements of this paragraph during any calendar year,
the number of pilots not so trained shall be added to the
requirements for the succeeding calendar year.
G. REQUALIFICATIONS
When a pilot has been unqualified in an aircraft for a period of six
(6) months or longer the pilot will have the option of a full initial
ground school for requalification. However, Delta pilots requalifying
in an AQP program will be trained to proficiency in accordance with
Special Federal Air Regulation 58 governing AQP.
H. TRAINING OPPORTUNITIES
1. A Captain or First Officer shall be given two (2) opportunities to
successfully complete initial, transition, upgrade, or requalification
training.
2. When a Captain or First Officer fails to complete initial, transition,
upgrade, or requalification training he shall:
a. Return to his previous category, provided his seniority entitles
him to hold a position in the category and shall be granted one
(1) additional training opportunity on any aircraft of his choice
for which he is a successful bidder.
(1) In the event a Captain or First Officer is unable to return
to his previous category due to his seniority or the category
no longer exists, he shall displace into the category of his
choice for which his seniority entitles him and he shall be
granted one (1) opportunity to complete training if training
is required for the category.
11.18
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
3. A Second Officer who fails to complete initial First Officer training
shall be allowed one (1) additional attempt at initial First Officer
training on any aircraft of his choice for which he is a successful
bidder, however, failure to qualify on the second attempt will result
in pilot not being qualified to fly in any category.
11.19
<PAGE>
SECTION 12
HOURS OF SERVICE
A. MONTHLY MAXIMUM CREDIT HOURS
1. Except as provided in A.4. of this Section, the Company may, at its
option, and subject to the terms and conditions in this paragraph,
designate monthly maximum credit hours between seventy-five (75) and
eighty-two (82) hours for the international statuses and between
seventy-five (75) and eighty (80) hours for the domestic statuses up
to the authorized monthly maximum credit hours. Such designation may
be made by equipment status. However, the calendar year average of the
domestic Captain and First Officer monthly maximum credit hours of
each domestic equipment status shall not differ by more than two (2)
hours from each of the other domestic Captain and First Officer
equipment status.
a. For the purpose of determining authorized Captain monthly maximum
credit hours (flex cap), a Captain floor shall be established
consisting of the January 1, 1996 system Captain requirements.
The designated Captain flex cap shall not reduce the system
Captain requirements below the Captain floor minus all Captain
attrition and the total number of Captains that move to Second
Officer positions (Captain floor as adjusted).
b. For the purpose of determining authorized First Officer monthly
maximum credit hours (flex cap), a First Officer floor shall be
established consisting of the January 1, 1996 system First Officer
requirements. The designated First Officer flex cap shall not
reduce the system First Officer requirements below
12.1
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
the First Officer floor minus all First Officer attrition and the
total number of First Officers moving to Captain positions (First
Officer floor as adjusted).
c. For the purpose of determining authorized Second Officer monthly
maximum credit hours (flex cap), a system floor shall be
established based on the sum of the then current Captain floor as
adjusted, plus the then current First Officer floor as adjusted,
plus the January 1, 1996 system Second Officer requirements, minus
all Second Officer attrition and total number of Second Officers
moving up to higher statuses. The designated Second Officer flex
cap shall not reduce the system Second Officer requirements below
the Second Officer floor minus all Second Officer attrition and
the total number of Second Officers moving to First Officer and/or
Captain positions.
d. Normally, the international system cap, calendar year average,
will not exceed seventy-nine (79) hours, plus or minus forty-five
(45) minutes.
e. Normally, the domestic system cap, calendar year average, will not
exceed seventy-eight (78) hours, plus or minus forty-five (45)
minutes.
f. For purposes of this paragraph 12.A.1, attrition means any pilot
who leaves the Company payroll for any of the following reasons:
enhanced early retirement, early retirement, normal retirement,
disability, unpaid sick leave, any leave of absence in excess of
thirty (30) days, termination, death, or resignation.
12.2
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
g. The flex cap provisions of 12.A.1. may not be used when there is a
pilot on furlough whose seniority is insufficient to permit him to
be on active pay status.
2. For the purpose of computing an overprojected line of time, a pilot's
monthly maximum shall be the designated monthly maximum plus the
shortest rotation shown on his regular line of time that originates
prior to the twenty-fourth (24th) of the month, and shall include bow
wave and negative bank time up to a maximum of five (5) hours.
3. For the purpose of a regular line pilot flying reserve time as
outlined in Section 23.G. (White Slip), a pilot's maximum shall be the
designated monthly maximum plus the shortest rotation that is shown on
the pilot's projected line of time. If the shortest rotation shown on
a pilot's line of time is an asterisk trip, for purposes of this
paragraph, the value of the shortest rotation shall be the greater of
the credited value of the asterisk trip within the current bid period
or twelve (12) hours. Additionally, negative bank time shall be
included up to a maximum of five (5) hours, except that after a pilot
has completed the last rotation on his line of time, his normal
monthly maximum White Slip limitation will be the designated monthly
maximum plus five (5) hours. (However, he may White Slip reserve time
to a projection of the designated monthly maximum plus ten (10) hours
if there is no reserve time available on a day on which he elects to
fly reserve time which will permit him to equal or exceed the
designated monthly maximum without exceeding the designated monthly
maximum plus five (5) hours.) A pilot shall not be scheduled for any
duty after he has earned the designated monthly
12.3
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
maximum within the current month including up to five (5) hours of
negative bank (exclusive of bow wave carried into such month) except
as provided in Paragraph B.2. of this Section; however, any pilot with
an asterisk trip on his line of time and who exercises the twelve hour
shortest trip provision of this paragraph will be required to fly such
asterisk trip to completion.
4. a. Independently of the domestic designated monthly maximum
limitations in A.1. of this section, the domestic designated
monthly maximum for any category may be increased an additional
two (2) hours in one minute increments to cover absence due to
training (training flex).
(1) Any domestic designated monthly maximum increase due to
training flex shall be exempt from the averaging provisions of
12.A.1.a.
(2) Any domestic designated monthly maximum increase due to
training flex shall not cause an increase of the reserve
guarantee.
b. Up to two (2) hours, in fifteen minute increments, of the
international designated monthly maximum provisions of A.1. of
this section may be utilized as training flex.
(1) Any designated monthly maximum increase due to training flex
shall not cause an increase to the reserve guarantee.
(2) Notwithstanding 12.A.1., international training flex may be
designated on a category by category basis within an equipment
status.
5. For the purpose of calculating the monthly maximums for a pilot
holding a composite line of time, the credit hours allocated to the
reserve portion(s) of the month shall be credited to the pilot
during the regular line portion of the month as if already
accomplished.
12.4
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
B. BOW WAVE
1. A pilot holding a regular line of time may fly the remainder of his
line of time if prior to his last rotation of the month he has not
earned the designated monthly maximum within the current month
(exclusive of bow wave and up to a maximum of five (5) hours of
negative bank carried into such month).
2. A pilot holding a reserve line of time shall complete his last
assigned trip or rotation of the month if, at the time of leaving his
pilot base, the scheduled credited flight time to be flown on the trip
or rotation prior to the end of the month, will not, when added to his
credited hours earned within the current month, total more than the
designated monthly maximum except in the case of a reserve that has
been a regular line holder for a portion of the month and has not been
utilized as a reserve pilot for the time that has been credited to him
as a reserve. A pilot's flight time credit for such trip or rotation
shall be paid and credited up to the designated monthly maximum and
the remainder shall be paid and credited in the following month. A
pilot holding a reserve line may request and may be assigned flying
under the provisions of Section 23.G.3. (Yellow Slip).
3. In the event that a pilot accrues excess credited hours, the pay and
credit for such hours shall not be offset against the pilot's
guarantee or any other form of pay and credit in any month.
4. All credit hours accumulated in excess of the designated monthly
maximum as provided in Paragraphs A. and B. of this Section, shall be
paid and credited in the
12.5
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
following month. Such pay and credit carried forward may result in an
over-projection of the pilot in the new month. When an over-projection
is equivalent to or greater than the credit time of the shortest
rotation which originates prior to the 24th of the month on the
pilot's line of time, a rotation(s) which originates prior to the 24th
of the month shall be dropped from his line of time that will reduce
his projection below his maximum in accordance with Paragraph A. of
this Section, but in no case below the designated monthly maximum,
except at the pilot's option, operations permitting. Trips within
periods of training, vacation, or sick leave shall not be removed for
purposes of time adjustment. If such over-projection occurs on or
after the twenty-fourth (24th) of the month, the pilot shall (except
as provided in Section 23.H. - Personal Drop) continue flying his line
of time providing he does not earn within the current month the
designated monthly maximum minus any negative bank up to a maximum of
five (5) hours prior to his last rotation of the month. Operations
permitting, the pilot may select the rotation(s) to be dropped from
his line of time.
12.6
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
C. SPILLBACK
1. If a trip or rotation commences in one calendar month and ends in the
following month, all of the pilot's pay and credit for that trip or
rotation that is scheduled or flown during a period in which the pilot
is a regular line holder in the following month may be paid and
credited in the previous month up to the designated monthly maximum
and the remainder shall be paid and credited in the following month.
In addition, he may spillback any flight time pay and credit which was
scheduled to originate during the first ten (10) days of the following
month provided such time spilled back is flown on a regular line. Pay
and credit spilled back to the previous month shall be considered as
earned in the previous month (but shall be paid at the existing rates
for the category and longevity) and shall be in addition to any other
form of pay and credit (including a pilot's reserve or minimum monthly
guarantee). However, if a regular line guarantee should become due in
the following month, it shall be reduced by the actual credit time
spilled back.
2. Spillback shall be allowed irrespective of whether the pilot was a
reserve or regular line holder in the previous bid period.
12.7
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
Spillback Examples
<TABLE>
<CAPTION>
MONTH A MONTH B
<S> <C> <C> <C> <C> <C> <C>
TRIP A B C
REG REG REG MAY SPILLBACK B & C DAY
TRIP A B C
RES REG REG MAY SPILLBACK B & C DAY
TRIP A B C
RES RES REG MAY SPILLBACK C DAY ONLY
TRIP A B C
RES RES RES NO SPILLBACK ALLOWED
TRIP A B C
REG RES RES NO SPILLBACK ALLOWED
====================================================================
DATES 8 9 10 11 12
TRIP A B C
REG REG REG MAY SPILLBACK A,B,& C DAY
TRIP A B C
RES REG REG MAY SPILLBACK B & C ONLY
TRIP A B C
RES REG REG MAY SPILLBACK B & C DAY
TRIP A B C
REG REG RES MAY SPILLBACK A & B DAY
TRIP A B C
RES RES RES NO SPILLBACK
TRIP A B
RES REG MAY SPILLBACK B DAY
TRIP A B
REG RES MAY SPILLBACK A DAY
</TABLE>
D. COMPANY TIME CARD
At each pilot base, actual time, scheduled time and pay time shall be
displayed as expeditiously as possible by the Company for each pilot
at the base, such time displayed to be that time submitted by the
Captain for payroll purposes.
12.8
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
E. MAXIMUM DUTY HOURS
1. For domestic category operations, the maximum time a pilot may be
scheduled on duty shall be based on report time in the pilot's local
domicile time and in accordance with the following schedule, except
that FRA hub operations and international category duty periods will
be scheduled based on the time zone of the duty period report time.:
<TABLE>
<CAPTION>
REPORT TIME * MAXIMUM DUTY TIME
<S> <C>
0700-
1259 13 hours
1300- 13 hours reduced 1 minute for each 2
2059 minutes between 1300 and report time.
2100-
2359 9 hours
0000-
0059 9 hours reduced 30 seconds for each
minute between 0000 and
report time
0100-
0259 8 hours 30 minutes
0300-
0359 8 hours 30 minutes increased 30
seconds for each minute between 0300
and report time.
0400-
0459 9 hours increased 3 minutes for each
minute between 0400 and report time.
0500-
0659 12 hours increased 30 seconds for each
minute between 0500 and report time.
</TABLE>
* Fractions of less than one minute after these computations shall be
considered to be the next higher minute.
12.9
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
In no case shall a pilot be required to remain on duty in excess of
two (2) hours greater than the time resulting from application
of the limitations specified in this Paragraph.
2. Duty time shall include scheduled flight and ground time and a pilot
shall be considered to be on duty from one (1) hour before the
scheduled departure of his flight (thirty (30) minutes for deadhead)
or actual reporting time, whichever is later, until thirty (30)
minutes after his flight is terminated, except as extended by the
application of Paragraph O. of this Section.
3. The provisions of paragraph 12.E. are not applicable to a scheduled
duty period which consists solely of International Operations flying
followed by deadhead to the pilot's domicile. However, in no case
shall such a duty period cause a pilot to be scheduled on duty in
excess of fifteen (15) hours.
4. No pilot shall be scheduled for more than eight (8) landings in a duty
period.
F. BREAK IN DUTY HOURS
1. A pilot's on-duty period cannot be broken by an off-duty period away
from his domicile (beginning at the end of debriefing upon arrival and
ending one (1) hour before scheduled departure or actual reporting
time, whichever is later) of less than the following:
a. Nine hours (9:00) scheduled and eight hours and fifteen minutes
(8:15) actual when the sum of the scheduled on-duty time of the
duty periods immediately before and after the off-duty period is
twenty hours (20:00) or less.
12.10
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
b. Ten hours (10:00) scheduled and nine hours (9:00) actual when the
sum of the scheduled on-duty time of the duty periods immediately
before and after the off-duty period is more than twenty hours
(20:00).
c. In the event a duty break occurs at co-terminal airports, the
ground travel time in Section 8.C. appropriate to the layover will
be added to the applicable scheduled and actual duty break
provided in F.1.a. or b. above.
2. A pilot's on-duty period cannot be broken by an off-duty period at his
domicile of less than nine hours (9:00).
3. It shall be the responsibility of the pilot who is unable to report
for duty to notify, as far in advance as possible, the local manager
of operations or his designated representative of this fact, giving
the reason for his inability to report for duty.
G. VARIABLE DUTY PERIOD MINIMUM PAY AND CREDIT
1. When a regular line holder or a Supplemental Regular Line holder
departs his domicile on a scheduled flight or is on Shuttle standby
duty, he shall be guaranteed the following:
a. A Variable Duty Period Minimum (VM) to be established by the
Company. The Company shall establish the Variable Duty Period
Minimum (VM) for each duty period at any value it chooses between
four (4) and six (6) hours provided the sum of the established
variable duty period minimum(s) for all the duty periods in any
given rotation equals no less than five (5) hours times the number
of duty periods in the rotation.
2. The following on-duty periods are excluded from the provisions of
Paragraph G.1. of this Section.
12.11
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
a. An on-duty period in which a landing was not made at an airport
other than the airport of take-off or its co-terminal (except for
trips scheduled between co-terminals) and,
b. An on-duty period composed solely of deadheading.
3. The difference between the flying pay earned and the variable duty
period minimum shall be paid and credited as an extension from release
time of the duty period.
4. The variable duty period minimum may be waived by a pilot who picks up
Reserve time in accordance with Section 23.F. (White Slip/Yellow Slip)
of this Agreement.
H. DUTY HOURS PAY AND CREDIT
1. When a pilot reports for flight duty as defined in Paragraph E. of
this Section, he shall receive a minimum of one (1) hour pay and
flight time credit for each two (2) hours of duty time prorated on a
minute-by-minute basis, for all hours between 0600 and 2200 pilot's
local domicile time and a minimum of one (1) hour pay and flight time
credit for each one and three-quarters (1 3/4) hours of duty time
prorated on a minute-by-minute basis, between 2200 and 0600 hours
pilot's local domicile time prorated on a scheduled or actual basis,
whichever is greater. A pilot on duty at 0359 pilot's local domicile
time shall continue to receive a minimum of one (1) hour pay and
flight time credit for each one and three-quarters (1 3/4) hours of
duty time until his release from that duty period.
2. A pilot deadheading at Company request to his domicile from protecting
a flight(s) shall be covered by this Paragraph.
12.12
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
3. The difference between the flying pay and credit earned and the Duty
Hour minimums as stipulated in this Paragraph shall be paid and
credited as an extension from release time of the duty period.
I. TRIP HOURS PAY AND CREDIT
Pilots on increment pay shall receive a minimum of one (1) hour flying
pay and flight time credit for each three and one-half (3 1/2) trip
hours as defined in Section 2 (Definitions), prorated on a minute-by-
minute basis. Trip hours shall be paid and credited as an extension
from release time of the last duty period of the rotation, except that
in the event a pilot reports for duty and does not fly or deadheads
without flying during the trip hour period, trip hours shall be paid
on the basis of the equipment being protected.
J. DUTY FREE PERIODS - REGULAR LINE
All regular lines of time shall be published with a minimum of five
(5) forty-eight (48) hour periods (beginning at midnight local time
block-in to report time) free of all duty at the pilot's domicile
during each monthly pay period. Whenever a pilot must drop a trip or
trips from his initial line of time to be scheduled for a period or
periods off, as provided in this Paragraph, the pilot shall receive
pay for the scheduled flight time lost and his total permissible
flight credit time shall be reduced by the flight time such pilot was
scheduled to fly during the period or periods he dropped such trip or
trips. Except as provided in Section 11 (Training) of this Agreement,
the Company shall not change a scheduled forty-eight (48) hour off-
period or require a pilot to stand by or fly during such period except
as he may consent to or volunteer for such change or flying.
12.13
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
K. DUTY FREE PERIODS - RESERVE AND UNASSIGNED
1. All reserve lines will be published with a minimum of eleven (11)
twenty-four (24) hour periods free of all duty (x-days) during each
bid period at the pilot's domicile. Such periods may, at the Company's
option, be scheduled as follows:
a. One eleven (11) day block, or
b. One six (6) day block plus one five (5) day block, or
c. Two four (4) day blocks plus one three (3) day block, or
d. Three three (3) day blocks plus one two (2) day block (contingent
upon changes to Federal Air Regulations in regard to duty time and
required rest).
2. The reserve periods free of duty (x-days) shall be spaced through the
entire month.
3. The reserve periods free of duty (x-days) published as a part of the
bid package shall begin at midnight local time. Some or all of such
published free of duty periods may by mutual agreement between the
Company and the MEC Scheduling Committee begin at a time other than
midnight.
4. A ninety-six (96) hour period shall be designated on the bid package
as inviolable (golden).
5. A composite line shall have prorated x-days.
6. The Company shall not fly a pilot during off-duty periods except as a
result of flying from one month into the next or as provided in
Section 11 (Training) and Section 12.L. of this Agreement. By mutual
agreement duty-free periods may be moved. The Company shall not change
a scheduled duty free period except as provided in Section 11
(Training) and Section 12.L. of this Agreement, and except
12.14
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
that after the application of Section 23.I.1.c., d. and e. (Reserve
Flying) of this Agreement, a reserve line pilot may be scheduled to
fly during his off-duty period other than the golden ninety-six (96)
hour period provided that nine (9) hours from release time at his base
from the trip or series of trips which resulted in his being on duty
during the scheduled off-duty period he shall commence an off-duty
period of equal duration. The provisions of Section 23.I.1.c., d. and
e. shall not apply to a pilot when his duty free period is interrupted
as a result of flying from one month as a regular line holder into the
next as a reserve. In that event his duty free period shall begin at
the release time of the rotation on which he returned to his domicile.
The provisions of this Section regarding spacing of duty-free periods
shall not be applicable to reserve lines in International categories
or Domestic categories flying the foreign hub operation.
L. WAIVER OF DUTY FREE PERIODS
A pilot may waive scheduled off-duty time. When this right is invoked,
off-duty time so lost will not be rescheduled.
12.15
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
M. FLIGHT TIME LIMITATIONS
1. FAR 121.471 (a) reads as follows and applies to all Company flight
operations until amended:
"No domestic air carrier may schedule any flight crew member and no
flight crew member may accept an assignment for flight time in
scheduled air transportation or in other commercial flying if that
crew member's total flying time in all commercial flying will exceed:
(1) 1,000 hours in any calendar year;
(2) 100 hours in any calendar month;
(3) 30 hours in any 7 consecutive days;
(4) 8 hours between required rest periods."
2. Duty aloft includes the entire period during which a pilot is assigned
as a member of an airplane crew during flight time.
3. Scheduled for duty aloft means the assignment of a pilot on the basis
of the flight time established in the operations schedules rather than
the actual flight time.
4. No pilot shall be assigned any duty with the Company during any rest
period. No rest period can be less than eight (8) consecutive hours.
5. Subparagraphs M.1. and F. of this Section shall not apply to the
Company's International Operations.
N. FULL SERVICE BANK
1. Credited hours in excess of the monthly maximum (bow wave) may, at
pilot option, be deposited in the bank at a rate of up to twenty (20)
per month to a
12.16
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
maximum bank balance of sixty (60) hours. Each individual has only one
bank account balance that is positive, negative, or zero.
2. A pilot may, at his option, borrow up to twenty (20) hours per month
up to a maximum negative balance of twenty (20) hours. Such bank debt
shall be repaid from "Bow Wave" at a maximum rate of five (5) hours
per month, except when the pilot elects to deposit additional time as
provided in N.1. above.
3. The bank deposit form must be filed with Crew Scheduling by midnight
on the 20th of the month in question. All other bank transactions
must be filed with Crew Scheduling by midnight on the last day of the
bid period in question. All bow wave conversion and bank accounting
will take place subsequent to the end of the month.
4. Bank time may, at pilot option, be used to:
a. Provide additional pay in the current month, up to the designated
monthly maximum.
b. Fill any month(s) in which the pilot earned less than the monthly
maximum credit hours during the previous twelve (12) month period.
This sub-paragraph will apply whether the pilot
failed to earn less than the monthly maximum credit
hours during a month because of:
(1) The projected value of the pilot's monthly schedule.
(2) Personal leave/personal drop, or
(3) The reduction of the pilot's projection as a result of
dropping a day on call as a reserve (charged at 1/30-1/31 of
the designated monthly reserve guarantee per day).
12.17
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
c. Purchase vacation days for use during the subsequent vacation
year, (such days to be declared on the individual's vacation bid
sheet) at a rate of three hours and thirty minutes (3:30) per day.
d. Purchase, by mutual agreement, vacation days for use during the
current vacation year at a rate of three hours and thirty minutes
(3:30) per day.
5. Usage of vacation days purchased via the bank is limited to ten (10)
days in any vacation year.
O. CO-TERMINAL OPERATIONS
1. When a co-terminal airport as defined in Section 2 (Definitions) is a
pilot base, a pilot will report to the co-terminal airport which is
the point of origination for the first flight of the rotation. With
the exception of transition and holiday cancellation rotations, all
rotations shall originate and terminate at the same co-terminal at the
base. When a duty period ends at a co-terminal airport for his base,
other than the airport at which the rotation originated, he shall
layover and originate his next duty period from that airport. If the
last flight leg (including deadhead by air) of a transition or holiday
cancellation rotation ends at a co-terminal airport for the base,
other than the airport from which the rotation originated, the Company
may deadhead the pilot by surface transportation to the airport of
origin. A rotation is completed when the pilot's duty period ends at
the airport at which the rotation originated.
a. Parking will be provided at Company expense at the airport of
origin for a rotation within a base having co-terminals.
12.18
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
b. A pilot assigned to a base having co-terminal airports may elect
to have his company mail delivered to the co-terminal airport of
his choice.
12.19
<PAGE>
SECTION 13
LEAVES OF ABSENCE
A. POLICY
1. When the requirements of the service will permit, a pilot actively
employed by the Company may be granted leaves of absence.
2. Such pilot on leave of absence shall not accrue seniority beyond the
first one hundred eighty (180) days of each such leave of absence
during any calendar year, unless additional seniority accrual is
approved by the Company and the Pilots' Master Executive Council, or
when such leaves of absence are granted to permit a pilot to serve the
interest of the Company or the Association; provided that after the
expiration of the period during which such pilot accrues seniority he
shall lose seniority at the rate of one (1) position on the Pilots'
System Seniority List for each sixty (60) days or fraction thereof
during which his seniority does not accrue. Except as provided
hereinafter, seniority shall not continue to accrue in that portion of
a leave of absence during which a pilot fails to maintain the
certificates required for his status.
3. A pilot on leave shall not, without prior written permission of the
Company, engage in aviation employment or business activities adverse
to the Company's interest.
4. When leaves are granted on account of sickness or injury, a pilot
shall retain and continue to accrue his seniority whether or
not he is able to maintain the airline pilot certificates required for
his status until he is able to return to duty. In no case shall leave
for sickness or injury exceed a total continuous period of ten (10)
13.1
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
years. Such leave on account of sickness or injury shall begin upon
the exhaustion of all sick leave. Return to duty after such leave
shall be subject to a reasonable qualifying period.
5. Return from leave occasioned by sickness or injury shall be governed
by the following:
a. A pilot returning from Temporary Disability shall return to the
category from which he went into disability except, if due to
insufficient seniority or because the category no longer exists
that option is foreclosed, he may exercise his seniority system
wide, subject to the limitations contained in Paragraph A.4. of
this section.
b. A pilot returning to duty after Temporary Disability has been
exhausted may exercise his seniority system wide, subject to the
limitations contained in Paragraph A.4. of this section.
6. A pilot having been removed from a category in the interest of the
Company or the Association may:
a. Return to any category for which a more junior pilot has been
converted or received an Advance Entitlement as a result of a bid
award during the period of absence from the category and the
returning pilot will be subject to the provisions of Section 22.F.
appropriate to that entitlement award. Further, the provisions of
this paragraph shall apply if, upon the pilot's return to the line
on a permanent basis, his seniority will allow him the position or
the Advance Entitlement selected, subject to the following
conditions:
13.2
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
(1) Where the more junior pilot has been converted the returning
pilot shall enter the new category immediately upon his
return.
(2) Where the more junior pilot holds an Advance Entitlement, the
pilot returning shall enter the category he occupied prior to
his absence and subsequently shall be converted into the
category for which he holds an Advance Entitlement in
seniority sequence with those being converted under that bid
award.
b. Provided he can hold that position, return to the category from
which he was removed, without incurring a freeze or;
c. If unable to apply a. or b. above, exercise his seniority system
wide without incurring a freeze.
7. Any dispute arising hereunder concerning the physical fitness of the
pilot concerned shall be settled in accordance with Section 15
(Physical Examinations) of this Agreement.
B. LEAVES FOR MILITARY SERVICE
1. Any pilot who is involuntarily ordered to active military service in
the uniformed services of the United States of America, which includes
the armed forces, the National Guard or the commissioned corps of the
Public Health Service (hereinafter jointly referred to as "uniformed
services"), or volunteers for such service, shall, during such period
of service, if appropriate notification was provided to the Company
prior to the pilot's departure for military service be granted a leave
of absence without pay by the Company, until a maximum of ninety (90)
days after it is possible for such pilot to secure a release or
discharge
13.3
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
from active service, or a maximum of five (5) years, except that any
pilot on military leave of absence who shall be held as a prisoner or
hostage of war or interned shall be automatically granted a leave of
absence extension past five (5) years until ninety (90) days after his
release, and such pilot shall, during such period, retain and continue
to accrue his seniority.
2. The Company reserves the right to intervene with the appropriate
military or draft board authorities to seek a deferment of such
military service if Company operations would be adversely affected by
granting the leave of absence.
3. Such pilot shall, in addition to retaining his position on the
seniority list, accrue seniority for pay purposes.
4. Return to duty after such military leave shall be subject to a
reasonable qualifying period.
5. As provided in the Selective Service Act of 1967, as amended, a pilot
who is a member of the uniformed services of the United States of
America shall upon written request be granted a leave of absence
without pay for the period required to perform active duty for
training or inactive duty training in the uniformed services of the
United States. Such pilot shall continue to retain and accrue his
seniority. The Company reserves the right to intervene with the
appropriate military authorities to seek a deferment or cancellation
of such military training if Company operations would be adversely
affected by the granting of such leave of absence.
13.4
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
C. JURY DUTY AND SUBPOENAED WITNESSES
1. Upon receipt of notification that his name has been placed on a jury
selection list, has been subpoenaed to be a witness in criminal
litigation or as a result of his employment, the pilot will
immediately notify his Base Chief Pilot. The Company reserves the
right to intervene with the appropriate authorities to seek release
from or deferral of any such jury duty or appearance.
2. When serving as provided in Paragraph C.1., a pilot shall be paid and
credited as follows:
a. A regular line of time holder shall receive flying pay and credit
for those flights shown on his line of time on a scheduled basis.
b. A reserve line of time holder shall receive pay and credit equal
to one-thirtieth (1/30th) or one thirty-first (1/31st) of his
appropriate monthly reserve guarantee, as provided under Section 4
(Minimum Pay Guarantees) for each day of reserve held during a
month.
c. An unassigned pilot shall be paid and credited as provided under
Section 4 (Minimum Pay Guarantees).
3. When a pilot is subpoenaed as a witness due to circumstances other
than those specified in Paragraph C.1., he may, operations permitting,
be granted change of X-days or personal drop whichever is appropriate
in order to appear as a witness. In the event the pilot uses personal
trip drop privileges his maximum projected time for pick-up shall not
be reduced.
4. Failure to comply with Paragraph C.1. of this Section releases the
Company from all obligations under Paragraph C.2. of this Section.
13.5
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
D. TRANSFER LEAVE
1. The following transfer leave shall apply to any pilot changing
domiciles when Section 6.A. is not applicable:
a. When a pilot transfers to another domicile he shall, upon request,
receive up to three (3) calendar days free of duty between his
last commitment at his old domicile and his first commitment at
his new domicile.
b. Designation of duty free days shall be a function of the pilot's
status (Regular/Reserve) preceding and following the conversion
date as follows:
<TABLE>
<CAPTION>
STATUS PRIOR STATUS AFTER WHERE
<S> <C> <C>
CONVERSION CONVERSION RELEASED
Regular Regular Least days
Regular Reserve Reserve day(s)
Reserve Regular Reserve day(s)
Reserve Reserve Prior month
</TABLE>
2. Pay consequence will be as follows:
a. Where a regular line holder is released from duty -projection and
line guarantee shall be reduced by the value of trip(s) dropped.
b. Where a reserve is released from duty - guarantee shall be reduced
by one-thirtieth (1/30th) or one-thirty-first (1/31st) of the
designated monthly reserve guarantee for on-call days dropped.
E. MATERNITY LEAVE
1. Notification - A pilot will notify her Chief Pilot as soon as
pregnancy is confirmed by her attending physician. This notification
should be in the form of a
13.6
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
letter from the pilot's doctor confirming pregnancy and indicating an
estimated delivery date.
2. Continuation of flight duties will be permitted until the end of the
twenty-sixth (26th) week of pregnancy (the end of the second
trimester), with written release for flight status from the pilot's
doctor.
3. Maternity leave will begin upon request by the pilot, after
certification of pregnancy, but no later than the end of the twenty-
sixth (26th) week.
4. Pregnant pilots will be eligible for sick leave, vacation (if elected
by the pilot), and temporary disability benefits.
5. Maternity leave will extend for the duration of the pregnancy and
until six (6) weeks following normal delivery, or eight (8) weeks
following a Cesarean section delivery. Maternity leave may be
extended beyond these periods with medical certification from the
pilot's doctor that her own condition or health prevents return to
normal flight duties.
6. Personal leave of absence, following maternity leave, may be granted
thirty (30) days at a time for breast feeding, or for reasons
associated with the child's health, if documented by the attending
physician. Personal leaves will not normally be extended for more
than sixty (60) days after expiration of maternity leave.
7. Company paid medical/dental coverage and life insurance will continue
for the pilot and her eligible family members while the pilot is
eligible for sick leave/temporary disability benefits and for the
first thirty (30) days while on Maternity Leave of Absence status
after temporary disability benefits are exhausted. Continuation of
medical/dental coverage and life insurance will
13.7
<PAGE>
SECTION 13 - LEAVES OF ABSENCE (CONTINUED)
require that the pilot pay applicable premiums for the duration of the
Maternity Leave of Absence and any personal leaves, if applicable,
until the pilot returns to active flight status.
8. While off the payroll (including the temporary disability benefit
period), the pilot will be responsible for any optional insurance
premiums (including, but not limited to, optional additional life
insurance, dependents life insurance, accidental death and
dismemberment insurance, and voluntary personal insurance).
9. Seniority adjustment will be in accordance with Section 13 (Leaves of
Absence) and Section 20 (Seniority) of this Agreement.
10. Reinstatement must be requested in writing within thirty (30) days
following delivery. Return to flight status will be contingent upon
presentation of a letter of release from the pilot's doctor certifying
her fitness to return to full flight status without restrictions or
limitations. This letter should be submitted to the Chief Pilot.
13.8
<PAGE>
A. SICK LEAVE ELIGIBILITY
1. After the completion of six (6) months employment with the
Company and during the remainder of the first year of
employment, pilots shall be eligible for twenty-five (25)
hours of sick leave charged at the rates shown in B. below.
In the event of illness after completion of I.O.E.
requirements applicable to the entry level assignment and
prior to completion of six (6) months of service, sick leave
may be drawn from the twenty-five (25) hours of sick leave
available during the second (2nd) six (6) months, subject to
approval by the Vice President - Flight Operations or his
designee.
2. During subsequent years of employment, pilots shall be eligible for
sick leave credit as follows:
<TABLE>
<CAPTION>
YEAR OF SICK LEAVE
EMPLOYMENT CREDIT HOURS
<S> <C>
2nd 65
3rd 90
4th 115
5th 140
6th 165
7th 190
8th 215
9th 240
10th-20th 265
21 and thereafter 290
</TABLE>
3. Sick leave credit shall not be cumulative from year to year.
14.1
<PAGE>
SECTION 14 - SICK LEAVE (CONTINUED)
B. PAY, CREDIT, AND CHARGING OF SICK LEAVE
A pilot on sick leave shall be paid as follows :
1. A pilot holding a regular line of time shall be paid, credited, and
charged during the period of sick leave, for time lost, as shown on
the pilot's line of time (including International and Specialized
Navigation Procedures pay where applicable).
a. In the event a pilot is sick for a portion of a rotation and flies
a portion of that same rotation, the pilot will be paid and
credited no more than he would have received had he flown the
entire rotation. In such case the pilot will be paid, credited, and
charged for trips shown on the pilot's line of time for the portion
of the rotation not flown due to sickness (including International
and Specialized Navigation Procedures pay where applicable).
2. A pilot on reserve or who is unassigned will be paid, credited, and
charged during the period of sick leave, at a daily rate of
one-nineteenth (1/19th) of the designated monthly reserve guarantee
for each Reserve day on call in a thirty (30) day month or one-
twentieth (1/20th) of the designated monthly reserve guarantee for
each Reserve day on call in a thirty-one (31) day month as
appropriate, or his designated minimum monthly reserve guarantee,
whichever is greater.
3. A computer display will be provided to permit a pilot to view his sick
leave usage and balance.
14.2
<PAGE>
SECTION 14 - SICK LEAVE (CONTINUED)
C. DENTAL CARE
1. Sick leave shall include pay and flight time credit for periods of
absence during which a pilot is hospitalized for dental surgery or
other dental care, or is unable to fly due to receiving medication
prescribed or given by a dentist which would remove a pilot from
flying status. In addition, it shall include periods of absence due to
any of the following types of surgery performed in a dentist's office:
a. Gingivectomy (Excision of gum tissue in pyorrhea)
b. Apicoectomy (Amputation of apex of a tooth root)
c. Surgical removal of impacted teeth.
(NOTE: Definitions from Taber's Condensed Medical Dictionary)
2. Absence due to other types of dental care or treatment shall not be
considered as sick leave under the provisions of this Section.
D. PROOF OF ILLNESS
1. The Company may require, at its option, a doctor's certificate or
other proof of illness to substantiate a sick leave claim. However,
under normal conditions a medical certificate will not be required
from a doctor until a pilot has been absent in excess of seven (7)
consecutive days.
2. A doctor for the purposes of this Section will be an M.D., D.O.,
D.D.S., or D.C.
E. INJURY ON DUTY
A pilot who is injured while on duty with the Company shall be
eligible for ninety (90) calendar days of accident leave for each
separate accidental injury. Accident leave shall be used prior to sick
leave.
14.3
<PAGE>
SECTION 14 - SICK LEAVE (CONTINUED)
F. BIDDING AND RECORD KEEPING
1. A pilot who is currently qualified at the beginning of his sick leave
shall be considered to be currently qualified for the duration of his
sick leave for the purpose of awarding lines of time. A pilot shall be
removed from his line of time at the expiration of his sick leave and
shall not be awarded a line of time in future bid periods until he
reports he is able to return to flying duty.
2. Crew Scheduling shall prepare and submit a sick leave pay claim for
days absent from duty on a pilot's line of time when a pilot is unable
to do so due to his being incapacitated.
G. MERGER PROVISION
1. Where applicable, the provisions of Section 8 of the Supplemental
Agreement dated October 26, 1972, shall continue to apply.
2. Where applicable, the provisions of Section 14 of the Supplemental
Agreement dated September 21, 1987, shall continue to apply.
H. DPAC
Pilots shall be covered by the provisions of Standard Practice 1026
dated April 3, 1995 as set forth in the Personnel Practices Manual.
14.4
<PAGE>
SECTION 15
PHYSICAL EXAMINATIONS
A. PHYSICAL STANDARDS
The physical standards required of a pilot shall be the standards
established by the Federal Aviation Administration for the issuance
of Class I Medical Certificates, including its waiver and restriction
policy. The Company reserves the right to intervene with the FAA on
behalf of the pilot at any time in order to remove the restrictions.
B. CASE REVIEW
1. Any pilot hereunder who fails to pass a Company medical examination
may within thirty (30) days, at his option, have a review of his case
in the following manner:
a. He may employ a qualified medical examiner of his own choosing and
at his own expense for the purpose of conducting a physical
examination for the same purpose as the physical examination made
by the medical examiner employed by the Company.
b. A copy of the findings of the medical examiner chosen by the
employee shall be furnished to the Company, and in the event that
such findings verify the findings of the medical examiner employed
by the Company, no further medical review of the case shall be
afforded.
15.1
<PAGE>
SECTION 15 - PHYSICAL EXAMINATIONS (CONTINUED)
c. In the event that the findings of the medical examiner chosen by
the employee disagree with the findings of the medical examiner
employed by the Company, the Company shall, at the written request
of the employee, ask that the two medical examiners agree upon and
appoint a third qualified and disinterested medical examiner,
preferably a specialist, for the purpose of making a further
physical examination of the employee.
d. The said disinterested medical examiner shall then make a further
examination of the pilot in question and the case shall be settled
on the basis of his findings. However, nothing in this Section
shall be construed to deny the pilot his rights to normal FAA and
NTSB appeal procedures, nor shall it preclude the Company from
requiring the pilot to appeal the results of the findings.
2. The expense of employing the disinterested medical examiner shall be
borne one-half by the pilot and one-half by the Company. Copies of
such disinterested medical examiner's report shall be furnished to the
Company and to the pilot.
3. When a pilot returns to active service with the Company as a pilot
after receiving disability benefits under the provisions of
Section 26.C., that pilot shall receive flying pay (equal to one-
thirtieth (1/30th) in a thirty (30) day month or one thirty-first
(1/31st) in a thirty-one (31) day month of the designated monthly
maximum per day at rates appropriate to the equipment and status in
which that pilot returns to service) for the period beginning on the
date when the pilot presents a Class I Medical Certificate to a
representative of the Vice President - Flight Operations and ending on
the date when a representative of the Vice President - Flight
15.2
<PAGE>
SECTION 15 - PHYSICAL EXAMINATIONS (CONTINUED)
Operations receives the report of the medical examiner employed by the
Company to perform a Company medical examination. This pay shall be
offset dollar for dollar by disability benefits received under the
provisions of Section 26.C. and shall be computed and paid upon the
pilot's return to active service with the Company as a pilot.
C. MEDICAL RELEASE REQUIREMENT
The Company may require a medical release only for a specific illness
which resulted in the pilot taking sick leave and shall be limited to
those days on which he claimed sick leave pay. Such release shall be a
limited release and shall be limited to a Company designated doctor
and the Vice President - Flight Operations.
15.3
<PAGE>
SECTION 16
INTERNATIONAL CATEGORY OPERATIONS
A. COMPENSATION
1. a. Each pilot, when serving as a Captain flying International
Operations and each Captain assigned to an International category
shall be paid International Pay of three dollars and fifty cents
($3.50) per hour in addition to other rates of compensation
provided in this Agreement.
b. Each pilot, who has completed one (1) year of service with the
Company as a pilot shall, when assigned to an International
category and who is trained to use Specialized Navigation
Procedures shall be paid Navigation pay of three dollars ($3.00)
per hour in addition to other rates of pay provided in this
agreement.
2. Each pilot, who has completed one (1) year of service with the Company
as a pilot shall, when serving as a First Officer flying International
Operations or as a First Officer assigned to an International category
be paid in addition to other rates of compensation provided in this
Agreement, his applicable percentage of Captain pay as provided in
Section 3.B.4 . of this Agreement.
3. Each pilot, who has completed one (1) year of service with the Company
as a pilot shall, when serving as a Second Officer flying
International Operations or as a Second Officer assigned to an
International category be paid in addition to other rates of
compensation provided in this Agreement, his applicable percentage of
Captain pay as provided in Section 3.B.4. of this Agreement.
16.1
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
B. MINIMUM GUARANTEES
1. The regular line guarantee in all small categories whose line
construction is less than the designated monthly maximum credit hours
minus six (6) hours shall be:
a. The regular line guarantee as outlined in Section 4, Minimum Pay
Guarantees (including International pay and Specialized Navigation
Procedures pay), for all pilots who have bid and are awarded a
regular line.
b. The reserve line guarantee as outlined in Section 4, Minimum Pay
Guarantees (including International pay and specialized Navigation
Procedures pay), for all pilots who are "assigned" a regular line
that was published with credited time less than the designated
monthly maximum minus six (6) hours. The term "assigned" shall be
the same meaning as found in Section 23.C.2.
2. For all other International categories the minimum regular line
guarantee shall be as outlined in Section 4, Minimum Pay Guarantees
(including International pay and Specialized Navigation Procedures
pay).
3. These guarantees shall be reduced by an amount equal to any time
reduction resulting from the escalation bid process as outlined in
Section 23.E. (Escalation), any time reduction resulting from the end
of the month changeover process or the amount of time represented by
any personal trip drop during the bid period.
4. Each pilot who is eligible for flying pay and who is the holder of a
reserve line of time for the month as provided under Section 23.C. and
E. of the Basic Agreement shall be guaranteed the reserve
guarantee as outlined in Section 4, Minimum Pay Guarantees, based on
the highest paying piece of equipment in the
16.2
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
category, payable monthly (including International pay and Specialized
Navigation Procedures pay).
C. INTERNATIONAL CREW AUGMENTATION
1. For operations of aircraft certificated for two (2) pilots which
require one (1) Relief Pilot, the Relief Pilot shall be a type-rated
First Officer current on the appropriate equipment and in the
appropriate status.
2. For operations of aircraft certificated for two (2) pilots which
require two (2) Relief Pilots, the Relief Pilots shall consist of a
Captain and a type-rated First Officer current on the appropriate
equipment and in the respectively appropriate status.
3. For operations of aircraft certificated for two (2) pilots one
additional crew member (Second Officer) which require relief crew
members, the Relief crew members shall consist of a type-rated First
Officer, current on the appropriate equipment and in the appropriate
status and a Second Officer, current on the appropriate equipment and
in the appropriate status.
4. A pilot performing as a required Relief crew member shall not while
performing as a Relief Pilot also serve as a Line Check Airman.
5. Accommodations on board an aircraft on flight segments requiring crew
relief or augmentation shall be provided as follows:
a. For flight segments scheduled for greater than eight (8) hours but
not greater than twelve (12) hours on two (2) pilot aircraft:
(1) A dedicated Business Class seat.
16.3
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
b. For flight segments scheduled for greater than twelve (12) hours
on two (2) pilot aircraft:
(1) Horizontal bunks.
(2) An area appropriate for changing clothes.
(3) A dedicated Business Class Seat for all takeoffs and landings.
c. On aircraft with two (2) pilots plus one additional crew member
(Second Officer):
(1) Business Class Seat.
D. EXPENSES
1. An International Category pilot, during the period of time beginning
with scheduled or actual reporting time, whichever is later, and
continuing until such pilot is released from duty at his base, shall
receive an hourly meal allowance of a minimum of two dollars ($2) per
hour adjusted semi-annually as of 0001 Eastern Time on January 1 and
July 1 using the European Exchange Index (EEI) and Pacific Exchange
Index (PEI). An EEI and PEI will be established on the effective date
of this agreement using the International Monetary Exchange rate for
the German Mark and Japanese Yen per U.S. dollar as reported in the
Wall Street Journal on that date. Each index will consist of a ratio
in which the exchange rate of each currency will be both numerator and
denominator, establishing a ratio of one (1) for each index. The
denominator will be adjusted semi-annually using the published
exchange rates in the Wall Street Journal on the last business day
prior to January 1 and July 1 each year, establishing a new ratio.
This adjusted ratio, which will in no case be less than one (1),
multiplied by two dollars ($2), will establish the hourly expense rate
to be paid until the next semi-annual adjustment.
16.4
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
a. The European Exchange Index (EEI) for North Atlantic crossings and
Pacific Exchange Index (PEI) for Pacific crossings, adjusted semi-
annually will be used to determine hourly expense rates for each
area of operation. These rates apply to each hour computed by the
minute.
2. Additional reasonable expenses shall be allowed covering an
extraordinary condition.
3. The Company shall bear the expense of the following items if a pilot's
assignment requires a passport, visa, or vaccination shots:
a. Fees charged by the Department of State for application for a
passport.
b. Fees charged by the destination country for the application of a
visa.
c. Fees charged for required passport photographs.
d. Fees charged by a medical facility for required vaccinations
E. HOURS OF SERVICE
1. Report/debrief time for International Categories shall be:
a. Ocean Crossings - 1:30 hours
b. Intra-theater flights - 1:00 hour
c. Reporting time for deadhead originating outside the continental
United States shall be the same as 1.a. and b. above.
d. Reporting time for deadhead originating inside the United States
for an ocean crossing shall be one (1) hour.
16.5
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
e. Reporting time for deadhead that originates and terminates inside
the continental United States shall be thirty (30) minutes.
f. Debrief time for International flight segments shall be thirty
(30) minutes.
2. Maximum scheduled flight hours, maximum scheduled on-duty hours, and
crew augmentation requirements shall be determined as follows:
16.6
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
a. 2 Pilot Aircraft
<TABLE>
<CAPTION>
Maximum Maximum Maximum
Scheduled Scheduled Crew Landings
Flight/1/ Duty Complement Permitted/2/ Notes
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
less than or less than or 2 2 One landing max
equal to 8:00 equal to 13:00 following PAC crossing
other than Hawaii-West
Coast crossing
less than or less than or 2 Pilots + 1 2 One landing max
equal to 12:00 equal to 14:00 Relief Pilot following PAC crossing
less than or less than or 2 Pilots + 1 4 LAX to Hawaii then
equal to 12:00 or equal to 14:00 Relief Pilot Intra-Hawaii
less than or less than or 2 Pilots + 1 2 West coast - Hawaii
equal to 12:00 equal to 14:00 Relief pilot either direction/3/
less than or less than or 2 Full Crews 2
equal to 12:00 equal to 16:00
greater than 12:00 less than or 2 Full Crews 2
equal to 16:00
greater than 12:00 Flt Leg + 2 Full Crews 1 Anywhere
Report Release
</TABLE>
NOTE: THE ACTUAL ON-DUTY TIME MAY EXCEED THE MAXIMUM SCHEDULED ON-DUTY
TIME BY A MAXIMUM OF TWO (2) HOURS.
/1/Based on times specified in the Company operating schedules.
/2/Maximum landings as operational crewmember.
/3/Provided the first segment scheduled departure time is between 0759-1201
pilot local domicile time
16.7
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
b. 2 Pilot plus Second Officer Aircraft
<TABLE>
<CAPTION>
Maximum Maximum Maximum
Scheduled Scheduled Crew Landings
Flight/1/ Duty Complement Permitted/2/ Notes
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
less than or 13:00 Avg 2 Pilots 2 One landing max
equal to 1200 13:30 Max 1 S/O following PAC crossing
Westbound/3/ other than Hawaii-West
coast crossing
less than or 13:00 Avg 2 Pilots 2 One landing must
equal to 12:00 14:00 Max 1 S/O precede ocean crossing
Westbound
less than or less than or 2 Pilots 4 LAX to Hawaii then
equal to 12:00 or equal to 13:30 1 S/O Intra-Hawaii
less than or less than or 2 Pilots 2 West coast - Hawaii
equal to 12:00 equal to 14:00 1 S/O either direction/4/
greater than 12:00 less than or 2 Pilots 2 One landing max following
equal to 15:00 1 S/O PAC crossing
2 Relief
</TABLE>
NOTE: THE ACTUAL ON-DUTY TIME MAY EXCEED THE MAXIMUM SCHEDULED ON-DUTY
TIME BY A MAXIMUM OF TWO (2) HOURS.
/1/Based on times specified in the Company operating schedules.
/2/Maximum landings as operational crewmember.
/3/Single duty period, single flight segment may be scheduled for the sum of
block, report, and release times not to exceed fourteen (14) hours
/4/Provided the first flight segment scheduled departure time is between 0759-
1201 pilot local domicile time
3. For ocean crossings (including all deadheading) the break in duty hours
shall be:
16.8
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
a. When a duty period includes an ocean crossing and a scheduled on
duty time of thirteen (13) hours or less, the minimum rest period
shall be thirteen (13) hours scheduled and eleven (11) hours
actual.
b. When a duty period includes an ocean crossing and a scheduled on
duty time of greater than thirteen (13) hours, the minimum rest
period shall be eighteen (18) hours scheduled and fourteen (14)
hours actual.
<PAGE>
c. Except as otherwise provided in this Agreement, when a duty period
consists solely of Domestic or Intra-theatre flying, the rules
contained in Section 12. of this Agreement shall apply; however,
deadheading to or from International flight segments that include
an ocean crossing can be accomplished as follows:
(1) Deadheading on domestic segments prior to flying a segment in
an International category rotation may be accomplished as
follows:
(a) The pilot may deadhead and fly within the same duty period
provided all the requirements of 16.E.2.a. and/or b. are
met.
(b) If a duty break is scheduled immediately following the
deadhead, such duty break must be no less than eight
(8) hours free of duty.
(2) A pilot may be deadheaded to his domicile from his last flight
segment provided on-duty time does not exceed 15 hours.
16.9
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
d. An International category pilot's on-duty period
cannot be broken by an off-duty period at his
domicile of less than thirteen hours (13:00) free of
duty following a duty period that contains an ocean
crossing or nine hours (9:00) free of duty following
a duty period that does not contain an ocean
crossing.
4. The provisions of Section 12.K. of this Agreement regarding
spacing of duty-free periods shall not be applicable to
reserve lines in International categories.
F. INTERNATIONAL CATEGORY SCHEDULING RULES
COMMIT TO DEVELOP AN INTERNATIONAL LONG CALL RESERVE SYSTEM
IN ACCORDANCE WITH THE TERMS AND CONDITIONS AGREED TO IN THE
NEGOTIATIONS OF THIS CONTRACT. SUCH SYSTEM TO BE
IMPLEMENTED NOT LATER THAN JANUARY 1, 1997. (SEE LETTER
NUMBER 21)
1. The following rules shall be applicable to an International
small category:
a. When the rotations in a small category cannot be combined to
create lines of time ranging in value from the designated monthly
maximum credit hours to six (6) hours below the designated monthly
maximum credit hours, the upper limit of line of time construction
shall be eighty-two (82) hours.
b. When a regular line holder in a small category has earned the
monthly maximum credit hours within the month, rotations remaining
on the pilot's line of time shall not be removed by application of
the provisions of Section 12.B. of this Agreement.
16.10
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
c. A rotation originating in one month and ending in the subsequent
month, and having credit time payable in the subsequent month,
shall not be considered when establishing White Slip pickup limits
for a regular line holder in a small category.
d. A regular line holder in a small category who causes his
projection to fall below the designated monthly maximum credit
hours as the result of a Personal Drop shall only be awarded a
White Slip preference after those pilots whose projection is below
the designated monthly maximum credit hours, and who have not had
a personal trip drop.
