TPA
Late yesterday we were successful in reaching an agreement in principle on an extension to the Transition and Process Agreement (TPA). We are currently converting the terms into proper LOA language so that the agreement can be formally considered by both the CAL and UAL MECs in the coming weeks. While the agreement still requires approval by both MECs to become effective, I am pleased that we were able to formulate solutions that provide benefit to both pilot groups and incentive to expeditious resolution of a JCBA.

In general, the agreement extends the terminable provisions until March 31, 2013 and modifies the base and domicile provisions to allow for bases in IAH (UAL); and SFO, DEN and ORD (CAL). These bases will be staffed on a voluntary basis or through existing special assignment provisions.

I am also pleased to report that the Company will provide additional reimbursement for ALPA merger related expenses in the amount of $3 million. As before, the amount agreed upon will be divided equally between the CAL and UAL MECs, on a 50-50 basis. As a result, and pending MEC approval, I anticipate delaying implementation of the merger assessment (initially announced for March) for approximately six months. If the assessment is needed at a later date, we will provide details at that time.

I will be holding a conference call with the MEC later this evening to discuss the agreement in principle, as well as the anticipated timeline for completion and consideration of the LOA. We will provide more information when it is prudent to do so.

CAL MEC Chairman