DWN3GRN

Dear ALPA Member:

Pursuant to Article IX, Section 14D(2) of the ALPA Constitution and By-Laws, when the cash balance of the Major Contingency Fund (MCF) drops below $69 million in 2009, I am required to report on the status of the MCF to the membership on a quarterly basis. As of June 30, 2009, the MCF balance is below $69 million. The following is a report on the total income of the fund, the committed authorized allocations from the fund, the amount expended per authorization to date, and the balance of uncommitted money in the fund.

The MCF has experienced a year-to-date fair market value gain on investments totaling $3,071,923 through June 30, 2009. Also, the MCF has earned $746,809 in interest and dividend income and $8,756 in other income, and received a $75,000 contribution as a result of the merger with the AirTran pilots.

Current authorized commitments from the MCF and the amount expended to-date for MEC and project authorized allocations include:

MEC Authorizations
Committed
Expended
Remaining
Island Air MEC
$ 250,000
$ 0
$ 250,000
Air Canada Jazz MEC
$5,000,000*
$ 0
$5,000,000*
Alaska MEC
$5,000,000
$ 0
$5,000,000
AirTran MEC
$5,000,000
$ 0
$5,000,000
Continental MEC
$5,000,000
$ 225,292
$4,774,708
Astar Air Cargo MEC
$1,000,000
$ 0
$1,000,000
Hawaiian MEC
$2,000,000
$ 0
$2,000,000
Midwest Airlines MEC
$2,000,000
$ 14,578
$1,985,422
Pinnacle MEC
$2,000,000
$ 364,552
$1,635,448
Spirit MEC
$2,000,000
$ 67,024
$1,932,976
Trans States MEC
$2,000,000
$ 46,399
$1,953,601
United MEC
$5,000,000
$2,317,854
$2,682,146

Project Authorizations
Committed
Expended
Remaining
LAHSO
$5,000,000
$ 713,253
$ 4,286,747
Organizing Budget
$2,000,000
$ 418,707
$ 1,581,293
Operating Contingency Fund
$5,000,000
$3,063,808
$ 1,936,192




Total Remaining from Committed Funds
$7,231,467
$40,404,498 USD
*Amounts reported as Canadian dollar values



Ongoing Costs charged to MCF:
Year to Date Expenditures
Kitty Hawk Insurance Premiums
$ 749,000
Kitty Hawk Litigation Expenses
$ 3,080,060
SPSC Go Teams
$ 10,911
Strike Oversight Board Costs
$ 1,725

As of June 30, 2009:

MCF Fund Balance
$59,781,328
Committed Funds
$40,404,498
Uncommitted Funds
$19,376,830

As long as the MCF cash balance remains below $69 million, you will continue to receive this report on a quarterly basis pursuant to the ALPA Constitution and By-Laws. These reports will also be posted on the ALPA website.

Fraternally,
W. Randolph Helling
Vice-President–Finance/Treasurer

cc: National Officers
Executive Council