<PAGE>
2. A reserve pilot may not be assigned to consecutive opposite direction
Europe/Pacific flights without a minimum of twenty-four (24) hours
free of duty at his domicile. In addition, the Company will avoid
such opposite direction assignments to a reserve with less than forty-
eight (48) hours free of duty at his domicile, provided reserves are
available as provided by Section 23.I.1.a. or b. of this Agreement.
3. For line of time construction purposes each reference to minimum line
value in Section 23.A.1. shall not be applicable to International
Categories.
4. a. In the construction of International lines of time the Company
shall give priority to:
(1) Directional purity
(2) Day of the week purity
(3) Destination purity
16.11
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
b. In order to maintain such line purity, lines may be constructed up
to two (2) hours in excess of the line of time construction limit
for the bid period, but in no case in excess of eighty-two (82)
hours.
c. If during the line of time construction process it becomes
necessary to schedule opposite direction (Europe/Pacific)
rotations on a line, a minimum of seventy two (72) hours free of
duty between such rotations is required.
5. Business Class accommodations shall be provided for crew
members deadheading on International flight segments.
G. SICKNESS AND INJURY
1. A pilot assigned to the Company's International Operations
who becomes sick or injured due to causes not related to his
occupation or to the living and health conditions peculiar
to the countries in which he performed services shall be
entitled to the same sick leave benefits as accorded to the
Company's domestic pilots under the provisions of Section 14
(Sick Leave) of this Agreement. In addition, the Company
agrees to reimburse such pilot for additional expenses
occasioned by his location outside the continental limits of
the United States at the time of such illness or injury.
2. The Company will provide or compensate a pilot assigned to its
International Operations for the complete care for occupational
sickness or injury due to causes related to his occupation or to the
living and health conditions peculiar to the countries in which he
performed services. It is agreed that in such cases Workmen's
Compensation benefits due under applicable law shall be paid by the
pilot to the Company. The provisions of this Paragraph will apply to
16.12
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
reoccurrences of the same sickness or injury so long as the pilot
shall remain an employee of the Company.
3. If sickness or injury, either occupational or non-occupational, occurs
outside the continental limits of the United Sates, and such sickness
or injury necessitates treatment or convalescence in the United
States, the pilot affected shall be returned by the Company to the
United States.
4. A pilot assigned to the Company's International Operations who becomes
sick or injured due to causes outlined under H.1. and 2. of this
Section, either within or outside the continental limits of the United
States, shall be paid during the period of absence due to such illness
or injury in accordance with Section 14 (Sick Leave) of this
Agreement. The duration of such payments for non-occupational illness
or injuries as outlined in Paragraph H.1. of this Section shall be
governed by the provisions of Section 14 (Sick Leave) of this
Agreement. In cases of occupational illness or injuries as outlined
in Paragraph H.2. of this Section, such payment shall be for any
absence caused by occupational illness or injury due to causes related
to the occupation or to the living and health conditions peculiar to
the country in which services are performed, and shall not be charged
against the pilot's sick leave credit for non-occupational illness or
injury.
5. The expense allowances as outlined in Section 5 (Traveling Expenses)
will be continued until the pilot returns to his base if he becomes
sick or injured while en route.
16.13
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
H. WORKER'S COMPENSATION BENEFITS
Worker's compensation benefits will be provided by the
Company for each pilot in amounts not less than those
prescribed in the Longshoremen's and Harbor Worker's
Compensation Act, as amended, or the Worker's Compensation
Law of the state having jurisdiction, whichever Act provides
the higher benefits. The monetary benefits so paid shall be
in addition to any monetary benefits paid pursuant to the
provisions of Paragraphs J. and K. of this Section.
I. MISSING PILOTS
Any pilot who, while engaged in the Company's International
Operations, becomes missing or is held as a prisoner or
hostage of war, or is held for any reason in the performance
of his required flight or ground duties, while engaged in
these operations, shall be allowed compensation, payable
monthly, in accordance with his status at rates no less than
rates stipulated in Section 4 (Minimum Pay Guarantees) of
this Agreement. If missing, such pilot shall be entitled to
monthly compensation for a period of twenty-four (24) months
after disappearance or until such date of his death is
established or until there is a reasonable presumption of
death, whichever occurs first. If upon the expiration of
such twenty-four (24) month period, and such pilot is still
missing and his whereabouts is still unknown, or if prior to
that time his death is established, the Company shall pay or
cause to be paid the death benefits provided for in
Paragraph I. of this Section.
16.14
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
J. BENEFIT ASSIGNMENTS
1. The monthly compensation allowance under Paragraphs I. and J. of this
Section to a pilot who is missing shall be credited to such pilot on
the books of the Company and shall be disbursed by the Company in
accordance with written direction from him. The Company shall require
each pilot hereafter employed in or assigned to its International
Operations to execute and deliver to the Company, prior to such
employment or assignment, a written direction in the form hereinafter
set forth. The Company shall, as soon as practicable, require all
pilots now employed in the Company's International Operations to
execute and deliver to the Company such a written direction. The
direction referred to shall be in substantially the following form:
To Delta Air Lines, Inc.
You are hereby directed to pay all monthly compensation allowable to
me and any other benefits stipulated in this Agreement, while missing
or resulting from death or any other conditions which caused direct
payment to me to be impossible, under Sections of this Agreement as
follows:
16.15
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
$________________________ per month to____________________________
(Name)
__________________________________________________________________
(Address)
as long as living, and thereafter to
___________________________, _____________________________________
(Name) (Address)
as long as living, and thereafter to
___________________________, _____________________________________
(Name) (Address)
as long as living.
The balance, if any, and any amounts accruing after the death of all
persons named in the above designations shall be held for
me, or in the event of my death before receipt thereof,
shall be paid to the legal representative of my estate. The
foregoing direction may be modified from time to time by
letter signed by the undersigned, and any such modification
shall become effective upon receipt of such letter by you.
Payments made by the Company pursuant to this direction
shall fully release the Company from the obligation of
making any further payment with respect thereto.
_______________________________________
(Pilot's Signature)
16.16
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
2. Any payments due to any pilot under this Section which are
not covered by a written direction as above required, shall
be held by the Company for such pilot and, in the event of
his death, shall be paid to the legal representative of his
estate.
3. Pilots shall maintain and continue to accrue seniority both for
Company seniority and for pay purposes during periods in which they
are missing.
K. FOREIGN PILOT BASE
Prior to establishing a foreign pilot base, written notice
shall be sent to the Association in accordance with Section
6, Title II of the Railway Labor Act for the purpose of
determining what, if any, foreign station allowance is
appropriate. For purposes of determining a foreign station
allowance, Hawaii is excluded.
L. DOCUMENT REQUIREMENTS
1. All International category pilots must have a valid passport
and any required visa(s) in his possession prior to
departing on an international rotation. The passport and
required visa(s) shall be renewed in sufficient time so that
there is no lapse of validity. Passport number and
expiration dates for passport and visa(s) must be correctly
entered into the DBMS computer system.
a. A pilot shall not be awarded a line of time, or
exercise any pickup procedure, as presented in
Section 23.G., unless passport and required visa(s)
are valid, and correctly documented in DBMS.
b. A pilot shall not be paid or credited for any rotation or
guarantee unless passport and required visa(s) are valid, and
correctly documented in DBMS.
16.17
<PAGE>
SECTION 16 - INTERNATIONAL CATEGORY OPERATIONS (CONTINUED)
c. If a pilot is involved in an extraordinary situation, only his
Chief Pilot, System Manager - Flight Operations, or Director -
Flight Operations & Chief Pilot may waive these requirements.
16.18
<PAGE>
SECTION 17
WITNESSES AND REPRESENTATIVES
A. TRANSPORTATION
Subject to space being available, witnesses and representatives who
are employees of the Company shall receive standby positive space
transportation over the lines of the Company from the point of duty to
the point of hearing and return.
B. PAY AND CREDIT
1. A pilot required by the Company to appear as a witness or
representative at Company request shall receive pay and credit as
follows:
a. A pilot holding a regular line of time who loses flying because of
appearing on behalf of the Company shall receive pay and credit
for trips shown on his line of time during the period of such
appearing on behalf of the Company.
b. A pilot holding a reserve line of time who appears on behalf of
the Company shall receive the appropriate reserve guarantee, as
described in Section 4 (Minimum Pay Guarantees) as though he had
been an available reserve.
c. A pilot who is on salary shall be paid his regular salary while he
is appearing on behalf of the Company, and shall receive flight
time credit at the rate of 1/30th of the designated monthly
maximum per day.
17.1
<PAGE>
SECTION 18
GRIEVANCES
A. NON-DISCIPLINARY GRIEVANCES
1. Any pilot or group of pilots covered by this Agreement who have a
grievance concerning any action of the Company affecting them, except
matters involving discipline or discharge, shall be entitled to have
such grievance considered in accordance with the following procedures
provided such grievance is filed within one hundred twenty (120) days
after the occurrence of the incident or event giving rise to the
grievance. This does not preclude claims for adjustment arising out of
bookkeeping errors beyond one hundred twenty (120) days. The parties
may mutually agree to extend such one hundred twenty (120) day
limitation where circumstances warrant.
2. The pilot shall contact his Base Chief Pilot or his designated
assistant when a dispute arises. An effort shall be made by the
Company and the pilot to assemble facts and resolve the dispute.
3. Lacking a satisfactory solution resulting from Paragraph A.2. of this
Section, and within the time limits as prescribed in Paragraph A.1.
except by mutual extension of the prescribed time limits, a written
request for a hearing, stating all the known facts and relief sought
shall be submitted to the office of the Vice President - Flight
Operations by the pilot.
18.1
<PAGE>
SECTION 18 - GRIEVANCES (CONTINUED)
4. A hearing shall be held not more than twenty (20) days after receipt
of such written request in the office of the Base Chief Pilot except
that such time limits may be altered by mutual consent, and within
fifteen (15) days after the close of the hearing the Vice President -
Flight Operations or his designee shall announce his decision in
writing. All notices of hearings and decisions reached therein shall
be in writing to the grievant(s) with copies to the Association, the
MEC Chairman, and the MEC Contract Administration Chairman.
5. Further appeal by the grievant(s), if made, shall be to the "Delta Air
Lines Pilots' System Board of Adjustment" provided such appeal is made
within thirty (30) days from the date of receipt by the grievant(s) of
the decision of the Vice President - Flight Operations or his
designee. All submissions to the System Board of Adjustment shall be
made in conformity with Section 19.D. (Proceedings Before the Board)
of this Agreement.
B. DISCIPLINE
1. A pilot shall not be disciplined without notification in
writing from the Company of the precise charge or charges,
receipt of which must be acknowledged by the pilot, and in
addition the Base Chief Pilot or his duly authorized
representative will investigate and discuss with the pilot
the alleged incident or problem. Such pilot shall not be
disciplined without a hearing, provided that the pilot makes
a written request for hearing within seven (7) days after
receiving such notification. Nothing in this Paragraph
shall be construed to prevent the Company from holding a
pilot out of service with pay prior to written notification
of charges preferred against him.
18.2
<PAGE>
SECTION 18 - GRIEVANCES (CONTINUED)
2. The hearing shall be held by a senior operating official of the
Company designated by the Company for that purpose and shall be held
within seven (7) days after the Company receives the written request
from the pilot, except that such time limit may be extended by mutual
consent.
3. A pilot may not be required to give testimony or furnish evidence
prior to the actual time of the initial hearing. He shall be given
the necessary time in which to prepare and secure the presence of
witnesses and shall have the right to be represented by a Company
employee of his choice or other duly accredited representative or
representatives.
4. Within seven (7) days after the close of such hearing, the Company
shall announce its decision in writing and shall furnish copies to the
pilot, the Association, the MEC Chairman, and the MEC Contract
Administration Chairman.
5. If the decision of the Company is not acceptable to the pilot, the
case may be appealed to the Chairman of the System Board of Adjustment
in conformity with Section 19.D. (Proceedings Before the Board) of
this Agreement, with concurrent notification to the Vice President -
Flight Operations. Such appeal shall be within fifteen (15) days of
notification by the Company that the grievance is denied and the
System Board of Adjustment shall be convened within thirty (30) days
after receipt of such notice for the purpose of hearing the case. All
submissions to the System Board of Adjustment shall be made in
conformity with Section 19.D. (Proceedings Before the Board) of this
Agreement.
18.3
<PAGE>
SECTION 18 - GRIEVANCES (CONTINUED)
C. DISCHARGE
1. A pilot shall not be discharged until he is notified in person by a
representative of the office of the Vice President - Flight
Operations, at which time he may be removed from service. Written
notification including the precise charge or charges shall be provided
the pilot within ninety-six (96) hours of such notification. Within
ninety-six (96) hours of receiving written notification, the pilot
shall notify the office of the Vice President - Flight Operations
whether he wishes to accept the decision of the Company or contest it.
If the pilot notifies the Company that he wishes to contest the
decision, a hearing shall be held by a senior operating official of
the Company designated by the Company for that purpose within seven
(7) days. A written decision shall be provided the pilot within
ninety-six (96) hours and at the same time copies of such decision
shall be furnished to the Association, the MEC Chairman, and the MEC
Contract Administration Chairman.
2. A pilot shall not be required to give testimony or furnish evidence
prior to the actual time of the hearing. He shall be given the
necessary time in which to prepare and secure the presence of
witnesses and shall have the right to be represented by a Company
employee of his choice or other duly accredited representative or
representatives.
3. If the decision of the Company is not acceptable to the pilot, the
case may be appealed to the Chairman of the System Board of Adjustment
in conformity with Section 19.D. (Procedures Before the Board) of this
Agreement, with concurrent notification to the Vice President - Flight
Operations. Such appeal shall be within
18.4
<PAGE>
SECTION 18 - GRIEVANCES (CONTINUED)
fifteen (15) days of notification by the Company that the grievance is
denied, and the System Board of Adjustment shall be convened within
thirty (30) days after receipt of such notice for the purpose of
hearing the case. All submissions to the System Board of Adjustment
shall be made in conformity with Section 19.D. (Proceedings Before the
Board) of this Agreement.
D. GENERAL
1. If any decision made by the Company under the provisions of this
Section is not appealed by the pilot(s) affected within the time limit
prescribed herein or any extension mutually agreed upon for such
appeals, the decision of the Company shall become final and binding.
If any hearing or decision required of the Company under the
provisions of this Section is not provided within the time limits
prescribed herein, or any extension mutually agreed upon, the pilot(s)
shall consider the grievance denied and may appeal it to the next step
in the grievance procedures as specified in this Section.
2. If, as a result of any hearing or appeal therefrom as provided herein,
a pilot is exonerated, he shall, if he has been held out of service,
be reinstated without loss of seniority, and shall be paid for such
time lost in an amount which he normally would have earned had he been
continued in service during such period. If as a result of any
hearing or appeal therefrom as provided herein, the pilot shall be
exonerated, his personnel record shall be cleared of the charges.
3. When it is mutually agreed that a certified transcript is to be taken
of the investigation and hearing or appeal therefrom, in whole or in
part, the cost shall be borne equally by both parties to the dispute.
With reasonable advance notice
18.5
<PAGE>
SECTION 18 - GRIEVANCES (CONTINUED)
nothing in this paragraph is meant to
prohibit either party from taking a certified transcript of any
proceedings provided that a copy of such transcript be furnished to
the other party upon request, in which case the cost shall be borne
equally by both parties.
4. Nothing in this Agreement shall extend the right of investigation and
hearing to a pilot during his probationary period.
E. CRITICAL CORRESPONDENCE
1. A pilot shall have the opportunity of responding to any correspondence
pertaining to him which may be of a critical nature. If the pilot is
not furnished a copy as evidenced by his initials, it shall not be
used against him in an investigation or discipline case.
2. Any pilot shall have the right to review his files including his base
personnel file, base FAA file, Atlanta Flight Operations personnel
file, and/or Atlanta FAA file during normal office hours.
3. A pilot shall, upon request, be provided a copy of any document
contained in his file(s) except for any and all documents arising out
of the processing of the pilot's application for employment.
4. No disciplinary action involving a warning, reprimand or suspension of
less than fifteen (15) days administered to a pilot shall be
admissible as evidence in any System Board of Adjustment hearing
involving subsequent disciplinary action administered to such pilot,
if a period of four (4) years of active service has elapsed from the
date of issuance of such disciplinary action without further
discipline of any kind having been administered. Disciplinary action
of any kind
18.6
<PAGE>
SECTION 18 - GRIEVANCES (CONTINUED)
administered to a pilot may be removed from his file at
any time deemed appropriate by the Company.
F. COMPENSATION, INSURANCE AND SICK LEAVE
During the time a pilot is held out of service as provided for in
Paragraph 18.B.1., he shall be considered an active employee for the
purpose of compensation, insurance and sick leave. A pilot on
disciplinary suspension without pay may continue Company insurance
coverage at his expense.
18.7
<PAGE>
SECTION 19
SYSTEM BOARD OF ADJUSTMENT
A. ESTABLISHMENT OF BOARD
In compliance with Section 204, Title II of the Railway Labor Act, as
amended, there is hereby established a System Board of Adjustment for
the purpose of adjusting and deciding disputes which may arise under
the terms of the Pilots' Agreement and which are properly submitted
to it, which Board shall be known as "Delta Air Lines Pilots' System
Board of Adjustment" hereinafter referred to as the "Board".
B. COMPOSITION OF THE BOARD
1. The Board shall consist of four (4) members; two (2) members shall be
selected and appointed by the Association and two (2) members shall be
selected and appointed by the Company. The two (2) Company members
shall not be the officials who heard the case at the Initial level
(Section 18 Grievances). Such appointees shall be known as "Adjustment
Board Members." Each party will designate its members and at all times
thereafter will promptly notify the other party in writing of any
change of such appointees.
2. The four (4) members shall serve for one year from the date of their
appointment or until their successors have been duly appointed.
Vacancies in the membership of the Board shall be filled in the same
manner as provided herein for the selection and appointment of the
original members of the Board.
3. Appointment of members of the Board shall be made by the respective
parties within thirty (30) days from the date of the signing of this
Agreement and said
19.1
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
appointees shall meet in the City of Atlanta, Georgia, within forty-
five (45) days from the date of the signing of this Agreement, and
shall organize and select a Chairman and a Vice Chairman, both of whom
shall be members of the Board. The term of the office of Chairman and
Vice Chairman shall be one (1) year. Thereafter, the Board shall
designate one (1) of its members to act as Chairman and one (1) to act
as Vice Chairman for one (1) year terms. Each officer so selected
shall serve for one (1) year or until his successor has been duly
selected.
4. The office of Chairman shall be filled and held alternately by an
Association member of the Board and by a Company member of the Board.
When an Association member is Chairman, a Company member shall be Vice
Chairman, and vice versa, and the Chairmanship and Vice Chairmanship
shall be held by the respective parties to this Agreement for one (1)
year periods regardless of replacements by either of such parties
during such period of service. The Chairman, or in his absence, the
Vice Chairman, shall preside at meetings of the Board and at hearings
and shall have a vote in connection with all actions taken by the
Board.
5. After the organization meeting referred to herein, the Board shall
thereafter meet in the city where the general offices of Delta Air
Lines, Inc. are maintained (unless a different place of meeting is
agreed upon by the Board) in accordance with the provisions of Section
18.B.5. and 18.C.3. of this Agreement, and during the months of
February, May, August and November of each year provided that at such
times there are cases filed with the Board for consideration, and
shall continue in session until all matters before it have been
considered, unless otherwise mutually agreed upon.
19.2
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
C. JURISDICTION OF THE BOARD
1. The Board shall have jurisdiction over disputes between any pilot
covered by this Agreement and the Company growing out of grievances or
out of interpretation or application of any of the terms of this
Agreement. The jurisdiction of the Board shall not extend to changes
in hours of employment, rates of compensation or working conditions
covered by existing agreements between the parties hereto.
2. The Board shall consider any dispute properly submitted to it by the
President of the Association or by the Chief Operating Officer of the
Company, when such dispute has not been previously settled in
accordance with the terms provided for in Section 18 (Grievances) of
this Agreement.
D. PROCEEDINGS BEFORE THE BOARD
1. All disputes properly referred to the Board for consideration shall be
addressed to the Chairman. Five (5) copies of each petition, including
all papers and exhibits in connection therewith, shall be forwarded to
the Chairman, who shall promptly transmit one (1) copy thereof to each
member of the Board. Each case submitted shall show:
a. Question or questions at issue
b. Statement of facts
c. Position of pilot or pilots and relief sought
d. Position of the Company
19.3
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
2. When possible joint submissions should be made, but if the parties are
unable to agree upon a joint submission then either party may submit
the dispute and its position to the Board. No matter shall be
considered by the Board which has not first been handled in accordance
with the provisions of Section 18 (Grievances) of this Agreement.
3. Except as provided in Section 18.B.5. or 18.C.3. of this Agreement
upon receipt of notice of the submission of a dispute, the Chairman
shall set a date for hearing, which shall be at the time of the next
regular meeting of the Board, or, if at least two (2) members of the
Board consider the matter of sufficient urgency and importance, then
at such an earlier date and at such place as the Chairman and Vice
Chairman shall agree upon, but not more than fifteen (15) days after
such request for meeting is made by at least two (2) of said members,
and the Chairman shall give the necessary notices in writing of such
meeting to the Board members and to the parties to the dispute.
4. Pilots covered by this Agreement may be represented at Board hearings
by such person or persons as they may choose and designate, and the
Company may be represented by such person or persons as it may choose
and designate. Evidence may be presented either orally or in writing
or both.
19.4
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
5. On request of individual members of the Board, the Board may, by
majority vote, or shall at the request of either the Association
representatives or the Company representatives thereon, summon any
witnesses who are employed by the Company and who may be deemed
necessary by the parties to the dispute, or by either party, or by the
Board itself, or by either group of representatives constituting the
Board.
6. The number of witnesses summoned at any one time shall not be greater
than the number which can be spared from the operation of the Company
without interference with the services of the Company.
7. A majority vote of all members of the Board shall be competent to make
a decision.
8. Decisions of the Board in all cases properly referable to it shall be
final and binding upon the parties thereto.
E. PROCEDURE IN EVENT OF DEADLOCK
1. A deadlock shall be considered to exist if the Board has not reached a
decision within thirty (30) days (ten (10) days for discipline and
discharge cases) after the conclusion of the hearing on the dispute.
Two (2) members of the Board shall be required to issue a written
report to the Association and to the Company to advise that such a
deadlock exists. However, if the Company and the Association do not
desire the services of a neutral, the Board shall have no further
jurisdiction in the case and the controversy shall be considered as
withdrawn.
19.5
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
2. Immediately after written declaration of a deadlock, the selection of
the neutral shall take place as provided in Paragraph F. of this
Section. Within thirty (30) days of deadlock, (ten (10) days for
discipline and discharge cases), and subject to availability of the
neutral, the five (5) member Board shall meet to consider and review
the prior record in the dispute, and it may call such witnesses and
receive such evidence as it may deem necessary. Either party may make
written request to the Board for the privilege of presenting witnesses
or documentary evidence, and the Board may in its discretion permit
such presentation.
3. Within fourteen (14) working days following receipt of a Submission to
the System Board of Adjustment of a pilot discharge case, the
Association or any three (3) members of the Board may declare in
writing, intent to advance the case to the five (5) man Board of
Adjustment. The parties shall select the neutral within thirty (30)
days of the date of such letter.
4. When composed of five (5) members as a result of the procedure set
forth in Paragraph F.1. or F.2. of this Section, the Board shall be
competent to decide said dispute by majority vote. Decisions of the
Board so composed shall be final and binding on the parties and shall
be rendered no later than forty-five (45) days after the Board has
considered and reviewed the prior record in the dispute and has
received such additional evidence as deemed necessary.
19.6
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
5. In the event the Board is unable to comply with the time limits
specified in Paragraph E.4. of this Section, the Chairman of the Board
shall, prior to the expiration of forty-five (45) days, notify both
parties in writing, providing an anticipated date as to when a
decision will be rendered.
F. SELECTION OF A NEUTRAL MEMBER
1. The Company and the Association shall establish a panel of five (5)
potential neutrals. Unless selected by mutual agreement, the selection
of a neutral from such panel shall be made by the alternate strike-off
method, with first the Chairman and then the Vice Chairman striking a
name off the panel, and so on until only one name remains and such
remaining named neutral shall serve as a fifth member of the Board for
the purpose of hearing the particular case in question.
2. The neutral so selected shall thereupon join the Board as a member and
shall become the Chairman thereof and shall so participate in the
subsequent consideration and disposition of the matter over which the
Company and the Association Board Members deadlocked and in the
subsequent hearing, consideration, and disposition of the dispute then
being heard.
G. GENERAL
1. The reasonable expenses and compensation of the neutral members
selected as provided herein shall be borne equally by the Company and
the Association.
19.7
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
2. Nothing herein shall be construed to limit, restrict or abridge the
rights or privileges accorded either to the pilots or the Company, or
to their duly accredited representatives under the provisions of the
Railway Labor Act, as amended, and the failure to decide a dispute
under the procedure established herein shall not, therefore, serve to
foreclose any subsequent rights which such law may afford or which may
be lawfully established by the National Mediation Board by orders
issued under such law with respect to disputes which are not decided
under the procedure established herein.
3. The Board shall maintain a complete record of all matters submitted to
it for its consideration and of all findings and decisions made by it.
4. Each of the parties hereto will assume the compensation, travel
expenses and other expenses of the Board members selected and
witnesses summoned by it.
5. The Chairman and Vice Chairman, acting jointly, shall have the
authority to incur such other expenses as in their judgment may be
deemed necessary for the proper conduct of the business of the Board
and such expenses shall be borne one-half (1/2) by each of the parties
hereto. Board members who are employees of the Company shall be
granted necessary leaves of absence to attend meetings of the Board
and when authorized by the Chairman and Vice Chairman of the Board,
acting jointly, shall be granted leaves for the performance of other
duties as Board members. So far as space is available, Board members
shall be furnished free transportation over the lines of the Company
for the purpose of attending meetings of the Board, to the extent
permitted by law.
19.8
<PAGE>
SECTION 19 - SYSTEM BOARD OF ADJUSTMENT (CONTINUED)
6. It is understood and agreed that each and every Board member shall be
free to discharge his duty in an independent manner, and each and
every witness shall be free to testify, without fear that his
individual relations with the Company or with the employees may be
affected in any manner by any action taken by him in good faith in his
capacity as a Board member or as a witness.
7. The Board shall have the authority for the administration and
interpretation of this Section of the Agreement.
8. It is specifically understood and agreed by the parties hereto that
the procedure outlined in this Section shall be followed only in cases
pertaining to and covering alleged grievances, disputes, claims and
causes of action arising or accruing and filed subsequent to the
effective date of this Agreement.
9. The time limits specified in this Section may be extended by mutual
agreement between the Company members and the Association members of
the Board.
19.9
<PAGE>
SECTION 20
SENIORITY
A. SENIORITY ACCRUAL
1. The seniority of a pilot shall accrue from the date of employment as a
pilot, and shall continue to accrue thereafter during his period of
service as a pilot with the Company, except as provided in Paragraph
B.5. of this Section, and in Sections 10 (Transfer to Non-Flying or
Supervisory Duty), 13 (Leaves of Absence), and 21 (Reduction in Force,
Furlough and Recall) of this Agreement.
2. When two or more pilot trainees are placed on the Company payroll on
the same date, their names shall be placed on the Delta Air Lines
Pilots' System Seniority List according to their age; i.e., the older
pilot trainee shall receive the lower number except that for the
purposes of this Paragraph, Company employees selected for transfer to
pilot trainee status shall in every case receive priority with regard
to placement within their class in accordance with their original
employment date. When two or more pilot trainees are placed on the
Company payroll on the same date and have the same birth date, their
relative seniority position shall be determined by drawing lots.
B. SENIORITY RIGHTS
1. Seniority, in accordance with a pilot's position on the Delta Air
Lines Pilots' System Seniority List, shall govern each pilot in case
of promotion and demotion, his choice of vacancies, filling of
vacancies, his assignment or reassignment due to expansion or
reduction in schedules, his retention in case of reduction in force,
and his reemployment after release due to reduction in force, provided
that the
20.1
<PAGE>
SECTION 20 - SENIORITY (CONTINUED)
pilot's qualifications are sufficient for the operation to which he is
to be assigned. For purposes of this Paragraph, sufficient
qualifications shall not include the possessing of a specific aircraft
qualification in any status.
2. In the event that a pilot is considered by the Company not to be
sufficiently qualified to accept a promotion or other assignment, the
Company shall immediately furnish such pilot written reasons therefor.
This Paragraph shall apply except as provided in Paragraph B.5. of
this Section, and in Sections 10 (Transfer to Non-Flying or
Supervisory Duty), 13 (Leaves of Absence) and 21 (Reduction in Force,
Furlough and Recall) of this Agreement.
3. When a junior pilot is promoted over a senior pilot by reason of the
failure of the latter to qualify in his turn, the senior pilot shall
continue to retain his position on the Delta Air Lines Pilots' System
Seniority list.
4. Any pilot, once having established seniority, shall not lose such
seniority except as provided in Paragraph B.5. of this Section, and in
Sections 10 (Transfer to Non-Flying or Supervisory Duty), 13 (Leaves
of Absence) and 21 (Reduction in Force, Furlough and Recall) of this
Agreement.
5. Any pilot whose services with the Company are permanently severed
shall forfeit his seniority rights.
20.2
<PAGE>
SECTION 20 - SENIORITY (CONTINUED)
C. PILOTS' SYSTEM SENIORITY LIST
1. The Company shall post on bulletin boards at each pilot base, and
furnish to each pilot, within ten (10) days after July 1 of each year,
a revised Delta Air Lines Pilots' System Seniority List. Such list
shall contain in their proper order, names and the seniority dates of
all pilots then entitled to seniority. The proper order of names and
the seniority dates of all pilots entitled to seniority on the
effective date of this Agreement shall be set forth on the Delta Air
Lines Pilots System Seniority List as it exists on such date.
2. Such list, containing the names of all pilots, whether active or
inactive, arranged in the order of their system seniority, shall be
known as the Delta Air Lines Pilots' System Seniority List. It is
understood and agreed that the reference in Paragraphs B.1. and B.3.
of this Section to "position on the Delta Air Lines Pilots' System
Seniority List" shall be deemed to mean a pilot's position on the
Delta Air Lines Pilots System Seniority List described herein.
3. Without disturbing the order and listing of the Delta Air Lines
Pilots' System Seniority List and to provide a list evidencing uniform
dates of hire as a pilot trainee, when the pilot's date of hire as a
pilot trainee differs from that seniority date now shown on the list,
that date of hire shall also appear in parentheses on said Delta Air
Lines Pilots' System Seniority list.
20.3
<PAGE>
SECTION 20 - SENIORITY (CONTINUED)
D. PROTEST ON SENIORITY LIST
1. Pilots shall have one hundred twenty (120) days after the posting of
the Delta Air Lines Pilots' System Seniority List in which to protest
to the Company any omission or incorrect posting affecting their
seniority or position on the posted list. Such protest shall be
strictly confined to errors or changes occurring subsequent to the
posting of the prior Delta Air Lines Pilots' System Seniority List.
2. A pilot, after completing his probationary period as defined in
Paragraph E.1. of this Section, shall be permitted one hundred twenty
(120) days in which to protest his seniority position.
3. A pilot on leave or away from his pilot base at the time of posting of
the Delta Air Lines Pilots' System Seniority List shall have a period
of one hundred twenty (120) days from the date of his return to his
pilot base in which to protest his seniority position.
E. PROBATION
Each pilot shall be on probation for a period of twelve (12) months of
his aggregate service as a pilot from the date of employment as a
pilot except that any pilot designated as a Captain shall be
considered to have completed his probation.
20.4
<PAGE>
SECTION 21
REDUCTION IN FORCE, FURLOUGH, AND RECALL
A. SENIORITY, TERM OF FURLOUGH, REEMPLOYMENT CONDITIONS
1. Each pilot, furloughed due to reduction in force, upon return to duty
shall be allowed, for seniority purposes, all time accrued during the
time on furlough. For pay purposes longevity shall not continue to
accrue during the period of furlough.
2. Pilots with more than one (1) year of service as a pilot with the
Company shall be granted ten (10) years of furlough, at which time
such furlough shall expire.
3. Reemployment shall be subject to the furloughed/reassigned pilot
passing a satisfactory FAA medical examination at the time of his
reemployment, and after reemployment such pilot shall be required to
serve any unexpired portion of his probationary period.
B. RECALL
1. Each pilot furloughed by the Company shall file his proper address
with the Vice President - Flight Operations at the time of his
furlough. Any change in address must be supplied to:
Vice President - Flight Operations
Department 020
1010 Delta Boulevard
Hartsfield Atlanta International Airport
Atlanta, GA 30320
2. Such furloughed pilot shall be notified by the Company by reply-
requested telegram or cablegram or "Registered Letter-Return Receipt
Requested," of his reassignment to duty with the Company. After
delivery of such notice to the last address on file with the Company,
such pilot shall be allowed a period of thirty (30) days in which to
notify the Company whether or not he will return to active duty.
21.1
<PAGE>
SECTION 21 - REDUCTION IN FORCE, FURLOUGH, AND RECALL (CONTINUED)
3. The furloughed pilot shall be allowed thirty (30) days, after his
reply to the Company's notice, to report to duty at the point
specified by the Company. If the pilot is returned to a base other
than the base from which he was furloughed, the provisions of Section
6.A. shall apply from the base of furlough or his permanent residence,
whichever is closest to the base to which he is to be assigned by the
Company. Pilots on furlough at DOS shall be entitled to the relocation
benefits specified under the Relocation Guidelines dated April 1990
provided they are recalled to a base other than the base from which
they were furloughed or if they hold an unexpired moving entitlement
from a displacement prior to furlough.
4. A pilot may bypass recall from furlough for a period not to exceed ten
(10) years from the effective date of the furlough. A pilot who
returns to service following furlough and is subsequently furloughed
may bypass recall for a period not to exceed ten (10) years from the
effective date of that subsequent furlough.
a. A pilot who has elected to bypass recall shall only return to
service in conjunction with an announced recall or new hire class.
b. A pilot who has elected to bypass recall shall have his name
removed from the Delta Air Lines Pilots' System Seniority
List upon failure to return to service in response to the last
recall or new hire class prior to the completion of ten (10) years
of continuous furlough.
c. A pilot who has elected to bypass recall shall not accrue
longevity from the date of the beginning of the bypass until the
date of actual return to service.
21.2
<PAGE>
SECTION 21 - REDUCTION IN FORCE, FURLOUGH, AND RECALL (CONTINUED)
5. A pilot returning from furlough shall return to the entry-level
category(s) and may be required to complete training for that
category. He shall be entitled to exercise his System Seniority within
his training class. During training, the pilot shall be entitled to
exercise his System Seniority consistent with the provisions of
Section 22. of this Agreement.
6. The Company may at its discretion when extraordinary circumstances
exist extend the time periods outlined in this Paragraph B.
C. FURLOUGH PAY AND ACCRUED VACATION
1. A pilot shall be notified in writing at least thirty (30) days in
advance of any pending furlough. During this thirty (30) day period,
such pilot shall be used in his regular capacity as a pilot. At the
end of this thirty (30) day period, he shall be paid all earned and
accrued vacation.
2. A pilot who is furloughed shall receive furlough pay at regular
semimonthly pay periods in accordance with the following schedule:
<TABLE>
<CAPTION>
IF PILOT HAS COMPLETED* FURLOUGH PAY
<S> <C>
1 year of service 1/2 month
2 years of service 1 month
3 years of service 1 1/2 months
4 years of service 2 months
5 years of service 2 1/2 months
6 years of service 3 months
7 years of service 3 1/2 months
8 years of service 4 months
9 years of service 4 1/2 months
10 years of service 5 months
* Prorated to the nearest month of completed service.
</TABLE>
Pass benefits, life insurance, medical insurance and dental insurance
shall remain in effect while a pilot is receiving furlough pay as
outlined above.
21.3
<PAGE>
SECTION 21 - REDUCTION IN FORCE, FURLOUGH, AND RECALL (CONTINUED)
3. A pilot eligible for furlough pay shall receive such pay starting at
the time of furlough, and payments for the amount due shall be at
regular pay periods and shall continue until furlough pay credit is
used; except that in no event shall any such pay be due after the
effective date of recall by the Company.
4. The amount of furlough pay due per month shall be sixty-five (65)
hours flying pay at the rate of the lowest paying category/equipment
listed in Section 22.A.2. applicable for a pilot's longevity
year per the schedule outlined in Paragraph C.2. of this Section.
D. FURLOUGH LIMITATIONS
No furlough shall occur until the provisions of Section 11 Paragraph
F. have been met.
21.4
<PAGE>
SECTION 22
FILLING OF VACANCIES
A. CLASSIFICATION OF POSITIONS AT PILOT BASES
1. Pilot positions shall be classified according to category.
2. For the purpose of this Agreement, the following is the order of
categories, listed from highest to lowest:
a. MD-11 (International) Captain
b. L-1011 (International) Captain
c. MD-11 Captain
d. L-1011 Captain
e. B-767-300ER (International) Captain
f. B-767-300/B-767-200/B-757-200 Captain
g. B-727 Captain
h. MD-90/MD-88 Captain
i. B-737 Captain
j. MD-11 (International) First Officer
k. L-1011 (International) First Officer
l. MD-11 First Officer
m. L-1011 First Officer
n. B-767-300ER (International) First Officer
o. B-767-300/B-767-200/B-757-200 First Officer
p. L-1011 (International) Second officer
22.1
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
q. B-737 Captain (Sunshine)
r. B-727 First Officer
s. MD-90/MD-88 First Officer
t. B-737 First Officer
u. L-1011 Second Officer
v. B-727 Second Officer
w. B-737 First Officer (Sunshine)
B. EQUIPMENT ALLOCATION BY SENIORITY
Flying time and equipment will be allocated to pilot bases according
to Captains' seniority whenever it is economically feasible to do so
in accordance with the policy in existence on October 1, 1986.
C. STAFFING REQUIREMENTS
1. The number of positions in each equipment status, system wide, shall
be no less than the number determined by the following:
a. The total known daily average credit hours times thirty (30)
divided by the average credited value of a regular line. For
purposes of this paragraph, the average credit value of a regular
line will be determined by averaging the published credit value of
the regular lines for the twelve (12) bid periods immediately
preceding the bid period. Such average regular line credited value
shall be indexed to the designated monthly maximum of the bid
period, plus
b. Vacation relief positions determined as follows: Total credit
hours dropped as a result of vacation for the twelve (12) bid
periods immediately preceding
22.2
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
the bid period divided by the total
number of vacation days for the same period, including
supplemental and vacation bank days, multiplied by thirty (30),
divided by the average monthly maximum (cap) for the twelve (12)
month period multiplied by the number of vacation man months,
including supplemental and vacation bank days, scheduled in the
bid period for which the staffing is being determined, plus
c. Training relief positions determined as follows: Total credit
hours dropped as a result of non-recurring training for the twelve
(12) bid periods immediately preceding the bid period divided by
the total number of non-recurring training days including days of
travel to and from non-recurring training for the same period
multiplied by thirty (30), divided by the average monthly maximum
(cap) for the twelve (12) month period multiplied by the number of
training man months, scheduled during the bid period for which the
staffing is being determined, plus
d. Reserve positions determined as follows: Monthly average credited
hours flown by reserve pilots during the most recent twelve (12)
bid periods for which reserve utilization is available divided by
fifty-five (55) divided by the average number of regular lines for
such twelve (12) month period multiplied by the number of regular
lines expected for the bid period being staffed. For purposes of
this paragraph, the number of regular lines expected for the bid
period being staffed shall be that number determined by dividing
the projected monthly credited hours by the average regular line
credit value determined in 22.C.1.a.
22.3
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
2. Unassigned pilots excess to the staffing requirements of
22.C.1. shall be assigned to specific pilot bases.
3. If, subsequent to the issuance of the pilot lines of time and prior to
the beginning of the bid period, a pilot becomes unavailable
for reasons beyond the Company's control, and as a result the staffing
requirements of 22.C.1. are not met, the Company shall:
a. Convert an outstanding Advance Entitlement of a
pilot who is currently qualified for the equipment
status, which was subject to conversion for the bid
period, or if none is available,
b. Proffer early conversion to pilots currently qualified for the
equipment status and holding Advance Entitlements subject to
conversion at a later date than the bid period.
D. POSTING AND BIDDING OF CATEGORY VACANCIES
1. The Company shall post monthly, at each base, reasonably current
system wide information listing the pilots at each base by category,
and their seniority number. On or before the first day of February,
May, August and November a forecast of pilot requirements by equipment
status will be provided for the following six (6) month period.
Additionally, a forecast of pilot staffing by category for the end
date of the conversion window will be provided with each Advance
Entitlement/Displacement Entitlement posting.
2. All vacancies in each category shall be posted for bid at all bases as
far in advance as possible but not to exceed two hundred and ten (210)
days prior to the last date on which they can become effective, except
for reinstatement as provided in Paragraph H.8. of this Section.
22.4
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
3. Bulletins describing pilot vacancies shall give the following
information:
a. Category
b. Number of vacancies existing or expected to exist
c. Reason for vacancies
d. The highest and lowest seniority number of the pilots in the
appropriate category where vacancies exist
e. A date, two hundred and ten (210) days subsequent to posting, past
which such vacancies cannot be filled unless extended as
provided in 22.H.10.c.
f. A closing date and time (which shall not be less than ten (10)
days after the posting of such bulletin) which shall indicate the
last time that a pilot may change his bid and have the changes
considered in the bid award.
4. Advance Entitlements will be awarded on the basis of a pilot's bid
preference of record as of the announced closing date and time. A
pilot's bid preference may include by category, including the pilot's
present category, a numerical or percentage position below which he
does not wish to be considered in the bidding, or a pilot may specify
"Regular Line only". For bid award purposes, to determine whether to
award a bid marked "Regular Line Only" the best estimate by the
Company of where the cutoff of regular lines will be at conversion of
the bid is sufficient grounds to award or deny a bid. It may or may
not result in a pilot achieving a regular line position within the
category.
22.5
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
5. Pilots on vacation, paid sick leave, or temporary leave of absence
may, at their option, receive notices of bulletins involving vacancies
posted during their absence by providing a written request for this
information and stamped self-addressed envelope to the office of the
Chief Pilot at their domicile.
6. The Company shall provide an effective and secure means of collection
and retention of pilot bid preferences.
a. This bid preference will be kept on file and will be considered as
the current expressed desire of the pilot. However, when a pilot
is awarded an Advance Entitlement based on this preference both
the bid preference and displacement preference as described in
Section 22.H.3. will be removed from further consideration and the
pilot must enter new preferences in order to be considered in the
next bid award process.
b. This bid preference will be referred to as a "Standing Bid" and
except as provided in Section 22.D.6.a. above and Section
22.H.5.a., this bid preference may only be removed by the pilot.
If not removed as indicated in Section 22.D.6.a., 22.H.5.a. or by
the pilot this bid preference will be used for as many bid awards
as occur.
E. AWARDING OF CATEGORY POSITIONS BY ADVANCE ENTITLEMENTS
1. Except as otherwise provided in this Agreement, all vacancies shall be
awarded in accordance with system seniority.
2. Except as otherwise provided in this Agreement, the senior pilot
bidding shall be awarded an Advance Entitlement.
22.6
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
a. Normally Advance Entitlements and Voluntary Displacements will be
converted effective on the next day following completion of
training, exclusive of operating experience, required for such
Advance Entitlement or Voluntary Displacement, however, the
Company may convert an Advance Entitlement or Voluntary
Displacement prior to the completion of training.
(1) The provisions of paragraph 22.E.2.a. shall not apply for one
hundred eighty (180) days from the in-service date of a new
aircraft type, or ninety (90) days from the first date of a
new or reestablished category.
b. Normally pilots holding Advance Entitlements for a category will
be scheduled for training in seniority order by Advance
Entitlement award date. The Company may elect to train pilots out
of seniority order, however, if such election directly results in
a junior pilot being converted ahead of a senior pilot to the same
category, the senior pilot shall be pay protected effective on
date of conversion of the junior pilot. When a pilot requested
delay of training, sick leave, military leave of absence,
disability, or pilots failure to complete training causes a delay
of training and conversion there shall be no pay protection.
c. Pilots holding Advance Entitlements and/or Voluntary Displacements
who do not require training may be converted in seniority order
among any such qualified pilots at any time subsequent to the
award date of the Advance Entitlement or Voluntary Displacement
and prior to the expiration of such award.
22.7
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
d. A qualified pilot who the Company elects to pass in the conversion
process shall be pay protected commencing on the conversion date
of the junior pilot.
3. All posted category positions, and any known contingent positions they
create, shall be awarded simultaneously as Advance Entitlements.
4. a. If no pilot bids on a vacancy and the vacancy is in either the MD-
90/MD-88 First Officer, B-737 First Officer, L-1011 Second
Officer, or B-727 Second Officer categories, then the Company may
assign a new hire pilot to fill the vacancy:
(1) from the most recently hired class, if that pilot has not yet
completed an Initial Operating Experience for his entry level
qualification as a Delta pilot; or
(2) from the next class hired by proffering the vacancy in
seniority order and if such proffer is not accepted, then by
inversely assigning to fill the vacancy.
(3) Any pilot so assigned as provided in Paragraph E.4.a.(1) or
(2) above would not be subject to the freeze outlined in
Section 22.F.
5. If no pilot bids on a vacancy, and such vacancy is not filled by new
hire initial base assignment, the Company shall assign the most junior
qualified pilot at the base to fill the vacancy. If there is no
qualified pilot at the base where the vacancy or vacancies exist, they
shall be filled by the assignment of the most junior qualified
unassigned pilot or pilots on the system. When all unassigned pilots
have been assigned, the Company shall post a "one month" temporary
duty
22.8
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
(TDY) vacancy for the bid period that vacancy exists and
simultaneously re-post the permanent vacancy. Such bids shall be
posted monthly until a vacancy no longer exists. The awarding of
"one month" temporary duty (TDY) bids shall be to qualified pilots
in the category(s) of the same equipment status where no manning
shortage (as prescribed in Section 22.C.) exists or would exist
after the awarding of this bid. In the event no pilot bids on a "one
month" temporary duty vacancy(s), such vacancy(s) shall be assigned
to the most junior qualified pilot(s) in the category(s) that were
eligible for the bid award. When a pilot is awarded or assigned a
"one month" temporary duty (TDY) bid as specified in this paragraph,
hotel and supplemental meal expenses shall be provided for the
duration of the temporary duty (TDY) period, except when the pilot
elects to return to his domicile during his duty free periods.
Supplemental meal expenses shall not exceed the maximum listed
below:
Breakfast.. $ 4.00
Lunch...... $ 6.00
Dinner..... $15.00
When assigned to flight duty, traveling expenses as provided in
Section 5.A.1. shall apply in lieu of the supplemental expenses. S-1
passes shall be provided for the duration of the temporary duty
(TDY) period between the pilot's temporary duty (TDY) station and
his domicile to cover each period of duty or the pilot may elect to
remain at his temporary duty station during his duty free periods. A
pilot who is awarded or assigned a "one month" temporary duty (TDY)
bid prior to the closing of the lines of time may be awarded a line
of time as provided in Section
22.9
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
23.C. If such award or assignment occurs subsequent to the award of
the lines of time, the pilot will be awarded a vacant line or a
specially created reserve line. For the purpose of filling captain
vacancies under this Paragraph, the most junior qualified pilot on the
system shall mean the most junior pilot who has flown at least five
hundred (500) hours as a First Officer within the previous twelve (12)
months.
6. A pilot who bids and is awarded a position shall forfeit his
former position(s).
7. Under no circumstances will an Advance Entitlement be converted which
will result in the cancellation of the position of a pilot in that
same category for the same bid period as the effective date of
the converted Advance Entitlement.
8. A Captain or First Officer awarded an Advance Entitlement that would
cause his initial, transition or upgrade training to commence within
three (3) years of the regulatory age limit for pilots, may
with approval of the Company be bypassed. An individual who is
bypassed for a higher paying position under the provisions of this
paragraph shall have his pay computed at the rates applicable to the
higher paying position for which he was bypassed commencing at the
date on which he would have been converted to the higher paying
position had he been awarded the Advance Entitlement.
F. TRAINING OBLIGATION
1. A pilot who receives an Advance Entitlement (other than by
assignment), or a Voluntary Displacement Entitlement may not be
awarded an Advance Entitlement in any other category for a period of
twelve (12) months following the award date of the Advance Entitlement
or Voluntary Displacement Entitlement, except that
22.10
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
he may be awarded an Advance Entitlement or Voluntary Displacement
Entitlement if the closing date is subsequent to the last day of the
twelve (12) month period. However, when a Domestic Category pilot bids
and is awarded an Advance Entitlement or Voluntary Displacement
Entitlement to an International Category on the same equipment, in the
same status and requires only Transoceanic Ground School for
Qualification, the Initial Training Obligation will be for a period of
nine (9) months following the award date of the Advance Entitlement.
2. The provisions of Paragraph F.1. of this Section shall not preclude a
pilot from being awarded an Advance Entitlement or Voluntary
Displacement in a new or reestablished category or for the same
equipment and status as the original Entitlement. The Company may,
operations permitting, release a pilot from the obligations of
Paragraph F.1. of this Section.
3. In the event a pilot is not currently qualified as defined in Section
2 (Definitions) on the date he enters a category, he shall be trained
as soon as possible, and he shall be paid and credited at the rate of
one-thirtieth (1/30th) in a thirty (30) day bid period or one thirty-
first (1/31st) in a thirty-one (31) day bid period of the designated
monthly maximum per day at rates applicable to the new category.
4. A pilot who has incurred a Training obligation may hold two (2)
Advance Entitlements if the second Advance Entitlement is for the same
equipment status at a different base with a later conversion date.
Such pilot may be held in the position converted from his first
Entitlement until his replacement is trained and converted, at which
time he will be converted into his second Entitlement.
22.11
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
5. A pilot and the Company may by mutual agreement terminate an Advance
Entitlement. The pilot who holds the Advance Entitlement so
terminated shall have no rights under Paragraph H.10. of this Section.
G. EQUIPMENT QUALIFICATION
1. For the purpose of this Paragraph the following shall be
considered as one type of equipment each:
a. MD-11
b. L-1011
c. B-767/B-757
d. B-727
e. MD-90/MD-88
f. B-737
2. A pilot shall be considered qualified in the equipment and status of
his category only and shall not be flown in any other equipment or
status.
3. The Company shall not be required to maintain a pilot's qualifications
on an equipment type or in a status outside his category.
4. The Company may at its option require First Officers to complete FAR
121 or Advance Qualification Program (AQP) type rating during initial,
transition, upgrade or requalification training.
H. REDUCTION OF CATEGORY POSITIONS
1. All surpluses in each category shall be posted at all bases
and the surplus pilots shall be notified as far in
advance as possible, but not to exceed two hundred and ten
(210) days prior to the last date on which the cancellation
of positions may be
22.12
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
effective. Surplus pilots awarded a Displacement Entitlement will
normally be converted into the category position immediately upon
completion of the training required for the entitlement. Contingent
displacements shall be processed simultaneously. The displacement of
positions shall be accomplished at 0001 hours of the effective date of
the conversion of the Displacement Entitlement.
a. Positions shall be displaced in the reverse order of seniority in
each category, except that a senior pilot(s) in the same category
may, except as provided in Section 22.H.14., volunteer to have his
position canceled as follows:
(1) Fill any existing vacancy to which his seniority entitles him,
or
(2) Displace into the same classification of position as defined
in Section 22.A.2. as the canceled position, or
(3) He may exercise the seniority of the pilot whose displacement
he volunteered to take to displace a junior pilot in any
category.
2. Bulletins describing surplus positions shall give the
following information:
a. Category
b. Number of surplus positions expected to exist
c. A date, two hundred and ten (210) days subsequent to posting,
prior to which such surplus positions must be displaced.
d. A closing date and time (which shall not be less than ten (10)
days after the posting of such bulletin) which shall indicate the
last time that the pilot may change his bid and have the changes
considered in the bid award.
22.13
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
3. Displacement of positions will be accomplished on the basis of a
pilot's displacement preference of record as of the announced closing
date and time. A pilot's displacement preference may include a
numerical or percentage position below which he does not desire to
move upon displacement, or a pilot may specify "Regular Line Only."
For bid award purposes, to determine whether to award a bid marked
"Regular Line Only" the best estimate by the Company of where the
cutoff of regular lines will be at conversion of the bid is sufficient
grounds to award or deny a bid. It may or may not result in a pilot
achieving a regular line position within the category. Included on a
pilot's displacement preference of record will be a place to indicate
a pilot's willingness to accept the displacement of a more junior
pilot in his category. A pilot volunteering to accept the displacement
of a junior pilot in his category may include in his preferences those
stipulations stated above. In addition, he may list among his
cancellation preferences his current category with these same
stipulations indicating the relative position in his current category
at which he desires to remain in that category.
4. Pilots on vacation, paid sick leave, or temporary leave of absence
may, at their option, receive notices involving surpluses posted
during their absence by providing a written request for this
information and stamped self-addressed envelope to the office of the
Chief Pilot at their base.
5. The Company shall provide an effective and secure means of collection
and retention of pilot displacement preferences.
22.14
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
a. This displacement preference will be kept on file and will be
considered as the current expressed desire of the pilot. However,
when a pilot is awarded a displacement based on his preference(s)
both the displacement preference(s) and the bid preference as
described in Section 22.D.6.a. will be removed from further
consideration and the pilot must enter new preferences in order to
be considered in the next bid award process.
b. This displacement preference will be referred to as a "Standing
Displacement Bid" and except as provided in Section 22.D.6.a. and
22.H.5.a. this bid may only be removed by the pilot. If not
removed as indicated in Section 22.H.5.a. or by the pilot this
displacement preference will be used for as many displacements as
may occur.
6. Pilots awarded Voluntary Displacements will normally be scheduled for
training in seniority order prior to pilots awarded Mandatory
Displacements who normally will be scheduled for training in reverse
seniority order.
7. The Company will notify a pilot a minimum of thirty (30) days in
advance of the effective date of the displacement of his position.
Within thirty (30) days of the effective date of the displacement the
Company shall not rescind the displacement without mutual consent of
the pilot.
8. If a pilot is awarded a Mandatory Displacement and during the one
hundred and eighty (180) days following the effective date of the
displacement a vacancy exists in that category, he may be reinstated
in the position if he so desires.
9. When the position of a pilot is displaced, he may exercise his
seniority by displacing a junior pilot in any category provided such
displacement results in the displacing pilot falling within the
Company designated number of positions for that category.
22.15
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
10. When the Advance Entitlement of a pilot is canceled, he may:
a. Displace a junior pilot in any category from an Advance
Entitlement or,
b. Displace a junior pilot from a position converted from an Advance
Entitlement that was awarded concurrent with or subsequent to the
award of the canceled Advance Entitlement or,
c. By mutual agreement, extend the period of his Advance Entitlement
thirty-one (31) days.
11. A pilot whose Advance Entitlement is canceled shall notify the Company
in writing within ten (10) days after receipt of notice from the
Company that his Advance Entitlement is to be canceled as to which of
the options in Paragraph H.10. of this Section he wishes to exercise.
If his Advance Entitlement is canceled and he fails to exercise any of
the appropriate options, he shall be considered as not desiring to
displace in accordance with such option.
12. When the displacement of a category position is rescinded such
recision will be proffered in seniority order to pilots holding a
Mandatory Displacement. If further recision is required then rescind
Mandatory Displacements in seniority order and then rescind Voluntary
Displacements in inverse seniority order.
13. A pilot whose position is displaced and who does not have sufficient
displacement preference(s) on record as of the announced
closing date and time shall be considered to be displacing into the
next lower category at his base into which he could have displaced had
he exercised the option. If such pilot could not have displaced into
a lower category at his base he shall, at Company option, be displaced
into another base.
22.16
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
14. A Captain or First Officer awarded a Voluntary Displacement
Entitlement award that would cause his initial, transition or upgrade
training to commence within three (3) years of the regulatory age
limit for pilots, may with approval of the Company, be bypassed. An
individual who is bypassed for a higher paying position under the
provisions of the paragraph shall have his pay computed at the rates
applicable to the higher paying position for which he was bypassed
commencing at the date on which he would have been converted to the
higher paying position had he been awarded the Displacement
Entitlement.
22.17
<PAGE>
SECTION 23
SCHEDULING
A. PILOT LINES OF TIME
1. The Company shall post lines of time for each position holder at each
base. Each regular line of time shall be scheduled as near to one hour
less than the designated monthly maximum as practicable but in no
event more than the designated monthly maximum. Blocks of time of less
than six hours less than the designated monthly maximum shall, as
nearly as practicable, be combined with other trip combinations to
form lines of time of greater than six hours less than the designated
monthly cap. All lines of time greater than six hours less than the
designated monthly maximum shall be classified as regular lines. The
remaining lines shall be classified as reserve lines. Each reference
to six hours less than the designated monthly maximum in this
paragraph shall not be applicable to International Categories.
2. Reasonable effort shall be made to schedule each regular line pilot on
regular schedules in a manner which will, as nearly as possible, use
all his allowable monthly hours.
3. The Company shall use reserve flying time to construct Supplemental
Regular Lines, (SRLs). Prior to the beginning of the bid
period reserve time will be used to construct as many full bid period
SRL as possible. Construction limits for SRL shall be those limits
applicable to regular line construction.
4. Flight time that cannot be placed on regular lines will not appear on
reserve lines, but will be shown on the line of time
description sheets.
23.1
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
B. ROTATION CONSTRUCTION AND GROUPING
1. For purposes of line of time construction, rotations shall
be classified in the following groups:
GROUP 1 Those rotations in which all 0900 and 2200
duty periods fall between Local Domicile Time
GROUP 2 Those rotations in which all 0700 and 2000
duty periods fall between Local Domicile Time
GROUP 3 Those rotations in which all 0900 and 2400
duty periods fall between Local Domicile Time
GROUP 4 Those rotations in which all 0700 and 2400
duty periods fall between Local Domicile Time
GROUP 5 Those rotations in which all 0500 and 1800
duty periods fall between Local Domicile Time
GROUP 6 Those rotations in which all 0500 and 2100
duty periods fall between Local Domicile Time
GROUP 7 Those rotations in which all 0500 and 2400
duty periods fall between Local Domicile Time
GROUP 8 Those rotations in which all 0500 and 0500
duty periods fall between Local Domicile Time
2. Lines of times shall be constructed so that compliance with the
appropriate F.A.R.'s and contractual limits are maintained. Use
rotations from like groups to the extent possible in the following
order:
a. Use the same rotation departing on the same day of
the week.
b. Use the same rotation that departs on different days of the week.
c. Use similar rotations that depart on the same day of the week.
d. Use similar rotations that depart on different days of the week.
e. Construct remaining lines of time with similar rotations with as
few filler trips as possible.
f. When a filler trip is needed, fill lines of time with trips based
on:
23.2
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
(1) A similar type of rotation that operates on the same day of
the week.
(2) A similar type of rotation that departs on a different day of
the week.
3. For line of time construction purposes, pilot lines of time will be
scheduled not to exceed fifteen (15) calendar days away from the
pilot's domicile in a seventy-five (75) hour month and will be
scheduled not to exceed sixteen (16) calendar days away from the
pilot's domicile in any month with a designated monthly maximum
greater than 75 hours. The provision of this paragraph will apply
before considering using identical or similar rotations as provided in
Section 23.B.2. to construct lines of time. (For determining a
calendar day, a pilot's report of any amount in a calendar day will
count toward the fifteen/sixteen (15/16) calendar day requirement. A
flight that releases at his domicile at or before 0300 local time will
be considered as having been flown in the previous calendar day and
will not count against the fifteen/sixteen (15/16) calendar day
requirement).
4. Deviations from the provisions of 1., 2. and 3. above may be made on a
monthly basis as mutually agreed between the MEC Chairman and the Vice
President - Flight Operations to provide for the greatest number of
pure lines of time.
C. LINE OF TIME SELECTION PROCEDURES
1. a. Currently qualified pilots holding positions in a category shall
be permitted to select and, except as provided in 23.C.1.b. and
c., shall be awarded in order of their system seniority lines of
time of their choice in their category, including reserve lines of
time with Captain lines awarded first, followed by First Officer
line awards, except that pilots not projected to be currently
qualified at date of conversion, exclusive of operating
experience, shall be
23.3
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
awarded only specially created reserve lines. A pilot receiving a
category position effective on or before the date of the next line
of time selection may, at his option, submit a line of time
selection prior to reporting for the category, provided the deadline
for accepting such selection has not be reached.
b. A currently qualified pilot holding a position in a category not
projected to meet consolidation requirements prior to the first day
of the bid period will be awarded a regular line of time during the
initial line of time award.
c. Unless otherwise exempt a currently qualified First Officer not
projected to complete seventy-five (75) hours of line operating
flight time including operating experience time prior to the first
day of the bid period will not be awarded a regular line of time
that was awarded to a Captain not projected to complete seventy-
five (75) hours of line operating flight time hours prior to the
first day of the bid period.
d. A pilot converted into a category subsequent to the first day of
the bid period, and/or subsequent to the initial line of time
awards for the following month, who has not completed
consolidation requirements will be awarded a specially created
regular line of time. Rotations from open time will be used to
construct such specially created regular line. A specially
created regular line shall not exceed an average of three (3)
hours per day, however, in no event will a specially created
regular line exceed the designated monthly maximum. In the event
there is insufficient open time to construct a specially created
regular line, such pilot shall be awarded a specially created
reserve line for that bid period and shall be considered first out
for open time until he has completed consolidation requirements.
23.4
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
e. A pilot converted into a category subsequent to the first day of
the bid period and/or subsequent to the initial line of time
awards for the following month who has met the consolidation
requirements will be awarded a specially created reserve line.
2. Each eligible pilot shall express sufficient preferences among all
lines of time in his category. A pilot who fails to bid or select
sufficient lines of time on his initial bid will be assigned to the
first vacant line of time in numerical order in his category. (A pilot
not projected to be currently qualified before the first day of the
bid period shall be assigned a specially created reserve line until
completion of his training at which time he shall be governed by
23.C.1.d.)
EXAMPLE: Pilot #3 in category seniority fails to bid ...
Pilot #1 selects line #4, Pilot #2 selects line #1, Pilot #3
is assigned line #2.
3. Each pilot shall be provided with line of time selection, line of time
description, and rotation description sheets. A means shall be
provided where each pilot entitled to select shall indicate the order
of his preference among all lines of time in his category, and the
order of his preference among the regular lines of time in his
category that he desires if blocks of time of seven (7) consecutive
days or more become available.
4. Line of time description sheets normally will cover a calendar month,
and such sheets shall specify the effective date of the lines of time,
and the time of day on the fifteenth (15th) of the month after which
the choice of lines of time shall not
23.5
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
be considered. Under unusual and extenuating circumstances the Company
may close initial awards on a date subsequent to the fifteenth (15th)
of the month. The distribution of the lines shall be at least seven
(7) days in advance of this deadline.
5. Rotation description sheets shall show all pertinent details of all
rotations at the base including:
a. Trip pairing by days
b. Equipment types
c. Stations and origination and termination times
d. Scheduled flight and credit hours
e. Daily and monthly scheduled actual and credit hours
f. Layover times, cities, and rest facilities
g. Designation of types of credit time
h. The VM
i. Exceptions and schedule change descriptions
j. Maximum allowable on-duty time
k. Actual scheduled on-duty time
6. Exception to this selection procedure shall be permitted in cases of
necessity brought about by an unforeseen reduction in the number or
change in the character of lines in a category after the distribution
of line selection sheets for such lines. Such cases shall be handled
in the most expeditious manner practicable by the Company, with
seniority preference governing.
7. In cases of temporary reduction in the number of lines in a category
not accompanied by a comparable reduction in category positions, a
sufficient number of additional reserve lines shall be created in each
category to ensure a line for each category position holder.
23.6
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
8. An increase in flying in a category occurring after distribution of
line selection sheets shall be considered as reserve time.
D. REMOVAL FROM LINE OF TIME
1. Scheduling changes shall be made and posted as far in advance as
practicable. In the event of a change in the schedule as posted, the
Company shall notify the pilots affected as soon as the circumstances,
then existing, will permit. Pilots shall, electronically or by
telephone, acknowledge the report time and date of each of their
scheduled rotations, within a window of time beginning twenty-four
(24) hours and ending six (6) hours before the scheduled report time
of such rotation.
2. When a captain is not qualified over the route of his line of time,
although he is or was qualified on the equipment to be flown, the
Company may substitute another pilot in his category on the line of
time while such captain is qualifying.
3. A pilot shall be required to release a portion of his scheduled
monthly flying time at any time after his accomplished credited flying
time for the month plus his projected scheduled time exceeds his
monthly maximum, in accordance with Section 12.A. and B. (Hours of
Service) of this Agreement.
4. Any pilot who is scheduled or assigned to a flight shall not be
subject, without mutual consent, to displacement by another pilot
exercising his seniority rights within the twelve (12) hour period
prior to the scheduled time of report of that flight. Should a
reserve pilot be displaced, he shall be considered as returning from a
trip at the time of displacement. Should a reserve pilot be displaced
prior to the twelve (12) hour period before the scheduled report,
every reasonable effort shall be made to notify him of his
displacement.
23.7
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
5. Pilots awarded a regular line of time may not be displaced from such
line or portion thereof, except for pilots removed in accordance with
Paragraph D.3. of this Section, for lack of current qualification
because of equipment substitution, for lack of route qualification,
because of irregular operations when they are away from their home
base, as a result of the end of the month changeover (rotation(s) will
not be split), for failure to acknowledge time and date of rotation as
required by Section 23.D.1., or except as otherwise provided in this
Agreement. Pilots awarded or assigned a reserve line of time shall be
subject to all the provisions covering pilots holding reserve lines of
time set forth in Sections 12 and 23.
E. ESCALATION (MOVE-UPS)
1. When within a line of time a known block of time of seven (7)
consecutive days or more on a regular line of time becomes available,
it shall be flown by the senior currently qualified available pilot in
the category who has indicated that he prefers such time to his line
of time award (failure to list his line will be indicative that all
lines listed are considered superior). Captain move-ups will be
awarded first followed by First Officer move-up awards as follows:
a. A Captain not projected to meet consolidation requirements prior
to the first day of a move up will not be awarded an escalation to
a line of time previously awarded to a First Officer during the
initial line of time award, if the First Officer is not projected
to meet consolidation requirements prior to the first day of the
move up.
23.8
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
b. A First Officer not projected to meet consolidation requirements
prior to the first day of a move up will not be awarded an
escalation to a line of time previously awarded to a Captain
during the initial line of time award, if the Captain is not
projected to meet consolidation requirements prior to the first
day of the move up.
c. Such pilot is not currently flying a seven (7) day block of time
in accordance with this Paragraph E., and
d. Such pilot will be able to occupy at least seventy-five percent
(75%) of the days in such block time. All trips in each block not
flown by such pilot shall become open time at the base.
e. Reserve line holders shall be permitted to escalate to all regular
lines of time in their category of seven (7) days or more.
f. Initial vacancies created shall be posted by the Company and may
be bid by a pilot whose seniority would have entitled him to hold
the line at the time of the initial award.
g. Rotation(s) will not be split as a result of escalation(s).
2. Initial escalations will close on the eighteenth (18th) of the month
at the time specified in the bid package. Except that, in unusual and
extenuating circumstances, initial escalations may close subsequent to
the eighteenth (18th). If initial line of time awards are discovered
to be in error, the Company shall make all reasonable effort to notify
all affected pilots in time to alter move-up selections. Any
additional move-ups shall be reworked as secondary escalations.
23.9
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
3. Regular line blocks of time of seven (7) days or more that are not
awarded at the close of the Initial Escalation Awards shall be
included in open time.
4. The dates for posting, bidding, and awarding of SRL shall be specified
on the pilot's line of time description.
a. Full bid period SRL shall be posted on the twenty-seventh (27th)
in a thirty (30) day month, on the twenty-eighth (28th) in a
thirty-one (31) day month. Awarding of such SRL shall take place
on the twenty-ninth (29th) in a thirty (30) day month, on the
thirtieth (30th) in a thirty-one (31) day month.
b. Captain SRL will be awarded first, followed by First Officer SRL
awards.
5. Supplemental Regular Lines (SRL) may not be assigned and
shall be awarded to reserve pilots only.
a. To receive a SRL award a pilot must be available to
fly all the rotations on the SRL at the time of the
award, except as provided below:
(1) When there is a conflict between a rotation published on a SRL
and a White or Yellow Slip rotation that commenced in the
previous bid period, the SRL rotation will be removed and the
guarantee and projection reduced by the credit value of such
rotation.
(2) A reserve line holder in the old bid period who has been
awarded a SRL in the new bid period shall be last out for
assignment of a reserve rotation that will conflict with a
rotation(s) on a SRL. The rotation(s) dropped on the SRL
shall be protected as provided for in Section 4.A.3. and the
Company may fly or deadhead the pilot to the balance of his
original rotation.
23.10
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
b. A reserve Captain or First Officer not projected to complete
seventy-five (75) hours of line operating flight time including
operating experience will not be awarded a SRL if any rotation on
the SRL has previously been awarded to a Captain or First Officer
who has not completed seventy-five (75) hours of line operating
flight time including operating experience.
F. TIME PICK-UP PROCEDURE (WHITE SLIP/YELLOW SLIP)
1. A pilot holding a regular line of time or a SRL who is projected for
less than the designated monthly maximum in the current or subsequent
bid period, shall be entitled to request that he be scheduled to fly
open time during the bid period that is projected for less than the
designated monthly maximum. The awarding of such open time shall be on
a current basis except that during the trip coverage process on the
twenty-fifth (25th) in a thirty (30) day month or the twenty-sixth
(26th) in a thirty-one (31) day month, open time will be awarded for
the subsequent bid period. The awarding of such open time shall be in
accordance with seniority preference except as provided in 23.F.1.a.
Such request may be for open time in the pilot's category and/or other
categories within the pilot's equipment status except that White Slips
for open time in other than the pilot's category shall not be
considered in the pre-month White Slip process. White Slips submitted
by in-category pilots for open time within their category shall be
considered and awarded first followed by consideration and award of
White Slips submitted by a pilot(s) holding a position in other
categories within the same equipment status. When a pilot is awarded a
rotation on his White Slip for a
23.11
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
rotation allocated to a category other than his own, the pay and
credit for the rotation shall commence and end at the domicile to
which the rotation was allocated prior to the White Slip award and the
pilot shall be responsible for any required transportation, hotels,
and/or meal expenses not normally associated with the rotation. As
provided in 11.B.5.b. instructors will White Slip rotations during the
coverage process on the 25th/26th for the subsequent bid period.
Picking up open time shall be in accordance with the following
procedures:
a. Any Captain or First Officer not projected to complete seventy-
five (75) hours of line operating flight time prior to the
departure of the requested rotation shall not be awarded an open
time rotation previously awarded to a Captain or First Officer
that also is not projected to complete seventy-five (75) hours of
line operating flight time prior to departure of the requested
open time rotation in question.
b. Prior to the last two rotations scheduled to be flown such open
time shall not bring his projected time to within two (2) hours of
his monthly maximum as specified in Section 12.B. of this
Agreement, and
c. Prior to the last rotation scheduled to be flown such open time
shall not bring his projected time to within one (1) hour of his
monthly maximum as specified in Section 12.B. of this Agreement.
d. However, after a pilot has completed the last rotation he is
scheduled to fly on his line of time, his monthly maximum pick-up
limitation will be the designated monthly maximum plus five (5)
credited hours (or the designated monthly maximum plus ten (10)
credited hours as specified in Section 12.A. (Monthly Maximum
Credit Hours) of this Agreement).
23.12
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
e. A Pilot holding a regular and reserve line within the same month
shall be credited for the purpose of pick-up limitations, one
thirtieth (1/30th) or one thirty-first (1/31st) as appropriate of
the reserve guarantee for each day of reserve in the month.
f. During a bid period of less than one (1) month, the limits
specified in this Paragraph F.1. shall be reduced by two hours and
twenty-five minutes (2:25) per day for each day of that month not
covered by the bid period until the lines of time covering the
remainder of the month have been awarded, after which time such
specified limits shall apply.
g. A pilot will not be awarded a White Slip or Yellow Slip rotation
that will cause him to be scheduled within thirty (30) minutes of
exceeding any flight time or rest requirement rule.
h. A pilot who is holding a reserve line of time and whose incoming
bow wave is more than fifty (50) hours shall not be
entitled to request open flying if the open time such pilot is
requesting to pick up, when added to flying already accomplished
within the current month, would cause such pilot to exceed the
designated monthly maximum in the current month. In addition, a
pilot who is holding a reserve line and whose incoming bow wave is
more than fifty (50) hours shall not be entitled to request short
call duty.
2. A pilot who is eligible under this Paragraph F. and who desires to fly
open time shall indicate his desires to Crew Scheduling by initiating
a White Slip. Such pilot shall indicate the date or dates on which he
wishes to fly and may, at his option, specify certain trips he desires
in order of preference.
23.13
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
a. Advance White Slips (i.e., White Slips which will be awarded prior
to the beginning of the next bid period), once awarded or denied,
shall be purged from the system. Subsequent to the purging of
Advance White Slip requests, any pilot desiring White Slip time
must submit or resubmit a White Slip request. After the Advance
White Slip process, a White Slip request which has been timely
submitted by a pilot shall remain in effect until:
(1) The White Slip has been awarded according to the conditions
specified by the pilot (e.g., pilot requests White Slip time
to fill up the month; this may require more than one award);
(2) The time frame specified by the pilot in his White Slip
request expires without a White Slip award, (e.g., pilot
requests White Slip for period between 7th and 12th of the
month; if no White Slip is awarded by the 12th, request is
removed from further consideration);
(3) The pilot has attained credit time in the bid period which is
equal to or exceeds the designated monthly maximum;
(4) The pilot withdraws his White Slip request.
3. a. A pilot holding a reserve line of time and who desires to be
considered first in sequence for assignment among other reserves
with like days of availability, or be considered last in sequence
for assignment among other reserves with like days of
availability, or be placed in sequence among other
23.14
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
reserves with like days of availability for Short Call duty, shall
indicate his desires to Crew Scheduling by initiating a Yellow
Slip. Such pilot shall indicate the date or dates on which he
wishes such assignment and may, at his option, specify certain
trips in order of preference. Awarding of such requests will be
concurrent with all other assignment of open time and shall be in
seniority order.
b. A pilot who is holding a reserve line of time and whose bow wave
is fifty (50) hours or less shall be entitled to request that he
be scheduled to fly open time. For such purposes the pick-up limit
shall be the designated monthly maximum plus the longest trip in
category reduced by bow wave. Such request shall be considered
after all regular line holders and, after assignments have been
made to all reserve pilots who have not completed seventy-five
(75) hours of line flying for consolidation of skills; otherwise
the awarding of such reserve time shall be in accordance with
seniority preference. "X" days lost as a result of this procedure
shall not be repaid nor shall any penalty be incurred by the
Company.
c. A pilot holding a reserve line may request to be placed last in
sequence among other reserves with like days of
availability, for assignment to open time if that reserve pilot
has flown a trip within the previous thirty (30) days.
d. A pilot holding a reserve line may request to be placed in
sequence among other reserves with like days of availability for
Short Call duty and shall be credited with all guarantees as
outlined in Paragraph 23.J.9. The placement of a pilot on Short
Call duty will be at Crew Scheduling's option.
23.15
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
4. A pilot must submit a White Slip request not later than thirty (30)
minutes prior to the Primary Window to be eligible to participate in
that day's awards. A pilot having submitted a White Slip may, up to
thirty minutes (:30) prior to the Primary Window, modify or remove his
White Slip. Except as provided below, White Slips will be awarded
covering rotations originating within the twenty-four (24) hour period
commencing at 0001 hours after the "Primary Window" closes.
a. White Slip requests for rotations originating at any time during
the present bid period shall be awarded in seniority order on a
daily basis.
b. A White Slip request initiated not later than 0800 on the twenty-
first (21st) in a thirty (30) day month or the twenty-second
(22nd) in a thirty-one (31) day month shall be awarded, in
seniority order, for rotations originating during the subsequent
bid period. Such award shall be posted not later than 0800 on the
twenty-third (23rd) in a thirty (30) day month or the twenty-
fourth (24th) in a thirty-one (31) day month.
c. A pilot who becomes eligible under the provisions of this
Paragraph F. after the daily awarding process has begun may
exercise his seniority to pick up reserve time until twelve (12)
hours before scheduled report of a reserve trip.
5. The Company shall award trips in accordance with a pilot's trip
listings or stipulations and such pilot shall be obligated to fly such
awarded trip(s). Scheduling shall contact a pilot to inform him of his
awarded trip. If Crew Scheduling is unable to contact a pilot to
inform him of his award, such flying time shall be considered as
becoming added available open time. Trips which become available for
pick up after the primary window shall be proffered to eligible White
Slip/Yellow Slip pilots who do not have a conflicting award.
23.16
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
6. Any open time not covered under this Paragraph F. (White Slip) shall
be awarded under the provisions of Paragraph I. (Reserve Flying) of
this Section.
G. SWAP WITH POT
COMMIT TO DEVELOP A SWAP WITH POT SYSTEM IN ACCORDANCE WITH
THE TERMS AND CONDITIONS AGREED TO IN THE NEOGTIATIONS OF
THIS CONTRACT. SUCH SYSTEM TO BE IMPLEMENTED NOT LATER THAN
JANUARY 1, 1997. (SEE LETTER NUMBER 21)
H. PERSONAL TRIP DROP
1. If in the opinion of Crew Scheduling, there is adequate coverage at
the base, a pilot shall be permitted to drop a trip or trips from his
awarded line of time. All requests for personal drops for the
subsequent month shall be submitted prior to 0800 on the twentieth
(20th) in a thirty (30) day month or the twenty-first (21st) in a
thirty-one (31) day month. Awarding of personal drops for the
subsequent month shall take place not later than 0800 on the twenty-
first (21st) in a thirty (30) day month, or the twenty-second (22nd)
in a thirty-one (31) day month. Requests to drop trips in the
subsequent bid period, submitted by this deadline, shall be honored in
order of seniority. Requests for personal drops in the current month
shall be considered in order of receipt. Line of time pay guarantees
as provided in Section 4. (Minimum Pay Guarantees) will be reduced by
the amount of the personal drop. Request for Personal Drops and White
Slips for all other days of the current bid period shall be approved
or disapproved before the end of the day.
23.17
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
2. Recovery of time lost to personal trip drops shall be allowed
utilizing Section 23.F. (White Slip/Yellow Slip), Section 12.B. (Bow
Wave), or 12.C. (Spillback). For purposes of utilizing Section 23.F.
(White Slip/Yellow Slip), the following rules shall apply:
a. A Regular line holder whose adjusted line of time
after initial escalations is projected below the
designated monthly maximum may White Slip any open
time to recover time lost due to a personal
drop.
b. A Regular line pilot who is projected above the designated monthly
maximum, and who subsequently personal drops a trip(s)
shall be considered to have personally modified his line of time
for the month.
c. A pilot who has personally modified his line of time shall receive
his first White Slip in seniority order. All subsequent White
Slips shall be awarded in seniority order after all other
White Slip requests by pilots who have not personally modified
their line of time have been considered.
I. RESERVE FLYING
1. After the awarding of open time under Paragraph F.1. through 2. (White
Slip) within the category, remaining open time shall be awarded in the
following manner:
a. Currently qualified pilots at the base holding reserve lines of
time shall be assigned reserve time (trip or trips) within their
category on a first-in, first-out basis except that a reserve
pilot who has not met consolidation requirements shall be first
out. Such first-in, first-out sequence shall be determined by the
in time of the last flight flown. Reserve line pilots
23.18
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
returning from ALPA duty or training will for purposes of first-
in, first-out be considered as returning from a trip. Such first-
in, first-out sequence shall take into consideration scheduled off
days of reserve pilots so that such reserve pilots will be grouped
by days of availability ranging from one (1) day of availability
up to and including days of availability equal to the longest
rotation for the equipment status. Open time will then be awarded
on a first-in, first-out basis within these groups, to the extent
possible, matching length of trip to days of reserve availability.
In assigning such open time on a first-in, first-out basis, the
pilots eligible for trips shall be allowed seniority preference of
such trips that are known at the notification windows as outlined
in Section 23.J.1. A reserve pilot, once assigned under this
Paragraph I.1.a. shall not be displaced by another pilot from such
assignment within twelve (12) hours of scheduled report of such
trip except as provided in Paragraph D.4. of this Section. In the
event he is removed from such trip, he shall for the purpose of
first-in, first-out scheduling be considered as returning from a
trip. A pilot's first-in, first-out sequence may be modified by
the exercise of the Yellow Slip as specified in Section 23.F.3.,
however, a Yellow Slip is applicable only among reserve pilots
with like days of availability.
b. In the event no such pilot is available, such time shall be
assigned to a reserve line holder at another base in the same
category of the flying to be accomplished on days of availability
first-in, first-out basis.
23.19
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
c. In the event no such pilot is available, such time shall be
assigned in seniority order to any pilot who has indicated a
desire for such assignment on a Green Slip. All pilots are
eligible to submit a Green Slip, however, no pilot may be assigned
to a trip on a Green Slip that will conflict with any trip on his
line(s) of time until after the provisions of 23.I.1.d., e., and
f. have been met. Any pilot assigned under the provisions of this
Paragraph shall be paid and credited in accordance with the
provisions of Section 23.I.1.g.
d. In the event no such pilot is available, such time shall be
inversely assigned to the junior available reserve line holder in
the category. If scheduled off-duty days are interrupted, he
shall be given nine (9) hours free of duty on return from such
trip, and then be given twenty-four (24) hours free of duty
(commencing after the nine (9) hours free of duty) for each
interrupted off duty day or portion thereof. He shall be paid
and/or paid and credited per Section 23.I.1.g. for any scheduled
off day or portion thereof from or into which he is scheduled to
fly or deadhead.
e. In the event no such pilot is available, such time shall be
inversely assigned to the most junior available regular line or
supplemental regular line holder in the category. Prior to
causing a trip conflict under the provisions of this paragraph,
Green Slip requests for trip conflicts will be considered. Any
pilot assigned flying under this paragraph shall be paid and/or
paid and credited per Section 23.I.1.g. for the trip(s) flown on
such assignment and, if appropriate, protected by Section 4.A.3.
of this Agreement.
23.20
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
f. In the event no such pilot is available, such time shall be
inversely assigned to the most junior available currently
qualified pilot on the system. Any pilot assigned flying under
this Paragraph shall be covered by the provisions of Section
23.I.1.d., or e., as appropriate for the trip(s) flown on such
assignment and if appropriate, protected by Section 4.A.3. of this
Agreement.
g. Green Slip and inversely assigned trip(s) will be paid and/or paid
and credited as follows:
(1) All Green Slip and inversely assigned trips
will be accounted for at the end of the
month. (No impact on projection.)
(2) A pilot on a regular line or supplemental regular line who
completes the month with a projection below the designated
monthly maximum will have his month filled, to the extent
possible, with straight-time pay and credit from any Green
Slip trip(s) flown that caused no conflict with other
rotation(s) on the pilot's line(s) at the time the Green Slip
trip(s) were assigned. The remainder of such Green Slip
trip(s), if any, will be paid at double pay and no credit.
(a) The bank may be used to fill a month prior to accounting
for Green Slip(s).
(b) A pilot cannot use spillback to fill a month prior to
accounting for a Green Slip trip(s).
23.21
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
(3) All inversely assigned trips to regular line or supplemental
regular line holders will be paid at double pay and no credit
for the trip(s) flown on such assignment if there is no trip
conflict. If a trip conflict occurs due to an inversely
assigned trip to a regular line holder or due to a trip
awarded on a Green Slip, the pilot will receive pay and credit
for the original trip plus pay and no credit for the trip
flown.
(4) All duty periods that violate reserve X-days as a result of
Green Slip or inverse assignment will be paid at
straight rates as an addition to any other form of pay and
credit for the month, and all X-days violated will be repaid
as provided in 23.I.1.d. as appropriate.
(5) A pilot will be limited to two (2) inverse assignments or two
(2) Green Slip assignments or one (1) inverse assignment and
one (1) Green Slip assignment per bid period unless no other
pilot is available.
2. All open time covered in Paragraph I.1.a. and b. above shall
be awarded or assigned on the basis of availability.
3. The provisions of Section 12.I. (Trip Hours Pay and Credit) shall
apply to this Paragraph I. where appropriate.
J. RESERVE NOTIFICATIONS/AVAILABILITY
1. Crew Scheduling shall establish designated notification
periods (windows) meeting the following parameters:
a. Windows shall not be more than two (2) daily: One designated as
the "Primary Window" and one designated as the "Secondary Window".
23.22
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
b. Windows shall not cover more than four (4) hours in a calendar
day.
c. There shall be no less than six (6) hours between windows.
d. All known trips shall be covered during the "Primary Window".
Assignment of reserve pilots shall be limited to rotations
originating within a twenty-four (24) hour period commencing at
0001 hours after the Primary Window closes.
e. White Slips/Yellow Slips for trips within the trip coverage period
must be initiated at least thirty (30) minutes prior to the
opening of the "Primary Window".
f. White Slips/Yellow Slips submitted after the time stated in J.1.e.
for the "Primary Window" will not be considered at the subsequent
"Secondary Window" if the pilot was awarded a trip in the "Primary
Window".
g. Trips within the trip coverage period, that initially become known
after the close of the "Primary Window" will be covered during the
subsequent "Secondary Window".
2. The window times for the bid period will appear on the
pilot's Line of Time Description Sheet.
3. Awards of White Slip/Yellow Slip will normally occur during the
"Primary or Secondary Windows" described in Paragraph J.1.a.-c.
However, Crew Scheduling may award a White Slip/Yellow Slip at other
times with consent of the pilot(s) involved.
4. Assignment of flying time to a pilot on reserve shall be made during
the "Primary or Secondary Windows" as described in Paragraph
23.J.1.d.-g. above.
23.23
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
a. Reserve pilots returning from a trip will be considered as last
out among those pilots with like days of availability,
irrespective of those initiating low Yellow Slips, on the
appropriate list until the opening of the next window following
ten and one-half (10:30) hours from block-in.
b. A reserve pilot returning from a trip may leave instructions with
Crew Scheduling regarding his choice of trips and a specified time
for a pilot initiated phone contact. Such pilot(s) will not be
called during the ten and one-half (10:30) hour rest period unless
needed immediately upon completion of such rest period.
c. Advisement of trip coverage to a pilot outside a window or a pilot
protecting his rest period as in Paragraph J.4.b. shall not be
considered a Short Call provided the trip was set aside for the
pilot during the normal Long Call coverage process.
5. A trip that was not known to Crew Scheduling during such
window shall, subject to days of availability, be assigned
to a reserve pilot on Short Call. However, such trip may be
assigned to a pilot on Long Call during a window less than
twelve (12) hours from report time for the trip.
6. Assignment of a trip outside a window to a pilot on reserve, not on
Short Call and occurring less than twelve (12) hours from the report
time for the trip will count as a tour of Short Call duty for that
pilot.
7. Currently qualified pilots holding reserve lines of time shall be
reasonably available. In a pilot base having co-terminal airports,
reserve availability shall be measured with reference to DFW,
LAX, EWR/JFK/LGA. A pilot on reserve who is not assigned Short Call
duty shall be on Long Call. Pilots on Long Call and not within twelve
(12) hours of reporting for an assigned flight shall:
23.24
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
a. Be promptly available at a telephone contact during designated
notification periods (windows), as outlined in this Section.
b. Be considered to have served a period of Short Call when assigned
a flight outside a window with a report time less than
twelve (12) hours from notification.
c. Assume his normal position on the Long Call list when returning to
reserve from a Regular line.
8. Currently qualified pilots holding reserve lines of time may be
assigned to Short Call by Crew Scheduling based on availability and
previous number of Short Call assignments. Short Call shall:
a. Normally begin at 0300 local time, with a maximum duration of
twenty-four (24) hours.
b. On occasion, begin other than at 0300 local time, with a maximum
of twenty-four (24) hours.
c. Normally be assigned to a pilot no more than six (6) times a month
and prorated and rounded to reflect the proportion of the month
actually spent on reserve.
9. A pilot shall be granted one additional day off each time he is
assigned to Short Call duty during the month in excess of six (6)
times. Such days shall be, at pilot option, added to his vacation or
by mutual agreement taken as a day(s) off in the current month, or, if
on reserve, in the following month.
23.25
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
10. A pilot returning from "X" days will, unless notified to the contrary,
be considered to be on Short Call reserve beginning at 0300 following
his last "X" day. The provisions of Paragraph 7.b. of this Section
shall not be applicable to such pilot who goes on Short Call.
11. Pilots on Short Call shall:
a. Normally be notified of assignment to Short Call during the window
which precedes the Short Call period by at least twelve (12)
hours; however, a pilot on occasion may be notified of such
assignment at times other than during the window.
b. Be promptly available at a telephone contact.
c. Upon being assigned a trip, continue to be promptly available at a
telephone contact during the remainder of the Short Call period,
or until departing to cover the assigned trip, whichever occurs
first.
K. SHUTTLE STANDBY
1. Only NYC Shuttle equipment categories shall be assigned or
rerouted to airport standby duty.
2. The provisions of Section 5.A.2.a. shall not apply to pilots on
standby duty. Adequate lounge facilities shall be provided at or near
the airport for those pilots on standby duty. Adequate lounge
facilities shall mean a quiet, clean area away from the operations
area and furnished with reclining chairs.
3. A pilot may be scheduled for a Shuttle standby period not to exceed
twelve (12) hours, including deadhead.
23.26
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
4. A standby pilot who is assigned a Shuttle flight segment(s) which
concludes within his standby period will return to a standby status
until the conclusion of his assigned standby period unless he is
released from duty sooner by the Company.
5. A Shuttle standby pilot shall not have his standby period extended for
any reason. However, a pilot who operates a Shuttle flight segment(s)
or deadheads that begins prior to the end of a Shuttle standby period
and extends beyond such period shall not be scheduled to exceed the
maximum duty time limits in Section 12.E. based upon the local report
time for the Shuttle standby.
6. Shuttle standby period shall be defined by a scheduled report time and
scheduled release time and may not be published in a bid package to
included Shuttle flight segments.
7. A LGA Shuttle standby period shall be considered a rotation.
8. Shuttle standby duty periods, other than in LGA, may be scheduled with
a deadhead from or to LGA to accomplish Shuttle standby duties.
9. Shuttle standby periods may be published in the bid package as a duty
period that is part of a Shuttle rotation which includes Shuttle
flight segments in the duty period(s) other than the standby period.
10. The minimum credit for a pilot scheduled for Shuttle standby duty,
including Reserve line holders, shall be as provided for in Section
12.G.,H., and I.
11. All scheduled Shuttle standby credit value shall be staffed for as
provided in Section 22.C.
12. Known Shuttle standby periods shall be incorporated into the published
Lines of Time.
23.27
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
13. Shuttle standby periods, once dropped into open time may be canceled
if it is determined prior to trip coverage that the standby period is
not required.
14. All known flying other than Shuttle flight segments shall be assigned
through the trip coverage steps contained in Section 23.I. However,
if an immediate need arises (need for a crew is known less than three
(3) hours from departure time) which requires a crew to protect other
than Shuttle flight segments, the Company may utilize a Shuttle
standby crew to cover these flight segments.
15. When Shuttle standby pilots are assigned or rerouted to other than
Shuttle flight segments, the Company shall attempt to return the
Standby pilots to Shuttle standby within their scheduled standby
period. When other than a Shuttle flight segment(s) is assigned to
Shuttle standby pilots the maximum scheduled duty times contained in
Section 12.E. shall apply, based on the report time of such pilots.
16. A Shuttle standby pilot with scheduled back-to-back standby duty
periods who cannot report at the start of the second duty period
because of a reroute to a Shuttle flight segment(s), or other flight
segment(s), shall be pay protected under Section 4.A.5. In such
cases, the Company may assign replacement flying under Sections
4.A.5.a., or return him to his original standby duty period.
17. Pilots who are based other than in NYC may be assigned Shuttle flight
segments through the normal trip coverage steps in Section 23.I.
However, the Company will not reroute pilots from other bases to fly
Shuttle flight segments without intervening layover immediately prior
to the first Shuttle flight segment, except if the pilots are
physically in NYC/BOS/DCA at the time of the reroute. However, in
23.28
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
order to facilitate daily trip coverage a pilot may be deadheaded from
his base to begin flying Shuttle operations within the same duty
period. Such deadhead shall not be considered to be a Non-Shuttle
flight segment for the purpose of this section. This procedure will
only be utilized if there is insufficient time to preposition the
pilot to operate Shuttle flight segments.
18. Pilots other than those assigned to Shuttle standby shall not be
assigned or rerouted to a Shuttle flight segment(s) and then assume
Shuttle standby duty within the same duty period.
19. Shuttle pilots may be rerouted through or out of their domicile to
other Shuttle flight segments only. In this case, the least number of
pilots possible will be rerouted, and the Company will attempt to
return the rerouted pilot(s) to his original rotation. The reroute
will not extend beyond the time frame of the pilot's original rotation
(same calendar day).
20. Free parking will be provided a Shuttle pilot at LaGuardia Airport in
the vicinity of the Marine Air Terminal.
23.29
<PAGE>
SECTION 24
GENERAL
A. NON-DISCRIMINATION
The Company and the Association agree to make it a matter of
record in this Agreement that in accordance with the
established policy of the Company and the Association, the
provisions of this Agreement will apply equally to all
pilots hereunder regardless of color, race, creed, national
origin, or sex.
B. INSURANCE AGAINST SUITS
The Company will provide insurance coverage protecting the
pilots, or their estates, against suits by fellow employees
and third parties to the extent they are presently protected
by existing insurance contracts.
C. NOTIFICATION OF CHANGES
Any order to a pilot involving a change in pilot base,
promotion, demotion, furlough, and leave of absence shall be
confirmed in writing and addressed and
mailed to the pilot involved.
D. JUMPSEAT
Use of the cockpit jumpseat for personal travel while on
active payroll status, by Delta pilots and by pilots of
other airlines with whom Delta maintains reciprocal cockpit
jumpseat usage arrangements, will be permitted in accordance
with rules and procedures established by the Company.
24.1
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
E. CHANGES IN UNIFORMS
The recommendations of the Delta Pilot Representatives shall
be considered by the Company before making any change in the
style, color, or material of uniforms. Any such change shall
become effective six (6) months after date of notification.
F. PROVISION OF COPIES OF AGREEMENT
The Company shall provide each pilot, within a reasonable
time after the signing of this Agreement, with a copy of
this Agreement, printed and bound in a convenient booklet.
Each newly employed pilot shall be provided with a copy of
this Agreement at the time he is employed.
G. COMPANY IDENTIFICATION CARD
A Company identification card shall be issued to each pilot
upon which will be imprinted his date of hire and payroll
number in addition to any other information required by
Company regulations.
H. INSURANCE FOR TRAINING, CHECK, AND TEST FLIGHTS
The Company shall provide Three Hundred Fifty Thousand
Dollars ($350,000) accidental death and dismemberment
insurance coverage for each pilot while he is on board
Company training flights, check flights, or test flights.
The beneficiary for such coverage shall be the same as the
beneficiary designated for the pilot's Company provided life
insurance coverage.
24.2
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
I. DENIAL OF PAY OR EXPENSES
A pilot shall be notified of the reason whenever the Company
denies any item of pay or expenses.
J. REIMBURSEMENT FOR ASSOCIATION BUSINESS
1. The Company agrees to reimburse its pilots for financial loss
incurred while on authorized Association business as if such pilot
had remained on regular duty with the Company, provided the
payments to such pilots are refunded to the Company by the
Association with the exception that the Association shall not be
liable for flight pay and benefit override reimbursement to the
Company for the Delta Master Executive Council Chairman, the MEC
Vice Chairman, MEC Executive Administrator/Secretary, the MEC
Secretary/Treasurer, Members of the Master Executive Council,
Delta Central Air Safety Chairman, the Delta Scheduling Committee
Chairman, Delta Retirement & Insurance Committee Chairman, Delta
Hotel Committee Chairman, DPAC Committee Chairman, and the Delta
Pilot Negotiating Committee composed of three members, when the
above named individuals are conducting Association business
related to Delta Air Lines. A method and procedure for
accomplishing the foregoing shall be agreed upon by the parties.
24.3
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
2. A pilot who requests that his trip be dropped for the purpose of
conducting authorized Association business shall notify Crew
Scheduling at the earliest opportunity. Such request for the
purpose of conducting authorized Association business, shall be
honored unless it will cause a flight not to operate. If the
removal of a pilot from flight duty for the purpose of conducting
authorized Association business results in a trip assignment which
triggers penalty pay, the Association will reimburse the Company
for the amount of the penalty pay charge.
K. TRANSPORTATION AND RESCHEDULING OF ASSIGNMENT FOR ASSOCIATION
BUSINESS
1. A Delta Air Lines pilot who is a national officer of the
Association, Local Council Representative (Captain, F/O, S/O),
Master Executive Council Chairman, Master Executive Council Vice
Chairman, Master Executive Council Executive Administrator, Master
Executive Council Secretary/Treasurer, Negotiating Committee
member, System Board member, Air Safety Representative, Merger
Representative, Scheduling Committee member and Hotel Committee
member when engaged in approved Association business which is
certified by the Master Executive Council Chairman shall be
provided with Standby-Positive Space (SPS) passes.
2. Each ALPA Council Chairman, Vice Chairman, Secretary/Treasurer
shall have the option to drop a rotation or reschedule reserve days
off in order to attend the monthly council meetings. Regular line
holders shall be given first priority during that month to recover
the time dropped.
24.4
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
L. ROSTER OF PILOTS' EARNINGS
Prior to March 1 of each year, the Company will furnish the
Association a roster of pilots' earnings for the previous calendar
year for the purpose of aiding the Association in determining
members' annual dues. The names listed on the roster shall be
limited to those Delta pilots who received earnings under the
provisions of the Basic Employment Agreement during such previous
calendar year, and the earnings listed on the roster for each such
pilot shall be the earnings reported on his W-2 form for Federal
income tax purposes.
M. DEATH IN IMMEDIATE FAMILY
1. When a death occurs in the immediate family of a pilot (as
defined in S.P. 1023.2), he shall, after advising his Base
Chief Pilot or his designated representative, be entitled to
not less than three (3) days including travel time free of
all duty.
2. A pilot who is a regular line holder and who is eligible for flying
pay and who loses time in any month because of the allowed three-day
off-duty period above shall be paid flying pay (including
International and Specialized Navigation Procedures pay where
applicable), and shall receive flight time credit for trips shown on
his line of time during such three-day period.
3. A pilot who is a reserve line holder and who is eligible for flying
pay who loses time in any month because of death in his immediate
family shall be paid in accordance with Section 4.B.2. (Minimum Pay
Guarantees) of this Agreement.
24.5
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
4. For information concerning the Transportation of Remains, refer to
Standard Practice 1023.4, dated May 7, 1990 which shall apply in
this instance.
N. FREE AND REDUCED RATE TRANSPORTATION
Free and reduced rate transportation privileges granted by Company
policy to non-contract personnel now or in the future, shall be
extended to pilots. However, there shall be no substantial reduction
in on-line transportation privileges as a whole, for pilots during
the term of this Agreement.
O. ASSOCIATION COMMITTEES
1. A Pilot Scheduling Committee shall be established by the pilots and
shall have the right to meet with the Company prior to posting of
bids on proposed schedule changes and otherwise as necessary for the
purpose of advising and consulting with the Company concerning the
allocation and reallocation of flying time among bases and other
scheduling problems as they arise from time to time and as otherwise
provided in this Agreement. The Pilot Scheduling Committee shall be
notified of proposed schedule changes as far in advance as
practicable.
2. A Pilot Hotel Committee shall be established by the pilots and shall
have the right to meet with the office of the Vice President -
Flight Operations concerning hotel accommodations. Except in the
event of unavailability of hotel rooms or transportation, no changes
will be
24.6
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
made to existing accommodations without thirty (30) days prior
notice to the Hotel Committee or MEC Chairman. Under normal
circumstances Crew Accommodations will provide the MEC Hotel
Committee a minimum of one hundred twenty (120) days advance written
notice of scheduled hotel contract expirations together with a list
of potential replacement hotels. The MEC Hotel Committee may within
thirty (30) days thereafter submit to Crew Accommodations their
desired deletions and/or additions to that list. Crew Accommodations
will give due consideration to such input and will meet and confer
with the committee to resolve any disputes. It is intended that this
process will result in the selection of mutually acceptable lodging
accommodations.
3. A Central Air Safety Committee shall be established by the pilots
and shall have the right to meet with the Company concerning safety
and operational matters.
4. A Pilot Bid Monitor Committee shall be established and shall have
the right to meet with the Vice President - Flight Operations or his
designee for the purpose of compliance with the restrictions of the
category bid system, under Section 22 (Filling of Vacancies) of this
Agreement.
5. A Pilot Check and Training Committee shall be established by the
pilots and shall have the right to meet with the Vice President -
Flight Operations or his designee, for the purpose of advising and
consulting with the Company concerning any matters relative to
training or checking.
24.7
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
P. DIRECT PAYCHECK DEPOSIT
A method shall be established to permit a pilot to electronically
deposit his paychecks directly in the domestic bank of his choice
capable of processing such a deposit.
Q. ACCESS TO PLANNING DATA
The Master Executive Council Chairman or his designated
representative shall have regular and timely access to that
information required to monitor the administration of staffing and
planning provisions of this Agreement and the daily assignment of
rotations. That information shall include:
- 3 copies of daily rotations - monthly
- "TP" Base statistical printout (pilots/credit hours) -
monthly
- System line of time set
- Green Slip assignments (duty periods)
- Pilots purged from seniority list
- Seniority list
- Category list
- Alpha System list
- Position cancellations and results
- Conversion list
- Monthly staffing spread sheet
- XCM list - monthly
24.8
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
- Pilot Schedules
- Alphabetical list of pilots
- White Slip, Green Slip, Yellow Slip, pilot request history
and award information
- Instructor line rotation schedule
R. RECORDING DEVICES
1. Delta Air Lines has no plans to utilize any recording system or
device currently aboard the aircraft or to be added to its aircraft
for any purpose other than the maintenance and accident
investigation purposes for which such equipment is intended.
2. If installation of any recording system or device is required which
might be used for a purpose other than that stated herein, the Delta
MEC Chairman will be advised and conferences will be scheduled
within ninety (90) days.
S. COMPANY REIMBURSEMENT FOR PARKING AT CLOSED PILOT DOMICILES
1. In accordance with paragraph 2. below, the Company will reimburse
parking charges incurred during the period May 1, 1996 through May
1, 2000, associated with commuting to work from a pilot domicile
closed after August 31, 1994, to a pilot who has been displaced from
such base within one year of the base closing and who elects to
forfeit a Company paid move. Authorized parking will be limited to
one system wide pilot domicile or a former pilot domicile under the
conditions of this Paragraph.
24.9
<PAGE>
SECTION 24 - GENERAL (CONTINUED)
2. The pilot will present to the local station a letter from his Chief
Pilot indicating that he has met the conditions of S.1, and will
remit through the local station any associated charges for parking,
if there is a defined per capita charge for parking expenses at the
station. Up to twenty-five dollars ($25.00) per month will be
reimbursed by expense statement through their Chief Pilot.
3. If there are no arrangements for parking also available to other
personnel groups or the Company no longer services that station, the
Company's obligation as stated above will cease.
24.10
<PAGE>
SECTION 25
MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
The effective date of this Section 25 shall be January 1, 1997 unless otherwise
specified herein. The delayed effective date provisions of Section 28 of the
Agreement shall apply during the period after the effective date of this
Agreement and prior to the effective date of this Section 25.
A. PRE-RETIREMENT MEDICAL AND DENTAL BENEFITS
1. Each pilot while in the active service of the Company as a pilot, while
on paid sick leave, disability benefit status, or while being held out
of service under the provisions of Section 18 (Grievances) or 19
(System Board of Adjustment) of this Agreement and during the first
thirty days of (i) furlough, (ii) disciplinary suspension, or (iii)
leave of absence status without pay shall, without regard to length of
service, be eligible annually (commencing January 1, 1997) to elect for
himself or herself and his or her eligible family members either (1)
the medical and dental benefit coverage under the Delta Pilots Medical
Plan, as amended effective January 1, 1997 (which is hereby
incorporated by reference into this Agreement); or (2) the alternative
medical and dental coverage described in paragraph A.2. If the pilot
elects the medical and dental coverage provided under the Delta Pilots
Medical Plan, he or she shall pay for such coverage the applicable
monthly premium as set forth in paragraph A.3. (the "active
differential premium"). After the first 30 days of disciplinary
suspension or leave of absence without pay, a pilot may continue the
coverage under the Delta Pilots Medical Plan or the alternative
coverage (whichever is applicable) for as long as he or she remains on
disciplinary suspension or leave of absence without pay by making
payment to the Company of a monthly premium equal to the full cost of
such coverage, in accordance with procedures established by the
Company.
25.1
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
2. Each year (commencing January 1, 1997) the Company shall offer to the
eligible pilots described in paragraph A.1. alternative medical and
dental coverage that shall be the medical and dental coverage then
offered to other active Delta personnel under the Company's standard
medical and dental plans. The cost, if any, to the pilot of such
alternative medical and dental coverage shall be the same as it is for
all other active Delta personnel who have such coverage.
3. The active differential premium referred to in paragraph A.1. shall
for the following years be:
MONTHLY PREMIUM
<TABLE>
<CAPTION>
----------------------------------------------------------
1997 1998 1999 2000 AND AFTER
----------------------------------------------------------
<S> <C> <C> <C> <C>
Employee Only $ 25 $ 28 $ 30 $ 33
----------------------------------------------------------
Employee & Spouse $ 50 $ 55 $ 61 $ 67
----------------------------------------------------------
Employee & Children $ 50 $ 55 $ 61 $ 67
----------------------------------------------------------
Employee & Family $ 75 $ 83 $ 91 $100
----------------------------------------------------------
</TABLE>
4. The Company shall pay the cost of reasonable and necessary hospital
and medical expenses incurred as a result of occupational injury or
illness.
5. It is recognized that the Company shall have the right to select the
claims processors, plan administrators, trustees, plan record keepers
and plan carriers for the Delta Pilots Medical Plan and may change
such entities at anytime and for any reason.
25.2
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
6. The Company will establish flexible spending account plans (FSA Plans)
effective January 1, 1997 that pilots may participate in while on
active payroll status.
a. The FSA Plans will be designed by the Company and may be modified
from time to time at the Company's discretion, including
modification of the maximum contributions to such FSA Plans.
b. The FSA Plans will consist of two accounts, one for the payment of
the pilot's health/vision care expenses and the other for payment
of the pilot's dependent care expenses. The maximum amount a
pilot may contribute to the health/vision care account per year
shall be limited to $3480, and the maximum amount a pilot may
contribute to the dependent care account shall be limited to
$4992. Pilots will be permitted to contribute a portion of their
salary through payroll deductions into one or both accounts on a
pre-tax basis. These payroll deductions shall not reduce pay-
related benefits provided by the Company.
c. Money contributed by a pilot to an FSA account during a calendar
year that is not used by the following March 31 for reimbursement
of eligible expenses incurred during such calendar year will be
forfeited.
7. Any premiums required to be paid by a pilot on active payroll status
for medical and/or dental coverage may be paid on a pre-tax basis
through a vehicle determined by the Company to be appropriate to
achieve such purposes, including a premium conversion plan or
cafeteria plan.
25.3
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
8. The medical and dental coverages described in paragraph A.1. and the
FSA Plans described in paragraph A.6. may, at the Company's
discretion, be provided to pilots on active payroll status through a
cafeteria plan(s) as defined in Section 125 of the Internal Revenue
Code of 1986, as amended.
B. POST-RETIREMENT MEDICAL AND DENTAL BENEFITS
Effective for pilots who retire after January 1, 1997, the
following provisions shall apply:
1. Each pilot who retires from active service or disability on or after
age 60 with 10 or more years of continuous service shall be eligible
annually (commencing January 1, 1997) to elect for the pilot and the
pilot's eligible family members either (1) the medical and dental
benefit coverage under the Delta Pilots Medical Plan then in effect
for active pilots; or (2) the alternative medical and dental coverage
described in paragraph B.2. If such retired pilot elects the medical
and dental coverage provided under the Delta Pilots Medical Plan, the
pilot shall pay for each month such coverage is in place the
applicable monthly premium (based on his or her age as of that month),
as set forth in paragraph B.3. (the "retiree differential premium").
Such retired pilot who elects the alternative medical and dental
coverage shall pay for such coverage the same amounts that non-pilot
normal retirees with 10 or more years of continuous service are then
required to pay for such coverage. Costs of such continued medical and
dental coverages must be paid by the retired pilot directly to the
Company in accordance with procedures established by the Company.
25.4
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
2. Each year (commencing January 1, 1997) the Company shall offer to the
eligible retired pilots described in paragraph B.1. alternative
medical and dental coverage which shall be the medical and dental
coverage then offered to non-pilot retirees under the Company's
standard medical and dental plans.
3. The retiree differential premium referred to in paragraph B.1. shall
for the following years be:
MONTHLY PREMIUM / PRE- MEDICARE AGE
----------------------------------------------------------
<TABLE>
<CAPTION>
1997 1998 1999 2000 AND AFTER
----------------------------------------------------------
<S> <C> <C> <C> <C>
Employee Only $ 40 $ 44 $ 48 $ 53
----------------------------------------------------------
Employee & Spouse $ 80 $ 88 $ 97 $106
----------------------------------------------------------
Employee & Children $ 80 $ 88 $ 97 $106
----------------------------------------------------------
Employee & Family $ 120 $ 132 $ 145 $160
----------------------------------------------------------
</TABLE>
MONTHLY PREMIUM / POST-MEDICARE AGE
----------------------------------------------------------
<TABLE>
<CAPTION>
1997 1998 1999 2000 AND AFTER
----------------------------------------------------------
<S> <C> <C> <C> <C>
Employee Only $ 5 $ 2 $ 2 $ 2
----------------------------------------------------------
Employee & Spouse $ 11 $ 4 $ 5 $ 5
----------------------------------------------------------
Employee & Children $ 18 $ 14 $ 15 $17
----------------------------------------------------------
Employee & Family $ 23 $ 16 $ 18 $19
----------------------------------------------------------
</TABLE>
Anything in paragraph 25.B. to the contrary notwithstanding, for
pilots retiring during the term of this Agreement, the retiree
differential premium rates for future years (i.e. the years subsequent
to the year 2000 ) shall be the same
25.5
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
monthly retiree differential premium rates that are then in effect for
such years for pilots who retire after the year 2000. By way of
illustration, a pilot who retires in 1999 would pay in 2008 the same
differential premium rate that a pilot who retires under the terms of
the Pilot Agreement in effect in the year 2008 is required to pay.
Likewise in the year 2015, such pilot would pay the same differential
premium rate that a pilot who retires under the terms of the Pilot
Agreement in effect in the year 2015 is required to pay.
4. Each pilot who retires from active service or disability on or after
age 60 with less than ten years of continuous service shall be
eligible annually (commencing January 1, 1997) to elect for the pilot
and the pilot's eligible family members either (1) the medical and
dental benefit coverage under the Delta Pilots Medical Plan then in
effect for active pilots; or (2) the alternative medical and dental
coverage described in paragraph B.2. For the medical and dental
coverage so elected, the pilot will be required to pay the average
rate that the Company now, and in the future is, required to pay for
all participants (i.e. pilot and non-pilot active employees and pilot
and non-pilot retirees) in the medical and dental coverage that,
during the preceding calendar year, covered the greatest number of
pilot and non-pilot retirees under the Company's standard plans,
multiplied by one minus a fraction, the numerator of which is the
pilot's continuous service on his or her retirement date, and the
denominator of which is 25. In addition, (A) such retired pilot who
elects coverage under the Delta Pilots Medical Plan shall pay the
applicable retiree differential premium set forth in paragraph B.3.
25.6
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
(pre-Medicare or post-Medicare age) for each month that such coverage
is in place (based on the pilot's age as of that month); and (B) such
retired pilot who elects the alternative medical and dental coverage
shall pay for such coverage the same amounts that non-pilot normal
retirees with less than 10 years of continuous service are then
required to pay for such coverage (other than non-pilot post-
retirement service related premiums). Costs of such continued medical
and dental coverages must be paid by the retired pilot directly to the
Company in accordance with procedures established by the Company.
5. Each pilot who elects voluntary early retirement at or after age 50
and before age 60 and who has 25 or more years of continuous service
as of his or her retirement date will be eligible annually (commencing
January 1, 1997) to elect for the pilot and the pilot's eligible
family members either (1) the medical and dental benefit coverage
under the Delta Pilots Medical Plan then in effect for active pilots;
or (2) the alternative medical and dental coverage described in
paragraph B.2. Until age 60, such retired pilot will be required to
pay for such coverage 100% of the average rate that the Company now,
and in the future is, required to pay for all participants (including,
in the case of the Delta Pilots Medical Plan, active and retired
pilots, and, in the case of the alternative coverage, pilot and non-
pilot active employees and pilot and non-pilot retirees) in the
medical and dental coverage so elected by such retired pilot (which,
in the case of a pilot electing the alternative coverage, shall be the
actual medical and dental option elected by the pilot). As of the
first day of the month after reaching age 60, (A) such retired pilot
25.7
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
who elects coverage under the Delta Pilots Medical Plan shall pay the
applicable retiree differential premium described in paragraph B.3.
(pre-Medicare or post-Medicare age) for each month that such coverage
is in place (based on the pilot's age as of that month); and (B) such
retired pilot who elects the alternative medical and dental coverage
shall pay for such coverage the same amounts that non-pilot early
retirees with 30 or more years of continuous service are then required
to pay for such coverages upon reaching their normal retirement date.
Costs of such continued medical and dental coverage must be paid by
the retired pilot directly to the Company in accordance with
procedures established by the Company.
6. Each pilot who elects voluntary early retirement at or after age 50
and before age 60 and who has less than 25 years of continuous service
as of his or her retirement date will be eligible annually (commencing
January 1, 1997) to elect for the pilot and the pilot's eligible
family members either (1) the medical and dental benefit coverage
under the Delta Pilots Medical Plan then in effect for active pilots;
or (2) the alternative medical and dental coverage described in
paragraph B.2. Until age 60, such retired pilot shall be required to
pay for such coverage 100% of the average rate that the Company now,
and in the future is, required to pay for all participants (including,
for the Delta Pilots Medical Plan, all active and retired pilots and,
in the case of the alternative coverage, pilot and non-pilot active
employees and pilot and non-pilot retirees) in the medical and dental
coverage so elected by such pilot (which, in the case of a pilot
electing the alternative coverage, shall be the actual medical and
dental option elected by the pilot). As of the first day of the month
after reaching age 60, such retired pilot will be required to pay:
25.8
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
a. The average rate that the Company now, and in the future is,
required to pay for all participants (i.e. pilot and non-pilot
active employees and pilot and non-pilot retirees) in the medical
and dental coverage that, during the preceding calendar year,
covered the greatest number of pilot and non-pilot retirees under
the Company's standard plans, multiplied by one minus a fraction,
the numerator of which is the pilot's continuous service on his or
her retirement date, and the denominator of which is 25; and
b. (1) If such retired pilot elects coverage under the Delta Pilots
Medical Plan, he will also be required to pay the applicable
retiree differential premium set forth in section B.3. (pre-
Medicare or post-Medicare age) for each month such coverage
is in place (based on the pilot's age as of that month); or
(2) If such retired pilot elects the alternative medical and
dental coverage, he will also be required to pay for such
coverage the same amounts that non-pilot early retirees with
less than 30 years of continuous service are then required to
pay for such coverage upon reaching their normal retirement
date (other than non-pilot post-retirement service related
premiums).
25.9
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
Costs of such continued medical and dental coverages must be paid
directly to the Company in accordance with procedures established by
the Company.
C. SURVIVORS MEDICAL AND DENTAL INSURANCE COVERAGE
Effective for the survivors of pilots who (i) die on or after January
1, 1997 while in the active service of the Company; (ii) die following
retirement that occurs after January 1, 1997; or (iii) die following
disablement that occurs on or after January 1, 1997:
<PAGE>
1. The eligible survivors of a pilot who dies while in the active service
of the Company, while on disability, or following retirement shall be
eligible annually (commencing January 1, 1997) to elect (1) the
medical and dental coverage under the Delta Pilots Medical Plan then
in effect for active pilots; or (2) the alternative medical and dental
coverage described in paragraph B.2. If the survivor elects the
medical and dental coverage provided under the Delta Pilots Medical
Plan, the survivor shall pay for such coverage the retiree
differential premium set forth in paragraph B.3. (pre-Medicare or
post-Medicare age) for each month such coverage is in place (based on
the age of the survivor as of that month). If the survivor elects the
alternative medical and dental coverage, the survivor shall pay for
such coverage the same amount that non-pilot normal retirees with more
than 10 years of continuous service are then required to pay for such
eligible family member coverage. In addition, regardless of the
medical and dental election made, the survivor of a pilot who dies
after his retirement shall be required to pay the eligible family
member post-retirement service related premiums or 100% early
25.10
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
retirement premiums that the retired pilot would have been required to
pay, while living, to maintain such eligible family member medical and
dental coverages pursuant to paragraphs B.4., 5., or 6. Such premiums
shall be paid by the survivors for as long as the pilot would have
been required to pay such eligible family member premiums had he
lived. Eligible survivors who are dependent children who reside in
the household of the deceased pilot's spouse (if also an eligible
survivor) shall not be given an independent election hereunder but the
spouse of the deceased pilot must elect the coverage on behalf of all
eligible survivors. An eligible survivor who is a dependent child who
does not reside in the household of the deceased pilot's spouse (who
is considered a survivor of the pilot) shall be given an independent
election as to the medical and dental coverage he desires hereunder.
D. PRE-RETIREMENT OPTIONAL LIFE INSURANCE PROGRAM
The Company shall provide administrative services, including payroll
deduction, for an optional life insurance program under which its
pilots, while in the active service of the Company as pilots, may
purchase additional amounts of group life insurance coverage as
follows:
1. Each pilot may purchase any amount of optional additional group life
insurance desired in multiples of $25,000 up to a maximum amount of
$350,000.
2. The full cost of such optional additional group life insurance shall
be paid by each participating pilot. For the duration of this
Agreement, the pilot will be charged for this insurance at a rate not
to exceed thirty cents ($.30) per One Thousand Dollars ($1,000) of
coverage per month.
25.11
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
3. Pilots who were purchasing optional additional life insurance while in
the active service of the Company as pilots may continue such coverage
while on mutual aid status and disability benefit status prior to age
60 by making appropriate arrangements with the Company to pay the
premiums. If such coverage is discontinued during a mutual aid or
disability benefit period, it may not be resumed during such period.
4. Requests for optional additional group life insurance coverage, and
any subsequent request for cancellation or changes in the amount of
such coverage, must be submitted by each participating pilot to the
Company in accordance with the procedures established by the Company.
An initial request for coverage must be submitted within 60 days from
the date the pilot becomes eligible. A participating pilot may
increase or decrease the amount of his or her coverage during annual
enrollments and due to a family status change, if notice of the family
status change is received by the Company within 30 days of the event
creating the family status change. If a participating pilot desires
to increase the amount of his or her coverage by more than one $25,000
increment, satisfactory evidence of insurability must be submitted
before coverage can become effective.
25.12
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
E. GENERAL
1. Eligibility for the insurance coverages included in this Agreement
shall begin on the date that a pilot is employed or reemployed as a
pilot or on the date that he is transferred to pilot status.
2. The Company will provide each pilot with suitable evidence of coverage
under the Delta Pilots Medical Plan or the alternative medical and
dental coverage.
3. The terms "disability benefit status", "disability" or "disablement"
shall mean being eligible for and receiving disability benefits from
the Delta Pilots Disability and Survivorship Plan or being in the
waiting period to receive long-term disability benefits from the Delta
Pilots Disability and Survivorship Plan. The term "eligible family
member" shall have the meaning given such term in the Delta Pilots
Medical Plan. The terms "retire" or "retired" shall mean the
termination of the pilot's employment under circumstances which enable
him to receive an early, normal or deferred retirement benefit under
the Delta Pilots Retirement Plan. The term "retirement date" shall
have the meaning given such term under the Delta Pilots Retirement
Plan. The terms "survivor" or "eligible survivor" shall mean an
individual who is entitled to receive monthly income survivor benefits
under the Delta Pilots Disability and Survivorship Plan, but only for
so long as such person is eligible for such benefits.
4. When a pilot or survivor is given the opportunity to make a medical
and dental coverage election under this Section 25 and fails to do so
in a timely manner, the pilot and his or her eligible family members
or the survivors of a deceased pilot
25.13
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
will receive the medical and dental coverage in effect for the prior
calendar year and will be treated in all respects as if the pilot (or
survivor) had made an affirmative election for such coverage. When a
pilot fails to make a timely election for (i) initial coverage upon
being hired by the Company; (ii) for the first year in which elections
are offered pursuant to this Agreement; or (iii) for a year in which
the pilot's prior year's election is no longer available, the pilot
and the pilot's eligible family members will receive the alternative
medical and dental coverage for the calendar year and will be treated
in all respects as if the pilot had made an affirmative election for
such coverage.
5. Notwithstanding anything to the contrary in this Section 25, any
retired pilot, inactive pilot or survivor who in any year (including
the year of retirement or commencement of inactive status) elects (or
is deemed to have elected) not to maintain any of the medical
coverages offered to such individual hereunder shall, thereafter, not
be offered the right to elect medical coverage for the pilot and the
pilot's eligible family members in any subsequent calendar year.
Likewise, such individual who in any year (including the year of
retirement or commencement of inactive status) elects (or is deemed to
have elected) not to maintain any of the dental coverages offered to
such individual hereunder shall, thereafter, not be offered the right
to elect dental coverage for the pilot and the pilot's eligible family
members in any subsequent calendar year.
6. Notwithstanding anything to the contrary in this Section 25, at the
time of retirement a pilot will have a single opportunity to add then
25.14
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
eligible family members to his post-retirement medical/dental coverage
("Initial Family Members"). Thereafter, during annual enrollment
periods, the retired pilot may add to or drop from his post-retirement
medical/dental coverage only those individuals who were Initial Family
Members. Any individuals who were not Initial Family Members may not
be added to a retired pilot's post-retirement medical and/or dental
coverage at any time.
7. Notwithstanding anything to the contrary herein, in order for a
survivor to be extended the rights to elect the medical coverage
described in paragraph C.1., the pilot must have, at the time of his
or her death, been covering such survivor in one of the medical
coverages offered hereunder. Likewise, in order for a survivor to be
extended the rights to elect the dental coverage described in
paragraph C.1., the retiree must have, at the time of his or her
death, been covering such survivor in one of the dental coverages
offered hereunder. Those survivors who are dependent children and
were covered at the time of the pilot's death may be added and dropped
from medical and dental coverage (as applicable) during annual
enrollment periods provided that (1) the child is then eligible for
coverage under the terms of the plan; and (2) the surviving spouse of
the deceased pilot continues to maintain coverage on himself or
herself.
8. Pilots who retired on or prior to January 1, 1997, and their
survivors, the survivors of active or disabled pilots who died prior
to January 1, 1997 and pilots disabled prior to January 1, 1997 shall
annually (commencing January 1, 1997) be offered the alternative
coverage described in Section B.2. and C.1., respectively. If the
25.15
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
retiree, survivor or disabled pilot elects the alternative coverage,
he or she may in any subsequent enrollment period again elect to be
covered under the Delta Pilots Medical Plan, as it existed at the time
of his or her retirement or disablement (or at the time of the pilot's
death in the case of a survivor).
9. The Company provided portion of the post-retirement medical and dental
claims shall be paid through one or a combination of the following, as
elected by the Company:
(i) through the accumulated surplus funds (using part or all of
such surplus) in the Delta Pilots Disability and Survivorship Trust
("D & S Trust"); or
(ii) future contributions to a 501(c)(9) trust fund; or
(iii) direct payment of such claims by the Company.
The D & S Trust surplus for this purpose is the excess of the plan
assets over 110% of the present value of the Delta Pilots Disability
and Survivorship Plan (the "D & S Plan") benefits for current and
future expected beneficiaries of the D & S Plan. The present value of
benefits for this purpose shall be determined on a basis to be
established and agreed upon by the Company and the Association.
10. The Company and the Association agree that the Delta Pilots Medical
Plan and the Delta Pilots Disability and Survivorship Plan shall be
amended to the extent necessary to reflect the terms of this Section
25.
F. LIFE INSURANCE, MEDICAL AND DENTAL, DISABILITY BENEFITS FOR FORMER
WESTERN PILOTS
1. Coverage, cost and benefit payments for Group Medical/Dental, Life
Insurance, and Disability/Survivor Benefits for former Western pilots
who were retired as of
25.16
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
October 1, 1987 or who were disabled and failed to return to active
service after such date, shall be provided by the Company through the
Delta Western Health Care Plan and the Delta Pilots Disability and
Survivorship Plan under the terms and conditions of the former Western
plans and agreements.
G. ACCIDENT INSURANCE FOR PRIVATE PILOTS
1. To the extent available from a commercial insurance company, Delta
will continue to provide a separate group accident insurance program
to cover the employee only while he/she is operating or performing the
duties of a pilot, co-pilot or other crew member in any properly
licensed private aircraft or military aircraft provided the employee
is properly licensed and currently qualified to pilot such private or
military aircraft.
2. Cost of this coverage shall be borne entirely by the employee. Cost
of this coverage may increase or decrease depending upon actual
experience.
3. To be eligible for this coverage, the employee must be a participant
in the Voluntary Delta Group Accident Insurance program.
4. The employee may elect an amount of coverage up to 50 times the number
of logbook pilot hours, rounded to the next $15,000 increment, or the
amount of coverage enrolled for under the Voluntary Delta Group
Accident Insurance program, whichever is the lesser amount.
5. In addition to the regular policy exclusions the following exclusions
will also apply:
25.17
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
a. Flying in an aircraft certified by the FAA as experimental,
restricted, or limited, or prototype aircraft, or
b. Waivered flying, crop dusting, stunt flying (other than legal
aerobatic flying in an aircraft specifically approved by the FAA
for such purposes and in an area and at an altitude approved by
the FAA), test flying, flight instruction or while participating
in speed and/or endurance contests.
6. The indemnity payable under this option shall be reduced by the
amounts paid or payable under any other provision of the Voluntary
Delta Group Accident Insurance program for loss sustained as a result
of the same accident.
7. The pilot may continue this coverage at retirement. However, at
retirement, coverage reduces to 50% of the insurance amount in effect
before retirement, rounded to the next highest $15,000 increment. At
age 80, the coverage is further reduced by 50% (rounded to the next
highest $15,000 increment) to a minimum of $15,000. Premiums are
reduced proportionally whenever coverage reduces.
H. SERVICE CREDIT FOR PAA PILOTS
1. Except as provided in paragraph 2. below, for the purpose of
determining his entitlement to Company paid retiree medical and
dental benefits an Acquired Pilot (as defined in Section 2) who
retires from active service or disability on or after age 60
shall, in addition to his actual years of continuous service, be
given credit for years of service equal to the lesser of (i) 5.5
years (effective 11/1/96, 5 years) or (ii) his service with PAA.
This paragraph H. shall apply to pilots retiring on and after the
effective date of this Agreement.
25.18
<PAGE>
SECTION 25 - MEDICAL, DENTAL, OPTIONAL LIFE AND ACCIDENT INSURANCE BENEFITS
(CONTINUED)
2. This paragraph 2. applies to pilots described in paragraph 1. other
than pilots who retire from disability. For retirement dates occurring
on the first day of each of the first five calendar months following
the effective date of the Agreement, the additional 5.5 years of
service shall be credited only to that number (but not less than 10
per month) of pilots described in paragraph 1. which the Company
determines, in its discretion, may retire from active service without
adversely affecting the operational needs of the Company. For each of
such five months, that number of slots will be filled in order of
seniority from among the group of pilots described in paragraph 1. who
have selected their retirement date that month. For each of such five
months, the Company will promptly inform each pilot who is within the
group exceeding the number of slots so determined for such month that
such pilot would not receive the additional 5.5 years of service if he
maintained his retirement date that month, and the Company will permit
such pilot to remain employed and defer his retirement date to a later
date. With respect to retirement dates on or after the first day of
the sixth calendar month following the effective date of this
Agreement, the additional 5.5 years (effective 11/1/96, 5 years) of
service will be credited to every pilot described in paragraph 1.,
without regard to the operational needs of the Company.
25.19
<PAGE>
SECTION 26
RETIREMENT, BASIC LIFE INSURANCE, DISABILITY AND SURVIVOR BENEFITS
The effective date of this Section 26 shall be July 1, 1996 unless otherwise
specified herein. The delayed effective date provisions of Section 28 of this
Agreement shall apply during the period after the effective date of this
Agreement and prior to the effective date of this Section 26.
A. PLAN BENEFITS, COSTS AND GUARANTEES
1. The Company shall pay the entire cost of providing retirement benefits
for Pilots derived from the formula under the Delta Pilots Retirement
Plan, as amended and restated effective July 1, 1996 (the "Retirement
Plan"); provided however, that for purposes of determining benefits
payable under this Agreement and derived from such formula, Earnings
(as defined in the Retirement Plan) shall not be limited by the dollar
limit specified in Section 401(a)(17) of the Internal Revenue Code of
1986, as amended (the "Code"). The retirement benefit derived from use
of such uncapped earnings shall hereinafter be referred to as the
"Formula Benefit". These retirement benefits will be provided first
from the Retirement Plan and the Delta Pilots Money Purchase Pension
Plan, applying all offsets described in those Plans and such Plans are
hereby incorporated by reference into this Agreement. If, due to
limitations imposed by the Code, all of the Formula Benefit cannot be
provided through the Retirement Plan and the Delta Pilots Money
Purchase Pension Plan, that part of the Formula Benefit that cannot be
provided through such Plans will be provided from the Delta Pilots
Bridge Plan (which is a nonqualified excess benefit plan) and the
Delta Pilots Supplemental Annuity Plan (which is a nonqualified plan
whose purpose is to provide deferred compensation to a
26.1
<PAGE>
SECTION 26 - RETIREMENT, BASIC LIFE INSURANCE, DISABILITY AND SURVIVOR BENEFITS
(CONTINUED)
select group of management or highly compensated personnel) or
through any other nonqualified benefit plan or plans determined by
the Company to be appropriate under the circumstances. The Delta
Pilots Supplemental Annuity Plan and the Delta Pilots Bridge Plan (as
well as any other nonqualified plan or plans maintained by the
Company pursuant to the preceding sentence) are also hereby
incorporated by reference into this Agreement.
2. The Company's contributions to the Retirement Plan will be determined
using an actuarial valuation interest assumption not to exceed 8 1/2%
per annum.
3. The Company shall pay the full cost of the Delta Pilots Disability and
Survivorship Plan which shall provide the pre-retirement basic life
insurance benefits, post-retirement basic life insurance benefits,
temporary disability benefits, long term disability benefits, pre-
retirement monthly survivor benefits and post-retirement monthly
survivor benefits described in that plan. Such plan is hereby
incorporated by reference into this Agreement. The Company has
established a separate trust for the Disability and Survivorship Plan
under Section 501(c)(9) of the Internal Revenue Code, as amended.
B. SAVINGS PLAN
Pilots shall be eligible to participate in the Delta Family-Care
Savings Plan under the terms and conditions of such Plan as amended
through December 1, 1994 and as amended to conform to this Agreement,
including a cash or deferred arrangement, which is intended to qualify
under Section 401(k) of the Internal Revenue Code of 1986, as amended.
The cash or deferred arrangement shall not have the effect of reducing
other pay-related benefits provided by the Company.
26.2
<PAGE>
SECTION 26 - RETIREMENT, BASIC LIFE INSURANCE, DISABILITY AND SURVIVOR BENEFITS
(CONTINUED)
C. GENERAL
Irrespective of any contrary provisions of the Retirement Plan, the
Delta Pilots Money Purchase Pension Plan and the Delta Pilots
Disability and Survivorship Plan, the Company agrees that such Plans
shall not be amended, changed, varied, modified, or voluntarily
discontinued during the term of this Agreement except as agreed by the
pilots in the service of Delta Air Lines, Inc., as represented by the
Air Line Pilots Association, International, and the Company, or except
as otherwise required by law.
D. RETIREMENT PLAN APPROVAL BY INTERNAL REVENUE SERVICE
The Company will seek a favorable determination letter from the
Internal Revenue Service for the restated Retirement Plan. In seeking
IRS approval of that provision of the Plan providing for payment of
the variable 50% annuity of the Formula Benefit as a lump sum from the
Retirement Plan, the Company will vigorously advocate arguments
designed to secure such IRS approval. In the event the IRS notifies
the Company that it may not give its approval of such lump sum payment
provision, the Company shall request a conference with the IRS and
will confer with ALPA concerning such conference and subsequent
proceedings before the IRS. Until receipt of IRS approval, the
Company will comply with the Retirement Plan as submitted to the IRS
regarding the methodology of paying the 50% lump sum benefit. If the
IRS determines payment of 50% of the Formula Benefit from the
Retirement Plan as a lump sum violates Section 401(a)(17) or any other
provision of the Code, then (i) the Retirement Plan will be amended to
provide that the variable portion of the Formula Benefit (or the lump
26.3
<PAGE>
SECTION 26 - RETIREMENT, BASIC LIFE INSURANCE, DISABILITY AND SURVIVOR BENEFITS
(CONTINUED)
sum, if elected) will be based upon 50% of the benefit that can be
paid from the Retirement Plan and the remaining variable benefit
shall be payable from a nonqualified plan as a variable annuity, and
such nonqualified variable annuity shall be subject to the same
adjustments (at the same frequency) as are made to the variable
annuity paid under the Retirement Plan in the case of a pilot
receiving a Normal, Early or Deferred retirement benefit; (ii) the
Company shall have the right to offset affected retirees' future
nonqualified plan payments to recover the amount overpaid as the
qualified lump sum benefit; and (iii) the Company and ALPA will
promptly meet and confer to reach agreement as to payment of future
lump sum benefits from the qualified Retirement Plan.
E. GOVERNMENTAL APPROVAL
Section 25 and Section 26 of this Agreement shall remain effective
provided that the Retirement Plan, the Delta Pilots Money Purchase
Pension Plan, the Delta Pilots Disability and Survivorship Plan, and
the Delta Pilots Medical Plan remain approved by the United States
Department of Treasury, the United States Department of Labor, and any
other governmental agency with jurisdiction over such plans. The
Company will make every reasonable effort to maintain the approval of
these plans by any agency with jurisdiction thereover.
F. DEFINED BENEFIT PLAN ("D PLAN") FOR FORMER WESTERN PILOTS
1. The retirement plans described in Section 26A.1. (other than the Delta
Pilots Money Purchase Pension Plan), shall provide that the offset of
the D Plan benefit will be made to the fixed portion of the monthly
pension benefit only and not to the variable portion of the benefit
under such plans.
26.4
<PAGE>
SECTION 26 - RETIREMENT, BASIC LIFE INSURANCE, DISABILITY AND SURVIVOR BENEFITS
(CONTINUED)
2. Benefits described in Section 6.11 of the D Plan:
a. Will be calculated based on the age that the pilot had reached as
of October 1, 1987 and the service the pilot had earned as of
October 1, 1987.
b. Will not be offset against any disability benefit that the pilot
is entitled to under the Delta Pilots Disability and Survivorship
Plan.
26.5
<PAGE>
SECTION 27
UNION SECURITY AND CHECK OFF
A. CONDITIONS
1. Each pilot of the Company covered by this Agreement who fails to
voluntarily acquire and maintain membership in the Association, shall
be required, as a condition of continued employment, beginning sixty
(60) days after the completion of his probationary period, to pay to
the Association each month a service charge as a contribution for the
administration of this Agreement and the representation of such
employee. The service charge shall be an amount equal to the
Association's regular and usual dues and including MEC assessments. In
calculation of each non-member's monthly obligation, the Association
shall allocate and adjust charges in the same manner as if followed
with respect to its members.
2. The provisions of this Section shall not apply to any employee covered
by this Agreement to whom membership in the Association is not
available upon the same terms and conditions as are generally
applicable to any other pilot, or to any pilot to whom membership in
the Association was denied or terminated for any reason other than the
failure of the pilot to pay initiation (or reinstatement) fee, dues
and assessments uniformly required.
27.1
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
3. If a pilot covered by this Agreement is delinquent, or becomes
delinquent in the payment of fees, dues and assessments or the
service charge as stated in Paragraph 1. above, the Association shall
notify him by certified mail, return receipt requested, copy to the
Vice President - Flight Operations of the Company, or designee, that
he is delinquent and is subject to discharge as a pilot of the
Company. Such letter shall also notify the pilot that he must remit
the required payment within a period of fifteen (15) days or be
discharged.
4. If, upon the expiration of the fifteen (15) day period, the pilot
still remains delinquent, the Association shall thereafter certify in
writing to the Vice President - Flight Operations of the Company, or
designee, copy to the pilot, that the pilot has failed to remit
payment within the grace period allowed and is therefore to be
discharged. The Vice President - Flight Operations or designee shall,
within five (5) days, terminate the service of such employee as a
pilot.
5. A grievance by a pilot who is to be so terminated as the result of an
interpretation or application of the provisions of this Section shall
be subject to the following procedure, which shall be exclusive of the
provisions of Sections 18 and 19 of this Agreement.
a. A pilot who believes that the provisions of Section 27 have not
been properly interpreted or applied, as they pertain to him, may
submit his request for review in writing within five (5) days from
the date of receipt of notice by him. Such request must be
submitted to the Vice President - Flight Operations of the Company
or his successor or designee who shall
27.2
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
review the protest and render a decision in writing with respect
thereto not later than five (5) days following the receipt of the
request of review.
b. The Vice President - Flight Operations of the Company or his
successor or designee, shall forward his decision to the pilot
with a copy to the official of the Association who shall promptly
be designated in writing by the Association for this purpose.
Said decision shall be final and binding on all interested parties
unless appealed as hereinafter provided. If the decision is not
satisfactory to either the pilot or the Treasurer of the
Association, either may appeal the decision by filing a notice of
appeal. Such notice shall be sent to the Company, to the other
party and to the National Mediation Board within ten (10) days of
the receipt of the decision and must contain a request for the
National Mediation Board to provide a list of five (5) neutral
referees. A neutral referee may be agreed upon by the pilot and
the Association within ten (10) days after receipt of the list of
neutral referees. If the parties cannot agree on a neutral
referee, a referee will be chosen from the panel supplied by the
National Mediation Board. The alternate strike method shall be
used to select a neutral referee with the pilot initiating the
first rejection. Such final selection of a neutral referee shall
be accomplished within ten (10) days after receipt of the list of
neutral referees. If the parties have not reached agreement by
the alternate strike method with the aforementioned ten (10) day
period, the first name listed on the five (5) name panel provided
by the National Mediation Board shall be designated the neutral
referee.
27.3
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
c. The decision of the neutral referee shall be requested within
thirty (30) days after the hearing of the appeal unless otherwise
agreed by the pilot and the Association and shall be final and
binding on all parties to the dispute. The fees, charges and
other reasonable expenses of such neutral referee shall be paid
equally by the pilot and the Association.
6. During the period a grievance is being handled under the provisions of
this Section and until final award by the Vice President - Flight
Operations, his designee, or the neutral referee, the pilot shall not
be discharged from the Company nor lose any seniority rights because
of non-compliance with the terms and provisions of this Section.
7. A pilot discharged by the Company under the provision of this
Paragraph shall be deemed to have been "discharged for cause" within
the meaning of the terms and provisions of this Agreement.
8. It is agreed that the Company shall not be liable for any time, wage
or all other claims (including discharge) of any pilot which may
result from action taken by the Company pursuant to a written
order by an authorized Association representative under the terms of
this Paragraph or Agreement.
B. SERVICE CHARGE AND CHECK-OFF
1. Check-Off
a. The Company agrees to deduct from the pay of each employee covered
by this Agreement, and remit to the Association, membership dues
and/or service charges uniformly levied, in accordance with the
Constitution and By-Laws of the Association, all as prescribed by
the Railway Labor Act, as amended,
27.4
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
provided such employee voluntarily executes authorization on a
form, to be supplied by the Association, herein called "Check-Off
Form". Check-off forms duly executed shall be delivered to the
Base Chief Pilot.
2. Deductions authorized by check-off forms shall begin on the first day
of the month following receipt of such check-off forms. An example of
such check-off form is represented as follows:
SERVICE CHARGE AND DUES CHECK OFF FORM
FOR CHECK-OFF OF ASSOCIATION DUES
To Delta Air Lines, Inc.
I, ________________, hereby authorize and direct Delta Air Lines,
Inc., to deduct from my pay such monthly dues as are now or may
hereafter be established in accordance with the Constitution and By-
Laws of the Association, for remittance to the Air Line Pilots
Association, International. I agree that this authorization shall be
irrevocable for one year from the date hereof or until termination of
the check-off agreement between Delta Air Lines, Inc., and the
Association, whichever occurs sooner. If the check-off agreement is
terminated, this authorization shall be automatically terminated. In
the absence of a termination of the check-off agreement, this
authorization may be revoked effective as of any anniversary date of
the signing hereof by written notice given by me to Delta Air Lines,
Inc., and the Association by registered mail, return receipt
requested, during the ten (10) days immediately preceding any such
anniversary.
27.5
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
Amount to be deducted each month______________________
ALPA Number______________________________________
Signature of Employee _______________________________
Address of Employee ________________________________
Payroll Number ____________ Location ________________
Date ______________________________________________
3. a. No deductions of service charges or dues shall be made from the
wages of any pilot who has executed a "Service Charge and Dues
Check-Off Form" and who has been transferred to a job not covered
by this Agreement, who is on furlough, or who is on leave without
pay. Upon return to work within a classification covered by this
Agreement, whether by transfer, termination or leave without pay,
or recall from furlough, deductions shall be automatically resumed
provided the pilot has not revoked the assignment in accordance
with the other appropriate provisions of this Section and the
Railway Labor Act, as amended.
b. A pilot who has executed a "Service Charge and Dues Check-Off
Form" and who resigns or is otherwise terminated (other than by
furlough) from the employ of the Company shall be deemed to have
automatically revoked the assignment, and if he is reemployed,
further deductions of service charges or dues will be made only
upon execution and receipt of a new "Service Charge and Dues
Check-Off Form".
27.6
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
4. Collections of any back dues or service charges owed at the time of
starting deductions for any employee and collection of dues missed
because the pilot's earnings were not sufficient to cover the payment
of dues for a particular pay period will be the responsibility of the
Air Line Pilots Association and will not be subject to payroll
deductions.
5. Deductions of service charges and dues shall be made from each flight
paycheck, provided there is a balance in the paycheck sufficient to
cover the amount after all other deductions authorized by the pilot or
required by law have been satisfied. In the event of termination of
employment, the obligation of the Company to collect service charges
or dues shall not extend beyond the monthly period in which his last
day of work occurs.
C. ALPA PAC CHECK OFF
1. The Company agrees to deduct from the pay of each pilot covered by
this Agreement, and remit to the Association, ALPA PAC contributions
provided such employee voluntarily executes authorization on a form,
to be supplied by the Association, herein called ALPA PAC "Check-Off
Form". ALPA Check-Off Form duly executed shall be delivered to the
Base Chief Pilot.
2. Deductions authorized by ALPA PAC Check-Off Forms shall begin on the
first day of the month following receipt of such Check-Off Forms. An
example of such Check-Off Form is shown below.
3. The Association shall remit to the Company actual reasonable
administrative costs of this provision.
27.7
<PAGE>
SECTION 27 - UNION SECURITY AND CHECK OFF (CONTINUED)
ALPA PAC
CHECK-OFF FORM
ASSIGNMENT AND AUTHORIZATION
FOR CHECK-OFF OF ALPA PAC CONTRIBUTIONS
TO DELTA AIR LINES, INC.
I, ____________________, hereby authorize and direct Delta Air Lines,
Inc. to deduct from my pay semi-monthly contributions in the amount
stated below for remittance to the Air Line Pilots Association
Political Action Committee. I agree that this authorization shall be
irrevocable for one year from the date hereof or until termination of
the ALPA PAC check-off agreement between Delta Air Lines, Inc. and the
Association, whichever occurs sooner. In the absence of a termination
of the ALPA PAC check-off agreement, this authorization may be revoked
effective as of any anniversary date of the signing hereof of written
notice given by me to Delta Air Lines, Inc., and the Association by
registered mail, return receipt requested, during the ten (10) days
immediately preceding any such anniversary.
Amount to be deducted semi-monthly ____________________
Signature of Employee _________________________________
Address of Employee ___________________________________
Payroll Number ______________ Location _______________
Date __________________________________________________
27.8
<PAGE>
SECTION 28
EFFECTIVE DATE, DURATION AND EFFECT ON OTHER AGREEMENTS
A. EFFECTIVE DATE AND DURATION
1. Except as expressly provided otherwise this Agreement shall become
effective on May 1, 1996, shall continue in full force and effect
through May 2, 2000, and shall renew itself without change through
each succeeding May 2 unless written notice of intended change is
served in accordance with Section 6, Title I, of the Railway Labor
Act, as amended, by either party hereto at least 60 days but no more
than 90 days prior to May 2, 2000 or May 2 in any year thereafter.
2. The following provisions of this Agreement shall have deferred
effective dates as set forth below. Prior to its deferred effective
date, the subject matter of each such provision shall be governed by
and administered in accordance with the status quo in existence
immediately before the effective date of this Agreement.
<TABLE>
<CAPTION>
Provision Deferred Effective Date
<S> <C>
7.A.1. 4/1/97
7.A.4. 4/1/97
7.C.3. Not later than 1/1/97
11.A.8. 1/1/97
11.E.3. 1/1/97
12.A.3. Not later than 1/1/97
12.E. Not later than 1/1/97
12.F.1.c. 6 months past the 1st of month
following signing
</TABLE>
28.1
<PAGE>
SECTION 28 - EFFECTIVE DATE, DURATION AND EFFECT ON OTHER AGREEMENTS (CONTINUED)
12.G. Not later than 1/1/97
12.H. Not later than 1/1/97
12.K.3. Not later than 1/1/97
12.K.5. Not later than 1/1/97
12.N.1. Not later than 1/1/97
12.N.4.c.& d. 4/1/97
14.B.3. Not later than 1/1/97
16.E.2. a. & b. Not later than 1/1/97
16.E.3.d. Not later than 1/1/97
16.F. Not later than 1/1/97
22.C. Not later than 1/1/97
22.E. & H. Not later than 1/1/97
23.C. Not later than 1/1/97
23.D.1. & 5. Not later than 1/1/97
23.E.1. Not later than 1/1/97
23.E.4. & 5. Not later than 1/1/97
23.F. Not later than 1/1/97
23.G. Not later than 1/1/97
23.I. Not later than 1/1/97
23.J.8. & 10. Not later than 1/1/97
28.2
<PAGE>
SECTION 28 - EFFECTIVE DATE, DURATION AND EFFECT ON OTHER AGREEMENTS (CONTINUED)
3. The provisions of this Agreement which are scheduled to take effect on
the day before the amendable date of this Agreement (i.e., Section
3.A., Compensation and Section 24.S, parking expenses for pilots
displaced from their base) (the "Snapback Provisions") will become
effective on the day before the amendable date (the "Snapback Date")
whether or not the Company or Association has filed a notice of
intended change under Section 6 of the Railway Labor Act or otherwise.
The Company and Association agree to waive any claim that the Snapback
Provisions will not take effect in accordance with the terms of this
Agreement on the Snapback Date as a result of the application of the
Railway Labor Act or otherwise. The Company and Association further
agree that no court, System Board of Adjustment, or other tribunal has
jurisdiction to set aside the parties' agreement that the Snapback
Provisions will take effect on the Snapback Date in accordance with
the terms of this Agreement. The parties agree that the Snapback
Provisions will in fact take effect on the Snapback Date and that the
Snapback Provisions will thereafter become part of the status quo for
purposes of the Railway Labor Act in the event that no new collective
bargaining agreement has been concluded as of the amendable date of
this Agreement.
B. EFFECT ON OTHER AGREEMENTS
This Agreement shall supersede and take precedence over all
Agreements, Supplemental Agreements, Amendments,
Letters of Understanding, and similar related
documents executed between the Company and the Association
prior to the effective date of this Agreement with the
exception of the following:
1. Supplemental Agreement signed October 1, 1990 pertaining to
CRAF.
28.3
<PAGE>
SECTION 28 - EFFECTIVE DATE, DURATION AND EFFECT ON OTHER AGREEMENTS (CONTINUED)
2. Supplemental Agreement signed October 1, 1990 pertaining to Retirement
and Insurance Committee.
3. Supplemental Agreement signed June 27, 1995 pertaining to Age 60
Transition to Second Officer.
4. Supplemental Agreement signed April 29, 1996 pertaining to Charters.
5. Supplemental Agreement signed April 29, 1996 pertaining to the
Sunshine Operation.
6. Letter Number 1 dated October 1, 1990 pertaining to bank time use for
FAE.
7. Letter Number 2 dated October 1, 1990 pertaining to new hire pilot
rights.
8. Letter Number 3 dated October 1, 1990 pertaining to line of time
window expansion.
9. Letter Number 4 dated October 1, 1990 pertaining to Retirement and
Insurance Committee information.
10. Letter Number 5 dated October 1, 1990 pertaining to Disability &
Survivorship Plan long term disability payments.
11. Letter Number 6 dated June 3, 1991 pertaining to 24.J.2. billing.
12. Letter Number 7 dated June 30, 1992 pertaining to deadhead relief
pilot part of crew.
13. Letter Number 8 dated July 1, 1992 pertaining to pilot mailboxes.
14. Letter Number 9 dated January 27, 1994 pertaining to MEC, Negotiating
Committee category options.
15. Letter Number 10 dated October 6, 1994 pertaining to Family Care
Savings Plan.
28.4
<PAGE>
SECTION 28 - EFFECTIVE DATE, DURATION AND EFFECT ON OTHER AGREEMENTS (CONTINUED)
16. Letter Number 11 dated March 22, 1995 pertaining to medical review.
17. Letter Number 12 dated August 17, 1995 pertaining to pilots returning
to line flying following extended ALPA duty.
18. Letter number 13 dated April 29, 1996 pertaining to the Family Care
Savings Plan.
19. Letter number 14 dated April 29, 1996 pertaining to the Delta Pilots
Medical Plan.
20. Letter number 15 dated April 29, 1996 pertaining to the Delta Pilots
Disability and Survivorship Plan.
21. Letter number 16 dated April 29, 1996 pertaining to Retirement Benefit
Issues.
22. Letter number 17 dated April 29, 1996 pertaining to Stock Options.
23. Letter number 18 dated April 29, 1996 pertaining to Board Member.
24. Letter number 19 dated April 29, 1996 pertaining to Instructor(s)
Flying.
25. Letter number 20 dated April 29, 1996 pertaining to Line of Time
Construction for International Flying.
26. Letter number 21 dated April 29, 1996 pertaining to Swap with the Pot,
Ultra Long Call and Jumpseat.
27. Letter number 22 dated April 29, 1996 pertaining to B-737 Displaced
Pilots Pay Protection.
28. The Pilots Stock Option Plan
29. The Delta Air Lines, Inc. Pilots Profit Sharing Program.
28.5
<PAGE>
SECTION 28 - EFFECTIVE DATE, DURATION AND EFFECT ON OTHER AGREEMENTS (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have signed this Agreement this 29th day
of April 1996.
FOR THE AIR LINE PILOTS IN THE
FOR DELTA AIR LINES, INC. SERVICE OF DELTA AIR LINES, INC.
/s/ R. W. Allen /s/ J. R. Babbitt
- ------------------------------ --------------------------------
R. W. Allen J. R. Babbitt
Chairman of the Board, President President
and Chief Executive Officer
WITNESS: WITNESS:
/s/ H. C. Alger /s/ W. R. Brown
- ------------------------------ -----------------------------
H. C. Alger W. R. Brown
/s/ H. D. Greenberg /s/ M. R. Kelly
- --------------------------- -------------------------------
H. D. Greenberg M. R. Kelly
/s/ T. M. Erskine /s/ R. G. McCallum
- --------------------------- -------------------------------
T. M. Erskine R. G. McCallum
/s/ R. E. Colby /s/ F. W. Daugherty
- --------------------------- -------------------------------
R. E. Colby F. W. Daugherty
/s/ A. L. Beck /s/ R. O. Norris
- --------------------------- -------------------------------
A. L. Beck R. O. Norris
/s/ W. C. Spalding /s/ B. S. Gordon
- --------------------------- -------------------------------
W. C. Spalding B. S. Gordon
/s/ D. T. Watson, Jr. /s/ R. H. Drew
- --------------------------- -------------------------------
D. T. Watson, Jr. R. H. Drew
28.6
<PAGE>
SUPPLEMENTAL AGREEMENT
Between
DELTA AIR LINES, INC.
and
THE AIR LINE PILOTS
in the Service of
DELTA AIR LINES, INC.
as Represented by
THE AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL
________________
CRAF
________________
THIS SUPPLEMENTAL AGREEMENT is made and entered into in accordance with the
provisions of Title II of the Railway Labor Act, as amended, by and between
DELTA AIR LINES, INC., (hereinafter known as the "Company"), and the AIR LINE
PILOTS in the Service of DELTA AIR LINES, INC., as Represented by the AIR LINE
PILOTS ASSOCIATION, INTERNATIONAL (hereinafter known as the "Association").
CR.1
<PAGE>
CRAF (CONTINUED)
SECTION 1
It is mutually agreed and understood by and between the parties of
this Supplemental Agreement that the provisions hereof shall be
applicable only to the Company's Civil Reserve Air Fleet Operation
(CRAF). It is further agreed and understood that all Sections of the
Basic Employment Agreement, amendments thereto and supplemental
agreements, except those Sections which are specifically modified or
excepted by this Supplemental Agreement, shall be applicable to the
Company's "CRAF Operation."
SECTION 2
DEFINITIONS
A. The word "Agreement" when used in this Supplemental Agreement means the
Basic Employment Agreement between Delta Air Lines, Inc., and the Air
Line Pilots in the Service of Delta Air Lines, Inc., as Represented by
the Air Line Pilots Association, International signed October 1, 1990,
or as it may be amended or modified.
B. The term "CRAF Operation" for the purpose of this Supplemental Agreement
means all flight operations conducted in accordance with the Agreement
between Delta Air Lines and the Department of Defense covering such "CRAF
Operation," but shall not include the Company's certificated service or
commercial charter service or any other Government operation.
CR.2
<PAGE>
CRAF (CONTINUED)
SECTION 3
COMPENSATION
Rates of compensation and the minimum pay guarantee on the
Company's "CRAF Operation" shall be those specified in the
Agreement for pilots based on International Category Operations,
provided that a pilot awarded or assigned a position in such
operation shall receive, as a minimum guarantee, monthly
compensation at the rate determined by dividing the total earnings
during the three (3) calendar months immediately preceding his
assignment to the "CRAF Operation" by the total number of days
during which he was on active pay status during such three (3)
months multiplied by the number of days the pilot has been in the
"CRAF Operation" during such month, provided that in no case shall
pilot's pay be less than one-third (1/3) of the previous three (3)
calendar months preceding the month of assignment to the "CRAF
Operation."
SECTION 4
EXPENSES
A pilot awarded or assigned a position in the Company's "CRAF
Operation" shall receive trip and moving expenses in
accordance with the Basic Employment Agreement.
SECTION 5
FILLING OF VACANCIES
A. Assignments to pilots' positions in the "CRAF Operation" during the first
thirty (30) days of such operation shall be filled in the following manner:
CR.3
<PAGE>
CRAF (CONTINUED)
1. Proffered to currently qualified pilots in order of system seniority.
Any positions so proffered which are not accepted shall be:
2. Assigned in reverse order of system seniority to those pilots who are
currently qualified for the position. Any positions which are not filled
shall be:
3. Proffered to pilots in order of their system seniority. Any position so
proffered which is not filled shall be:
4. Assigned to pilots in reverse order of system seniority.
B. Within thirty (30) days after the implementation of the Company's "CRAF
Operation," all pilot positions in such operation shall be posted for system
wide bid and awarded in accordance with the Basic Employment Agreement and
will be considered as operating from a newly established base.
C. At the expiration of the initial thirty (30) day period, pilots assigned to
such "CRAF Operation" shall remain in such assignment until replaced by
pilots who successfully bid such operation under B. above. All such
replacements shall be made as soon as practicable and in conformance with
the Basic Employment Agreement. Thereafter, "CRAF Operations" shall continue
to be governed by the Basic Employment Agreement.
D. Any pilot receiving a CRAF position during the first thirty (30) days of
such operations who indicates to the Company in writing his desire to return
to his last held base position will be allowed to do so provided:
1. There is a currently qualified pilot who has expressed his
desire to the Company in writing to fill such position, or
2. A junior pilot is currently qualified.
CR.4
<PAGE>
CRAF (CONTINUED)
SECTION 6
INSURANCE BENEFITS
A pilot awarded or assigned a position in the Company's "CRAF
Operation" will be eligible for continued participation in the
applicable Company's Employees' Insurance Program. In addition
thereto the Company shall provide $350,000 accidental death and
dismemberment insurance coverage for each pilot while he is assigned
to the Company's "CRAF Operation."
SECTION 7
RETIREMENT BENEFITS
A pilot awarded or assigned a position in the "CRAF Operation"
will be considered as though he is assigned to the Company's
regular operations for Retirement Plan purposes.
SECTION 8
GENERAL
The Company shall provide each pilot in its employ with a copy
of this Supplemental Agreement.
SECTION 9
DURATION
This Supplemental Agreement shall become effective October 1,
1990, and shall remain in full force and effect concurrently
with the Basic Employment Agreement signed October 1, 1990, or
as it may be amended, subject to the provisions of Section 28
of such Agreement.
CR.5
<PAGE>
CRAF (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have signed this Agreement this October
1, 1990.
FOR THE AIR LINE PILOTS IN THE
FOR DELTA AIR LINES, INC. SERVICE OF DELTA AIR LINES, INC.
/s/ R. W. Allen /s/ H. A. Duffy
- --------------------------------- -----------------------------------
R. W. Allen H. A. Duffy
Chairman of the Board, President and President
Chief Executive Officer
WITNESS: WITNESS:
/s/ R. H. Heil /s/ W. J. Donnelly
- --------------------------------- -----------------------------------
R. H. Heil W. J. Donnelly
/s/ R. A. McClelland /s/ R. O. Norris
- --------------------------------- -----------------------------------
R. A. McClelland R. O. Norris
/s/ H. C. Alger /s/ J. R. Considine
- --------------------------------- -----------------------------------
H. C. Alger J. R. Considine
/s/ M. W. Worth /s/ P. J. Burke
- --------------------------------- -----------------------------------
M. W. Worth P. J. Burke
/s/ H. D. Greenberg /s/ D. J. Dolan
- --------------------------------- -----------------------------------
H. D. Greenberg D. Dolan
/s/ A. L. Beck /s/ R. H. Drew
- --------------------------------- -----------------------------------
A. L. Beck R. H. Drew
/s/ W. C. Spalding
- ---------------------------------
W. C. Spalding
/s/ R. L. Kight
- ---------------------------------
R. L. Kight
CR.6
<PAGE>
SUPPLEMENTAL AGREEMENT
Between
DELTA AIR LINES, INC.
and
THE AIR LINE PILOTS
in the Service of
DELTA AIR LINES, INC.
as Represented by
THE AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL
____________________________________________
RETIREMENT AND INSURANCE COMMITTEE
____________________________________________
WHEREAS, the Company and the Association wish to establish a means of exchanging
views and information relating to the Retirement, Survivorship & Disability Plan
and the Group Insurance Coverage,
NOW, THEREFORE, it is mutually agreed and understood between the parties to this
SUPPLEMENTAL AGREEMENT that:
A retirement and Insurance Committee consisting of two (2) regular members plus
one (1) alternate member will be established by the Association, the membership
of the Committee being drawn from members of the Association. The purpose of
the Committee is as follows:
RI.1
<PAGE>
RETIREMENT AND INSURANCE COMMITTEE (CONTINUED)
1. To collect and evaluate the following data which will be furnished to
the Committee by the Company:
a. Annual actuarial reports on the Retirement, Survivorship and
Disability Plan.
b. Quarterly reports of contributions made to the Plan.
c. Quarterly reports relative to each advisor involved in the
investment of assets of the Pilots Plan.
d. An annual Trustees report including a summary of income and
disbursements and a balance sheet of the assets.
e. Annual report to the IRS and Department of Labor as required by
ERISA.
f. Pension Benefit Guaranty Corp. report.
(1) Premium Declaration
(2) Annual Report
2. To meet quarterly (at Committee request) to advise the Company of
problems in regard to administration of the Retirement and Group
Insurance Plans and to work with the Company toward resolving such
problems within the framework of the Agreement between the Company and
the Association. Additionally, the Committee Chairman may review the
portfolio and related information once each year.
RI.2
<PAGE>
RETIREMENT AND INSURANCE COMMITTEE (CONTINUED)
DURATION
THIS SUPPLEMENTAL AGREEMENT shall become effective on October 1,
1990, and shall remain in full force and effect concurrently with
the Basic Employment Agreement signed October 1, 1990 or as it may
be amended, subject to the provisions of Section 28 of such
Agreement.
RI.3
<PAGE>
RETIREMENT AND INSURANCE COMMITTEE (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have signed this Agreement this October
1, 1990.
FOR THE AIR LINE PILOTS IN THE
FOR DELTA AIR LINES, INC. SERVICE OF DELTA AIR LINES, INC.
/s/ R. W. Allen /s/ H. A. Duffy
- --------------------------------- ----------------------------------
R. W. Allen H. A. Duffy
Chairman of the Board, President President
and Chief Executive Officer
WITNESS: WITNESS:
/s/ R. H. Heil /s/ W. J. Donnelly
- --------------------------------- ----------------------------------
R. H. Heil W. J. Donnelly
/s/ R. A. McClelland /s/ R. O. Norris
- --------------------------------- ----------------------------------
R. A. McClelland R. O. Norris
/s/ H. C. Alger /s/ J. R. Considine
- --------------------------------- ----------------------------------
H. C. Alger J. R. Considine
/s/ M. W. Worth /s/ P. J. Burke
- --------------------------------- ----------------------------------
M. W. Worth P. J. Burke
/s/ H. D. Greenberg /s/ D. J. Dolan
- --------------------------------- ----------------------------------
H. D. Greenberg D. Dolan
/s/ A. L. Beck /s/ R. H. Drew
- --------------------------------- ----------------------------------
A. L. Beck R. H. Drew
/s/ W. C. Spalding
- ---------------------------------
W. C. Spalding
/s/ R. L. Kight
- ---------------------------------
R. L. Kight
RI.4
<PAGE>
SUPPLEMENTAL AGREEMENT
Between
DELTA AIR LINES, INC.
and
THE AIR LINE PILOTS
in the Service of
DELTA AIR LINES, INC.
as Represented by
THE AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL
____________________________________________
AGE 60 TRANSITION TO SECOND OFFICER
____________________________________________
THIS SUPPLEMENTAL AGREEMENT is entered into by and between DELTA AIR LINES, INC.
("Company"), and the AIR LINE PILOTS in the service of DELTA AIR LINES, INC., as
represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL ("Association") as
a supplement to the Basic Agreement signed October 1, 1990, as amended.
WHEREAS, Delta pilots are being permitted to continue in the service of the
Company as Second Officers beyond age 60 (the FAA regulatory age limit for
Captains and First Officers, 14 CFR 121.383 (c)), and
WHEREAS, the Company no longer restricts former Captains from serving as Second
Officers, and
AG.1
<PAGE>
AGE 60 TRANSITION TO SECOND OFFICER (CONTINUED)
WHEREAS, the Company and the Association desire to specify the procedures to
enable Captains and First Officers to transfer to Second Officer categories in
order to serve past age 60,
NOW THEREFORE, it is agreed that the Basic Agreement is supplemented as follows:
A Captain or First Officer who desires to continue in the service of the Company
beyond age 60 as Second Officer may transfer to a Second Officer category
position under the following terms and conditions:
1. At least 210 days prior to reaching age 60, the pilot must file with
the Company's System Manager - Crew Resources a written notice
declaring his intention to continue in the service of the Company
beyond age 60 as a Second Officer and stating his category choice(s)
in order of preference. Pilots who will reach age 60 within 210 days
following the effective date of this Supplemental Agreement must
provide such notice no later than 30 days following such effective
date. Failure to comply with the notice requirements of this paragraph
shall bar a pilot from continuing beyond age 60 as a Second Officer.
2. Effective upon the pilot's 60th birthday, subject to the terms of
paragraphs 3, 5, and 6 below, the pilot will be converted to the
Second Officer category to which his seniority entitles him in
accordance with the preference shown on the pilot's notice of intent
described in paragraph 1. above.
3. If, on the pilot's 60th birthday all positions in every Second Officer
category selected are occupied by individuals senior to him, then the
pilot will be assigned to the Second Officer category of the Company's
choice, where there is a Second Officer junior to him. If there is no
such category, the pilot will be granted the option of (a) retirement
or (b) unpaid leave of absence on a month by month basis for up to
AG.2
<PAGE>
AGE 60 TRANSITION TO SECOND OFFICER (CONTINUED)
five years. While on leave of absence, the pilot will be awarded the
first available Second Officer category position to which his
seniority entitles him. He will be notified of his award by
registered letter, return receipt requested. If he does not accept
and report for such position within 30 days of the date of his receipt
of notice of his award, the pilot will, barring extraordinary
circumstances, be deemed to have voluntarily resigned.
4. At the Company's option the pilot may be scheduled for training prior
to his 60th birthday provided he has furnished proof that he holds a
flight engineer certificate with a turbo jet rating, or has completed
the written portion of the FAA flight engineer turbo jet examination.
Such training will not require pre-posting. Training will be paid at
the rates of the category held by the pilot at the time the training
is accomplished. If the training continues past the pilot's 60th
birthday, it will be paid at the Second Officer rate in the category
for which the pilot is being trained. If due to the lack of training
opportunities, the training does not commence until after such pilot
reaches age 60, he will be paid at the rates applicable to the Second
Officer category to which he is converted, commencing on his 60th
birthday.
5. Prior to reaching age 60, the pilot must submit to the System Manager
- Crew Resources proof that he holds a flight engineer certificate
with a turbo jet rating, or has successfully completed the written
portion of the FAA flight engineer turbo jet examination. Except as
provided in paragraph 6. below, a pilot who does not submit such proof
as required will, upon reaching age 60, be deemed to have voluntarily
resigned.
AG.3
<PAGE>
AGE 60 TRANSITION TO SECOND OFFICER (CONTINUED)
6. Notwithstanding the foregoing paragraph 5., a pilot who reaches age 60
during 1995 and who has not completed the written portion of the FAA
flight engineer turbo jet examination as of his 60th birthday must
submit the necessary proof of successful completion of such written
examination to the System Manager - Crew Resources no later than
December 31, 1995 or 90 days after he reaches age 60, whichever comes
first. Pending submission of the required proof within the specified
period, the pilot referred to in this paragraph 6. will be placed in
an unpaid leave status after reaching age 60. Once the pilot submits
such proof within the specified period, he will be returned to service
for training as a Second Officer in the category to which he has been
converted as soon as a training opportunity becomes available and will
be maintained in unpaid leave status until he reports for training. A
pilot who does not submit the written proof within the specified
period as required in this paragraph 6. or who does not report for
training as assigned will, barring extraordinary circumstances, be
deemed to have voluntarily resigned.
<PAGE>
7. The pilot must meet all medical certificate requirements in the Basic
Agreement as of the time he commences training for his Second Officer
position and must maintain such requirements thereafter in accordance
with the terms of the Basic Agreement.
8. Moving expenses incurred by a pilot who transfers, other than at
Company request, to a Second Officer category position in order to
serve past age 60 will not be reimbursed.
AG.4
<PAGE>
AGE 60 TRANSITION TO SECOND OFFICER (CONTINUED)
9. A pilot holding a Second Officer category position beyond age 60, who
becomes surplus at a time when his seniority is insufficient to permit
him to continue to hold any Second Officer category position, will be
placed on unpaid personal leave of absence for a maximum of five years
or on retirement, at his option. A pilot on unpaid leave will be
offered the opportunity to return to service to the first available
Second Officer category position which his seniority is sufficient to
permit him to hold. Such offer shall be sent by registered letter,
return receipt requested. The pilot shall promptly notify the Company
of his acceptance or rejection of the offer and must report within 30
days of receipt of the offer letter. A pilot who does not accept such
offer or who does not report as required will, barring extraordinary
circumstances, be deemed to have voluntarily resigned.
10. Upon conversion to a Second Officer category the pilot will re-bid his
vacation.
This Supplemental Agreement shall become effective upon the date set forth below
and shall remain in full force and effect concurrently with the Basic Agreement
subject to the provisions of Section 28 thereof.
AG.5
<PAGE>
AGE 60 TRANSITION TO SECOND OFFICER (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have signed this Supplemental Agreement
this 27th day of June 1995.
FOR THE AIR LINE PILOTS IN THE
FOR DELTA AIR LINES, INC. SERVICE OF DELTA AIR LINES, INC.
/s/ H. C. Alger /s/ J. R. Babbitt
- ------------------------------- --------------------------------
H. C. Alger J. R. Babbitt
Executive Vice President - President
Operations
WITNESS: WITNESS:
/s/ H. D. Greenberg /s/ W. R. Brown
- ------------------------------- --------------------------------
H. D. Greenberg W. R. Brown
/s/ T. M. Erskine /s/ F. W. Daugherty
- ------------------------------- --------------------------------
T. M. Erskine F. W. Daugherty
/s/ R. E. Colby /s/ R. O. Norris
- ------------------------------- --------------------------------
R. E. Colby R. O. Norris
/s/ A. L. Beck /s/ B. S. Gordon
- ------------------------------- --------------------------------
A. L. Beck B. S. Gordon
/s/ W. C. Spalding /s/ R. H. Drew
- ------------------------------- --------------------------------
W. C. Spalding R. H. Drew
AG.6
<PAGE>
SUPPLEMENTAL AGREEMENT
Between
DELTA AIR LINES, INC.
and
THE AIR LINE PILOTS
in the Service of
DELTA AIR LINES, INC.
as Represented by
THE AIR LINE PILOTS ASSOCIATION,
INTERNATIONAL
_____________
CHARTER
_____________
THIS SUPPLEMENTAL AGREEMENT is made and entered into in accordance with the
provisions of Title II of the Railway Labor Act, as amended, by and between
DELTA AIR LINES, INC., (hereinafter referred to as the "Company"), and the AIR
LINE PILOTS in the Service of DELTA AIR LINES, INC., as represented by the AIR
LINE PILOTS ASSOCIATION, INTERNATIONAL (hereinafter referred to as the
"Association").
W I T N E S S E T H:
WHEREAS, the Company and the pilots desire to supplement their Basic Employment
Agreement with respect to Charter Operations,
CH.1
<PAGE>
CHARTER (CONTINUED)
NOW, THEREFORE, it is mutually agreed and understood by and between the parties
to this Supplemental Agreement that the following rules and working conditions
shall apply to the Company's Charter Operations, replacing or supplementing, as
appropriate, the rules and working conditions contained in the Basic Working
Agreement.
1. Scheduled Duty Time
Maximum scheduled duty hours for any domestic charter operation will
be two (2) hours greater than the maximum presented in Section 12.E.
(Maximum Duty Hours) of the Basic Agreement, but in no case greater
than fourteen (14) hours.
2. Scheduled Break in Duty Hours
a. For scheduling purposes no pilot on a charter operation shall be
scheduled for a break in duty hours of less than eight (8) hours
(release to report).
b. A regular line holder's on-duty period cannot be broken by an off-
duty period at his domicile of less than nine (9) hours (release
to report).
3. Charter Deadheading
a. Pilots deadheading to or from a charter flight shall
receive full pay and credit.
b. Suit-up pay shall not apply for a duty period composed of deadhead
only; however, it shall apply in the event a pilot reports but
does not depart.
4. Trip Hours Pay and Credit
Pay and credit provided in Section 12.I. (Trip Hours Pay and Credit)
shall apply to Charter Operations at the rate of one (1) hour flying
pay and flight time credit for each three and three-fourths (3 3/4)
trip hours.
CH.2
<PAGE>
CHARTER (CONTINUED)
5. Variable Duty Period Minimum
The Variable Duty Period Minimum (VM) specified in Section 12.G.
(Variable Duty Period Minimum) shall apply.
6. Duty Hours Pay and Credit
Duty Hours pay and credit shall apply in accordance with the Basic
Agreement, except that it shall not apply to an on-duty period
composed solely of deadheading.
7. Rotation and Line of Time Construction
a. Charters shall be grouped together to form regular lines of time
to the extent possible.
b. One (1) regular rotation may be used with charter rotations to
form a charter line in accordance with Section 23.A. (Pilot Lines
of Time) of the Basic Agreement.
c. The rules and working conditions of the Basic Agreement shall
apply to charters appearing on lines of time other than pure
charter lines. The rules and working conditions of the Basic
Agreement shall apply to regular rotations appearing on charter
lines. All other charters shall be under the rules specified in
this Supplemental Agreement.
d. The rules and working conditions of this Supplemental Agreement
shall apply where a rotation is composed solely of charter flying
and extra sections in conjunction with equipment spotting for the
charter provided that the extra sections are the initial and/or
last flight of the charter.
CH.3
<PAGE>
CHARTER (CONTINUED)
8. Adjustments to Charter Trips
Charter trips may be adjusted as to departure time, arrival time, and
intermediate stops. The provisions of Section 4 of the Basic
Agreement shall apply except as provided in Paragraph 3.b. herein.
9. Staffing for Charter Flying
a. Total charter credit hours known thirty (30) days prior to the
beginning of the bid period shall be added to the otherwise
scheduled total credited hours for the appropriate equipment
status for staffing purposes.
b. Short notice charter known less than thirty (30) days prior to the
bid period shall be considered reserve time, (placed on lines as
appropriate if time permits) taking into consideration the
capability of the affected categories to absorb flying time.
10. Effect on Basic Working Agreement
All provisions of the Basic Working Agreement not specifically
changed or amended by this Supplemental Agreement shall remain in
full force and effect.
DURATION
This Supplemental Agreement shall become effective on its date of
signing, and shall remain in full force and effect concurrently with
the Basic Working Agreement signed April 29, 1996, or as it may be
amended, subject to the provisions of Section 28 of such Agreement.
CH.4
<PAGE>
CHARTER (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have signed this Agreement this 29th day
of April, 1996.
FOR THE AIR LINE PILOTS IN THE
FOR DELTA AIR LINES, INC. SERVICE OF DELTA AIR LINES, INC.
/s/ R. W. Allen /s/ J. R. Babbitt
- ------------------------------ --------------------------------
R. W. Allen J. R. Babbitt
Chairman of the Board, President President
and Chief Executive Officer
WITNESS: WITNESS:
/s/ H. C. Alger /s/ W. R. Brown
- ------------------------------ -----------------------------
H. C. Alger W. R. Brown
/s/ H. D. Greenberg /s/ M. R. Kelly
- --------------------------- -------------------------------
H. D. Greenberg M. R. Kelly
/s/ T. M. Erskine /s/ R. G. McCallum
- --------------------------- -------------------------------
T. M. Erskine R. G. McCallum
/s/ R. E. Colby /s/ F. W. Daugherty
- --------------------------- -------------------------------
R. E. Colby F. W. Daugherty
/s/ A. L. Beck /s/ R. O. Norris
- --------------------------- -------------------------------
A. L. Beck R. O. Norris
/s/ W. C. Spalding /s/ B. S. Gordon
- --------------------------- -------------------------------
W. C. Spalding B. S. Gordon
/s/ D. T. Watson, Jr. /s/ R. H. Drew
- --------------------------- -------------------------------
D. T. Watson, Jr. R. H. Drew
CH.5
<PAGE>
AGREEMENT
BETWEEN
DELTA AIR LINES, INC.
AND
THE AIR LINE PILOTS
IN THE SERVICE OF
DELTA AIR LINES, INC.
AS REPRESENTED BY
THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
- ------------------------------------------------------------------------------
SUNSHINE OPERATION
- ------------------------------------------------------------------------------
THIS SUPPLEMENTAL AGREEMENT is entered into by and between DELTA AIR LINES,
INC., ("Company"), and the AIR LINE PILOTS in the service of DELTA AIR LINES,
INC., as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
("Association") as a supplement to the Basic Agreement signed this 29th day of
April 1996.
WHEREAS, the Association and the Company have determined that it is in the
mutual best interest of the parties to provide opportunities for profitable
competition and growth in selected markets and on the Company's system; and
WHEREAS, the Company and the Association desire to amend the Basic Agreement
with respect to the Company's B-737-200 fleet in order to provide the
opportunity for such profitable competition and growth,
NOW THEREFORE, it is agreed that with respect to the Sunshine Operation the
Basic Agreement is amended as follows:
SO.1
<PAGE>
SECTION 1
RECOGNITION AND JOB SECURITIY
Add a new paragraph L. to read in full as follows:
L. LIMITATIONS ON SUNSHINE OPERATION
1. The Sunshine Fleet will be limited in size to three times the number
of growth aircraft (i.e., aircraft above 530) in the total Delta Air
Lines fleet.
a. Once the Sunshine Fleet equals or exceeds 54 aircraft, the maximum
total aircraft block hours operated by the Sunshine Fleet will be
governed by the ongoing relationship between the average daily
utilization of the Sunshine aircraft and the maximum percentage of
system total aircraft block hours allowed, as set forth in the
following chart (provided that once attained the number of block
hours operated in the Sunshine Operation will not thereafter be
required to be reduced).
<TABLE>
<CAPTION>
SUNSHINE MAX % OF SYSTEM
OPERATION UTILIZATION TOTAL BLOCK HOURS ALLOWED
<S> <C>
8.0 Hr. 13.0%
8.5 Hr. 14.0%
9.0 Hr. 15.0%
9.5 Hr. 16.0%
10.0 Hr. 17.0%
10.5 Hr. 18.0%
11.0 Hr. 19.0%
Greater than
or equal to 11.5 Hr. 20.0%
</TABLE>
SO.2
<PAGE>
SECTION 1 - RECOGNITION AND JOB SECURITY (CONTINUED)
b. Growth of the Sunshine Fleet beyond 54 aircraft will be suspended
at the size of the then existing Sunshine Fleet during any period
of time that Mainline total aircraft block hours fall below
149,122 total scheduled monthly aircraft block hours.
SO.3
<PAGE>
SECTION 2
DEFINITIONS
Add change or delete the following definitions:
AUTHORIZED MONTHLY MAXIMUM - This definition is not applicable to the
Sunshine Operation.
BLOCK TIME - That period of time beginning when an aircraft first moves from
the ramp blocks for the purpose of flight or repositioning and ending when
the aircraft comes to a stop at the ramp at the next intermediate stop or
final destination or point of departure, as the case may be.
DESIGNATED MONTHLY MAXIMUM - This definition is not applicable to the
Sunshine Operation.
FLYING PAY. This definition is not applicable to the operation.
LINE OF TIME. Amend this definition to read as follows:
LINE OF TIME. Is a pilot's monthly schedule as follows:
1. "Initial Line of Time" shall be a pilot's initially awarded line
of time referenced in the Preferential Bid System as provided in
Section 23 of this Supplemental Agreement.
2. "Modified Line of Time" shall be an initial line of time as
modified by the picking up of reserve time as provided in Section
23 of this Supplemental Agreement or as modified by approved trip
swaps, or approved personal trip drops.
SO.4
<PAGE>
SECTION 2 - DEFINITIONS (CONTINUED)
PILOT. Means an employee of Delta Air Lines whose name appears on the Delta
Air Lines Pilots' System Seniority List and who holds a position in
the Sunshine Operation. (Remainder of definition to be the same as
the Basic Agreement.)
PREFERENTIAL BID SYSTEM. A computerized line of time bid and award program
that considers individual bid preferences.
SMALL CATEGORY. This definition is not applicable to the operation.
SUNSHINE FLEET. Means all Boeing 737-200 equipment utilized in the Sunshine
Operation.
SUNSHINE OPERATION. Means all flight operations performed by the Company
utilizing Boeing 737-200 equipment that, within the parameters of
Section 1.L. above, as designated by the Company as being covered by
the terms of this Supplemental Agreement.
NOTE: It is understood and agreed that the words "credit" or "credited" as
used in the Basic Agreement with respect to monthly maximum hours or
other flight time limitations shall have no application in the
computation of monthly maximum hours or flight time limitations in
the Sunshine Operation.
SO.5
<PAGE>
SECTION 3
COMPENSATION
Amend Section 3 in its entirety to read in full as follows:
A. CAPTAIN'S PAY
1. Each pilot when serving as a Captain flying the B-737-200 shall be
paid at the following minute rate:
<TABLE>
<CAPTION>
YEARS OF
SERVICE CAPT
<S> <C>
1 1.637167
2 1.660833
3 1.683333
4 1.706000
5 1.729167
6 1.752667
7 1.776333
8 1.800500
*9 1.824833
**10 1.849500
***11 1.874667
***12 1.900000
</TABLE>
*Effective one year after date of first Sunshine Operation
conversion.
**Effective two years after date of first Sunshine Operation
conversion.
***Effective three years after date of first Sunshine Operation
conversion.
2. Each pilot when serving as Captain who flies an international route
segment shall be paid three dollars and fifty cents ($3.50) per hour.
B. FIRST OFFICER PAY
During his first twelve (12) months of service as a pilot with the
Company, each pilot who has completed the I.O.E. for his entry level
qualification, serving as a First
SO.6
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
Officer in the Sunshine Operation shall be paid at the rate of
fifty-five cents ($.55) per minute. Each pilot who has completed one
year of service with the Company serving as First Officer in the
Sunshine Operation shall be paid the percentage of Sunshine
Operation Captain pay, had his First Officer time been performed as
Captain as follows:
<PAGE>
<TABLE>
<CAPTION>
YEAR PERCENTAGE
<S> <C>
2nd year 45.0%
3rd year 54.0%
4th year 63.1%
5th year 64.1%
6th year 65.2%
7th year 66.5%
8th year 67.5%
9th year 67.7%
10th year 68.1%
11th year 68.2%
12th year 68.3%
*and thereafter
</TABLE>
C. FLIGHT TIME
1. In determining flight time for flying pay purposes, the actual time
from block-to-block (stop-to-stop) or the scheduled time from block-
to-block (stop-to-stop), whichever is greater, shall be used on all
scheduled and extra section flights and the actual time from block-to-
block (stop-to-stop) shall be used on all non-scheduled flights as
defined in Section 2 of the Basic Agreement.
2. For pay purposes, the date on which a pilot is scheduled to originate
his portion of a trip shall be considered the date on which the trip
was flown.
SO.7
<PAGE>
SECTION 3 - COMPENSATION (CONTINUED)
3. When a scheduled or extra section flight does not land at a stop
scheduled on that flight for any reason, the scheduled time from
block-to-block or the actual time from block-to-block, whichever is
greater, shall be paid as though the stop had been made.
D. ENTRY LEVEL PILOT PAY (SALARIED)
For the period from his date of employment as a pilot, through the
completion of Initial Operating Experience (I.O.E.) for his entry
level qualification, each pilot shall be paid at the rate of two
thousand dollars ($2000.00) per month.
SO.8
<PAGE>
SECTION 4
MINIMUM PAY GUARANTEES
Amend Section 4 in its entirety to read in full as follows:
A. REGULAR LINE
1. a. Beginning with the first rotation on his regular line of time, if a
regular line holder is unable to fly a rotation or portion thereof
as shown on his line of time due to a substitution of equipment on
which he is not currently qualified, cancellation, overflight,
misconnects, or Federal Air Regulations, he shall be paid for the
scheduled time so lost up to the FAR limits. In such cases the
Company may:
(1) Reroute the pilots if they are at a point away from their
domicile.
(a) Must be scheduled to be released not later than 4 hours
from the scheduled release of their original rotation if
the replacement (reroute) flying transits the pilot's
domicile.
(b) May be required to standby during any reserve window on A
or B day of the original rotation for assignment of
replacement flying if the replacement (reroute) flying
terminates at the domicile on A or B day. Any replacement
flying assigned during such windows must be scheduled to
release the pilots not later than 4 hours from the
scheduled release time of the original rotation.
(2) Assign replacement flying if the point of the disruption is at
the pilot's domicile.
SO.9
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
(a) Must be scheduled to be released not later than 4 hours
from the scheduled release time of the original rotation.
(b) Replacement flying may transit the pilot's domicile.
(c) May be required to be available for a period of 6 hours
from the time of the disruption or end of the scheduled
duty period on A or B day whichever is earlier.
(d) If not assigned replacement flying on A day must be
available on B day during the normal reserve windows for
assignment to replacement flying.
(e) At Company option will be first in priority for assignment
to replacement flying.
(f) No required availability on C day or thereafter.
2. Except as provided in Section 18 and Section 11.E.2. of the Basic
Agreement, and Section 23.G.1.h. of this Supplemental Agreement, each
pilot who is removed from his regular line of time shall be paid on a
scheduled basis for the trips from which he was removed, or pay for
the trip or trips flown whichever is greater.
SO.10
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
B. RESERVE LINE
1. Each pilot who is the holder of a reserve line of time for the month
as provided in Section 23 of this Supplemental Agreement shall be
guaranteed seventy-five (75) hours of B-737 pay at the appropriate
rate provided in Section 3 of this Supplemental Agreement.
2. In any month during which a pilot holds a reserve line for a portion
of the month, this guarantee shall apply proportionately to the number
of days during which he was a holder of a reserve line reduced by any
days of Personal Drop, Military Leave, Personal Leave, unpaid sick
leave, furlough, or any unpaid absence.
3. When a reserve line pilot, or a pilot considered as such as a result
of the application of Section 23 of this Agreement, is scheduled to
fly a trip or trip sequence originating in a given month and
terminating on or after the first day of the succeeding month and
flies such trip or trip sequence into the following calendar month, he
shall not be considered to have been designated a reserve line holder
for such succeeding month on the basis of having been scheduled to fly
into the month. In such case he shall be paid either for flying
performed or a reserve line holder's guarantee on the equipment
covered prorated on a daily basis, whichever is greater.
C. UNASSIGNED PILOTS
Each unassigned pilot who is eligible for flying pay shall be
guaranteed minimum monthly pay, payable monthly, equal to the reserve
guarantee for a First Officer in the Sunshine Operation.
SO.11
<PAGE>
SECTION 4 - MINIMUM PAY GUARANTEES (CONTINUED)
D. MINIMUM REPORT PAY
When a pilot eligible for flying pay reports for or flies a
flight he shall be paid for the actual time flown in the
duty period but not less than two (2) hours at the
appropriate rate.
SO.12
<PAGE>
SECTION 7
VACATIONS
Delete Paragraphs 7.F.1. and amend Paragraphs 7.A.1., 7.A.2., 7.A.4., 7.F.2.,
7.F.3., and 7.F.4. to read in full as follows:
7.A.1 Pilots shall receive vacation periods as stipulated below. Pilots
shall also receive any increased vacation time established by the
Company for its domestic ground personnel during the term of this
Supplemental Agreement. A pilot's vacation period shall be blocked in
the Preferential Bid System prior to the monthly line of time bid
process and no rotation will be awarded to him which conflicts with
the vacation.
a. The anniversary year, beginning on April 1 and ending on March 31
of the following year, shall be used for vacation purposes.
b. A pilot shall at his option receive a minimum of forty-eight (48)
hours free from all duty prior to the beginning of his primary
vacation period.
c. Each pilot with less than one year's employment with the Company
as of April 1 of any year shall receive vacation during the
succeeding year in accordance with the following schedule:
SO.13
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
<TABLE>
<CAPTION>
EMPLOYED BETWEEN
FOLLOWING PERIODS DAYS VACATION
OF PREVIOUS YEAR INCLUDING 48 HOURS
<S> <C>
April 1 - April 15 16
April 16 - May 15 15
May 16 - June 15 14
June 16 - July 15 13
July 16 - August 15 11
August 16 - September 15 10
September 16 - October 15 9
October 16 - November 15 8
November 16-December 15 7
December 16-January 15 5
January 16-February 15 4
February 16-March 15 3
March 16-March 31 0
</TABLE>
d. As of April 1 of each year each pilot who has more than one year
of employment with the Company shall be entitled to vacation in
accordance with the following schedule:
<TABLE>
<CAPTION>
LENGTH OF CONTINUOUS EARNED VACATION
SERVICE THROUGH FOR SUCCEEDING
MARCH 31 VACATION YEAR
<S> <C>
1-4 Years 2 Weeks
5-10 Years 3 Weeks
11-17 Years 4 Weeks
18-24 Years 5 Weeks
25 Years or more 6 Weeks
</TABLE>
7.A.2. All vacation must be taken within one (1) year of the date of his
eligibility provided Company operations permit. If Company operations
will not permit a pilot to take his annual vacation and the forty-eight
(48) hour period prior thereto within one (1) year of the date of his
eligibility, he shall have the option of being granted such vacation and
forty-eight (48) hour period prior thereto during the succeeding year or
of being paid for his
SO.14
<PAGE>
SECTION 7 - VACATIONS (CONTINUED)
vacation in lieu thereof. However, a pilot who returns to flying
status from extended sick leave/disability during the last two (2)
months of the vacation year shall have the option of taking any
remaining vacation, during the current vacation year to the extent the
calendar permits or of being paid for his vacation.
7.A.4. A pilot who has transferred into the Sunshine Operation after having
acquired additional vacation day(s) as provided in the Basic Agreement
shall receive three hours and thirty minutes (3:30) pay for such days.
7.F.2.a. A pilot shall receive vacation pay at a daily rate of three hours and
thirty minutes (3:30) per day for each day of vacation excluding the
forty-eight (48) hour period.
7.F.2.b. A pilot who is on vacation shall have the vacation period(s) including
the 48 hour period, if applicable, blocked in the Preferential Bid
System prior to the monthly line of time bid process and no
rotation(s) will be awarded during the Line of time bid process that
will conflict with such vacation period(s) and/or 48 hour period.
7.F.3. A pilot shall be paid for his vacation as part of his pay for the
month during which the vacation was taken. Such vacation shall be paid
at the rate applicable to the pilot's status and longevity for the
month during which the vacation was taken.
7.F.4. In the event a pilot's service is terminated by reason of his
retirement, voluntary resignation with notice, on account of inability
to maintain physical qualification, or death, he shall be paid for any
remaining earned and/or accrued vacation.
SO.15
<PAGE>
SECTION 9
MISCELLANEOUS FLYING
Amend Paragraph 9.A.2.to add the following two sentences:
9.A.2. However, management or supervisory pilots may be awarded three (3)
duty periods per bid period of reserve flying without pay penalty to
the Company. Such award will follow the High Yellow Slip step of
reserve time coverage except that rotations dropped under the
provisions of Section 24.J. may be awarded directly to management or
supervisory pilots.
D. See definitions - "NOTE"
SO.16
<PAGE>
SECTION 11
TRAINING
Amend Paragraphs 11.D.1., 11.E.1., 11.E.2., and 11.E.7. and add Paragraphs
11.D.16 and 11.D.17 all to read in full as follows:
11.C.1. A Line Check Pilot authorized to conduct Pilot in Command line checks
shall have a minimum of two hundred and fifty (250) flight hours
of experience as Pilot in Command on the B-737 aircraft prior to
becoming a Line Check Pilot on the B-737-200 aircraft. Specific
exceptions to the requirements of this paragraph may be mutually
agreed upon by the Company and the Delta MEC Chairman.
11.D.1.a. A pilot undergoing training shall have the period of time during which
the pilot is undergoing training blocked in the Preferential Bid
System prior to the monthly line of time bid process and no
rotation(s) will be awarded during the line of time bid process that
will conflict with such training period(s). Such training period(s)
shall include any travel time as defined in Section 11.A.2.a. of the
Basic Agreement.
11.D.1.b. A pilot who completes a training program and as a result requires OE
will have a period of seven (7) days blocked for the purpose of OE
following such training program. Such seven (7) day period will begin
immediately following completion of training or immediately following
the two (2) days free of duty provided in 11.D.16. of this
Supplemental Agreement if the pilot requests such days free of duty.
11.D.16 A pilot attending an initial or transition training program while
holding a position in Sunshine may request two (2) days free of duty
immediately following the completion of such training programs. There
shall be no pay for the two (2) days free of duty provided by this
paragraph. Such days must be requested not later than the tenth (10th)
of the month preceding the month in which the days are to be taken.
SO.17
<PAGE>
SECTION 11 - TRAINING (CONTINUED)
11.D.17. A rotation may be split to accommodate training, in a manner which
allows the pilot adequate time and rest in accordance with all
applicable regulations and the pilot will be paid for that portion
flown.
11.E.1. A regular line holder scheduled for training other than Distributed
Training shall be paid two hours and forty-five minutes (2:45) for each
day of training including any travel time as defined in Section
11.A.2.a. of the Basic Agreement.
11.E.2. A reserve line holder scheduled for training other than Distributed
Training shall be paid two hours and forty-five minutes (2:45) for each
day of training including any travel time as defined in Section
11.A.2.a. of the Basic Agreement.
11.E.7. When receiving operating experience as required under Federal Aviation
Regulations, a pilot shall be paid for the trip(s) flown at rates
appropriate to the aircraft on which such experience is received or two
hours and forty-five minutes (2:45) times seven (7) days whichever is
greater.
SO.18
<PAGE>
SECTION 12
HOURS OF SERVICE
Amend Section 12 in its entirety to read in full as follows:
A. DAILY, WEEKLY, MONTHLY, QUARTERLY AND YEARLY FLYING LIMITS
1. a. Regular lines of time will be preferentially bid with no less than
seventy-five (75) hours and no more than eighty-two (82) hours of
Block Time flying per bid period.
b. For line of time bidding purposes, a pilot's accumulated Block
Time will be monitored and limited within the seventy five (75)
and eighty-two (82) hour window in a manner that permits each
pilot to be available to the Company throughout the calendar year.
c. Each pilot's quarterly Block Time cap (exclusive of duty hours,
trip hours and minimum duty period look-back time) will range from
two hundred twenty-five (225) Block Time to three hundred (300)
Block Time, as determined by 12.A.1.b. and made available prior to
initial line of time bidding.
d. Each individual's monthly pick up limit will range from seventy-
five (75) Block Time to ninety-eight (98) Block Time consistent
with the provisions of 12.A.1.b. The individual monthly pick up
limit will be made available prior to the start of the pickup
process for the next bid period.
SO.19
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
e. A pilot's designated quarterly Block Time cap for the current
calendar quarter shall be increased by the difference between
Block Time flown during the previous quarter and his designated
quarterly Block Time caps for such quarter.
f. Paid sick leave time shall be considered as Block Time for
purposes of the quarterly Block Time cap and the FAR hour calendar
year limitation.
2. Upon conversion to the Sunshine Operation bow wave remaining
minus any existing negative bank balance shall be paid off.
B. MAXIMUM DUTY HOURS
1. The maximum time a pilot may be scheduled on duty shall be
based on his report time in the pilot's local domicile time
and in accordance with the following schedule:
<TABLE>
<CAPTION>
REPORT TIME * MAXIMUM DUTY TIME
<C> <S>
0700-
1259 13 hours
1300-
2059 13 hours reduced 1 minute for each 2
minutes between 1300 and report time.
2100-
2359 9 hours
0000-
0059 9 hours reduced 30 seconds for each
minute between 0000 and
report time.
0100-
0259 8 hours 30 minutes
0300-
0359 8 hours 30 minutes increased 30
seconds for each minute between 0300
and report time.
0400-
0459 9 hours increased 3 minutes for each
minute between 0400 and report time.
0500-
0659 12 hours increased 30 seconds for each
minute between 0500 and report time.
</TABLE>
*Fractions of less than one minute after these computations shall be
considered to be the next higher minute.
SO.20
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
When a pilot is flying a duty period in which both international and
domestic flying is scheduled, the above maximum duty hours will apply.
In no case shall a pilot be required to remain on duty in excess of
two (2) hours greater than the time resulting from application of the
limitations specified in this Paragraph.
2. Duty time shall include scheduled flight and ground time and a pilot
shall be considered to be on duty from one (1) hour before the
scheduled departure of his flight (thirty (30) minutes for deadhead)
or actual reporting time, whichever is later, until thirty (30)
minutes after his flight is terminated, except as extended by the
application of Paragraph K. of this Section.
C. BREAK IN DUTY HOURS
1. A pilot's on-duty period cannot be broken by an off-duty period away
from his domicile (beginning at the end of debriefing upon arrival and
ending one (1) hour before scheduled departure or actual reporting
time, whichever is later) of less than the following:
a. Nine hours (9:00) scheduled and eight hours and fifteen minutes
(8:15) actual when the sum of the scheduled on-duty time of the
duty periods immediately before and after the off-duty period is
twenty hours (20:00) or less.
SO.21
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
b. Ten hours (10:00) scheduled and nine hours (9:00) actual when the
sum of the scheduled on-duty time of the duty periods immediately
before and after the off-duty period is more than twenty hours
(20:00).
c. In the event a duty break occurs at co-terminal airports, ground
travel time as outlined in Section 8 of the Basic Agreement
appropriate to the layover co-terminal shall be added to the
minimum rest requirement.
2. A pilot's on-duty period cannot be broken by an off-duty
period at his domicile of less than nine hours (9:00).
3. It shall be the responsibility of the pilot who is unable to report
for duty to notify, as far in advance as possible, the local manager
of operations or his designated representative of this fact, giving
the reason for his inability to report for duty.
D. DUTY PERIOD MINIMUM LOOK-BACK PAY
Pay for flying accomplished on a regular line shall be no less than
four hours and thirty minutes (4:30) times the number of duty periods
flown on such regular line during the bid period, calculated on a
look-back basis at the end of each bid period.
E. DUTY HOURS PAY
1. When a pilot reports for flight duty as defined in Paragraph B. of
this Section, he shall receive a minimum of one (1) hour pay for each
two (2) hours of duty time prorated on a minute-by-minute basis, for
all hours between 0600 and 2200 pilot's local domicile time and a
minimum of one (1) hour pay for each one and three-quarters (1 3/4)
hours of duty time prorated on a minute-by-minute basis, between 2200
and
SO.22
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
0600 hours pilot's local domicile time prorated on a scheduled or
actual basis, for all hours whichever is greater. A pilot on duty at
0359 pilot's local domicile time shall continue to receive a minimum
of one (1) hour pay for each one and three-quarters (1 3/4) hours of
duty time until his release from that duty period.
2. A pilot deadheading at Company request to his domicile from protecting
a flight(s) shall be covered by this Paragraph.
3. Duty hours pay shall be paid in the duty period in which it is earned.
F. TRIP HOURS PAY
Pilots on increment pay shall receive a minimum of one (1) hour pay
for each three and one-half (3.5) trip hours as defined in Section 2
of the Basic Agreement prorated on a minute-by-minute basis. Trip
hours pay shall be paid in the final duty period of the rotation in
which it is earned.
G. DUTY FREE PERIODS - RESERVE AND UNASSIGNED
1. All full bid period Reserve lines of time shall include ten (10)
calendar days free from all duty (X days). At Company option such days
may be arranged in one of the following combinations: One 96 hour
period plus two 72 hour periods, or one 144 hour period plus one 96
hour period, or two 120 hour periods with the Company designating how
many of each pattern is available at the start of the line of time
bidding process. Four consecutive days on each full bid period shall
be designated inviolable (golden). The Company will not fly a pilot
during such off-duty periods except as provided in Section 4, Section
11, Section 12 or Section 23 of this Supplemental Agreement.
SO.23
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
2. A pilot awarded a reserve line on the initial line of time bid who
will be unavailable to perform reserve duty for a portion of the month
shall receive a prorated share of ten (10) X days as follows:
PRORATED X DAY PATTERNS
<TABLE>
<CAPTION>
DAYS AVAILABLE X DAYS DUE
FOR RESERVE DUTY AFTER PRORATION PATTERN OPTIONS
<S> <C> <C>
1 - 2 0 0
3 - 4 1 1 Group of 1 X
5 - 7 2 1 Group of 2 Xs
8 - 10 3 1 Group of 3 Xs
11 - 13 4 1 Group of 4 Xs
14 - 16 5 1 Group of 5 Xs
17 - 19 6 1 Group of 6 Xs or
2 Groups of 3 Xs
20 - 22 7 1 Group of 4 Xs plus
1 Group of 3 Xs
23 - 25 8 1 Group of 5 Xs plus
1 Group of 3 Xs or
2 Groups of 4 Xs
26 - 28 9 3 Groups of 3 Xs or
1 Group of 5 Xs plus
1 Group of 4 Xs
</TABLE>
SO.24
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
NOTE: Pilots due 6, 8, or 9 X days may select which of the above patterns
respectively they prefer. Such selection will be made at the time lines
of time are preferenced.
a. The limitation for a pilot flying reserve time shall be Federal
Air Regulation rules and the provisions of 12.A.1.a. and b. of
this Supplemental Agreement.
H. FLIGHT TIME LIMITATIONS
1. FAR 121.471(a) reads as follows and applies to all Company flight
operations until amended:
"No domestic air carrier may schedule any flight crew member and
no flight crew member may accept an assignment for flight time in
scheduled air transportation or in other commercial flying if that
crew member's total flying time in all commercial flying will
exceed.
(1) 1,000 hours in any calendar year;
(2) 100 hours in any calendar month;
(3) 30 hours in any seven (7) consecutive days;
(4) 8 hours between required rest period."
2. Subparagraphs H.1. and paragraphs B. and C. of this Section
shall not apply to the Company's International operations.
I. WAIVER OF DUTY FREE PERIODS
A pilot may waive scheduled off-duty time. When this right
is invoked, off-duty time so lost will not be rescheduled.
SO.25
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
J. FULL SERVICE BANK
1. Paid hours in excess of eighty (80) hours may, at pilot option, be
deposited in the bank at a rate of up to twenty (20) hours per bid
period to a maximum bank balance of sixty (60) hours. Each individual
has only one bank account balance that is positive, negative, or zero.
2. A pilot may, at his option, borrow up to twenty (20) hours per bid
period up to a maximum negative balance of twenty (20) hours. Such
bank debt shall be repaid from earnings in excess of eighty (80) hours
up to a maximum of twenty (20) hours per month, except when the pilot
elects to deposit additional time.
3. The bank deposit form must be filed with Crew Scheduling by midnight
on the 20th of the month in question. All other bank transactions
must be filed with Crew Scheduling by midnight on the last day of the
bid period in question. All bank accounting will take place
subsequent to the end of the month.
4. Bank time may, at pilot option, be used to:
a. Provide additional pay in the current month up to a
total of eighty-five (85) hours.
b. By mutual agreement drop trips on a minute-for-minute basis.
K. CO-TERMINAL OPERATIONS
1. When a co-terminal airport as defined in Section 2 of the Basic
Agreement is a pilot base, a pilot will report to the co-terminal
airport which is the point of origination for the first flight of the
rotation. With the exception of transition and holiday cancellation
rotations, all rotations shall originate and terminate at the same co-
terminal at the base. When a duty period ends at a co-terminal airport
for
SO.26
<PAGE>
SECTION 12 - HOURS OF SERVICE (CONTINUED)
his base, other than the airport at which the rotation originated, he
shall layover and originate his next duty period from that airport. If
the last flight leg (including deadhead by air) of a transition or
holiday cancellation rotation ends at a co-terminal airport for the
base, other than the airport from which the rotation originated, the
Company may deadhead the pilot by surface transportation to the
airport of origin. A rotation is completed when the pilot's duty
period ends at the airport at which the rotation originated.
a. Parking will be provided at Company expense at the airport of
origin for a rotation within a base having co-terminals.
b. A pilot assigned to a base having co-terminal airports may elect
to have his Company mail delivered to the co-terminal airport of
his choice.
L. BLOCK TIME PAY TIME DISPLAY
At each Sunshine pilot base, Block Time and pay time shall be
displayed as expeditiously as possible by the Company for each pilot
at the base, such time displayed to be that time submitted by the
Captain for payroll purposes.
SO.27
<PAGE>
SECTION 16
INTERNATIONAL CATEGORY OPERATIONS
Section 16 of the Basic Agreement shall not be applicable to the Sunshine
Operation.
SO.28
<PAGE>
SECTION 22
FILLING OF VACANCIES
Amend Paragraphs 22.C., 22.E.4.a. and 22.F. of the Basic Agreement to read in
full as follows:
22.C. STAFFING REQUIREMENTS
1. The number of positions in each equipment status shall be no
less than the number determined by the following:
a. The total known daily Block Time times thirty (30) divided by
eighty (80), plus
b. Ten percent (10%) of the number determined in C.1.a. above as
reserves.
EFFECTIVE ON THE FIRST DAY OF THE TWELFTH BID PERIOD AFTER THE
FIRST CONVERSION OF A PILOT INTO THE SUNSHINE OPERATION PARAGRAPH
C.1.B. ABOVE SHALL BE REPLACED WITH THE FOLLOWING:
b. Reserve positions determined as follows: Monthly average Block
Time flown by reserve pilots during the most recent twelve (12)
bid periods for which reserve utilization is available divided by
sixty-five (65) divided by the average number of regular lines for
such twelve (12) month period multiplied by the number of regular
lines expected for the bid period being staffed. For purposes of
this paragraph the number of regular lines expected for the bid
period being staffed shall be determined as provided in 22.C.1.a.
of this Supplemental Agreement.
22.E.4.a. If no pilot bids on a B-737 First Officer (Sunshine) vacancy, then
the Company may assign a new hire pilot to fill the vacancy:
SO.29
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
(1) from the most recently hired class, if that pilot has not yet
completed an Initial Operating Experience for his entry level
qualification as a Delta Pilot; or
(2) from the next class hired by proffering the vacancy in
seniority order and if such proffer is not accepted, then by
inversely assigning to fill the vacancy.
(3) Any pilot so assigned as provided in Paragraph E.4.a.(1) or
(2) above would not be subject to the freeze outlined in
Section 22.F.
22.F. TRAINING OBLIGATION
1. a. A pilot who receives an Advance Entitlement (other than by
assignment), or a Voluntary Displacement Entitlement for a B-737
Captain (Sunshine Operation) may not be awarded an Advance
Entitlement or Voluntary Displacement Entitlement in any other
category for a period of twenty-four (24) months following the
award date of the Advance Entitlement or Voluntary Displacement
Entitlement, except that he may be awarded an Advance Entitlement
or Voluntary Displacement Entitlement if the closing date is
subsequent to the last day of the twenty-four (24) month period.
SO.30
<PAGE>
SECTION 22 - FILLING OF VACANCIES (CONTINUED)
b. A pilot who receives an Advance Entitlement (other than by
assignment), or a Voluntary Displacement Entitlement, or a
furlough recall for a B-737 First Officer (Sunshine Operation) may
not be awarded an Advance Entitlement or Voluntary Displacement
Entitlement in any other category for a period of twelve (12)
months following the award date of the Advance Entitlement or
Voluntary Displacement Entitlement, except that he may be awarded
an Advance Entitlement or Voluntary Displacement Entitlement if
the closing date is subsequent to the last day of the twelve (12)
month period.
SO.31
<PAGE>
SECTION 23
SCHEDULING
Section 23 is amended in its entirety to read in full as follows:
A. PILOT LINES OF TIME - PREFERENTIAL BID SYSTEM
1. Except as provided in 23.A.3., each regular line of time shall be
preferentially bid for not less than seventy-five (75 ) hours of Block
Time, and shall not exceed eighty-two (82) hours of Block Time in a
bid period. All remaining lines of time shall be classified as reserve
lines of time.
2. Blocks of rotations which collectively do not legally result in a
regular line of time shall be placed in reserve time. At least one
percent (1%) of the scheduled Block Time for each category shall be
reserve time at the beginning of each bid period.
3. A pilot bidding an initial regular line who will be unavailable for
flying for a portion of the month shall be required to select
rotations that are scheduled for Block Time of not less than one
thirtieth (1/30th) of seventy-five (75) hours times the number of days
the pilot is available for flying during the bid period. If the
rotations remaining to be awarded will not combine to meet the
requirement of this paragraph, such bidder shall be awarded a reserve
line covering the entire period of his availability for flying during
the bid period.
SO.32
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
B. LINE OF TIME SELECTION PROCEDURES
1. a. Currently qualified pilots holding positions in the Sunshine
Operation, or pilots projected to be qualified for the Sunshine
Operation prior to the first day of the bid period shall construct
their individual lines of time consistent with seniority, the
monthly and quarterly maximums outlined in Section 12.A. of this
Supplemental Agreement and the preferences of the bidder as
processed by the Preferential Bid System. Captain line of time
preferences and awards shall be completed prior to First Officer
preferences and awards. A pilot who will occupy a position in a
Sunshine Operation category on the first day of the bid period but
not projected to be currently qualified before the first day of
the bid period shall be awarded a specially created reserve line.
The Company shall have the option for placement of X-days on
specially created reserve lines.
b. During the Preferential Bid process, no rotation shall be awarded
that will cause the line of time to be scheduled within thirty
(30) minutes of exceeding any rest required by the Basic Agreement
or this Supplemental Agreement, or within two hours (2:00) of
exceeding any FAR flight time or rest requirement.
c. A currently qualified pilot holding a position in a category not
projected to meet consolidation requirements prior to the first
day of the bid period will be awarded a regular line of time
during the initial line of time award.
SO.33
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
d. Unless otherwise exempt a currently qualified First Officer not
projected to complete seventy-five (75) hours of line operating
flight time including operating experience time prior to the first
day of the bid period will not be awarded a rotation that was
awarded to a Captain not projected to complete seventy-five (75)
hours of line operating flight time hours prior to the first day
of the bid period.
e. A pilot converted into a category subsequent to the first day of
the bid period, and/or subsequent to the initial line of time
awards for the following month, who has not completed
consolidation requirements will be awarded a specially created
regular line. Rotations from open time will be used to construct
such specially created regular line. A specially created regular
line shall not exceed an average of two hours and forty-five
minutes (2:45) per day. In the event there is insufficient open
time to construct a specially created regular line, such pilot
shall be awarded a specially created reserve line for that bid
period and shall be considered first out for open time until he
has completed consolidation requirements.
f. A pilot converted into a category subsequent to the first day of
the bid period and/or subsequent to the initial line of time
awards for the following month who has met the consolidation
requirements will be awarded a specially created reserve line.
SO.34
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
2. Currently qualified pilots or pilots projected to be qualified prior
to the first day of the bid period shall express sufficient
preferences through the Preferential Bid System to create and be
awarded a line of time. A pilot who fails to submit a preference bid
or fails to submit enough preferences shall, except as provided in
23.B.1.b. through 23.B.1.f., be awarded a line of time determined by
the default bid(s).
3. Each pilot shall be provided access to rotation descriptions.
Rotation descriptions normally will cover a calendar month, and shall
specify the effective date of the lines of time and time of day on the
15th of the month after which the preference of lines of time shall
not be considered. Under unusual and extenuating circumstances the
Company may close initial awards on a date subsequent to the 15th of
the month. Access to rotation descriptions shall be at least seven
(7) days in advance of this deadline.
4. Rotation description shall show all pertinent details of all rotations
at the base including:
a. Trip pairing by days
b. Equipment types
c. Stations and origination and termination times
d. Scheduled flight and credit hours
e. Layover times, cities, and rest facilities
f. Designation of types of credit time
g. Exceptions and schedule change descriptions
SO.35
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
h. Maximum allowable on-duty time
i. Actual scheduled on-duty time
5. An increase in flying in the category occurring after distribution of
rotation description sheets shall be considered as reserve time.
C. REMOVAL FROM LINE OF TIME
1. Scheduling changes shall be made and posted as far in advance as
practicable. In the event of a change in the schedule as posted, the
Company shall notify the pilots affected as soon as the circumstances,
then existing, will permit. Pilots shall, electronically or by
telephone, acknowledge the report time and date of each of their
scheduled rotations, within a window of time beginning twenty-four
(24) hours and ending six (6) hours before the scheduled report time
of such rotation.
2. When a captain is not qualified over the route of his line of time,
although he is or was qualified on the equipment to be flown, the
Company may substitute another pilot in his category on the line of
time while such captain is qualifying.
3. Any pilot who is scheduled or assigned to a flight shall not be
subject, without mutual consent, to displacement by another pilot
exercising his seniority rights within the twelve (12) hour period
prior to the scheduled time of report of that flight. Should a
reserve pilot be displaced, he shall be considered as returning from a
trip at the time of displacement. Should a reserve pilot be displaced
prior to the twelve (12) hour period before the scheduled report,
every reasonable effort shall be made to notify him of his
displacement.
4. Pilots awarded a regular line of time may not be displaced from such
line or portion thereof, except for lack of current qualification
SO.36
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
because of equipment substitution, for lack of route qualification,
because of irregular operations, for failure to acknowledge time and
date of rotation as required by Section 23.D.1., failing to have in
his possession the appropriate licenses and medical certificate, or
except as otherwise provided in this Agreement. Pilots awarded or
assigned a reserve line of time shall be subject to all the
provisions covering pilots holding reserve lines of time set forth in
Sections 12 and 23.
5. Reroute of pilot schedules because of irregular operations will be
restricted within the Sunshine Operation except when this provision
will be the cause of a flight cancellation.
D. TIME PICK-UP PROCEDURE (WHITE SLIP)
1. A pilot holding a regular line of time may pick up additional flying
to his monthly pickup maximum stated in 12.A. of this Supplemental
Agreement. Such request may be for open time in the pilot's category
and/or other categories within the Sunshine Operation within the
pilot's equipment status except that White Slips for open time in
other than the pilot's category shall not be considered in the pre-
month White Slip process. White Slips submitted by in-category pilots
for open time within their category shall be considered and awarded
first followed by consideration and award of White Slips submitted by
a pilot(s) holding a position in other categories within the same
equipment status. When a pilot is awarded a rotation on his White Slip
for a rotation allocated to a category other than his own, the pay for
the rotation shall commence and end at the domicile to which the
rotation was allocated prior to the White Slip award and the pilot
shall be responsible for any
SO.37
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
required transportation, hotels, and/or meal expenses not normally
associated with the rotation. The awarding of such open time shall be
on a current basis except that during the trip coverage process on the
twenty-fifth (25th) in a thirty (30) day month or the twenty-sixth
(26th) in a thirty-one (31) day month, open time will be awarded for
the subsequent bid period. Proficiency Check Pilots and Simulator
Instructors may, in order to meet the requirements of 11.B.5.a. and b.
of the Basic agreement, participate in the pre-month White Slip
process (25th in a thirty day month, 26th in a thirty-one day month)
in a category where there is a category position holder who is junior
to the Proficiency Check Pilot or Simulator Instructor. Proficiency
Check Pilots and/or Simulator Instructors who participate in the White
Slip process on a current basis shall have their White Slip considered
immediately following the High Yellow Slip step of reserve coverage.
The awarding of such open time shall be in accordance with seniority
preference except:
a. A pilot not projected to complete seventy-five (75) hours of line
operating flight time prior to the departure of the requested
rotation shall not be awarded an open time rotation previously
awarded to a Captain or First Officer who also is not projected to
complete seventy-five (75) hours of line operating flight time
prior to departure of the requested open time rotation in
question.
b. A pilot will not be awarded a White Slip rotation that will cause
him to be scheduled within thirty (30) minutes of exceeding any
contract flight time or rest requirement rule, or within two hours
(2:00) of exceeding any FAR flight time or rest requirement rule.
SO.38
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
2. A pilot who is eligible to pick up reserve time and who desires to fly
open time shall indicate his desires to Crew Scheduling by initiating
a White Slip. Such pilot shall indicate the date or dates on which he
wishes to fly and may, at his option, specify certain trips he desires
in order of preference.
3. A pilot must submit a White Slip request not later than midnight prior
to the Primary Window to be eligible to participate in that day's
awards. A pilot having submitted a White Slip may, up to midnight
prior to the Primary Window, modify or remove his White Slip. Except
as provided below, White Slips will be awarded covering rotations
originating within the twenty-four (24) hour period commencing at 0001
hours after the "Primary Window" closes.
a. White Slip requests for rotations originating at any time during
the present bid period shall be awarded in seniority order on a
daily basis.
b. A White Slip request initiated not later than 0001 on the twenty-
first (21st) in a thirty (30) day month or the twenty-second
(22nd) in a thirty-one (31) day month shall be awarded, in
seniority order, for rotations originating during the subsequent
bid period. Such award shall be posted not later than 0001 on the
twenty-third (23rd) in a thirty (30) day month or the twenty-
fourth (24th) in a thirty-one (31) day month.
c. A pilot who becomes eligible under the provisions of this
Paragraph to pick up reserve time after the daily awarding process
has begun may exercise his seniority to pick up reserve time until
twelve (12) hours before scheduled report of a reserve trip.
SO.39
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
4. The Company shall award trips in accordance with a pilot's trip
listings and such pilot shall be obligated to fly such awarded
trip(s). Scheduling shall contact a pilot to inform him of his awarded
trip. If Crew Scheduling is unable to contact a pilot to inform him of
his award, such flying time shall be considered as becoming added
available open time. Trips which become available for pick up after
the notification windows shall be proffered to eligible White Slip
pilots who do not have a conflicting award.
5. Any open time not covered under this Paragraph D. (White Slip) shall
be awarded under the provisions of Paragraph G. (Reserve Flying) of
this Section.
E. SWAP WITH POT
Develop rules for swap-with-the-pot.
F. PERSONAL TRIP DROP
1. If in the opinion of Crew Scheduling, there is adequate coverage at
the base, a pilot shall be permitted to drop a trip or trips from his
awarded line of time. All requests for personal drops for the
subsequent month shall be submitted prior to midnight on the
twentieth (20th) in a thirty (30) day month or the twenty-first
(21st) in a thirty-one (31) day month. Awarding of personal drops for
the subsequent month shall take place not later than 0001 on the
twenty-first (21st) in a thirty (30) day month, or the twenty-second
(22nd) in a thirty-one (31) day month. Requests to drop trips in the
subsequent bid period, submitted by this deadline, shall be honored
in order of seniority. Requests for personal drops in the current
month shall be considered in order of receipt. Line of time pay
guarantees as provided in Section 4. (Minimum Pay
SO.40
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
Guarantees) will be reduced by the amount of the personal drop.
Request for Personal Drops and White Slips for all other days of the
current bid period shall be approved or disapproved before the end of
the day.
2. Recovery of time lost to personal trip drops shall be allowed
utilizing Section 23.D. (White Slip) of this Supplemental Agreement.
G. RESERVE FLYING
1. After the awarding of reserve time under Paragraph D.1. (White Slip)
of this Supplemental Agreement within the category, remaining open
time shall be awarded in the following manner:
a. A pilot holding a regular line of time at another base in the
Sunshine Operation in the same status who has requested open time
shall be awarded reserve time under Paragraph D. (White Slip) of
this Supplemental Agreement.
b. Currently qualified pilots at the base holding reserve lines of
time shall be assigned reserve time within their category on a
first-in, first-out basis except that a reserve pilot who has not
met consolidation requirements shall be first out. Such first-in,
first-out sequence shall be determined by the in time of the last
flight flown. Reserve line pilots returning from ALPA duty or
training will for purposes of first-in, first-out be considered as
returning from a trip. Such first-in, first-out sequence shall
take into consideration scheduled off days of reserve pilots so
that such reserve pilots will be grouped by days of availability
ranging from one (1) day of availability up to and including days
of availability equal to the longest rotation for the equipment
SO.41
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
status. Open time will then be awarded on a first-in, first-out
basis within these groups, to the extent possible, matching length
of trip to days of reserve availability. In assigning such open
time on a first-in, first-out basis, the pilots eligible for trips
shall be allowed seniority preference of such trips that are known
at the notification windows as outlined in Section 23.H.1. of this
Supplemental Agreement. A reserve pilot, once assigned under this
Paragraph G.1.b. shall not be displaced by another pilot within
twelve (12) hours of scheduled report of such trip. In the event
he is removed from such trip, he shall for the purpose of first-
in, first-out scheduling be considered as returning from a trip.
c. In the event no such pilot is available, such time shall be
assigned to a reserve line holder at another Sunshine Operation
base in the same status of the flying to be accomplished on a
day's of availability first-in, first-out basis.
SO.42
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
d. In the event no such pilot is available, such time shall be
assigned in seniority order to any pilot who has indicated a
desire for such assignment on a Green Slip. All pilots are
eligible to submit a Green Slip, however, no pilot may be assigned
to a trip on a Green Slip that will conflict with any trip on his
line(s) of time until after the provisions of Section G.1.e and f.
of this Supplemental Agreement have been met. Any pilot assigned
under the provisions of this Paragraph shall be paid in accordance
with the provisions of G.1.h. of this Section.
e. In the event no such pilot is available, such time shall be
inversely assigned to the junior available reserve line holder in
the category. If scheduled off-duty days are interrupted, he
shall be given nine (9) hours free of duty on return from such
trip, and then be given twenty-four (24) hours free of duty
(commencing after the nine (9) hours free of duty) for each
interrupted off duty day or portion thereof. He shall be paid per
G.1.h. of this Section for any scheduled off day or portion
thereof from or into which he is scheduled to fly or deadhead.
f. In the event no such pilot is available, such time shall be
assigned to the most junior available regular line holder in the
category. Prior to causing a trip conflict under the provisions
of this paragraph, Green Slip requests for trip conflicts will be
considered. Any pilot assigned flying under this paragraph shall
be paid per G.1.h. of this Section for the trip(s) flown on such
assignment and, if appropriate, protected by Section 4.A.2. of
this Supplemental Agreement.
SO.43
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
g. In the event no such pilot is available, such time shall be
assigned to the most junior currently qualified pilot on the
system. Any pilot assigned flying under this paragraph shall be
paid per G.1.h. of this Section for the trip(s) flown on such
assignment and, if appropriate, protected by Section 4.a.2. of
this Supplemental Agreement.
h. Green Slip and inversely assigned trip(s) will be paid as follows:
(1) A full bid period regular line holder who completes the month
with flown Block Time of less than seventy-five (75) hours,
or a regular line holder who is available to fly as regular
line holder less than the full bid period who completes the
month with accomplished Block Time of less than one-thirtieth
(1/30th) of seventy-five (75) hours times the number of days
available to fly as a regular line holder will have the month
filled to seventy-five (75) hours, or to one-thirtieth
(1/30th) of seventy-five (75) times the number of days
available to fly as a regular line holder, whichever is
appropriate, to the extent possible, with straight time pay
from any Green Slip trip(s) flown that caused no conflict
with other rotation(s) on the pilot's line at the time the
Green Slip trip(s) were awarded. The remainder of such Green
Slip trip(s), if any, will be paid at time and one-half.
SO.44
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
(2) All duty periods that violate reserve X-days as a result of
Green Slip or inverse assignment will be paid at straight
rates as an addition to any other form of pay for the month,
and all X-days violated will be repaid as provided in G.1.e.
(3) A pilot will be limited to two (2) inverse assignments or two
(2) Green Slip assignments or one (1) inverse assignment and
one (1) Green Slip assignment per bid period unless no other
pilot is available.
H. RESERVE NOTIFICATIONS/AVAILABILITY
1. Crew Scheduling shall establish designated notification periods
(windows) meeting the following parameters:
a. Windows shall not be more than two (2) daily: One designated as
the "Primary Window" and one designated as the "Secondary Window".
b. Windows shall not cover more than four (4) hours in a calendar
day.
c. There shall be no less than six (6) hours between windows.
d. All known trips shall be covered during the "Primary Window".
Assignment of reserve pilots shall be limited to rotations
originating within a twenty-four (24) hour period commencing at
0001 hours after the Primary Window closes.
e. White Slips for trips within the trip coverage period must be
initiated not later than midnight prior to the opening of the
"Primary Window".
f. White Slips submitted after the time stated in H.1.e. for the
"Primary Window" will not be considered at the subsequent
"Secondary Window" if the pilot was awarded a trip in the "Primary
Window".
SO.45
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
g. Trips within the trip coverage period, that initially become known
after the close of the "Primary Window" will be covered during the
subsequent "Secondary Window".
2. The window times for the bid period shall be made available in
conjunction with rotation descriptions.
3. Awards of White Slip will normally occur during the "Primary or
Secondary Windows" described in Paragraph H.1.a.-c. However, Crew
Scheduling may award a White Slip at other times with consent of the
pilot(s) involved.
4. Assignment of flying time to a pilot on reserve shall be made during
the "Primary or Secondary Windows" as described in Paragraph H.1.d.-g.
above.
a. Reserve pilots returning from a trip will be considered as last
out among those pilots with like days of availability on the
appropriate list until the opening of the next window following
ten and one-half hours (10:30) from block-in.
b. A reserve pilot returning from a trip may leave instructions with
Crew Scheduling regarding his choice of trips and a specified time
for a pilot initiated phone contact. Such pilot(s) will not be
called during the ten and one-half (10:30) hour rest period unless
needed immediately upon completion of such rest period.
c. Advisement of trip coverage to a pilot outside a window or a
pilot protecting his rest period as in Paragraph H. 4.b. shall not
be considered a Short Call provided the trip was set aside for the
pilot during the normal Long Call coverage process.
SO.46
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
5. A trip that was not known to Crew Scheduling during such window shall
subject to days of availability be assigned to a reserve pilot on
Short Call. However, such trip may be assigned to a pilot on Long Call
during a window less than twelve (12) hours from report time for the
trip.
6. Assignment of a trip outside a window to a pilot on reserve, not on
Short Call and occurring less than twelve (12) hours from the report
time for the trip will count as a tour of Short Call duty for that
pilot.
7. Currently qualified pilots holding reserve lines of time shall be
reasonably available. A pilot on reserve who is not assigned Short
Call duty shall be on Long Call. Pilots on Long Call and not within
twelve (12) hours of reporting for an assigned flight shall:
a. Be promptly available at a telephone contact during designated
notification periods (windows), and be able to report within two
hours (2:00) of contact.
b. Be considered to have served a period of Short Call when assigned
a flight outside a window with a report time less than twelve (12)
hours from notification.
c. Assume his normal position on the Long Call list when returning to
reserve from a Regular line.
8. Currently qualified pilots holding reserve lines of time may be
assigned to Short Call by Crew Scheduling based on availability and
previous number of Short Call assignments. Short Call shall:
a. Normally begin at 0300 local time, with a maximum duration of
twenty-four (24) hours.
SO.47
<PAGE>
SECTION 23 - SCHEDULING (CONTINUED)
b. Normally be assigned to a pilot no more than six (6) times a month
and prorated and rounded to reflect the proportion of the month
actually spent on reserve.
9. A pilot shall be granted one additional day off each time he is
assigned to Short Call duty during the month in excess of six (6)
times. Such days shall be, at pilot option, added to his vacation or
by mutual agreement taken as a day(s) off in the current month, or, if
on reserve, in the following month.
10. A pilot returning from "X" days will, unless notified to the contrary,
be considered to be on Short Call reserve beginning at 0300 following
his last "X" day. The provisions of Paragraph 7.b. of this Section
shall not be applicable to such pilot who goes on Short Call.
11. Pilots on Short Call shall:
a. Normally be notified of assignment to Short Call during the window
which precedes the Short Call period by at least twelve (12)
hours; however, a pilot may be notified of such assignment at
times other than during the window.
b. Be promptly available at a telephone contact and able to report
for duty within two hours (2:00) of contact.
c. Upon being assigned a trip, continue to be promptly available at a
telephone contact during the remainder of the Short Call period,
or until departing to cover the assigned trip, whichever occurs
first.
SO.48
<PAGE>
SECTION 28
DURATION
THIS SUPPLEMENTAL AGREEMENT shall become effective on the Effective Date
of the Basic Agreement and shall remain in full force and effect
concurrently with the Basic Agreement subject to the provisions of Section
28 thereof.
SO.49
<PAGE>
IN WITNESS WHEREOF, the parties hereto have signed this Agreement this 29th day
of April 1996.
FOR THE AIR LINE PILOTS IN THE
FOR DELTA AIR LINES, INC. SERVICE OF DELTA AIR LINES, INC.
/s/ R. W. Allen /s/ J. R. Babbitt
- ------------------------------ --------------------------------
R. W. Allen J. R. Babbitt
Chairman of the Board, President President
and Chief Executive Officer
WITNESS: WITNESS:
/s/ H. C. Alger /s/ W. R. Brown
- ------------------------------ -----------------------------
H. C. Alger W. R. Brown
/s/ H. D. Greenberg /s/ M. R. Kelly
- ------------------------------ -------------------------------
H. D. Greenberg M. R. Kelly
/s/ T. M. Erskine /s/ R. G. McCallum
- ------------------------------ -------------------------------
T. M. Erskine R. G. McCallum
/s/ R. E. Colby /s/ F. W. Daugherty
- ------------------------------ -------------------------------
R. E. Colby F. W. Daugherty
/s/ A. L. Beck /s/ R. O. Norris
- ------------------------------ -------------------------------
A. L. Beck R. O. Norris
/s/ W. C. Spalding /s/ B. S. Gordon
- ------------------------------ -------------------------------
W. C. Spalding B. S. Gordon
/s/ D. T. Watson, Jr. /s/ R. H. Drew
- ------------------------------ -------------------------------
D. T. Watson, Jr. R. H. Drew
SO.50
<PAGE>
October 1, 1990
LETTER NUMBER 1
Captain W. J. Donnelly
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Donnelly:
In the discussions during negotiations of the Agreement signed October 1, 1990,
the ALPA Negotiating Committee stated that Bank time should not influence
retirement. We understood the Association's position to be as follows: Except
for the ability to use Bank time to bring the final month's earnings up to
monthly call (i.e., a pilot whose birthday falls on the fifth of the month can
use Bank time to fill out his final active month), it was not ALPA's intent in
1979 nor is it the intent now for Bank time to impact retirement. Accordingly,
effective September 1, 1987 the Company will discontinue inclusion of Bank
payoff dollars in the Final Average Earnings computation.
If you agree that the above is ALPA's position, please sign and return two
copies of this letter.
Sincerely,
/s/ H. C. Alger
--------------------
H. C. Alger
Vice President -
Flight Operations
I concur.
/s/ W. J. Donnelly
--------------
W. J. Donnelly, Chairman, Delta MEC
L.1.
<PAGE>
October 1, 1990
LETTER NUMBER 2
Captain W. J. Donnelly
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Donnelly:
The following is the understanding reached with the Delta Pilot Negotiating
Committee leading to the settlement of the Pilots' Working Agreement.
With respect to a probationary pilot whose entry level category is in the MD-88
First Officer, B-737 First Officer, L-1011 Second Officer, B-727 Second Officer,
or B-737S First Officer category, it has been mutually agreed that:
1. A pilot trainee shall express his order of preference among all pilot bases
upon entering initial training. If he is not assigned to the base of his
first choice, his expressed first preference shall remain on file during
his probationary period until withdrawn or replaced by another base
preference expressed in writing. The preferences of all probationary
pilots and pilot trainees shall be honored in order of system seniority
whenever unassigned pilots are to be added to any base or bases.
Exceptions to this procedure may be made due to personal hardship.
2. When it is necessary to transfer unassigned pilots, seniority will prevail,
i.e., the transfer will be proffered to the senior unassigned pilots. In
the event no one accepts the proffer, assignment will be in inverse order
of seniority.
Further, with regard to any probationary pilot, it has been mutually agreed
that:
1. Pilots normally will be awarded Advance Entitlements and category positions
in accordance with system seniority.
2. When an unassigned pilot is transferred at Company request, his moving
expenses shall be paid in accordance with Section 6 (Moving Expenses) of
the Pilots' Working Agreement.
L.2.1
<PAGE>
Captain W. J. Donnelly
Page 2
October 1, 1990
3. An unassigned pilot on temporary duty away from his base shall receive one
round trip S-1 pass to his domicile for each ninety-six (96) hour duty-free
period. In addition, the Base Chief Pilot will arrange transportation in
the event of personal hardship.
4. Unassigned pilots shall be covered by all the provisions of Section 12
(Hours of Service) of the Pilots' Working Agreement, except that such
pilots on temporary duty away from their domiciles shall be covered by the
trip hour provisions only as they apply from the temporary duty base.
5. The observance of Section 12.I.1. (Trip Hours) may be waived for
probationary pilots only if trip coverage requirements necessitate. In
such circumstances, all other forms of credit apply in determining flying
limits for these individuals.
6. The Company recognizes the right and obligation of the Association to
represent the best interests of probationary pilots and to intercede in
their behalf if necessary, without prejudice to the probationary pilot.
If the aforementioned reflects your understanding on this matter, please return
two (2) signed copies to me at your earliest convenience.
Sincerely,
/s/ R. A. McClelland
---------------------
R. A. McClelland
Senior Vice President -
Operations
Agreed to and accepted this 1st day of October, 1990.
/s/ W. J. Donnelly
--------------
W. J. Donnelly, Chairman, Delta MEC
L2.2
<PAGE>
October 1, 1990
LETTER NUMBER 3
Captain W. J. Donnelly
Chairman, Delta MEC
2314 Sullivan Road
College Park, GA 30337-6302
Dear Captain Donnelly:
This letter will reflect the discussions held between Delta Air Lines, Inc. and
the Delta Pilots Negotiating Committee concerning Section 23.A.1. (Construction
of Lines of Time) of the Pilots Working Agreement.
1. In order to improve purity of lines of time, the Master Executive Council
Chairman or his designated representative may approve an expansion of the
line of time construction window in fifteen (15) minute increments from
sixty-nine (69) hours to not less than sixty-seven (67) hours and from
seventy-four (74) hours to not more than seventy-seven (77) hours in any
seventy-five hour (75) hour month subject to the following restrictions:
a. Expansion may be approved on a particular piece of equipment, at a
particular base for each individual bid period.
b. Expansion shall only be permitted to allow construction of pure lines
of time.
c. The sixty-seven (67) and seventy-seven (77) hour reference in 1. above
may vary in the same increment that the designated monthly cap varies
from seventy-five (75) hours.
d. Lines of time that cannot be made pure shall conform to the normal
line of time construction window limits.
e. Pick up limits, pay guarantees and monthly pay shall be based on the
designated monthly maximum.
2. For purposes of this Letter of Agreement, Pure means same rotation number.
L.3.1
<PAGE>
Captain W. J. Donnelly
Page 2
October 1, 1990
3. This Letter of Agreement shall become effective on the date of signing of
the Basic Agreement, and shall remain in effect until canceled by one or
both parties as stated in Paragraph 4 below.
4. Both parties may mutually agree to cancel this Letter of Agreement at any
time. Either party may cancel this Letter of Agreement by providing the
other party with one hundred twenty (120) days written notice.
Sincerely,
/s/ H. C. Alger
-----------
H. C. Alger
Vice President -
Flight Operations
I concur:
/s/ W. J. Donnelly
--------------
W. J. Donnelly, Chairman, Delta MEC
L.3.2
<PAGE>
October 1, 1990
LETTER NUMBER 4
Captain W. J. Donnelly
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Donnelly:
Captain Cardno's letter dated January 31, 1977, to Captain Norris contained a
schedule of information to be furnished to the Retirement and Insurance
Committee. Certain revisions to the schedule are needed to provide adequate
time for developing complete and accurate reports.
Accordingly, the following schedule supersedes the schedule in the January 31,
1977 letter:
1. Actuarial Report December 7
2. Quarterly Master Trustee 60 days following the
Report of Contributions, end of the quarter.
Benefits and Investment
3. Plan Description (EBS-1) Within 15 days of filings. (The Company
normally satisfies this requirement by
furnishing a copy of the Summary Plan
Description - Benefit Handbook- to the U.S.
Department of Labor.)
4. Annual Return/Report of January 31 following the
Employee Benefit Plan end of the Plan year.
(Form 5500)
5. IRS (Form 990) December 31
6. Pension Benefit Guaranty January 31 following the
Corp. - PBGC-1 end of the Plan year.
L.4.1
<PAGE>
Captain W. J. Donnelly
Page 2
October 1, 1990
Please note that Items 2, 3, and 4 of the previous schedule have been
consolidated into Item 2 of the recommended schedule. This does not represent
any change in the information presently reported as such is contained in a
single report - the Quarterly Master Trustee Report.
In no case shall a copy of any report made to a government department or agency
be due at ALPA prior to 30 days after the deadline set by such department or
agency for that report, including extensions.
Sincerely,
/s/ R. A. McClelland
----------------
R. A. McClelland
Senior Vice President -
Operations
Agreed to and accepted this 1st day of October, 1990.
/s/ W. J. Donnelly
--------------
W. J. Donnelly, Chairman, Delta MEC
L.4.2
<PAGE>
October 1, 1990
LETTER NUMBER 5
Captain W. J. Donnelly
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Donnelly:
This letter will reflect our recent discussions pursuant to administration of
the Delta Pilots Disability and Survivorship Plan (hereinafter referred to as
the Plan).
As discussed, it is deemed mutually desirable to modify current procedures
followed in administering the Plan to permit payment of long-term disability
benefits for a limited period of time (up to six (6) months) in certain
situations where:
(a) The pilot has not been formally denied a First Class Medical Certificate,
but based on medical evidence, clearly should not fly; or
(b) The pilot has been denied a First Class Medical Certificate, but based on
medical evidence, it is determined not in the pilot's or Company's best interest
to require the pilot to appeal such denial.
To accomplish the above objectives, appropriate cases will be reviewed by the
Administrative Committee on an individual basis. In those cases where the
Administrative Committee believes that the medical facts, supported by the
individual's and Company's (when required) physicians' recommendations, indicate
that it is clearly in the individual's and Company's best interest not to pursue
a formal denial and/or the appeal process, and where it is clearly evident that
the individual is not medically fit to fly, the Administrative Committee will
consider finding that the individual has "constructively" met the Plan
requirements regarding loss of license and/or the appeal of such loss of
license. If the Administrative Committee finds that an individual has
constructively met the Plan requirements, the LTD benefits may be paid for a
period of up to six (6) months from the date LTD benefits would otherwise have
first been paid.
L.5.1
<PAGE>
Captain W. J. Donnelly
Page 2
October 1, 1990
It is agreed and understood that the decision that an individual has or has not
"constructively" met the Plan requirements rests solely and completely with the
Administrative Committee. Further, it is agreed and understood that should the
Administrative Committee fail to find that an individual has constructively met
the Plan's eligibility requirements, such failure does not constitute a basis to
grieve denial of Plan benefits. Also, it is agreed and understood that the
Administrative Committee may require an individual to be examined by a physician
of the Committee's choice and at the Company's cost.
If the above reflects your understanding, please sign and return one (1) signed
copy of this letter.
Sincerely,
/s/ R. A. McClelland
----------------
R. A. McClelland
Senior Vice President -
Operations
Agreed to and accepted this 1st day of October, 1990.
/s/ W. J. Donnelly
--------------
W. J. Donnelly, Chairman, Delta MEC
L.5.2
<PAGE>
June 3, 1991
LETTER NUMBER 6
Captain Harry C. Alger
Vice President - Flight Operations
Delta Air Lines, Inc.
Hartsfield Atlanta International Airport
Atlanta, Georgia 30320
Dear Harry:
This letter will confirm discussions between members of Management and
representatives of the Air Line Pilots Association regarding Section 24.J.2.
It is understood and agreed the Association should be billed under Section
24.J.2. only when the following conditions are applied:
When an ALPA dropped rotation, or any other single rotation in the Open Time
originating on the same day as an ALPA dropped rotation is assigned under
23.I.1.c. (Green Slip) or 23.I.1.d.,e.,f., or g. (Inverse Assignment) ALPA
should be billed under 24.J.2. for the rotation assigned.
When a pilot ALPA drops reserve on-call days, a rotation assigned under
23.I.1.c. (Green Slip) or 23.I.1.d.,e.,f., or g. (Inverse Assignment) that
originates and releases within the ALPA dropped reserve on-call days should
be billed under 24.J.2. In this case only one (1) assigned rotation would be
billed under the time frame of the ALPA dropped reserve on-call days.
ALPA dropped rotations that have been White Slipped, awarded on KRL's, or
awarded in the move-up process and are subsequently returned to the Open Time
for a reason other than an ALPA drop will not be considered as ALPA dropped
rotations in determining if the Association should be billed due to an
assignment.
L.6.1
<PAGE>
Captain Harry C. Alger
June 3, 1991
Page 2
If the above properly reflects these discussions, please sign and return two
copies for our files.
Very truly yours,
AIR LINE PILOTS ASSOCIATION
/s/ Robert D. Shelton
-----------------
Robert D. Shelton
Delta MEC Chairman
I concur:
/s/ Harry C. Alger
--------------
Harry C. Alger
L.6.2
<PAGE>
June 30, 1992
LETTER NUMBER 7
Captain H. C. Alger
Sr. Vice President Operations
Delta Air Lines, Inc.
Hartsfield Atlanta International Airport
Atlanta, Georgia 30320
Dear Harry:
This letter will confirm discussions between the Company and the Association
regarding the status of an International Relief Officer scheduled to deadhead in
order to position himself for duty.
As you know, there have been some requests from these deadheading International
Relief Officers to be considered as a part of the cockpit crew in lieu of a
deadheading crew member. Further, there have been numerous requests from the
two-man international cockpit crews that these pilots be considered a part of
the crew as opposed to a deadheading crew member. In response to these
requests, we have polled the pilots in both the A-315 and 767ER categories and
they have overwhelmingly supported the aforementioned request. Therefore, we
propose that all International Relief Officers be scheduled as part of the
cockpit crew rather than as a deadheading crew member as in the current
practice.
As a result of our conversation on this subject, we understand the First
Officers may be assigned as part of the scheduled crew complement on positioning
legs when the equipment and qualification so permits. We further understand and
acknowledge that for the purpose of determining when a relief crewmember is
required as a cockpit crew member, the FARs shall be controlling. We also
understand that this action by the Company shall not be precedent setting or
prejudice either party in matters relating to the scheduling of International
Relief Officers.
Sincerely,
AIR LINE PILOTS ASSOCIATION
/s/ Robert D. Shelton
-----------------
Robert D. Shelton
Delta MEC Chairman
RDS:pb
cc: Delta MEC
I concur:
/s/ H. C. Alger
-----------
H. C. Alger, Sr. Vice President Operations
L.7
<PAGE>
July 1, 1992
LETTER NUMBER 8
Captain Harry Alger
Sr. Vice President - Operations
Delta Air Lines, Inc.
Hartsfield Atlanta International Airport
Atlanta, Georgia 30320
Dear Captain Alger:
Following our meeting of July 1, 1992, I indicated I would follow up with a
letter to confirm our understanding of ALPA access to pilot mailboxes.
It is our understanding that the Association retains the right to use the pilot
mailboxes for our communications as long held past practice has established. As
the collective bargaining unit for the Delta pilots, I believe it is in our
mutual best interest to continue this practice.
I trust we have now put this issue to rest and I will communicate this to the
Delta MEC.
If you concur, please sign two copies of this letter and return.
Fraternally,
AIR LINE PILOTS ASSOCIATION
/s/ Robert D. Shelton
-----------------
Robert D. Shelton
Delta MEC Chairman
RDS:pb
cc: Delta MEC
I concur:
/s/ H. C. Alger
-----------
H. C. Alger
L.8
<PAGE>
January 27, 1994
LETTER NUMBER 9
Captain W. R. Brown
DAL MEC Chairman
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
In the course of discussion on the matter, we have concluded that it will be to
our mutual advantage if the MEC Officers, the MEC Executive Administrator and
the members of the MEC Negotiating Committee be afforded the following
accommodations as an adjunct to the provisions of the Pilot Working Agreement.
1. Individuals holding the above named positions shall, in order to meet
their ALPA obligations, be able to, at their option, either:
a. be removed from the category in which they hold a position, or
b. retain a category bid position.
2. Individuals holding the above named positions shall be able to, without
any consequence as to flight pay or credit, and at a reasonable interval,
request:
a. to be scheduled to fly a trip with a line check airman on the
equipment appropriate to their category and on which they maintain
qualification, or
b. to be scheduled for a simulator period for the purpose of
maintaining/establishing proficiency/recency, on the aircraft
appropriate to their category and on which they maintain
qualification.
Scheduling of such activity will be through the Manger, Crew
Qualifications (Barry Adkins) at ext. 1806.
L.9.1
<PAGE>
W. R. Brown
January 27, 1994
Page Two
If you find that these measures support the objectives we have together set
forth and if it is your desire to implement these measures, please sign and
return two copies of this letter for our files.
Cordially,
/s/ H. D. Greenberg
---------------
H. D. Greenberg
Vice President
Flight Operations
I concur:
/s/ W. R. Brown Date: 2-8-94
-----------
W. R. Brown, DAL MEC Chairman
cc: Richard Colby
Ed Moir
Dewey Jenkins
Mack Ezell
Bill Spalding
Bob Drew
L.9.2
<PAGE>
October 6, 1994
LETTER NUMBER 10
Captain W. R. Brown, Chairman
Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337
Dear Bill:
This will confirm the Company's offer to permit Delta pilots to participate in
the Family Care Savings Plan (up to the existing 6% of gross earnings employee
contributions maximum) on the same basis as non-pilot participants effective
December 1, 1994.
Plan enhancements that will be available for pilot participants include expanded
Fidelity investment options, liberalized Plan entry and reentry provisions,
daily valuation of accounts, daily changes to participant investment accounts
and contribution rates, and voice response unit (VRU) access.
Pilot participants will be governed by the same administrative procedures and
guidelines that apply to all other Plan participants, such as service charges,
loan fees, etc.
It is understood that Delta's existing level of matching contributions for pilot
participants will remain unchanged and subject to future revision only through
the collective bargaining process.
I have enclosed a copy of the Plan Prospectus Supplement and other explanatory
materials (workbook, investment options, phone services) describing the features
and administrative procedures of the amended Plan. Distribution of these
materials to pilots will begin promptly upon your acceptance of this offer and
return to me of a fully signed original of this letter.
Yours truly,
/s/ Terry M. Erskine
----------------
Terry M. Erskine
Vice President - Personnel Relations
Accepted and Agreed to for ALPA by:
/s/ Captain W. R. Brown
-------------------
Captain W. R. Brown, Chairman
Delta MEC
Air Line Pilots Association
L.10
<PAGE>
March 22, 1995
LETTER NUMBER 11
Captain W. R. Brown
Chairman, Delta Master Executive Council
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Re: Procedures for Section 15 Medical Review
Dear Captain Brown:
This letter will serve to confirm discussions between the Company and the
Association regarding the above referenced subject. As a result of those
discussions, the following procedures are set forth as the methodology to be
utilized for dealing with pilots who the Company has determined are subject to a
medical review pursuant to the Company's rights under Section 15 of the
Agreement.
1. The Company Director - Health Services (DHS) will review the medical records
of all pilots who receive an FAA special issuance medical certificate, who
return to duty after being absent for four or more months for medical
reasons, or in individual cases where there is reason to believe that the
pilot may not be eligible to hold a First Class Medical Certificate.
2. The pilot will give the DHS access to all medical records deemed pertinent by
the DHS, and the DHS will make the final decision regarding the need for
additional medical evaluation of a pilot holding a valid First Class Medical
Certificate.
3. If the decision is made to send a pilot for further evaluation, the DHS and
the ALPA Aeromedical Advisor will confer prior to sending the pilot for
evaluation provided that the pilot agrees to release the pertinent
information to the ALPA Aeromedical Advisor. The DHS will have the final
decision regarding the selection of the Company designated physician.
4. Any medical information forwarded by the DHS to the Company designated
physician will be limited to that from the medically relevant doctors and
treating facilities.
5. If a pilot is required by the Company to undergo a medical evaluation, the
pilot, the Company and the Company designated physician will make every
reasonable effort to complete the evaluation and any case review process, if
required, as expeditiously as possible.
L.11.1
<PAGE>
Captain W. R. Brown
March 22, 1995
Page 2
6. If the Company directed evaluation indicates that the pilot is medically
disqualified from engaging in flight duty, the examining physician will be
informed that the pilot will be withheld from service, on sick leave. The
examining physician will be instructed to inform the pilot of the medical
outcome and to refrain from reporting the finding to the FAA pending
resolution of a challenge to the medical determination.
As always, the Company stands in support of the provisions of Section 15 of the
Pilot Working Agreement.
Sincerely,
/s/ H. D. Greenberg
---------------
H. D. Greenberg
Vice President - Flight Operations
cc: Director - Flight Operations and Chief Pilot
Director - Health Services
System Manager - Flight Operations
System Manager - Contract Administration
Manager - Administration/Qualifications
L.11.2
<PAGE>
August 17, 1995
LETTER NUMBER 12
Captain H. David Greenberg
Vice President - Flight Operations
Delta Air Lines, Inc.
Hartsfield International Airport
Atlanta, Georgia 30320
Re: Letter of Understanding
Procedures For Returning A Pilot To Line Operations From Extended ALPA
Duty When The Pilot Will Be Obtaining An Initial Delta Type Rating
Dear Captain Greenberg:
This letter will serve to confirm discussions between the Company and the
Association regarding the above referenced subject.
As you are aware, Section 13.A.6. of the Agreement addresses the situation of a
pilot returning to the line who has been serving in a full time position in the
interest of the Company or the Association. While this provision addresses the
seniority issues involved in such service, it does not address the issue of a
pilot who began extended ALPA duty as a First or Second Officer, but who
subsequently returns to line operations with the seniority to hold a position
that would allow him to obtain his initial type rating at Delta.
Essentially, when a pilot in this situation returns to line operations from
extended ALPA duty there are three scenarios which may arise. Listed below are
these scenarios and the treatment of the pilot in each of these cases. Each of
these scenarios assumes that the pilot has the seniority to obtain and continue
to hold the initial Delta type rating category position, as well as any
additional First Officer category positions which he may occupy during ALPA
service, or while he is transitioning into the type-rated category position.
Scenario One
The first scenario involves a pilot who, while he is on extended ALPA duty,
maintains currency in the aircraft which he was flying at the time he began his
extended ALPA duty. While he is on extended ALPA duty this pilot must bid by
Advance Entitlement for the category position to which he desires to return at
the expiration of his extended ALPA duty. When this pilot is awarded such
category position it shall be held in abeyance for the purpose of commencing
training, and this pilot shall continue to fly in his current category until he
begins his upgrade training.
L.12.1
<PAGE>
Captain H. David Greenberg
August 17, 1995
Page 2
It is understood and agreed by the parties that once the pilot has been awarded
the above-referenced category position in the category in which he will be
trained for his initial Delta type rating, such category position shall be
converted in seniority order on the normal conversion date, but shall not be
activated. Once converted, such category position shall be considered in
determining the staffing requirements for that category,. However, for the
purpose of administering the bidding system while the pilot is not actually
operating in this category position, his category position will manually be
removed from the system until he begins his upgrade training.
After conversion to the new category position takes place the pilot may continue
to maintain currency as a First Officer on the aircraft on which he is currently
qualified, and he will be deemed to hold a category position on such aircraft.
However, this category position shall no longer be considered in determining
staffing requirements for such First Officer category, and he shall be carried
as surplus in that category.
When this pilot returns to full time line operations he would return to the
category position in the category in which he is currently qualified for a
period of up to six months. It is further understood that while the pilot
continues to fly as a First Officer in this position, he shall be paid by the
Company at the applicable First Officer rates, but his position in such First
Officer category shall not be considered in determining the staffing
requirements for that category, and he shall be carried as surplus in such First
Officer category.
The pilot's training for his initial Delta type rating shall commence in the
seventh month after the pilot returns to full time line operations. By mutual
agreement of the pilot and the Company, the pilot may begin this training
earlier than the seventh month after he returns to full time line operations,
provided that there is a training slot available and no other pilot is bumped
from his scheduled training to accommodate such earlier training. The training
required in this instance shall be that required for the pilot to receive an
initial type rating for his category position.
The cost of this training shall be borne by the Company. Once the pilot begins
training in the category in which he will be receiving his initial Delta type
rating his conversion to such category will be activated, and he shall be
removed from the category in which he was flying as a First Officer. Once the
pilot's initial Delta type rating category position is activated he shall be
paid by the Company at the rate applicable to such category.
L.12.2
<PAGE>
Captain H. David Greenberg
August 17, 1995
Page 3
Scenario Two
The second scenario involves a pilot who, because of the nature of the extended
ALPA duty that he was performing, is not currently qualified on any Delta
aircraft at the time he completes his ALPA duty. In this case, while this pilot
is on extended ALPA duty he must bid by Advance Entitlement for the category
position to which he desires to return at the expiration of his extended ALPA
duty. When this pilot is awarded the desired category position, such position
shall be held in abeyance for the purpose of commencing training.
It is understood and agreed by the parties that once the pilot has been awarded
the above-referenced category position in the category in which he will be
trained for his initial Delta type rating, such category position shall be
converted in seniority order on the normal conversion date, but shall not be
activated. Once converted, such category position shall be considered in
determining the staffing requirements for that category. The pilot shall remain
in this category until he returns to line flying in a First Officer category.
However, for the purpose of administering the bidding system while the pilot is
not actually operating in this category position, his category position will
manually be removed from the system until he begins his upgrade training.
When this pilot returns to line flying from extended ALPA duty he shall
designate the First Officer category which his seniority will allow him to hold,
and to which he desires to return for the purpose of reacclimating himself to
line operations. This category must be a category of the same or common type
aircraft as the category in which the pilot will receive his initial Delta type
rating, and the pilot would be placed in a category position in such First
Officer category for a period of up to six months. It is further understood
that while the pilot continues to fly as a First Officer in this position, he
shall be paid by the Company at the applicable First Officer rates, but his
position in such First Officer category shall not be considered in determining
the staffing requirements for that category, and he shall be carried as surplus
in such First Officer category.
Once the pilot designates such First Officer category he shall be trained as a
First Officer on this aircraft, and shall serve in such category position for a
period of up to six months, or until he begins training for his initial type
rating, whichever occurs first. The cost of this additional training shall be
borne by the Association.
L.12.3
<PAGE>
Captain H. David Greenberg
August 17, 1995
Page 4
The pilot's training for his initial Delta type rating shall commence in the
seventh month after the pilot returns to full time line operations. By mutual
agreement of the pilot and Company, the pilot may begin this training earlier
than the seventh month after he returns to full time line operations, provided
that there is a training slot available and no other pilot is bumped from his
scheduled training to accommodate such earlier training. The training required
in this instance shall be that required for the pilot to receive an initial type
rating for his category position.
Since this pilot will be currently qualified on the aircraft in which he will
receive his initial Delta type rating, it is agreed and understood that he will
receive an abbreviated training course to attain his type rating. The cost of
this training shall be borne by the Company. It is also agreed and understood
that, in the event this pilot requests a full training course to complete his
upgrade, the Association will bear any additional cost that may be incurred by
the Company as a result of this request.
Once the pilot begins training in the category in which he will be receiving his
initial Delta type rating his conversion to such category will be activated, and
he shall be removed from the category in which he was flying as a First Officer.
Once the pilot's initial Delta type rating category position is activated he
shall be paid by the Company at the rate applicable to such category.
Scenario Three
The third scenario involves a pilot who, because of the nature of the extended
ALPA duty that he was performing, is not currently qualified on any Delta
aircraft at the time he completes this ALPA duty. However, in this instance the
pilot desires to return to a category position that not only requires a type
rating to fly as First Officer, but also is in an aircraft which currently has
no comparable domestic category in which the pilot may fly for the purpose of
reacclimating himself to line operations (e.g., the MD-11)
In this case, while this pilot is on extended ALPA duty he must bid by Advance
Entitlement for the category position to which he desires to return at the
expiration of his extended ALPA duty. When this pilot is awarded the desired
category position such position shall be held in abeyance for the purpose of
commencing training.
It is understood and agreed by the parties that once the pilot has been awarded
the above-referenced category position in the category in which he will be
trained for his initial Delta type rating, such category position shall be
converted in seniority order on the normal conversion
L.12.4
<PAGE>
Captain H. David Greenberg
August 17, 1995
Page 5
date, but shall not be activated. Such category position shall be considered in
determining the staffing requirements for that category. The pilot shall remain
in this category until he returns to line flying in a First Officer category.
However, for the purpose of administering the bidding system while the pilot is
not actually operating in this category position, his category position will
manually be removed from the system until he begins his upgrade training.
When this pilot returns to line flying from extended ALPA duty he shall first
designate the First Officer category which his seniority will allow him to hold,
and to which he desires to return for the purpose of reacclimating himself to
line operations. The pilot would be placed in a category position in such
category for a period of up to six months. It is further understood that while
the pilot continues to fly as a First Officer in this position, he shall be paid
by the Company at the applicable First Officer rates, but his position in such
First Officer category shall not be considered in determining the staffing
requirements for that category, and he shall be carried as surplus in such First
Officer category.
Once the pilot designates such First Officer category he shall be trained as a
First Officer on this aircraft, and shall serve in such category position for a
period of up to six months, or until he begins training for his initial type
rating, whichever occurs first. The cost of this additional training shall be
borne by the Association.
The pilot's training for his initial Delta type rating shall commence in the
seventh month after the pilot returns to full time line operations. By mutual
agreement of the pilot and the Company, the pilot may begin this training
earlier than the seventh month after he returns to full time line operations,
provided that there is a training slot available and no other pilot is bumped
from his scheduled training to accommodate such earlier training. The training
required in this instance shall be that required for the pilot to receive an
initial type rating for the category position. Once the pilot begins training
in the category in which he will be receiving his initial Delta type rating his
conversion to such category will be activated, and he shall be removed from the
category in which he was flying as a First Officer.
In this instance the parties agree that when a pilot must be trained on two
different aircraft, the Association shall bear the cost of the First Officer
training, and the Company shall bear the cost of the training required for the
pilot to attain his initial Delta type rating.
The Association acknowledges that as the result of the exercise of these
procedures, the seniority of certain pilots may be affected regarding their
ability to acquire or maintain a category position. In that regard, the
Association expressly agrees that: (1) the company's implementation of these
procedures will not constitute the grounds for a grievance; and, (2) the
Association will not file
L.12.5
<PAGE>
Captain H. D. Greenberg
August 17, 1995
Page 6
or support any grievance which may arise if a pilot disputes the implementation
of these procedures.
If you agree with this understanding, please sign and return two copies of this
letter for our files.
Sincerely,
/s/ W. R. Brown
-----------
W. R. Brown
DAL MEC Chairman
WRB:ee
I concur:
/s/ H. D. Greenberg
---------------
H. D. Greenberg
L.12.6
<PAGE>
April 29, 1996
LETTER NUMBER 13
Captain William R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Brown:
This letter will recite and confirm the following agreement reached between the
Company and ALPA during the negotiations concerning the Delta Family-Care
Savings Plan (the "Savings Plan"):
1. Effective July 1, 1996, the Savings Plan will be amended to provide that
non-highly compensated employees, as defined in the International Revenue Code
of 1986 (the "Code") who are pilots will be permitted to contribute up to 10%
(in whole numbers) of Earnings, as defined in the Savings Plan, (hereinafter
"Earnings") and highly compensated employees (as defined in the Code) who are
pilots will be permitted to contribute up to 7% (in whole numbers) of Earnings;
provided, however, in no case shall any pilot's Savings Plan contribution,
whether on a pre-tax or post-tax basis, or a combination thereof, exceed the
then current limit under Section 402(g) of the Code (such overall limit on an
individual pilot's pre and/or post tax contribution referred to hereinafter as
the "Contribution Limit").
2. Effective January 1, 1997, the Savings Plan will be amended to allow the
Administrative Committee to determine the percent (in whole numbers) of Earnings
that a highly compensated employee who is a pilot will be permitted to
contribute in each plan year (the "Contribution Percentage"), which Contribution
Percentage shall be at least 7%, but no more than 10%.
3. Prior to March 31 of each year (beginning in 1997) the Company will:
(a) Perform mock nondiscrimination testing under Section 401(k) of the
Code, applicable to the pilot employees includable in the Savings Plan, on a
projected basis, using an "actual deferral percentage" (as defined in the Code)
for non-highly compensated employees who are pilots and an "actual deferral
percentage" (as defined in the Code) for highly compensated employees who are
pilots, assuming that their salary deferral elections and compensation rates in
effect on February 1 of that year remain effective through June 30 of the
following year;
L.13.1
<PAGE>
Captain William R. Brown
Page 2
April 29, 1996
(b) Based on the results of such mock nondiscrimination testing,
determine the highest actual deferral percentage which, as a group, highly
compensated employees who are pilots could have contributed and still allow such
mock discrimination testing to satisfy either of the nondiscrimination tests
under Section 401(k) of the Code; and
(c) Share the results of (a) and (b) with ALPA.
4. As soon as practical after completion of the mock testing described in
Paragraph 3, the Company and the Association will meet and confer regarding
determining the Contribution Percentage which shall be effective beginning the
first day of the following plan year. By June 1 of each calendar year, the
Administrative Committee shall in its sole discretion determine the applicable
Contribution Percentage for the following plan year. It is understood that the
Administrative Committee will not increase the Contribution Percentage if the
Committee determines such increase jeopardizes the Savings Plan's tax qualified
status or ability to pass any and all discrimination tests required by the Code;
or results in the failure of the Savings Plan or any other pension plan
sponsored by Delta to meet any and all limits placed on the Savings Plan or
other applicable pension plan by the Code. In each plan year, the maximum
Savings Plan contribution for any pilot will be the Contribution Limit.
5. The Savings Plan will be amended to reflect any agreements reached
between the Company and ALPA under the terms of this Letter of Agreement.
Please confirm this agreement by signing below and return an executed
original to me.
Sincerely,
/s/ Terry M. Erskine
---------------------
Terry M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April, 1996.
/s/ William R. Brown
----------------
William R. Brown, Chairman, Delta MEC
L.13.2
<PAGE>
April 29, 1996
LETTER NUMBER 14
Captain William R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Brown:
This letter will recite and confirm the following agreement reached between the
Company and ALPA during negotiations concerning the Delta Pilots Medical Plan
(the "Plan").
1. Effective January 1, 1997, the Plan will be amended to provide for the
following changes. Unless otherwise specified below, these amendments will be
applicable to pilots who are on active payroll status on January 1, 1997 (or go
to active payroll status after that date) and to pilots who retire on or after
January 1, 1997. In addition, it is understood that these amendments will not
apply to pilots who retire under the early retirement program, even if such a
pilot's retirement date occurs on or after January 1, 1997 due to operational
needs. Further, these amendments will not apply to a pilot who commenced
receiving disability benefits from the Delta Pilots Disability and Survivorship
Plan prior to January 1, 1997 or to a pilot who is in the waiting period to
receive long-term disability benefits from the Disability and Survivorship Plan
as of December 31, 1996 (including the survivors of the aforementioned pilots),
unless and until such pilot returns to active payroll status.
a. The annual deductible under the Plan will be increased to $150 per
individual and $450 per family, respectively.
b. The Plan coinsurance rate will be decreased from 80% to 70%.
c. The annual out-of-pocket maximum will be increased to $1,000 per
individual and $2,000 per family, after the annual deductible is met.
d. The deductible carryover provisions of the Plan (which provide that
expenses incurred in October, November and December of a benefit year
which are used to satisfy that year's deductible may be used to satisfy
the deductible for the following benefit year) will be eliminated.
e. The provision that provides that if the out-of-pocket maximum is met in a
benefit year, the Plan will pay 100% of the next benefit year's covered
expenses will be eliminated,
f. The waiver of deductible in the event of medical treatment rendered
within 48 hours after an accidental injury will be eliminated.
L.14.1
<PAGE>
Captain William R. Brown
Page 2
April 29, 1996
g. The additional medical deductible for failure to comply with the managed
care requirements (failure to pre-certify a hospitalization or a
specified out-patient procedure, other than for an emergency, or failure
to comply with the direction from the utilization review vendor) will be
increased from $200 to $500. This additional medical deductible will
continue to not apply toward the annual deductible or the annual out-of-
pocket maximum.
h. Medicare Part B premium reimbursement will be eliminated for pilots who
retire from the Company or become disabled under the Social Security Act
after January 1, 1997 and their eligible family members.
i. "Medicare carve-out" will be applied for pilots and their eligible family
members who retire from the Company or become disabled under the Social
Security Act after January 1, 1997 for purposes of coordinating benefits
with Medicare when the Plan pays secondary to Medicare. This means that
the Plan will pay as secondary payor no more than it would have paid had
it been primary payor, less the amount Medicare paid for the covered
charges (or would have paid had Medicare Parts A and B been in effect).
j. The prescription drug benefit will be changed to that currently provided
for non-contract personnel.
k. The number of dental cleanings per year will be reduced to two cleanings
per year, separated by at least six months.
l. The Plan will have added to it a lifetime maximum of two
confinements/treatment periods per eligible family member for substance
abuse/alcohol treatments that commence after January 1, 1997.
m. The pre-existing condition provisions of the Plan will be eliminated for
all purposes.
2. The Plan shall otherwise remain without change unless agreed to by both the
Company and ALPA.
Please confirm this agreement by signing below and return an executed original
to me.
Sincerely,
/s/ Terry M. Erskine
---------------------------------
Terry M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April, 1996.
/s/ William R. Brown
----------------
William R. Brown, Delta MEC
L.14.2
<PAGE>
April 29, 1996
LETTER NUMBER 15
Captain William R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Brown:
This letter will recite and confirm the following agreement reached between the
Company and ALPA during negotiations concerning the Delta Pilots Disability and
Survivorship Plan.
1. The parties have agreed that the Delta Pilots Disability and Survivorship
Plan shall be amended as described in the attached document entitled "Delta
Pilots Disability and Survivorship Plan" dated March 5, 1996.
Please confirm this agreement by signing below and return an executed original
to me.
Sincerely,
/s/ Terry M. Erskine
----------------
Terry M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April, 1996
/s/ William R. Brown
----------------
William R. Brown, Chairman, Delta MEC
L.15
<PAGE>
DELTA PILOTS DISABILITY AND SURVIVORSHIP PLAN
1. Effective July 1, 1996, amend Section One (Definitions) as follows:
. Remove the definition of Target Plan and put in its place a definition of
Delta Pilots Money Purchase Pension Plan. The new definition will clarify
that the Money Purchase Plan balance will include both Target Plan
contributions and Money Purchase Plan contributions.
. Add a definition of Delta Pilots Supplemental Annuity Plan.
. Amend Section 1.28 of the Plan to read in full as follows:
1.28 Spouse means the legal wife or husband of the Employee on the Event
Date, who meets all of the following requirements as of the Event Date.
(a) The Spouse and the Employee must have been legally married for at
least twelve consecutive calendar months immediately prior to the Event
Date, unless the Employee was in good health at some time between the date
of marriage and the Event Date.
(b) The Spouse must not have been divorced from the Employee on the Event
Date. The date the final decree of divorce shall be the date upon which
the Employee is considered to be divorced for purposes of this Section
1.28(b).
A Spouse whom an Employee marries after retirement or disability or during a
period when the employee is not at Active Work is not considered a Spouse for
purposes of this Plan unless and until the employee returns to Active Work.
2. Effective June 1, 1992, amend the Plan to provide the following concepts
(specific Plan language to be agreed upon):
A. A pilot's monthly disability benefit (both temporary and long-term) under
the Plan shall be offset by all retirement benefits actually received by the
pilot from the Delta Pilots Retirement Plan, Delta Pilots Target Plan, Delta
Pilots Money Purchase Pension Plan, Bridge Plan, Supplemental Annuity Plan and
other nonqualified retirement benefit plans maintained by the Company, plus any
benefit actually received from the Western Pilots Defined Benefit Plan (D-Plan)
which constitutes an offset to the benefit paid from the Delta Pilots Retirement
Plan. If such retirement benefits actually received are paid in a form other
than a single life annuity, such benefits shall first be converted to an
actuarially equivalent single life annuity (applying factors used to determine
actuarial equivalence under the applicable plan, or in the absence of stated
factors, applying the factors used to determine actuarial equivalence under the
terms of the Delta Pilots Retirement Plan) to determine the amount of the
monthly offset to the pilot's monthly disability benefit.
1
<PAGE>
B. (i) This paragraph B. applies to former WAL pilots (who were added to the
Company Seniority List in connection with the merger) and to former PAA pilots
(who were added to the Company Seniority List in connection with the acquisition
of PAA assets).
(ii) Prior to application of, and in addition to the offsets described in
paragraph A., the monthly long-term disability benefit of a former WAL pilot or
former PAA pilot shall be based on Delta service only. The benefit will be
calculated by multiplying 50% of the twelve-month FAE by a service fraction, the
numerator of which is the number of actual months of active Delta service
(before and after normal retirement age), plus potential service from the date
of disability to normal retirement age, in total not to exceed 300, and the
denominator of which is 300.
(iii) The service fraction described in paragraph B.(ii) shall commence to
apply at the later of the pilot's attainment of age 65 or the date the pilot has
received disability benefits for five years.
3. Effective July 1, 1996, amend Section 4.03(f) to read in full as follows:
(f) If a disabled Employee returns to Active Work with a class I medical
certificate, and during the first 12 months of his return to work the same
or a new disability causes him to be removed from flight status, he shall
be entitled to his original disability benefit. If at any time after 12
months the same or a new disability causes him to be removed from flight
status, he shall be entitled to the greater of his original disability
benefit or 50% of the average of the highest 12 consecutive months of
normal Earnings during the last 36 months of Active Payroll status. If at
any time he voluntarily elects to return to disability status, he shall be
entitled to his original disability benefit.
4. Effective July 1, 1996, amend Section 5.01(c) to read in full as follows:
(c) Amount of Benefits: If an Employee dies while on Active Payroll
Status, the Lump Sum Death Benefit shall be $50,000 reduced by the
Employee's vested account balance under the Money Purchase Plan on the
Employee's date of death.
5. Effective July 1, 1996, amend Section 5.01(d) to read in full as follows:
(d) For an Employee retiring under the Retirement Plan, the maximum post-
retirement benefit payable shall be $50,000 reduced in equal annual
decrements in the five years immediately following an Employee's actual
retirement date to a minimum benefit of $10,000. For purposes of this
reduction, an Employee receiving disability benefits under this Section
shall be deemed to have retired on the date he reaches his Normal
Retirement Date under the Retirement Plan. An Employee whose benefit is
reduced pursuant to this Section 5.01(d) may continue his lump sum benefit
at a level of $50,000 under this Plan until the earlier of five years after
his retirement or age 65 by paying such amounts at such times as the
Administrative Committee so designates under Section 10.01.
2
<PAGE>
6. Effective July 1, 1996, amend Section 5.02(c)(i)(bb) to read as follows:
(bb) is the amount which is the actuarial equivalent (using for such
actuarial equivalent calculation the applicable interest rate described in
Section 417(e)(3)(A)(ii)(II) of the Internal Revenue Code of 1986, as
amended by the Retirement Protection Act of 1994 (based on a three month
lookback) and the male rates from the 1983 Group Annuity Mortality Table)
of that part of the Employee's vested account balance in the Money Purchase
Plan as of the date of the Employee's death which exceeds the amount of the
lump sum death benefit under Section 5.01 (determined without regard for
the reduction in such death benefit to reflect benefits payable under the
Money Purchase Plan). This reduction shall first be applied to reduce the
level fixed portion of the benefit as described in Section 6.02. If the
level fixed portion of the benefit is reduced to zero, any remaining
reduction shall be applied to reduce the variable portion of the benefit.
The remaining reduction shall be calculated using an interest rate of 6.5%
and the male 1983 Group Annuity Mortality Table.
7. Effective July 1, 1996, amend Section 5.02(c)(ii)(bb) to read as follows:
(bb) is the amount which is the actuarial equivalent (using for such
actuarial equivalent calculation the applicable interest rate described in
Section 417(e)(3)(A)(ii)(II) of the Internal Revenue code of 1986, as
amended by the Retirement Protection Act of 1994 (based on a three month
lookback) and the male rates from the 1983 Group Annuity Mortality Table)
of that part of the Employee's vested account balance in the Money Purchase
Plan as of the date of the Employee's death which exceeds the amount of the
lump sum death benefit under Section 5.01 (determined without regard for
the reduction in such death benefit to reflect benefits payable under the
Money Purchase Plan). This reduction shall first be applied to reduce the
level fixed portion of the benefit as described in Section 6.02. If the
level fixed portion of the benefit is reduced to zero, any remaining
reduction shall be applied to reduce the variable portion of the benefit.
The remaining reduction shall be calculated using an interest rate of 6.5%
and the male 1983 Group Annuity Mortality Table.
8. Effective July 1, 1996, amend Section 5.02(c)(iii)(bb) to read in full as
follows:
(bb) is the amount which is the actuarial equivalent (using for such
actuarial equivalent calculation the applicable interest rate described in
Section 417(e)(3)(A)(ii)(II) of the Internal Revenue Code of 1986, as
amended by the Retirement Protection Act of 1994 (based on a three month
lookback) and the male rates from the 1983 Group Annuity Mortality Table)
of that part of the Employee's vested account balance in the Money Purchase
Plan as of the date of the Employee's death which exceeds the amount of the
lump sum death benefit under Section 5.01 (determined without regard for
the reduction in such death benefit to reflect benefits payable under the
Money Purchase Plan). This reduction shall first be applied to reduce the
level fixed portion of the benefit as described in Section 6.02. If the
3
<PAGE>
level fixed portion of the benefit is reduced to zero, any remaining
reduction shall be applied to reduce the variable portion of the benefit.
The remaining reduction shall be calculated using an interest rate of 6.5%
and the male 1983 Group Annuity Mortality Table.
9. Effective July 1, 1996, amend Section 10.01 to read in full as follows:
10.01 Employee Contributions: No contributions shall be required from any
Employee, except that an Employee whose Lump Sum Death Benefit has been
reduced pursuant to Sections 5.01(d) of the Plan, may contribute to the
Plan for the purpose of continuing the Lump Sun Death Benefit at $50,000.
Provided, however, that such contributory coverage may not be continued
past the earlier of the Employee's age 65 or the date that is five years
after his retirement date. Also, an Employee on approved leave of absence,
other than military leave, may contribute to the Plan for the purposes of
continuing the Lump Sum Death Benefit. The amount of contribution required
shall be determined by the Administrative Committee from time to time on a
uniform basis with respect to all persons similarly situated. Such
contributions must be paid monthly in advance and will be used to provide
benefits under the Plan.
4
<PAGE>
April 29, 1996
LETTER NUMBER 16
Captain William R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Captain Brown:
This letter will recite and confirm the following agreement reached between the
Company and ALPA during negotiations concerning pilot retirement benefit issues.
1. The parties have agreed that the terms set forth in the attached document
entitled "Retirement Term Sheet" dated March 4, 1996 ("Term Sheet") shall become
effective July 1, 1996.
2. The parties agree that, effective July 1, 1996, (i) the Delta Pilot
Retirement Plan, and the Delta Pilot Bridge Plan, shall be amended to reflect
the terms set forth in the Term Sheet; (ii) the Delta Pilots Target Benefit Plan
shall be converted into the Delta Pilots Money Purchase Pension Plan, as
described in the Term Sheet; and (iii) a new plan known as the Delta Pilots
Supplemental Annuity Plan shall be established, as described in the Term sheet
as "the Top-Hat Plan".
3. The parties agree that effective July 1, 1996, Section 5.04(b) of the
Delta Pilots Retirement Plan shall be amended to substitute "6.5%" for the
phrase "the valuation rate of interest used in the actuarial valuation of the
preceding January 1" in such Section.
4. The parties agree that effective as of the effective date of the new
collective bargaining agreement the Delta Pilots Retirement Plan shall be
amended to provide that Credited Service accrued under the Plan by a pilot while
he is receiving disability benefits under the Delta Pilots Disability and
Survivorship Plan shall be limited to a maximum of seven years.
Please confirm this agreement by signing below and return an executed original
to me.
Sincerely,
/s/ Terry M. Erskine
--------------------------------------
Terry M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April, 1996
/s/ William R. Brown
----------------
William R. Brown, Chairman, Delta MEC
L.16
<PAGE>
RETIREMENT TERM SHEET
1. Contractual Benefit.
The Company will provide a retirement benefit, at or after the pilot's Normal
Retirement Date, equal to the greater of (A) the ratio of the pilot's Credited
Service to 25 years, with a maximum ratio of 1.0, times 60% of the pilot's Final
Average Earnings, both determined as of the pilot's Retirement Date or other
date of Termination of Continuous Employment less the Social Security reduction
provided for in the Current Plan (as defined in the next sentence); or (B) the
prior plan minimum benefit described in Section 8.02 of the Current Plan,
modified as described in paragraph 4., (the greater of (A) or (B) hereinafter
referred to as the "Formula Benefit"). For purposes of clause (A) of the
previous sentence, the terms Normal Retirement Date, Retirement Date, Final
Average Earnings , Termination of Continuous Employment and Credited Service
shall have the meaning given such terms in the Delta Pilots Retirement Plan, as
amended and restated effective July 1, 1989 (the "Current Plan"). For the
purposes of clause (A), the reduction factors for early commencement of benefits
shall be those in the Current Plan. In addition, the term Earnings wherever
used in this Term Sheet shall have the meaning given the term "Earnings" in the
Current Plan and it is expressly agreed that (i) such amount shall not be
reduced by pre-tax contributions to applicable flexible spending accounts, pre-
tax contributions to the Delta Family-Care Savings Plan, or contributions made
on a pre-tax basis for medical premiums; and (ii) unless otherwise specified in
this Term Sheet shall be limited by the dollar limit specified in Section
401(a)(17) of the Internal Revenue Code of 1986 (the "Code"). For purposes of
determining the Formula Benefit, Earnings shall not be limited by the dollar
limit specified in Section 401(a)(17) of the Code, nor shall the Formula Benefit
be limited by the provisions of Section 415 of the Code.
2. Benefit Delivery.
The Formula Benefit will be provided from the Delta Pilots Retirement Plan as
amended and restated effective July 1, 1989 and as further modified by the
changes described in paragraph 4., below, (the "Retirement Plan"), the Delta
Pilots Money Purchase Plan, as further described in paragraph 3 below (the
"Money Purchase Plan"), the Delta Pilots Bridge Plan (the "Bridge Plan"), and
an unfunded nonqualified plan whose purpose is to provide deferred compensation
to a select group of management or highly compensated employees that shall be
established by the Company (the "Top Hat Plan").
1
<PAGE>
3. Money Purchase Plan.
The Delta Pilots Target Benefit Plan will be converted into the Money
Purchase Plan which will provide for a monthly contribution by the Company in an
amount equal to 5% of a Pilot's Earnings paid each month, up to an annual
maximum contribution of 30% of the 415(c) limit then in effect. Those pilots on
disability status will not be eligible for a contribution while on disability
status, nor shall a pilot receive a contribution in the month in which his
retirement, or other termination of employment occurs. Contributions will be
made for the first 25 years of Credited Service (as defined in the Retirement
Plan) following the later of the pilot's seniority date or the effective date of
the Money Purchase Plan. There will be no further Target Plan contributions to
the Money Purchase Plan. In addition, the account balance under the Money
Purchase Plan shall be used as an offset as described in paragraph 7, below.
<PAGE>
4. Minimum Benefit Freeze.
Effective on the later of July 1, 1996 or the first day of the third month
following the signing of the contract (the "Effective Date"), the minimum
benefit of active pilots and disabled pilots will be frozen and modified in the
manner described below in this paragraph 4.
. The unit value for the variable portion of the minimum benefit will be
frozen at $240.31 per unit.
. The minimum benefit formula will be changed to provide for a continued
accrual of 1% of Earnings per year that will be fixed and not convertible
into units or subject to the variable unit adjustments; provided, however,
that for purposes of this sentence, Earnings shall not be limited by the
dollar limit specified in Section 401(a)(17) of the Code in determining the
Formula Benefit, but will be so limited for purposes of determining the
qualified Retirement Plan benefit. This continued 1% accrual will be
applicable to a disabled pilot (regardless of whether his date of
disablement was before or after the Effective Date) only if he returns to
work from disability.
The frozen minimum benefit and the continued 1% accrual amount, if
applicable, will be available to eligible pilots who elect early retirement
after the Effective Date (including those who retire directly from disability),
subject to reduction on an actuarial basis using actuarial factors from the pre-
1972 plans.
5. Variable Annuity.
Fifty percent of the Formula Benefit shall be provided to a pilot who is
entitled to an Early, Normal or Deferred retirement benefit (as defined in the
Retirement Plan) as a variable annuity amount and the remaining amount shall be
provided as a fixed annuity amount.
2
<PAGE>
6. Lump Sum Benefits.
Subject to Internal Revenue Service ("IRS") approval of paying the variable
50% annuity of the Formula Benefit as a lump sum from the Retirement Plan, a
pilot who is entitled to an Early, Normal or Deferred retirement benefit may
elect to receive the variable 50% of the Formula Benefit paid to him from the
qualified Retirement Plan as a lump sum amount (subject to appropriate spousal
waivers and subject to any applicable Code limitations (e.g. Section 415 and
401(a)(17)) on lump sum amounts that can be paid from a qualified plan). In
seeking IRS approval of paying the variable 50% annuity of the Formula Benefit
as a lump sum from the Retirement Plan, the Company will vigorously advocate
arguments designed to secure such IRS approval. In the event the IRS notifies
the Company that it may not give its approval of such lump sum payment
provision, the Company shall request a conference with the IRS and will confer
with ALPA concerning such conference and subsequent proceedings before the IRS.
Until receipt of IRS approval, the Company will comply with the Retirement Plan
as submitted to the IRS regarding the methodology of paying the 50% lump sum
benefit. If the IRS determines payment of 50% of the Formula Benefit from the
Retirement Plan as a lump sum violates Section 401(a)(17) or any other provision
of the Code, then (i) the Retirement Plan will be amended to provide that the
variable portion of the Formula Benefit (or the lump sum, if elected) will be
based upon 50% of the benefit that can be paid from the Retirement Plan and the
remaining variable benefit shall be payable from a nonqualified plan as a
variable annuity, and such nonqualified variable annuity shall be subject to the
same adjustments (at the same frequency) as are made to the variable annuity
paid under the Retirement Plan in the case of a pilot receiving a Normal, Early
or Deferred retirement benefit; (ii) the Company shall have the right to offset
affected retirees' future nonqualified plan payments to recover the amount
overpaid as the qualified lump sum benefit; and (iii) the Company and ALPA will
promptly meet and confer to reach agreement as to payment of future lump sum
benefits from the qualified Retirement Plan.
The Lump Sum Factor shall be applied for purposes of calculating lump sum
distributions from the qualified Retirement Plan. The Lump Sum Factor is
determined using the following assumptions: (1) For lump sum distributions made
before July 1, 2000, an interest rate equal to the lesser of (a) 6.5% or (b)
120% of the PBGC immediate annuity rate for lump sums (or the GATT applicable
interest rate at such time as the PBGC no longer publishes an immediate annuity
rate for lump sums), and the GAM 83 male mortality table; and (2) For lump sum
distributions made after that date the interest rate and mortality assumptions
used shall be an interest rate of 6.5% and the GAM 83 male mortality table or,
if required under Section 411(a)(11)(B) of the Code, the GATT applicable
interest rate and the GATT applicable mortality table. For this purpose, the
GATT applicable interest rate shall be adjusted each month based on a three
month look back. If the pilot elects the lump sum distribution option under
the Retirement Plan, he will not be entitled to the variable annuity under such
Plan. In addition, the pilot may elect to receive his entire Money Purchase
Plan account balance as a lump sum amount (subject to spousal waivers) or the
benefit may be paid as a single life or reduced joint and survivor annuity which
will be provided by the Money Purchase Plan purchasing an annuity from an
annuity issuer.
3
<PAGE>
Any amount of the Formula Benefit that is provided through the Pilots
Bridge Plan or the Top Hat Plan will be available only as an annuity form of
payment. If a plan participant elects a lump sum form of payment of the
variable benefit under the Retirement Plan and Section 415 of the Internal
Revenue Code restricts the amount so payable from the Retirement Plan, then any
excess variable benefit which is not paid in the form of a lump sum from the
qualified Retirement Plan shall be paid in the form of a variable annuity from
the nonqualified plans. Such excess variable annuity amount shall be the excess
(if any) of 50% of the Formula Benefit over that portion of the benefit deemed
to be paid in a qualified lump sum. The benefit deemed to be paid in a
qualified lump sum shall be the lump sum benefit actually paid by the qualified
Retirement Plan divided by an annuity factor calculated at 6.5% interest and GAM
83 male mortality at the time the lump sum was paid. An illustration of this
paragraph is attached.
7. Offsets.
(a) The Money Purchase Plan account balance (including both Target Plan
account balances and money purchase account balances) (the "Offset Amount")
shall be offset against the Formula Benefit in the order described in this
paragraph and using the actuarial equivalents described in subparagraph (b),
below. First, the Offset Amount shall be offset against the lump sum value of
the variable annuity provided under the Top Hat Plan, if any. If such amount
does not extinguish the Offset Amount, the lump sum value of the variable
annuity provided under the Bridge Plan, if any, shall next be reduced. If
necessary, the remaining Offset Amount expressed as a fixed annuity shall next
be applied against the fixed annuity provided under the Top Hat Plan and, if not
thereby extinguished, shall next be offset against the fixed annuity provided
under the Bridge Plan. If further offsets are needed after all nonqualified
amounts have been extinguished, the fixed annuity under the Retirement Plan
shall be offset first and, to the extent necessary, the lump sum value of the
remaining fixed annuity shall be offset against the variable annuity provided
under the Retirement Plan. These offsets shall be determined and applied prior
to the time that a pilot's election to take the lump sum benefit under the
Retirement Plan is applied.
(b) The actuarial equivalents for purposes of determining the Money
Purchase Plan offset amount shall be determined as described in this paragraph
(b). Since any variable nonqualified annuities are the first to be reduced (as
described in paragraph (a) above), for calculation purposes only such variable
nonqualified annuity amounts shall be converted to a lump sum amount using an
interest rate of 6.5% and the GAM 83 male mortality table. This lump sum amount
shall be offset dollar for dollar against the Money Purchase Plan account
balance. If the full Money Purchase Plan account balance is not extinguished
with such step, the remaining Money Purchase Plan account balance shall be
converted to a single life annuity value using the GATT applicable interest rate
(based on a three month look back) and the GAM 83 male mortality table and such
annuity value will be used for purposes of offsetting fixed nonqualified and
fixed qualified annuities (on an annuity basis). If after the fixed qualified
annuity is reduced there still remains Money Purchase Plan amounts to be offset
against the variable qualified annuity, the annuitized Money Purchase Plan value
not yet offset shall again be converted back to a lump sum value using the GATT
applicable interest rate (based on a three month look back) and the GAM 83 male
mortality table. That lump sum amount will then be converted (for calculation
purposes only) into a variable annuity (the "qualified variable offset amount")
using a 6.5% interest rate and the GAM 83 male mortality table. The variable
qualified annuity shall then be reduced by the qualified variable offset amount.
4
<PAGE>
(c) Since a deferred vested participant is not entitled to a variable
annuity, the entire offset amount will be applied against the deferred vested
Formula Benefit in the manner described for offsetting fixed benefits in this
paragraph 7, as applicable. In the case of death prior to retirement or the
time the retirement benefit commences, the Money Purchase Plan account balance
of the deceased pilot will offset the basic life insurance benefit under the
Delta Pilots Disability and Survivorship Plan (the "D & S Plan") first, and then
will reduce the D & S Plan monthly survivor income benefit on an actuarial
equivalent basis using the GATT applicable interest rate (based on a three month
look back) and the GAM 83 male mortality table.
8. Plans Costs and Guarantees (Section 26.A.)
The TEFRA Cap described in Section 26.A.1., and Sections 26.A. 3 through 6
will be deleted; provided however, the Company's contributions to the Retirement
Plan will be determined using an actuarial valuation interest assumption not to
exceed 8-1/2% per annum.
9. Order of Abatement.
Change order of abatement so that (A) in the event of a Section 415(c)
violation, contributions will be abated in the following order: (1) Company
contributions to the Money Purchase Plan; (2) employee after-tax contributions
to the Family-Care Savings Plan; (3) employee pre-tax contributions to the
Family-Care Savings Plan in excess of 4%; (4) employee pre-tax contributions to
the Family-Care Savings Plan below 4% together with related Company matching
contributions; and (B) in the event of a Section 415(e) violation the Retirement
Plan benefit will be abated before any defined contribution plan contributions
are reduced.
10. Early Retirement Program.
The Early Retirement Program shall be as set forth in the Company proposal
dated July 25, 1995 (as pages 1 and 8 were amended on August 2, 1995), as
further modified below:
a.) A pilot who is accepted into the Early Retirement Program but whose
retirement date has been delayed due to operational needs shall not lose his
ability to retire under that Program if he becomes eligible for long-term
disability benefits under the D & S Plan prior to his delayed retirement date.
However, such pilot will be required to retire pursuant to the Early Retirement
Program immediately upon qualifying for long-term disability benefits and will
no longer have a delayed retirement date.
b.) Agree to add ALPA as a released party on the Agreement, Waiver and
Release form provided to participants in the Early Retirement Program.
5
<PAGE>
c.) Agree that packages describing the Early Retirement Program (which
will include a retirement benefit estimate) will be mailed to pilots eligible
for such program (at their home addresses) prior to the first day of the 60 day
window period.
d.) A pilot retiring under the early retirement program shall be subject
to the unit value freeze described in paragraph 4. for purposes of valuing all
of his units (including those that result from the enhancement to the minimum
benefit under the early retirement program). In addition, such pilot who
continues to accrue a minimum benefit after the Effective Date (as defined in
paragraph 4) shall do so at the modified rate of 1% of Earnings per year (as
further described in paragraph 4., second bullet). However, the enhancement to
the minimum benefit provided as a result of retiring under the early retirement
program shall be equal to 3.26% of Earnings per year of Credited Service (up to
5 years) that is granted under the terms of the Program. For purposes of the
preceding sentence, Earnings shall not be limited by the dollar limit specified
in Section 401(a)(17) of the Code in determining the Formula Benefit, but will
be so limited for purposes of determining the qualified Retirement Plan benefit.
11. Savings Plan.
See side letter dated 2/8/96.
12. D Plan.
Accept Company proposal on change to D-Plan offset and on clarification of
Section 6.11 (Deferred Disability Pensions).
6
<PAGE>
ILLUSTRATION OF LAST PARAGRAPH OF PARAGRAPH SIX OF RETIREMENT TERM SHEET
Assume a Pilot retires with a formula benefit payable of $160,000. One-half of
this formula benefit, or $80,000, is payable as a variable annuity or, at the
Pilot's election and to the extent permitted by Section 415, a lump sum benefit
from the qualified Retirement Plan. Suppose further that the Section 415(b)
limit for the Pilot is $75,000. Suppose further that the GATT lump sum factor
(as used in determining the maximum lump sum payable from the qualified Plan
under Section 415) is 12 and that the lump sum factor determined using 6.5%
interest, and GAM 83 male mortality is 13. In this case, the lump sum payable
under the qualified Retirement Plan is limited by the operation of Section 415.
The maximum lump sum payable from the qualified Retirement Plan is $75,000 x 12
= $900,000. The qualified Retirement Plan will make a payment of $900,000,
which is deemed to represent a payout of a variable benefit of $900,000/13 =
$69,230.77. For this Pilot, the nonqualified variable benefit would be $80,000
- - 69,230.77 = $10,769.23.
Suppose alternatively that all of the facts of the illustration are as stated
above except that in this alternative case, the lump sum factor determined using
6.5% interest and the GAM 83 male mortality is 11.72529. In this case the
maximum lump sum payable from the Retirement Plan under Section 415 is $75,000 x
11.72529 = $879,396.75. The Qualified Plan will pay a lump sum of $879,396.75.
In this case, the nonqualified variable benefit will be $80,000 - 75,000 =
$5,000.
7
<PAGE>
April 29, 1996
LETTER NUMBER 17
Captain W. R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337
Dear Bill:
SUBJECT: STOCK OPTION PLAN
This will confirm our agreement concerning the rights and obligations of the
Association and the Company if either of the following Triggering Events occur:
a. Following the Effective Date of the 1996 Delta Pilots' Agreement and prior
to the day after the next regularly scheduled annual meeting of
stockholders of the Company (or such earlier special meeting where the
Company's stockholders vote upon the Stock Option Plan), the Company's
stockholders do not grant any required approval of the Stock Option Plan,
or
b. Any other condition precedent to the grant of Stock Options under the
Stock Option Plan shall not have been satisfied prior to any such grant.
If a Triggering Event occurs, the Association and the Company will immediately
meet to reach agreement on providing to the pilots items of equivalent value.
In the event the parties fail to agree upon such items within thirty days
following a Triggering Event, the Association shall have the immediate right to
reopen the Pilots' Working Agreement in its entirety for change under Section 6,
Title 1 of the Railway Labor Act, as amended. If the Association serves such a
notice to reopen, the Company agrees that upon request made by the
L.17.1
<PAGE>
Captain W. R. Brown
Page 2
April 29, 1996
Association the negotiations will proceed directly to mediation under the
auspices of the National Mediation Board (including supermediation conducted by
a Member of the National Mediation Board if requested by the Association), and
that the Company will not oppose a request by the Association for a release from
mediation after mediation has commenced.
Sincerely,
/s/ Terry M. Erskine
----------------------------------
Terry M. Erskine
Vice President - Personnel Relations
Agreed to and accepted this 29th day of April, 1996
/s/ W. R. Brown
-----------
W. R. Brown, Chairman, Delta MEC
L.17.2
<PAGE>
April 29, 1996
LETTER NUMBER 18
Captain W. R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, GA 30337-6302
Dear Captain Brown:
This will confirm our agreement, in connection with Section 1.J. of the Pilots'
Working Agreement, related to the Association's associate non-voting member of
the Board of Directors ("Non-voting Member"). In the event that any litigation
is filed against the Board of Directors of Delta Air Lines and such litigation
includes the Non-voting Member as a defendant solely by virtue of his status as
such Non-voting Member, the Company will, to the extent legally permissible,
assume the cost of attorneys fees, related expenses and any liability or damages
for such Non-voting Member in connection with such litigation, provided that
such member agrees in writing to fully cooperate with the Company in the defense
of such action and that the Company shall have complete control of such
litigation, including selection of counsel, who may also represent other
defendants in the litigation. In no event, shall the Company be required to
defend such Non-voting Member against any allegation or action that relates to
the individual actions or nonactions of the Non-voting Member, it being
understood that this provision applies only to litigation concerning actions of
the board as an entire body with respect to which the Non-voting Member is
included as a defendant solely by virtue of his status as such Non-voting
Member.
If the above correctly sets forth our agreement, please so indicate by signing
in the space indicated below.
Sincerely,
/s/ Terry M. Erskine
---------------------------
Terry M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April, 1996
/s/ W. R. Brown
-----------
W. R. Brown, Chairman, Delta MEC
L.18
<PAGE>
April 29, 1996
LETTER NUMBER 19
Captain W. R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, GA 30337-6302
Dear Bill:
In discussions during negotiations of the Agreement signed April 30, 1996, it
was agreed that the process for Instructors continuing their line flying
experience would change from full month to a system of Instructors flying
thirty-six duty periods of line flying per year as provided in Section 11.B.5.
of the Agreement. Further, it was agreed that such line flying by Instructors
would be exempt from the staffing requirements of Section 22.C. of the
Agreement.
The following delineates the agreed to methodology to accomplish the above
staffing exemption:
The monthly credit hours for the equipment/status in which the Instructor(s)
will accomplish line flying experience shall be reduced by a number equal to
the projected number of duty periods to be flown by the Instructor(s) in the
equipment/status times five (5) hours. Following this adjustment to the
monthly credit hours, the provisions of Section 22.C. of the Agreement shall
be applied to determine the minimum staffing required.
Sincerely,
/s/ Terry M. Erskine
------------------------------------
Terry M. Erskine
Vice President - Personnel Relations
Agreed to and accepted this 29th day of April, 1996
/s/ W. R. Brown
--------------------------------
W. R. Brown, Chairman, Delta MEC
L.19
<PAGE>
April 29, 1996
LETTER NUMBER 20
Captain H. D. Greenberg
Vice President - Flight Operations
Delta Air Lines, Inc.
Hartsfield Atlanta International Airport
Atlanta, GA 30320
Subject: Letter of Understanding
Line of time construction for International Flying
Dear Captain Greenberg:
In order to reduce the number of lines that are scheduled for less than six (6)
hours below the designated monthly maximum in International Categories, the
Master Executive Council Chairman or his designated representative may approve
an expansion of the line of time construction window up to nine (9) hours above
the designated monthly maximum but in no case above eighty-four (84), subject to
the following restrictions:
1. Expansion may be approved on a particular piece of equipment, at a particular
base for each individual bid period.
2. Pick up limits, pay guarantees and monthly pay shall be based on the
designated monthly maximum.
3. Upon implementation of staffing under CMPS, the regular line of time average
for the month will be indexed by the amount of increase above the designated
monthly maximum.
This Letter of Understanding shall become effective on the date of signing and
shall remain in effect until canceled by one or both parties as stated below.
L.20.1
<PAGE>
Captain H. D. Greenberg
Page 2
April 29, 1996
Both parties may mutually agree to cancel this Letter of Understanding at any
time. Either party may cancel this Letter of Agreement by providing the other
party with ninety (90) days written notice.
Sincerely,
/s/ W. R. Brown
-----------------------
W. R. Brown
Delta, MEC Chairman
I concur:
/s/ H. D. Greenberg
---------------
H. D. Greenberg,
Vice President - Flight Operations
L.20.2
<PAGE>
April 29, 1996
LETTER NUMBER 21
Captain W. R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337-6302
Dear Bill:
My letter of March 13 and 14, 1996 resulted from hurried discussions following
MEC ratification of the Agreement and requires clarification concerning the
implementation of Swap with the Pot, Ultra Long Call and Jumpseat.
As you are aware, in Section 28, the Company has committed to implement both
Swap with the Pot and Ultra long call no later than January 1, 1997. Further,
as you know, we have explored, in detail, the specifics of both Swap with the
Pot and Ultra long call with the Pilot Negotiating Committee. We remain
committed to these details and the only delay in implementation is computer time
necessary to implement. We have agreed with the Pilot Negotiating Committee
that any computer programming cost will be absorbed by the Company and we remain
committed to this agreement.
Concerning the issue of Jumpseat, our discussions have always embraced the
concept that any Part 121 or Part 135 carrier may qualify for participation
subject to reasonable standards. Other carriers may also be selected for
participation if their participation is deemed appropriate. In all cases,
Association recommendations will be considered. We would like to work with you
to ensure that we have an orderly procedure for implementation to ramp up to a
full industry wide Jumpseat by the effective date of the new Agreement. While
we could work this procedure independently, it would be to everyone's best
interest if you can designate an MEC Jumpseat Coordinator to work with us on the
implementation. We will commit to as expeditious a plan as your Jumpseat
Coordinator and our people can work out.
Sincerely,
/s/ R. E. Colby
-------------------
R. E. Colby
Director - Flight Operations
and Chief Pilot
I concur:
/s/ W. R. Brown
-----------
W. R. Brown, Chairman, Delta MEC
L.21
<PAGE>
April 29, 1996
LETTER NUMBER 22
Captain William R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337
Dear Captain Brown:
This letter will recite and confirm the following agreement reached between the
Company and ALPA during negotiations concerning B-737 pilots displaced as a
result of transferring B-737-200 aircraft to the Sunshine Operation.
1. Incumbent B-737 pilots (pilots occupying a B-737 Mainline position) at a
time immediately prior to conversion of the first pilot to a Sunshine
category position will be afforded differential pay protection (difference
between what they can hold system wide and B-737-200 rates then in effect)
for up to eighteen months from the date they were involuntarily displaced
from a B-737 Mainline position.
Sincerely,
/s/ T. M. Erskine
------------------------------------
T. M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April 1996
/s/ William R. Brown
----------------
William R. Brown, Chairman, Delta MEC
L.22
<PAGE>
DELTA AIR LINES, INC.
PILOTS STOCK OPTION PLAN
ARTICLE 1. ESTABLISHMENT
Delta Air Lines, Inc., a Delaware corporation (the "Company"), and the Air
Line Pilots Association, International, as representative of the Pilots of Delta
Air Lines, Inc. (the "Association"), hereby establish the "Pilots Stock Option
Plan" (the "Plan"), as set forth herein. The Plan provides for the grant of
Stock Options to purchase a total of 10 million shares of Stock. The Stock
Options will be granted in three separate installments of equal size. The Plan
shall be part of the Delta Pilots Agreement, shall become effective as of the
Effective Date of such Agreement and shall run concurrently with the Duration
Clause of such Agreement and subject to any status quo period thereafter.
ARTICLE 2. DEFINITIONS
For the purposes of the Plan, the following terms shall be defined as set
forth below and, when the defined meaning is intended, the term is capitalized.
2.1 "ASSOCIATION" means the Air Line Pilots Association, International.
2.2 "BOARD" OR "BOARD OF DIRECTORS" means the Board of Directors of the
Company.
2.3 "COMMITTEE" means the Committee referred to in Article 3 of the Plan.
If at any time no Committee shall be designated, then the functions of the
Committee specified in the Plan shall be exercised by the Board.
2.4 "COMPANY" means Delta Air Lines, Inc., a corporation organized under the
laws of the State of Delaware, or any successor corporation.
2.5 "DELTA PILOTS AGREEMENT" means the basic collective bargaining agreement
together with all effective amendments, supplemental agreements, letters of
agreement and letters of understanding between the Company and the Association,
in existence on the effective date of the Plan and as may be modified or
supplemented after this date.
2.6 "DISABILITY" means disability as determined under the Delta Pilots
Disability and Survivorship Plan.
2.7 "EXERCISE PERIOD" means the period of time between the date a Stock
Option becomes exercisable and the tenth anniversary of that Stock Option's
Grant Date, when the Stock Option expires.
1
<PAGE>
2.8 "FAIR MARKET VALUE" means, as of any given date, the opening price of
the Stock on the New York Stock Exchange or, if no sale of Stock occurs on the
New York Stock Exchange on such date, the opening price of the Stock on the New
York Stock Exchange on the last preceding day on which such sale occurred.
2.9 "FURLOUGH" means removal from the Company's service due to a reduction
in force.
2.10 "GRANT DATE" means the date on which each installment of Stock Options
is awarded under the Plan. The initial Grant Date shall be the date agreed upon
by the Company and Association, which date shall be within 30 days after the
later of (a) the date the new Delta Pilots Agreement becomes effective following
its ratification and signing; (b) the date the Plan is approved by the Board of
Directors and, if required, the stockholders of the Company; or (c) the date of
determination of each Participant, and the number of shares of Stock subject to
Stock Options each Participant will receive, on the initial Grant Date under the
Plan. The second Grant Date shall be the first anniversary of the initial Grant
Date. The third Grant Date shall be the second anniversary of the initial Grant
Date.
2.11 "LEAVE OF ABSENCE" means Company approved absence from the Company's
service without pay for personal reasons.
2.12 "OPTION PRICE" means the price at which a share of Stock covered by a
Stock Option may be purchased, as specified in Article 6 below.
2.13 "PARTICIPANT" means a Pilot who is a
recipient of an award of a Stock Option under the Plan.
2.14 "PILOT" means an employee of the Company whose name appears on the Delta
Air Lines Pilots' System Seniority List on the initial Grant Date or any Grant
Date thereafter.
2.15 "PLAN" means the Pilots Stock Option Plan.
2.16 "RETIREMENT" means that a Pilot has left the Company's service and is
eligible for a benefit under the Delta Pilots Retirement Plan (or any successor
thereto) other than a Termination Benefit (as that term is defined under the
Delta Pilots Retirement Plan or any successor thereto).
2.17 "STOCK" means the Common Stock, $3.00 par value, of the Company.
2.18 "STOCK OPTION" means the option to purchase shares of Stock granted
pursuant to Article 6 below. All Stock Options granted pursuant to the Plan
shall be deemed "non-qualified" for purposes of Section 422 of the Internal
Revenue Code of 1986, as amended from time to time, and any successor thereto.
2
<PAGE>
ARTICLE 3. ADMINISTRATION
3.1 THE ADMINISTRATOR. The Plan shall be administered by the Personnel,
Compensation & Nominating Committee of the Board of Directors, or such other
committee of the Board as may be designated by the Board from time to time.
Each director, while serving as a member of the Committee, shall be considered
to be acting in his capacity as a director of the Company. Members of the
Committee shall be appointed from time to time for such terms as the Board shall
determine, and may be removed by the Board at any time with or without cause.
3.2 THE COMMITTEE'S AUTHORITY. The Committee shall have full authority to
construe and interpret the Plan, to establish, amend and rescind appropriate
rules and regulations relating to the Plan, to administer the Plan, and to take
all such steps and make all such determinations in connection with the Plan and
the Stock Options granted thereunder as it may deem necessary or advisable to
carry out the provisions and intent of the Plan, provided that any decision,
determination or action of the Committee with respect to the Plan shall be
consistent with the terms of the Plan. All determinations of the Committee
shall be by a majority of its members and, subject to Article 3.3, the
Committee's determinations if consistent with the terms of the Plan shall be
final and conclusive for all purposes and upon all persons. The Committee may
delegate its authority hereunder.
3.3 DISPUTE RESOLUTION. Disputes arising out of decisions, determinations
or other actions of the Committee with respect to the interpretation,
administration or application of the Plan shall be subject to the grievance and
System Board procedures of the Delta Pilots Agreement.
ARTICLE 4. STOCK SUBJECT TO PLAN
4.1 STOCK RESERVED. The total number of shares of Stock reserved and
available for distribution under the Plan shall be 10 million, subject to
adjustment as provided in Article 4.2. Stock issued under the Plan may be
either authorized and unissued shares or treasury shares.
4.2 CERTAIN CHANGES IN CORPORATE STRUCTURE. In the event of any merger,
reorganization, consolidation, recapitalization, Stock dividend, Stock split or
other change in corporate structure affecting the Stock, the Committee, in its
sole discretion, shall make such adjustments as it deems necessary to reflect
such change so as to prevent the diminution or enlargement of a Participant's
rights, including but not limited to, adjustments in the aggregate number of
shares of Stock reserved for issuance under the Plan, and adjustments in the
Option Price, provided that the number of shares of Stock subject to any award
shall always be a whole number. If any of the foregoing events occur affecting
the Stock and there is an adjustment to
3
<PAGE>
the then outstanding non-qualified stock options under the last paragraph of
Section 3 of the Company's 1989 Stock Incentive Plan (or the corresponding
provision of any successor plan) for officers and key employees, the Stock
Options under the Plan shall be adjusted in a manner no less favorable to the
Participant than the adjustment for the then outstanding non-qualified stock
options under the last paragraph of Section 3 of the Company's 1989 Stock
Incentive Plan (or the corresponding provision of any successor plan).
ARTICLE 5. ELIGIBILITY
Subject to the approval of the Company, the Association will determine the
Participants and the number of whole shares of Stock subject to Stock Options to
be awarded to each Participant on each Grant Date.
ARTICLE 6. STOCK OPTIONS
6.1 GRANT. On the initial Grant Date, the Company shall award Stock Options
covering 3,333,334 shares of Stock to the Participants, as specified in Article
5. On each of the second and third Grant Dates, the Company shall award Stock
Options covering 3,333,333 shares of Stock to the Participants as specified in
Article 5. A Participant's Stock Option will entitle him to purchase from the
Company a specified number of shares of Stock, at the Option Price.
6.2 NONTRANSFERABILITY. A Stock Option granted pursuant to the Plan shall
not be transferable by the Participant otherwise than by will, by the laws of
descent and distribution, or by a written designation referred to in Article 7.3
below, and is exercisable during the Participant's lifetime only by such
Participant.
6.3 OPTION PRICE. The Option Price for the first installment of Stock
Options shall be the Fair Market Value of the Stock on the initial Grant Date.
The Option Price for the second and third installments of Stock Options shall be
the Fair Market Value of the Stock on the second and third Grant Dates,
respectively. The Option Price shall be the price payable by the Participant
for a share of Stock upon the exercise of a Stock Option. The Option Price
shall be subject to adjustment in accordance with the provisions of Article 4.2
hereof.
6.4 OPTION EXERCISE DATES AND TERM. Subject to Article 7 hereof, a Stock
Option granted to a Participant shall become exercisable on the first
anniversary of its Grant Date, and the Stock Option shall expire on, and no
shares of Stock may be purchased thereunder on or after, the tenth anniversary
of its Grant Date.
6.5 EXERCISING STOCK OPTIONS. To exercise a Stock Option, the holder
thereof shall give irrevocable notice of the exercise to the Company or one or
more third parties designated by the Committee, identifying a whole number of
shares of Stock (which shall not be less than the lesser of (a) 50 shares of
Stock or (b) the number of shares of Stock subject to such Participant's then
exercisable Stock Option) with respect to which such Stock Option is being
exercised. The
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Option Price for the Stock Options being exercised shall be paid in full
prior to issuance of the Stock. The Committee may, from time to time, in its
sole discretion, and after consultation with the Association, establish
administrative procedures relating to the exercise of Stock Options, provided
that such procedures are consistent with the terms of the Plan.
6.6 WITHHOLDING TAXES. The Participant shall be required to pay to the
Company, or make arrangements satisfactory to the Company regarding the payment
of, the amount of any foreign, federal (including FICA), state, or local taxes
of any kind required by law to be withheld with respect to the exercise of a
Stock Option.
6.7 PAYMENT. Payment of the Option Price and tax withholding obligation
shall be made by cashier's check, through electronic funds transfer or through a
broker-assisted Stock Option exercise pursuant to procedures the Committee may,
in its sole discretion, establish from time to time. No shares of Stock shall
be delivered to the Participant until all such amounts have been paid. The
Participant shall be responsible for all brokerage commissions, interest and
other expenses, if any, in a broker-assisted Stock Option exercise.
ARTICLE 7. TERMINATION OF EMPLOYMENT, RETIREMENT, DEATH, DISABILITY AND LEAVE
OF ABSENCE
7.1 TERMINATION OR RESIGNATION. If a Participant's employment shall be
terminated by the Company, or if a Participant resigns from employment with the
Company, any unexercised Stock Option held by such Participant shall be
immediately forfeited. Such forfeited Stock Options shall be allocated to
Participants on the next ensuing Grant Date, if any.
7.2 RETIREMENT, DISABILITY, LEAVE OF ABSENCE OR FURLOUGH. A Participant who
is Retired, or is on Disability, Leave of Absence or Furlough, shall be entitled
to exercise any Stock Option awarded to him to the same extent as a Participant
who remains in active employment with the Company.
7.3 DEATH. In the event of the death of a Participant while employed by the
Company, the estate of such Participant, or other person designated by the
Participant, shall be entitled to exercise any Stock Option awarded to the
Participant to the same extent as a Participant who remains in active employment
with the Company.
ARTICLE 8. MISCELLANEOUS
8.1 GOVERNING LAW. The Plan, and all awards and agreements made hereunder,
shall be governed by and construed in accordance with the Railway Labor Act, and
of the laws of the State of Georgia without giving effect to the principles of
conflicts of laws thereof.
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8.2 GENDER AND NUMBER. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall
include the singular; and the singular shall include the plural.
8.3 NO RIGHT TO EMPLOYMENT. The adoption of the Plan shall not confer upon
any employee of the Company any right to continued employment with the Company,
nor shall it interfere in any way with the right of the Company to terminate the
employment of any of its employees at any time.
8.4 RIGHTS OF PARTICIPANTS. Nothing in the Plan or in any Stock Option
granted under the Plan shall confer upon any Participant or his executors,
administrators or legal representatives any of the rights of a stockholder of
the Company with respect to the shares of Stock subject to a Stock Option until
certificates for such shares shall have been issued upon the exercise of such
Stock Option.
8.5 SEVERABILITY. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.
8.6 PURCHASE FOR INVESTMENT AND LEGALITY. The Participant, by acceptance of
any Stock Option granted under the Plan, shall represent and warrant to the
Company that the purchase or receipt of shares of Stock upon the exercise
thereof shall be for investment and not with a view to distribution, provided
that such representation and warranty shall be inoperative if, in the opinion of
counsel to the Company, a proposed sale or distribution of such shares of Stock
is pursuant to an applicable effective registration statement under the
Securities Act of 1933 or is, without such representation and warranty, exempt
from registration under such Act. The Company shall file a Registration
Statement on Form S-8 pursuant to the Securities Act of 1933, as amended,
covering the Stock to be offered pursuant to the Plan and will use its best
efforts to maintain such registration at all times necessary to permit holders
of Stock Options to exercise them.
The obligation of the Company to issue shares of Stock upon the exercise of a
Stock Option shall also be subject as conditions precedent to compliance with
applicable provisions of the Securities Act of 1933, the Securities Exchange Act
of 1934, state securities laws, rules and regulations under any of the foregoing
and applicable requirements of any securities exchange upon which the Company's
securities shall be listed. The Company shall use its reasonable best efforts
to take all actions necessary and appropriate to satisfy each of the foregoing
conditions.
The Company may endorse an appropriate legend referring to the foregoing
restrictions upon the certificate or certificates representing any shares of
Stock issued or transferred to a Participant upon the exercise of any Stock
Option granted under the Plan.
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8.7 CHANGE IN CONTROL PROVISIONS. In the event of a Change in Control of
the Company (as described in Section 1.B.5. and G.1., 2., and 3. of the Delta
Pilots Agreement) all Stock Options not yet granted on the date of such Change
in Control will be granted, pursuant to Article 5, on the date of such Change in
Control at an Option Price equal to the Fair Market Value of the Stock on such
date.
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DELTA AIR LINES, INC.
PILOTS PROFIT SHARING PROGRAM
ARTICLE 1. ESTABLISHMENT AND PURPOSE
1.1 ESTABLISHMENT OF THE PROGRAM Delta Air Lines, Inc., a Delaware
corporation (the "Company"), and the Air Line Pilots Association, International
("Association"), hereby establish an annual incentive compensation program to be
known as "The Delta Air Lines, Inc. Pilots Profit Sharing Program" (the
"Program"), as set forth herein. The Program permits the awarding of annual
bonuses to Participants based on the Company's achievement of performance goals
during fiscal years commencing with fiscal year 1996. The Program shall be part
of the Delta Pilots Agreement, become effective as of the Effective Date of the
Delta Pilots Agreement and its duration shall be concurrent with such Agreement
and subject to any status quo period thereafter.
1.2 PURPOSE The purposes of the Program are to: (a) motivate Participants
toward achieving Company financial goals that are considered key to the
Company's success; (b) encourage teamwork among Participants; and (c) reward
performance with pay that varies in relation to the extent to which the
Company's financial goals are achieved.
ARTICLE 2. DEFINITIONS
Whenever used in the Program, the following terms shall have the meanings set
forth below and, when the defined meaning is intended, the term is capitalized:
2.1 "ADMINISTRATOR" means the Company's Chief Executive Officer and the Vice
President - Personnel, or such other persons as may be designated from time to
time by the Board of Directors of the Company to administer the Program.
2.2 "ANNUAL BASE SALARY" means that portion of the gross earnings actually
paid to a Pilot during the twelve (12) month period (or lesser period in the
initial Program Year or in the event of partial Program Year participation as
described in Section 4.2. below) ending on the last day of the Program Year, for
services rendered to the Company as a Pilot, that does not exceed the sum of the
Pilot's Monthly Yields for each month of such period during which he was in
active employment with the Company as a Pilot. Annual Base Salary also does not
include expense reimbursements; expense allowances; furlough pay; income
required to be imputed to a Pilot for any reason pursuant to federal, state or
local law; profit sharing awards paid under this Program or any other annual
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incentive compensation program sponsored by the Company; amounts paid for unused
vacation and authorized leave hours; payments under the Delta Pilots Disability
and Survivorship Plan, the Delta Pilots Retirement Plan, the Delta Family-Care
Savings Plan, the Delta Pilots Target Benefit Plan, the Delta Pilots Bridge
Plan, the Delta Pilots Medical Plan, the Delta Air Lines DELTAFLEX Plan, or any
other qualified or non-qualified employee benefit plan sponsored by the Company.
2.3 "AWARD" means the actual award paid to a Participant for a Program Year,
determined by multiplying the applicable Award Percentage by the Participant's
Annual Base Salary for the Program Year and subtracting from that product a
dollar amount equal to the Offset defined in Section 2.9 below.
2.4 "AWARD PERCENTAGE" means the percentage, determined under the provisions
of Article 5 below, that is multiplied by a Participant's Annual Base Salary in
determining the amount of any Award payable to a Participant under the Program.
2.5 "COMPOSITE HOURLY RATE" means the combination of a Pilot's equipment
base pay rate, hourly flying pay rate, mileage pay rate, gross weight pay rate
and where applicable, his international pay rate and specialized navigation
procedures pay rate.
2.6 "DELTA PILOTS AGREEMENT" means the basic collective bargaining agreement
together with all effective amendments, supplemental agreements, letters of
agreement, and letters of understanding between the Company and the Pilots of
Delta Air Lines, Inc. as represented by the Association, in existence on the
effective date of this Program and as may be amended or supplemented after that
date.
2.7 "INCOME" means the Company's income before income taxes for a given
fiscal year (taking into account expenses accrued for payments due under this
Program and any other annual incentive compensation program sponsored by the
Company for that fiscal year), excluding any gains or losses on the disposition
of flight equipment, and less preferred stock dividends, as reported in the
Company's fiscal year-end consolidated financial statements.
2.8 "MONTHLY YIELD" means the product of a Pilot's designated monthly
maximum credited hours for a month, multiplied by his Composite Hourly Rate for
such month. "Monthly Yield" for salaried Pilots means their monthly rate of
pay.
2.9 "OFFSET" means for any given Program Year a dollar amount that is the
product of a Participant's Annual Base Salary multiplied by the lesser of (i) 5%
or (ii) the percent of annual base salary by which the profit sharing awards for
such year are reduced for participants in the Company's profit sharing program
for noncontract published scale personnel.
2.10 "PARTICIPANT" means a Pilot who meets the eligibility requirements
contained in Section 4.1. below to participate in the Program.
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2.11 "PILOT" means an employee of the Company whose name appears on the
Delta Air Lines Pilots' System Seniority List.
2.12 "PROFIT PERFORMANCE LEVEL" means the Company's Income as a percent of
Revenue for any Program Year, rounded to two decimal places.
2.13 "PROGRAM YEAR" means the Company's fiscal year, July 1 through June 30,
or for the initial year of the Program, the period beginning with the effective
date of the Program and ending on the first occurring June 30 thereafter.
2.14 "REVENUE" means the Company's total operating revenues for a given
fiscal year, as reported in the Company's fiscal year-end consolidated financial
statements.
ARTICLE 3. ADMINISTRATION
3.1 THE ADMINISTRATOR. The Program shall be administered by the
Administrator. The Administrator shall be appointed by, and shall serve at the
discretion of, the Board of Directors of the Company.
3.2 AUTHORITY OF THE ADMINISTRATOR. Subject to Section 3.3. below, and
consistent with the terms of the Program, the Administrator shall have full
authority to determine the Company's Income, Revenue and Profit Performance
Level; construe and interpret the Program and any agreement or instrument
entered into under the Program; and establish, amend or waive procedures for the
Program's operation and administration. The Administrator may delegate his
authority hereunder.
3.3 DISPUTE RESOLUTION. Disputes arising out of decisions of the
Administrator as to the appropriate interpretation or application of the Program
shall be subject to the grievance and System Board procedures of the Delta
Pilots Agreement.
ARTICLE 4. ELIGIBILITY AND PARTICIPATION
4.1 ELIGIBILITY. All pilots who are not participants in any other annual
incentive compensation program sponsored by the Company are eligible to
participate in this Program. However, in order to receive an Award payable
under the provisions of Article 5 below for any Program Year, a Participant must
be in active employment with the Company as a Pilot on the final day of the
Program Year or be covered in Section 7.1. below.
4.2 PARTIAL PROGRAM YEAR PARTICIPATION. A pilot who becomes eligible to
participate in the Program after the beginning of a Program Year may participate
in the Program for that Program Year. Such situations may include, but are not
limited to: (a) new hires, or (b) a Pilot who is promoted or reclassified from
a position which did not previously meet the eligibility criteria. In
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determining the Award payable to such Participants, all of the provisions of
Article 5 shall apply, except that the Award percentages of Article 5 shall be
applied only to that portion of the Pilot's Annual Base Salary actually paid to
him between the first date he became eligible to participate in the Program and
the final day of that Program Year. Notwithstanding this limitation on Annual
Base Salary, however, a Participant who, during a Program Year, has served in a
position covered by another annual incentive compensation program sponsored by
the Company shall receive his award, if any, under this Program if he was
eligible to participate on the final day of any Program Year, and the
Participant's Annual Base Salary for this limited purpose shall be calculated to
include both: (1) those amounts, if any, included as "annual base salary" under
the provisions of such other annual incentive compensation program, and (2) the
Participant's Annual Base Salary under this Program.
ARTICLE 5. AWARD DETERMINATION
Following the determination of the Profit Performance Level attained by the
Company for any Program Year, the Award Percentage shall generally equal the
Profit Performance Level for that Program Year, subject to the following
restrictions. First, if the Profit Performance Level is less than 2.00%, no
Award shall be payable under the Program. Second, the maximum Award Percentage
allowable under the Program shall be 10.00%, so that even if the Profit
Performance Level exceeds 10.00% for a Program Year, the Award Percentage for
that Program Year shall be 10.00%. Once determined, the Award Percentage will
be multiplied by the Participant's Annual Base Salary to determine, after the
appropriate Offset, the Participant's Award for the Program Year. The following
example demonstrates the calculation of a Participant's Award:
If the Profit Performance Level equaled 8.34% in a Program Year, the
Award for that Program Year would equal 8.34% of Annual Base Salary minus
the appropriate Offset. If the Profit Performance Level equaled 1.39% (or
any percentage less than 2.00%), no Award would be permitted under the
Program. If the Profit Performance Level equaled 10.56% (or any percentage
greater than 10.00%), the Award would be limited to 10.00% of Annual Base
Salary minus the appropriate Offset.
ARTICLE 6. PAYMENT OF AWARDS
6.1 FORM AND TIMING OF PAYMENT. Each Participant's Award shall be paid in
cash in one (1) lump sum within seventy-five (75) calendar days after the end of
each Program Year.
6.2 UNSECURED INTEREST. No Participant or any other party claiming an
interest in amounts earned under this Program shall have any interest whatsoever
in any specific asset of the Company. To the extent that any party acquires a
right to receive payments under this Program, such right shall be equivalent to
that of an unsecured general creditor of the Company.
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ARTICLE 7. CESSATION OF EMPLOYMENT
7.1 CESSATION OF EMPLOYMENT DUE TO FURLOUGH, DEATH, DISABILITY, FAMILY
LEAVE, MILITARY SERVICE OR RETIREMENT. If a Participant's active employment
with the Company as a Pilot ceases by reason of furlough, death, short-term or
long-term disability, a qualifying leave pursuant to the Family and Medical
Leave Act of 1993, a qualifying leave pursuant to the Uniformed Services
Employment and Reemployment Rights Act of 1994, or retirement, the Participant
shall remain eligible for any Award payable for the Program Year in which his
active employment ceased. In the event of the Participant's death prior to
receipt of an Award, the Award shall be payable in cash to the estate of the
Participant.
7.2 CESSATION OF EMPLOYMENT FOR OTHER REASONS. If a Participant's active
employment ceases for any reason other than furlough, death, short-term or long-
term disability, a qualifying leave pursuant to the Family and Medical Leave Act
of 1993, a qualifying leave pursuant to the Uniformed Services Employment and
Reemployment Rights Act of 1994, or retirement, the Participant shall not
receive an Award for the Program Year in which his active employment ceased.
ARTICLE 8. TRANSFERABILITY, TREATMENT OF PAYOUTS
8.1 NONTRANSFERABILITY. No right or interest of any Participant in the
Program shall be assignable or transferable, or subject to any lien, directly or
indirectly, by operation of law or otherwise, including, but not limited to,
execution, levy, garnishment, attachment, pledge and bankruptcy.
8.2 TREATMENT PAYOUTS. The gross amount of any Award actually paid to a
Participant prior to his death or disability, whichever the case may be, shall
be included as earnings for purposes of calculating benefits under the Delta
Pilots Disability and Survivorship Plan. Awards under the Program shall not be
included as earnings under the Delta Family-Care Savings Plan or any other
qualified or nonqualified plan or arrangement of the Company.
ARTICLE 9. MISCELLANEOUS
9.1 GOVERNING LAW. The Program, and all agreements hereunder, shall be
governed by and construed in accordance with the Railway Labor Act, and of the
laws of the State of Georgia without giving effect to the principles of
conflicts of laws thereof.
9.2 WITHHOLDING TAXES. The Company shall have the right to deduct from
all payments under the Program any foreign, Federal, state or local income or
other taxes required by law to be withheld with respect to such payments.
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9.3 GENDER AND NUMBER. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine; the plural shall
include the singular; and the singular shall include the plural.
9.4 SEVERABILITY. In the event any provision of the Program shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Program, and the Program shall be construed and
enforced as if the illegal or invalid provision had not been included, provided
that, if such illegality or invalidity reduces the value of the Program to any
Participant, the Association and Company shall meet promptly to reach agreement
on terms which provide equivalent value to the Participants.
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April 29, 1996
Captain William R. Brown
Chairman, Delta MEC
Air Line Pilots Association
2314 Sullivan Road
College Park, Georgia 30337
Dear Captain Brown:
This letter will recite and confirm the following agreement reached between the
Company and ALPA during the negotiations concerning the Special Early Retirement
Program for Pilots (the "Program").
1. The parties agree that the terms of the Program shall be those
described in the attached document entitled "Description of Special Early
Retirement Program for Pilots" dated March 4, 1996. The parties also agree that
the Agreement Waiver and Release Form, dated March 4, 1996, as set forth in
Appendix A to such document (and as also attached hereto) (the "Waiver") must,
as a condition of the Program, be signed and returned by each pilot who
participates in the Program.
2. ALPA hereby agrees that each Waiver that is signed and submitted
by a pilot who participates in the Program shall serve to bar ALPA from bringing
any grievance or lawsuit on behalf of such pilot as described in Section 4 of
the Waiver.
3. The parties agree that the Delta Pilots Medical Plan, Delta Pilots
Disability and Survivorship Plan, Delta Pilots Retirement Plan and any other
applicable plan document shall be amended to the extent necessary to give effect
to the terms of the Program, as described in paragraph 1., above.
Please confirm this agreement by signing below and return an executed original
to me.
Sincerely,
/s/ Terry M. Erskine
----------------
Terry M. Erskine
Vice President - Personnel Relations
Agreement confirmed this 29th day of April, 1996.
/s/ William R. Brown
----------------
William R. Brown, Chairman, Delta MEC
<PAGE>
DESCRIPTION OF SPECIAL EARLY RETIREMENT PROGRAM FOR PILOTS
This document provides a detailed description of the special early
retirement program ("program") for pilots and its enhancement to the standard
retirement formula and minimum benefit features of the Delta Pilots Retirement
Plan (see Part II). This document also details the enhancements that the
program will make to the Delta Pilots Medical Plan (see Part III) and the Delta
Pilots Disability & Survivorship Plan (see Part IV). The document further sets
forth general features of the program, including eligibility, duration,
retirement dates, and other conditions of the program (see Parts I and V).
PART I: GENERAL FEATURES.
The offer of the program will be open for acceptance for a period of
60 days beginning on the first day of the month which follows the month in which
ends the first 30 day period immediately following the date on which the new
collective bargaining agreement between the Company and ALPA becomes effective
(the "Window Period"). All pilots (other than those who are eligible to receive
long-term disability benefits as of the first day of the Window Period) who have
reached age 50 on or before the first day of the month following the month in
which the Window Period ends will be eligible for the program. The packages
which describe the program (and which include a retirement benefit estimate)
will be mailed to the home address of eligible pilots prior to the first day of
the Window Period.
No later than the last day of the Window Period, eligible pilots must
indicate their desire to accept the offer of the program in exchange for their
retirement in accordance with the terms of the program. This decision will be
binding and irrevocable and only those pilots who are not accepted into the
program due to oversubscription (as detailed in the next paragraph) will be
released from this commitment.
The Company will accept a minimum of 500 pilots into the program;
however, more than 500 pilots may be accepted at the Company's sole discretion.
If more than this maximum number of pilots commit to participate in the program,
the decision as to which pilots are accepted into the program will be based on
the seniority of the pilots who have committed.
The program's conditions will include, among other things, (i) the requirement
that each pilot who commits to the program complete, sign and timely return an
Agreement, Waiver and Release form in the same form as set forth in Exhibit A
attached hereto (ALPA shall be a Released Party described in paragraph 4.a. of
that document); and (ii) the requirement that the pilot's retirement occur on
the date specified by the Company, such date to be determined based on the
operational needs of the Company, but no later than 18 months following the
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close of the Window Period; provided, however, that a pilot who has been
accepted into the program and has been assigned a delayed retirement date due to
operational needs and becomes eligible for long-term disability benefits under
the Delta Pilots Disability and Survivorship Plan prior to his specified
retirement date shall still retire under the terms of the program but shall have
his retirement date occur immediately (and such date shall no longer be
delayed).
Pilots who are accepted into and retire pursuant to the program shall not be
eligible to receive money purchase plan contributions to the Delta Pilots Money
Purchase Pension Plan.
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PART II: ENHANCEMENT TO THE RETIREMENT BENEFIT UNDER THE DELTA PILOTS
RETIREMENT PLAN (THE "RETIREMENT PLAN").
A. Program Offerees who were Participants in the Delta Air Lines Employees'
Retirement Income Plan and the Delta Air Lines Employees' Variable Annuity
Retirement Income Plan as of February 1, 1972 or who were Employees of Delta Air
Lines on February 1, 1972:
A pilot who was a Participant in the Delta Air Lines Employees'
Retirement Income Plan and the Delta Air Lines Employees' Variable Annuity
Retirement Income Plan as of February 1, 1972 or who was an Employee (as defined
in the Retirement Plan) of Delta Air Lines on February 1, 1972 are eligible
under Section 8.02(B) of the Retirement Plan for a special minimum benefit if
such person retires on his Normal Retirement Date (as defined in the Retirement
Plan). Effective on the later of July 1, 1996 or the first day of the third
month following the signing of the new collective bargaining agreement (the
"Effective Date"): (i) the minimum benefit unit value will be frozen at $240.31
per unit; and (ii) the continued accrual rate for the minimum benefit will be
changed from 3.26% of Earnings per year of Credited Service (with 1.26% of such
amount being variable in nature) to 1% of Earnings per year of Credited Service
(with all accruals being fixed in nature and not subject to the unit value).
This change to the minimum benefit will apply to a pilot who is accepted into
the program and whose retirement date occurs after the Effective Date. Section
8.02(B) will be applied in determining the retirement benefit of an eligible
pilot who, due to his participation in the program, retires prior to his Normal
Retirement Date. Therefore, a pilot described in this paragraph will be
eligible to receive the greater of (i) the benefit computed in accordance with
Section 5.01 or 5.02 of the Retirement Plan (whichever is applicable); or (ii)
the minimum benefit described in Section 8.02(B) of the Retirement Plan, as
amended on the Effective Date, calculated as described in II., below. If a
pilot's benefits computed under the formula contained in (i) or (ii) cannot be
fully paid from the qualified Retirement Plan due to applicable limitations of
the Internal Revenue Code (including limits on the amount which can be paid from
the qualified Retirement Plan or on the amount of Earnings which can be
considered under the qualified Retirement Plan), then the excess benefits will
be paid from a nonqualified plan or plans maintained by the Company. For
purposes of the program only, if a program participant elects a lump sum form of
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payment of the variable portion of the benefit and Section 415 restricts the
amount so payable from the qualified Retirement Plan, then any "excess lump sum
benefit" that cannot be paid from the qualified Retirement Plan shall be paid as
a lump sum payment from the non-qualified plans. The "excess lump sum benefit"
shall be the difference, if any, between (X) and (Y) where (X) is the lump sum
value of the entire variable annuity determined by using the plan factors (i.e.
(A) an interest rate equal to the lesser of (i) 6.5% or (ii) 120% of the PBGC
immediate annuity rate for lump sums; and (B) the GAM 83 male mortality table)
and (Y) is that portion of (X) that is paid from the qualified Retirement Plan.
An eligible pilot described in the preceding paragraph may choose, in
connection with the calculation of his benefit under Section 5.01 or 5.02 of the
Plan and as further explained in I., below, the addition of five years of
service to the Credited Service he had earned as of his retirement date (to a
maximum of 25 years) (Service Option) or five years of age to his age as of his
retirement date (to a maximum of age 60) (Age Option). However, if the minimum
benefit, calculated as described in II., below, is greater than such amount, the
pilot shall receive the enhanced minimum benefit.
I. Calculation under Section 5.01 or 5.02 of the Plan:
(A.) Service Option: If a pilot chooses the Service Option, five
years of Credited Service shall be added to his years of Credited Service earned
as of his Retirement Date under Sections 5.01 or 5.02 of the Retirement Plan,
whichever is applicable; provided, however, that in no event shall his total
years of Credited Service, after such addition, exceed 25 years.
(B.) Age Option: If a pilot chooses the Age Option, five years of age
will be added to his age as of his retirement date for purposes of calculating
the early retirement reduction described in Section 5.02 of the Retirement Plan;
provided, however, that in no event shall the pilot's age after such increase
exceed age 60.
In the event that the pilot chooses the Service Option and the
addition of five years of Credited Service shall increase his total years of
Credited Service to more than 25, then the years and/or months that exceed those
that are needed to bring the total Credited Service to 25 years shall be added
to his age for purposes of determining the early retirement reduction described
in Section 5.02 of the Retirement Plan.
In the event that the pilot chooses the Age Option and the addition of
five years of age to his actual age at his retirement date increases his imputed
age to more than age 60, then the years (and/or months if less than a full year)
in excess of the years and/or months needed to bring his imputed age to age 60
shall instead be added to his Credited Service for purposes of determining the
benefit described in Section 5.01 or 5.02 (whichever is applicable).
Except as expressly provided above, all other terms of the Plan shall be applied
to the calculation and distribution of the pilot's benefit as they would have
been in the absence of the program, including the fact that the social security
offset shall be actuarially reduced to the pilot's actual age at retirement and
not to any imputed age.
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II. Calculation of Minimum Benefit Under Section 8.02(B)
The minimum benefit will be calculated according to the method
described in (A.) or (B.), below, depending on which of the Age Option or
Service Option was elected by the pilot for purposes of I., above.
(A.) Age Option: For a pilot who elects the Age Option, the minimum
benefit will be calculated as described in Section 8.02(B) of the Retirement
Plan, amended as of the Effective Date to freeze the unit value at $240.31 and
to decrease future accruals from 3.26% of Earnings per year of Credited Service
(with 1.26% of such accrual being variable in nature) to 1% of Earnings per year
of Credited Service (with all such accruals being fixed in nature and not
subject to the unit value) with the following adjustments and clarifications:
(i) The amount described in Section 8.02(B)(i) shall be determined as
if the pilot's actual retirement date is his Normal Retirement Date based on his
Earnings (as defined in the Retirement Plan) and years of service as of his
actual retirement date. For this purpose only years of service shall not be
limited to 25 years.
(ii) The number of Benefit Units described in Section 8.02(B)(ii)(b)
shall be determined as of the earlier of the pilot's actual retirement date or
the Effective Date. There will be no accrual of 1.26% of Earnings per year of
Credited Service (as a variable amount convertible into units) after the
Effective Date.
(iii) If a pilot's retirement date occurs prior to the Effective
Date, the value of a Benefit Unit described in Section 8.02(B)(ii)(c) shall be
the value that a Benefit Unit bore as of the July 1 preceding the pilot's
retirement date. If a pilot's retirement date occurs on or after the Effective
Date, the value of a Benefit Unit shall be frozen at $240.31.
(iv) The factor for the 50% Joint and Contingent Annuitant benefit
described in Section 8.02(B)(iii) will be based on the actual age of the pilot
and his spouse as of his actual retirement date, and not on the imputed age of
the pilot described in subclause (v), below.
(v) The minimum benefit computed as described above will be reduced
by 0.25% for each month between the pilot's imputed age at his retirement date
and age 60. For the purpose of determining the pilot's imputed age at
retirement, the lesser of five years or the number of months and/or years needed
to bring the pilot's imputed age to age 60 shall be added to the pilot's actual
age at retirement. If less than five full years is needed to bring the pilot's
imputed age to age 60, the months not so used ('Excess Months") shall be applied
to the calculation described in II.(A.)(i) by adding to the amount determined
under II.(A.)(i) the product of 3.26% times the pilot's Earnings (as defined in
the Retirement Plan) for the Plan Year that ended on the June 30 preceding the
4
<PAGE>
pilot's retirement date times the joint and contingent annuitant factor
described in subclause (iv), above, times a fraction, the numerator of which is
the number of Excess Months and the denominator of which is 12; provided,
however, that the Excess Months so used shall be limited to the number of months
that when added to the pilot's actual service at his retirement date would bring
his total years and months of service to an amount that is equal to the total
number of years and months of service that he would have earned if he had worked
until age 60.
(B.) Service Option: For a pilot who elects the Service Option, the
minimum benefit will be calculated as described in Section 8.02(B) of the
Retirement Plan, with the following adjustments and clarifications:
(i) The minimum benefit will be computed as if the pilot's Normal
Retirement Date is his actual retirement date as described in Section 8.02(B) of
the Retirement Plan, amended as of the Effective Date to freeze the unit value
at $240.31 and to decrease future accruals from 3.26% of Earnings (as defined in
the Retirement Plan) per year of Credited Service (with 1.26% of such accrual
being variable in nature) to 1% of Earnings per year of Credited Service (with
all such accruals being fixed in nature and not subject to the unit value).
Thus, until the Effective Date, an eligible pilot will accrue a benefit at a
rate of 3.26% of Earnings for each year of Credited Service (with 1.26% of such
accrual being variable and convertible into units) and from the Effective Date
to the pilot's actual retirement date, will accrue a benefit of 1% of Earnings
per year of Credited Service of which none of the benefit will be convertible
into units or subject to the unit value adjustments. To the amount calculated
in accordance with the preceding sentence shall be added the product of 3.26%
times the pilot's Earnings (as defined in the Retirement Plan) for the Plan Year
that ended on the June 30 preceding the pilot's retirement date times the joint
and contingent annuitant factor described in subclause (iv), below, times the
lesser of (A) five years or (B) a fraction, the numerator of which is the number
of months that when added to the pilot's actual service at his retirement date
would bring his total years and months of service
<PAGE>
to an amount that is equal to the number of years and months of service that he
would have had if he had worked until age 60, and the denominator of which is
12. If less than five full years is used due to the limitation described in
clause (B), the unused months and/or years shall be added to the pilot's actual
age at his retirement date (such imputed age not to exceed age 60), for purposes
of the early retirement reduction described in subclause (v), below. For
purposes of the calculation described in this subclause (i) only, service shall
not be capped at 25 years.
(ii) The Benefit Units described in Section 8.02(B)(ii)(b) will be
determined as of the earlier of the pilot's actual retirement date or the
Effective Date. There will be no accrual of 1.26% of Earnings per year of
Credited Service (as a variable amount convertible into units) after the
Effective Date.
(iii) If a pilot's retirement date occurs prior to the Effective
Date, the value of the Benefit Units described in 8.02(B)(ii)(c) shall be the
same value that Benefit Units bore on the July 1 preceding the pilot's
retirement date. If a pilot's retirement date occurs on or after the Effective
Date, the value of a benefit unit shall be frozen at $240.31.
5
<PAGE>
(iv) The factor for a 50% Joint and Contingent Annuitant benefit
described in Section 8.02(B)(iii) shall be based on the actual age of the pilot
and his spouse on his actual retirement date.
(v) The minimum benefit, computed as described above, shall be
reduced by 0.25% for each month between the pilot's age at his retirement date
(considering that his age may be imputed by unused months or years as described
in subclause (I), above) and age 60.
Except as expressly provided above, all other terms of the Plan shall
be applied to the calculation and distribution of the pilot's benefit as they
would have been in the absence of the program.
B. Program Offeree's who were not Participants in the Delta Air Lines
Employees' Retirement Income Plan and the Delta Air Lines Employee's Variable
Annuity Retirement Income Plan as of February 1, 1972 or who were not Employees
of Delta Air Lines on February 1, 1972.
A pilot who was not a Participant in the Delta Air Lines Employees'
Retirement Income Plan and the Delta Air Lines Employee's Variable Annuity
Retirement Income Plan as of February 1, 1972 or who was not an Employee of
Delta Air Lines on February 1, 1972 may choose to add five years of service to
the Credited Service he had earned as of his retirement date (to a maximum of 25
years) (Service Option) or five years of age to his age as of his retirement
date (to a maximum of age 60) (Age Option). The manner in which the Age or
Service Option will be applied to the calculation of the pilot's benefit shall
be the same as described in paragraph A.I. of Part II of this document.
If a pilot's benefits, computed as described in the preceding
paragraph, cannot be fully paid from the qualified Retirement Plan due to
applicable limitations of the Internal Revenue Code (including limits on the
amount which can be paid from the qualified Retirement Plan or on the amount of
Earnings which can be considered under the qualified Retirement Plan), then the
excess benefits will be paid from a nonqualified plan or plans maintained by the
Company. For purposes of the program only, if a program participant elects a
lump sum form of payment of the variable portion of the benefit and Section 415
restricts the amount so payable from the qualified Retirement Plan, then any
"excess lump sum benefit" that cannot be paid from the qualified Retirement Plan
shall be paid as a lump sum payment from the non-qualified plans. The "excess
lump sum benefit" shall be the difference, if any, between (X) and (Y) where (X)
is the lump sum value of the entire variable annuity determined by using the
plan factors (i.e. (A) an interest rate equal to the lesser of (i) 6.5% or (ii)
120% of the PBGC immediate annuity rate for lump sums; and (B) the GAM 83 male
mortality table) and (Y) is that portion of (X) that is paid from the qualified
Retirement Plan.
Except as expressly provided above, all other terms of the Plan shall
be applied to the calculation and distribution of the pilot's benefit as they
would have been in the absence of the program, including the fact that the
social security offset shall be actuarially reduced to the pilot's actual age at
retirement and not to any imputed age.
6
<PAGE>
PART III: ENHANCEMENTS TO THE DELTA PILOTS MEDICAL PLAN (THE "MEDICAL PLAN")
The Medical Plan will be affected by the program in terms of the
amount and timing of post-retirement medical premiums to be paid under the
Medical Plan.
Early Retirement: Under the current Medical Plan, a pilot who retires
prior to his Normal Retirement Date (as defined in the Medical Plan) is required
to pay 100% of the post-retirement medical premium (the "100% Early Retirement
Premium") until the first day of the month following his 60th birthday in order
to maintain medical and dental coverage for himself and his dependents. Upon
reaching age 60, he is required to continue to pay "Service-Related Premiums"
for the duration of his retirement if, on his retirement date, he had less than
25 years of continuous service. The Service-Related Premium is equal to the
monthly premium times a fraction, the numerator of which is 25 minus the
retiree's years of continuous service at retirement and the denominator of which
is 25. If a pilot has 25 years of continuous service on his retirement date, he
is not required to pay a Service-Related Premium.
For a pilot who retires under the program prior to his Normal
Retirement Date, the 100% Early Retirement Premium will not be required in order
to maintain medical and dental coverage for the pilot and his spouse. However,
a pilot must pay 100% of the applicable child(ren) Early Retirement Premium in
order to maintain coverage for any dependent child. Notwithstanding the
foregoing, a pilot who retires under the program with less than 25 years of
continuous service at his early retirement date must commence paying Service-
Related Premiums immediately upon retirement to continue medical and dental
coverage for the pilot and his spouse. In addition, upon reaching age 60, the
pilot stops paying the 100% Early Retirement Premium for the coverage of any
eligible dependent child, but must begin to pay the Service-Related Premium
associated with such child's coverage in order to continue medical and dental
coverage for such child (assuming such child still qualifies as a dependent
eligible for coverage at that time). Service-Related Premiums must be paid
throughout retirement in order to maintain medical and dental coverage for the
pilot and his eligible family members.
In determining the number of years of continuous service that a pilot
has earned at his early retirement date for purposes of calculating the Service-
Related Premium that a pilot must pay, years of continuous service with both
Delta and Western are counted. In addition, as an enhancement under the
program, Pan Am service, from the most recent Pan Am hire date, will be added to
the pilot's actual years of continuous service in the case of Pan Am pilots who
were hired by the Company immediately following the acquisition of Pan Am
assets. In addition, for each pilot who participates in the program, an
additional five years of continuous service will be added to his total
continuous service as of his retirement date. In no event will a pilot be given
credit for years of service in excess of 25.
Normal Retirement or Deferred Retirement: Under the current Medical
Plan a Service Related Premium is required of a pilot who retires on or after
his Normal Retirement Date with less than ten years of service. The Service
Related Premium is determined in the same manner as described in the section
immediately above (including the use of 25 years in the numerator and the
denominator) based on the length of service of the pilot.
7
<PAGE>
For the purpose of determining the number of years of continuous
service that a pilot has earned as of his retirement date for purposes of
calculating the Service-Related premium that a pilot must pay, years of
continuous service with both Delta and Western are counted. In addition, as an
enhancement under the program, five years of service will be added to a pilot's
actual continuous service as of his retirement date. Further, as part of the
program only, former Pan Am pilots who were hired immediately after the
acquisition of Pan Am assets, will be granted credit for years of Pan Am service
from the most recent Pan Am hire date. In no event will a pilot be given credit
for years of continuous service in excess of 25.
Any service-related premium being paid by a retiree at his death must
continue to be paid by his eligible family members who are eligible for survivor
benefits under the Delta Pilots Disability & Survivorship Plan in order to
continue their medical/dental coverage after the pilot's death. In addition,
the monthly premium paid by a pilot will change as the premium is adjusted each
year based on the Company's costs. However, the percentage of the premium the
pilot pays will remain constant.
The changes to be made to the Delta Pilots Medical Plan effective January 1,
1997 shall not apply to pilots who are accepted into and retire under the terms
of the program.
PART IV: ENHANCEMENTS TO THE DELTA PILOTS DISABILITY AND SURVIVORSHIP
PLAN (THE D & S PLAN)
The post-retirement survivor benefit under the D & S Plan is
calculated by taking into account the number of years of Credited Service (as
defined in the D & S Plan) that a pilot had at his retirement date (Section
5.02(c)(iv)(cc)) and the pilot's age at retirement (Section 5.02(c)(iv)(dd)).
For this purpose, as an enhancement under the program, either an additional five
years of service will be added to the pilot's actual years of Credited Service
(as defined in the D & S Plan) at his retirement date or an additional five
years of age will be added to the pilot's actual age at retirement. The pilot
will automatically receive the enhancement (age or service) that results in the
greater post-retirement survivor benefit. In no event may the total years of
Credited Service after such enhancement in service increase the pilot's total
years beyond 25, nor may the enhancement in age increase the pilot's imputed age
to beyond age 60. As a result, less than five years of service may be used in
order to increase the pilot's years of Credited Service to a maximum of 25. In
such event, the additional years and/or months will be added to the pilot's age.
Likewise, any years and/or months not used because of the age 60 maximum will be
added to the pilot's Credited Service. No Western or Pan Am service will be
counted towards the pilot's years of Credited Service (as defined in the D & S
Plan) under this provision of the D & S Plan.
8
<PAGE>
PART V: OTHER CONDITIONS.
A side letter of agreement between the parties will adopt this
detailed program document and provide that the Retirement Plan, Medical Plan and
D & S Plan will be amended to the extent necessary to give effect to the terms
of the program. In addition, the side letter shall contain ALPA's agreement
that each participant's Agreement, Waiver and Release form shall also bar the
Association from bringing any grievance that would otherwise be precluded by the
terms of such Agreement, Waiver and Release.
9
<PAGE>
EXHIBIT A
Employee ________________
Employee No. ____________
Station _________________
AGREEMENT, WAIVER AND RELEASE
1. I, _____________________ ("Employee"), agree to voluntarily retire
under the Special Early Retirement Program for Pilots ("Early Retirement
Program") being offered by Delta Air Lines, Inc. ("Delta"). In agreeing to
voluntarily retire, I have carefully reviewed the provisions of the Early
Retirement Program and this Agreement, Waiver and Release ("Agreement") and
believe them to be in my best interests.
2. In exchange for executing and returning this Agreement to Delta,
and retiring from Delta in accordance with the terms hereof, I understand that
Delta will provide enhanced retirement and post-retirement benefits to me, as
more fully described in Section 3 below. I understand that the benefits listed
in Section 3 below are in addition to anything of value to which I would be
entitled under the Delta Pilots Retirement Plan or any non-qualified retirement
plan (collectively the "Retirement Plan"), the Delta Pilots Medical Plan (the
"Medical Plan"), and the Delta Pilots Disability and Survivorship Plan ("the
"D&S Plan") (collectively the "Delta Plans") as a retiree from Delta.
3. In exchange for the execution and return of this Agreement and my
retirement under the terms of the Early Retirement Program, Delta and the Delta
Plans will provide the following benefits to the Employee.
a. Delta and the Delta Plans will provide either of (i) or (ii),
below, at the Employee's choice. Alternatively, the Delta Plans will provide
the enhanced minimum benefit described in (iii), below, if the Employee is
eligible for such benefit and if the minimum benefit, as so calculated, produces
a benefit that is greater than the benefit calculated pursuant to subclause (i)
or (ii), whichever is applicable.:
(i) Five (5) years of "Credited Service" (as defined in the
Retirement Plan) added to the number of years of Credited Service earned by the
Employee as of the Retirement Date. This additional Credited Service will be
used for purposes of calculating the Employee's benefit under the Retirement
Plan using the standard retirement formula contained in the Retirement Plan. The
Employee may not, however, accumulate more than twenty-five (25) years of
Credited Service. Therefore, any of the five (5) additional years of Credited
Service that are not needed to achieve the maximum of twenty-five (25) years of
Credited Service under the Retirement Plan may be applied toward the Employee's
age as described in subparagraph (ii) below.
1
<PAGE>
(ii) Alternatively to (i), above, Delta and the Delta Plans will
provide five (5) years of age added to the Employee's actual age as of the
Retirement Date for purposes of calculating the Employee's benefit under the
Retirement Plan using the standard retirement formula contained in the
Retirement Plan. An employee may not use these five (5) additional years to
achieve an age greater than the age of sixty (60) years. Therefore, any of the
five (5) years that are not needed to achieve the maximum age of sixty (60)
shall be applied toward the Employee's years of Credited Service under the
Retirement Plan as described in subparagraph (i) above.
(iii) Alternatively to (i) or (ii), above, for an Employee
eligible for such minimum benefit, either (A) an additional five years of age
or, if less, the number of years and/or months that when added to the Employee's
actual age shall bring the Employee's age to age 60; or (B) an additional five
years of service or, if less, the number of years and/or months that would bring
the Employee's actual service as of his Retirement Date to the same total number
of years of service that he would have had if he had worked until age 60 shall
be added to the Employee's actual age or service at the Retirement Date for
purposes of the minimum benefit formula of the Retirement Plan. To the extent
that the Employee does not need the full five years of age to bring his imputed
age to age 60, then the number of years and/or months not so used shall be added
to his service (but only to the extent that such addition will not increase the
Employee's years of service to more than the years of service that he would have
had if he had worked until age 60). Further if the addition of five years of
service shall increase the Employee's years of service to more than the number
of years of service that he would have had if he had worked until age 60, then
the number of years and/or months not so used shall be added to the Employee's
actual age at the Retirement Date (provided that such addition shall not
increase the Employee's imputed age to more than age 60). The determination as
to whether the additional five years is first added to the Employee's age or the
Employee's service shall be at the Employee's election and it shall be
consistent with the order in which the age or service enhancement is applied to
the standard formula under the Retirement Plan (as described in subclauses (i)
and (ii), above) in order to determine whether the minimum benefit is greater
than the benefit produced from the enhanced standard formula.
b. Delta and the Delta Plans will not require the Employee to pay the
100% early retirement premium ordinarily required under the Medical Plan in
order to maintain post-retirement coverage for the Employee and the Employee's
eligible spouse. The applicable 100% early retirement premium will continue to
apply with respect to any covered children of the Employee. Service Related
Premiums required under the Medical Plan will apply to participants in the Early
Retirement Program immediately upon retirement under the Early Retirement
Program and must be paid for the Employee and any covered eligible family
members in order to maintain eligibility under the Medical Plan. However, Delta
and the Delta Plans will add five (5) years of service to the number of years of
2
<PAGE>
service the Employee will have earned under the Medical Plan as of the
Retirement Date for purposes of calculating any applicable Service Related
Premium. In addition, Pan Am service (from the most recent Pan Am date of hire)
shall be added to the Employee's years of service as of the Retirement Date if
the Employee is a former Pan Am pilot who was hired by Delta immediately
following the acquisition of Pan Am assets by Delta. Future premium increases
may be applied to the Employee and all eligible family members.
c. Delta and the Delta Plans will add five (5) years of service to
the number of years of service the Employee will have earned under the D&S Plan
as of the Retirement Date for purposes of calculating the Employee's post-
retirement monthly survivor benefits that will be paid to the Employee's
eligible family members after the Employee's death.
4. In exchange for the benefits which Delta and the Delta Plans are
providing me in connection with the Early Retirement Program, I hereby agree as
follows:
a. I hereby waive, release, dismiss, and forever discharge Delta and
the Air Line Pilots Association and their respective officers, directors,
employees, agents, predecessors, successors, transferees, and assigns and the
Delta Plans and their fiduciaries, employees, agents, successors, and assigns
(collectively the "Released Parties") from any and all actions, causes of
action, grievances, arbitrations, suits, damages, debts, claims, penalties,
counterclaims, obligations, and liabilities of whatever nature, known or
unknown, resulting or arising out of, directly or indirectly, my employment
relationship with Delta, the termination of that relationship, and my
participation in any or all of the Delta Plans, including, without limitation,
any claims for wrongful discharge of any kind and any claims arising under any
federal, state, or local laws or ordinances prohibiting any form of
discrimination, including the Age Discrimination Employment Act of 1967, as
amended, 29 U.S.C. (S) 621, et seq., any claims arising under the Railway Labor
Act, any claims alleging a violation of the Collective Bargaining Agreement
between Delta and the Air Line Pilots in the Service of Delta as represented by
the Air Line Pilots Association, and any common-law claims now or hereafter
recognized (collectively the "Claims"), except for the Claims that are non-
waivable under any federal or state law. I understand that notwithstanding the
above, I am waiving only those Claims which have existed in the past or which
are existing now, and that I am not waiving Claims which may arise after the
date this Agreement is executed by me and returned to Delta.
b. I hereby agree that neither I, nor anyone acting on my behalf,
will sue or file charges, or complaints with any local, state, or federal
agency, board or court, including, but not limited to, the Equal Employment
Opportunity Commission, against any of the Released Parties relating to any of
the released Claims. I further agree that neither I, nor anyone acting on my
behalf, will file any grievance with Delta or the Delta Air Lines Pilots' System
Board of Adjustment. I further agree to indemnify and hold harmless any of the
Released Parties against whom I, or anyone acting on my behalf, sues or files
charges or complaints in any local, state, or federal agency, board or court, or
files a grievance with Delta or the Delta Air Lines Pilots' System Board of
Adjustment. I further agree that prior to the time that I or anyone acting on
my behalf attempts to file a charge or complaint in any local, state, or federal
agency, board or court, or attempts to file a grievance with Delta or the Delta
3
<PAGE>
Air Lines Pilots' System Board of Adjustment, in contravention of this
Agreement, I must tender back to Delta all sums and other benefits provided to
me by any of the Released Parties under this Agreement.
5. If I am an individual who resides in California, or with respect to
whom California law governs this Agreement, I understand that Section 1542 of
the Civil Code of the State of California states as follows :
A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement with the
debtor.
I hereby expressly waive and relinquish all rights and benefits, if any,
afforded to me by the above Section and acknowledge that this Agreement is
intended to and does include and discharge all claims which I do not know about,
or suspect to exist, at the date of this Agreement.
6. I also agree that this Agreement is not to be construed in any way as
an admission by any of the Released Parties that they have violated any federal,
state, or local law, ordinance, regulation, or policy. I understand that I have
numerous, valuable rights under federal and state law, including rights under
the Age Discrimination Employment Act of 1967, as amended, 29 U.S.C. (S) 621, et
seq. which I am waiving by executing this Agreement. I also understand that in
order to waive these rights, I must make certain, affirmative representations
regarding those rights, and regarding the circumstances surrounding my execution
of this Agreement. In connection with this, by executing this Agreement, I
hereby certify that:
a. I am receiving valuable consideration under this Agreement to
which I would not otherwise be entitled;
b. I have been advised in writing to consult with an attorney prior
to executing this Agreement and I understand that I have the right to consult
with an attorney before executing this Agreement;
c. I have read this Agreement and I understand that it is a general
release of Delta and the other Released Parties from any past or existing Claim
or potential Claim that I may have against Delta or against any of the Released
Parties including any Claim or potential Claim relating to my employment
relationship with Delta, or termination of that relationship;
d. I have been given a period of up to forty-five (45) days in which
to consider whether to sign this Agreement and to consult with an attorney,
accountant, tax advisor, spouse, or any other person of my choosing. I certify
that I have either used this full forty-five (45) day period to consider this
Agreement, or I have voluntarily chosen to execute this Agreement before the end
of that period;
4
<PAGE>
e. I understand that all pilots currently employed by Delta, who
will be fifty years of age or older on or before [the first day of the month
following the month in which the window period ends], are eligible to
participate in Delta's Early Retirement Program. I have been given, in writing,
information as to the job titles and range of ages of all Delta Pilots who are
being afforded the opportunity to participate in Delta's Early Retirement
Program. That information is attached hereto as Attachment A. I have also been
given, in writing, information as to the job titles and range of ages of all
Delta pilots who are not being afforded the opportunity to participate in this
Program. That information is attached as Attachment B. I am aware that I may
review a complete list of the job titles and ages of all individuals eligible to
participate in Delta's Early Retirement Program by contacting June NeSmith at
(404) 715-6518. I have also been given, in writing, a disclosure as to the
eligibility factors and time limits applicable to the Delta Early Retirement
Program.
f. I understand that I have up to seven (7) days from the date I
sign this Agreement to change my mind and revoke this Agreement. To revoke this
Agreement, I must notify Delta of my wish to revoke through a signed statement.
This Agreement will not take effect until the eighth day after its execution,
but if not revoked within the seven (7) day period, this Agreement shall be
fully effective and enforceable thereafter.
7. I understand that I will receive the benefits available under the
Early Retirement Program only if I am employed as of the retirement date set
forth in the program.
8. I understand that this Agreement is governed by, and shall be
construed in accordance with, the laws of the State of Georgia. I further
understand that in the event that one or more of the provisions contained in
this Agreement shall for any reason be held invalid, illegal, or unenforceable
in any respect, that this shall not affect any other provisions in this
Agreement, but this Agreement shall be construed as if such invalid, illegal, or
unenforceable provisions had never been contained herein.
9. I understand that this Agreement sets forth the entire Agreement
between myself and Delta, and that no representations, statements, or
inducements have been made to me concerning this Agreement other than the
representations and statements contained and memorialized in this Agreement.
5
<PAGE>
IN WITNESS WHEREOF, the parties have executed this Agreement on the 29th
day of April, 1996.
-----------------------------------
EMPLOYEE
DELTA AIR LINES, INC.
By:
----------------------------------
Its:
---------------------------------
6
<PAGE>
DELTA AIR LINES, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
FOR NINE MONTHS ENDED MARCH 31, 1996 AND 1995
<TABLE>
<CAPTION>
EXHIBIT 11
(In millions except per share amounts)
1996 1995
------ ------
<S> <C> <C>
PRIMARY:
Weighted average shares outstanding 51 51
Additional shares assuming
exercise of stock options - -
------ ------
Average shares outstanding as adjusted 51 51
====== ======
Income (loss) before cumulative effect of
accounting changes $ (6) $ 43
Preferred dividends series C (60) (60)
Preferred dividends series B (6) (6)
------ ------
Income (loss) before cumulative effect of
accounting changes attributable to primary
shares (72) (23)
Cumulative effect of accounting changes - 114
------ ------
Net income (loss) attributable to primary shares $ (72) $ 91
====== ======
Primary earnings (loss) per share before
cumulative effect of accounting changes $(1.39) $(0.45)
Cumulative effect of accounting changes - 2.25
------ ------
Primary earnings (loss) per common share $(1.39) $ 1.80
====== ======
FULLY DILUTED:
Weighted average shares outstanding 51 51
Additional shares assuming:
Conversion of series C convertible preferred stock 17 17
Conversion of series B ESOP convertible
preferred stock 3 2
Conversion of 3.23% convertible subordinated
notes 10 10
Exercise of stock options - -
------ ------
Average shares outstanding as adjusted 81 80
====== ======
Income (loss) before cumulative effect of
accounting changes $ (6) $ 43
Interest on 3.23% convertible subordinated
notes net of taxes 21 23
Additional required ESOP contribution assuming
conversion of series B ESOP convertible
preferred stock (3) (3)
------ ------
Income (loss) before cumulative effect of
accounting changes 12 63
Cumulative effect of accounting changes - 114
------ ------
Net income (loss) attributable to fully
diluted common shares $12 $177
====== ======
Fully diluted earnings (loss) per common share
before cumulative effect of accounting changes $ 0.15 * $ 0.79 *
Cumulative effect of accounting changes - 1.43
------ ------
Fully diluted earnings (loss) per common share $ 0.15 * $ 2.22 *
====== ======
</TABLE>
- ------------
* Antidilutive
====== ======
<PAGE>
EXHIBIT 12
DELTA AIR LINES, INC.
STATEMENT
REGARDING COMPUTATION OF
RATIO OF EARNINGS TO FIXED
CHARGES
(In Millions except ratios)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
March 31, March 31,
1996 1995
------------- -------------
<S> <C> <C>
Earnings
(before cumulative effect
of acounting change):
Income (loss) $ (6) $ 43
Add (deduct):
Income tax provision 19 45
Fixed charges 446 502
Interest capitalized (20) (23)
Interest offset on
Guaranteed Serial (2) (3)
ESOP Notes
------ ------
Earnings as adjusted $ 437 $ 564
====== ======
Fixed charges:
Interest expense $ 204 $ 220
1/3 of rentals 240 279
Additional interest on
Guaranteed Serial
ESOP Notes 2 3
------ ------
Total fixed charges $ 446 $ 502
====== ======
Ratio of earnings to fixed charges - 1.12
</TABLE>
- ----------------------------------------------
Earnings for the nine months ended March 31, 1996 were inadequate to cover fixed
charges. Additional earnings of $9 million would have been necessary to bring
the ratio to 1.0.
<PAGE>
ARTHUR ANDERSEN LLP
EXHIBIT 15
To the Stockholders and
the Board of Directors of
Delta Air Lines, Inc.:
We are aware that Delta Air Lines, Inc. has incorporated by reference in its
Registration Statement Nos. 2-94541, 33-30454, 33-50175, 33-65391, and 33-52045
its Form 10-Q for the quarter ended March 31, 1996, which includes our report
dated May 6, 1996 covering the unaudited interim financial information contained
therein. Pursuant to Regulation C of the Securities Act of 1933 (the "Act"),
that report is not considered a part of the Registration Statements prepared or
certified by our firm or a report prepared or certified by our firm within the
meaning of Sections 7 and 11 of the Act.
Arthur Andersen LLP
- ---------------------
Atlanta, Georgia
May 6, 1996
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DELTA AIR
LINES, INC. FORM 10Q FOR THE QUARTER ENDED MARCH 31, 1996 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO THE RELATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<CASH> 1,056
<SECURITIES> 504
<RECEIVABLES> 1,100
<ALLOWANCES> 42
<INVENTORY> 60
<CURRENT-ASSETS> 3,132
<PP&E> 11,353
<DEPRECIATION> 4,768
<TOTAL-ASSETS> 12,111
<CURRENT-LIABILITIES> 3,736
<BONDS> 3,069
0
0
<COMMON> 165
<OTHER-SE> 1,669
<TOTAL-LIABILITY-AND-EQUITY> 12,111
<SALES> 0
<TOTAL-REVENUES> 9,095
<CGS> 0
<TOTAL-COSTS> 8,928
<OTHER-EXPENSES> 50
<LOSS-PROVISION> 10
<INTEREST-EXPENSE> 204
<INCOME-PRETAX> 13
<INCOME-TAX> 19
<INCOME-CONTINUING> (6)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6)
<EPS-PRIMARY> (1.39)
<EPS-DILUTED> (1.39)
</TABLE>
