Q There's still a disagreement between the two sides with regard to whether ALPA should be receiving any type of credit for agreeing to that -- for deletion of the minimum block hours; correct?

ALPA - Correct, there is value associated with that, and the company does not see that we should be credited with any value for agreeing to that.

Q And why does ALPA take the position that it should be credited with a value for agreeing to delete the minimum block hours?

ALPA - Well, the minimum block hours is basically the number of mainline block hours that Delta pilots are flying. And if there's a change to those minimum block hours, then the easy way to look at it is that those block hours will be flown somewhere else, and therefore, there's a value associated with the jobs of pilots that are flying those block hours.

Q Okay. And... why is it that ALPA believes that a credit should be provided to the pilots for agreeing to remove the plan percentage from the scope provision?

ALPA - The plan percentage is basically a balance between the flying the mainline pilots of Delta are doing relative to flying that's done at connection carriers and our other affiliate. And if we then remove this balance mechanism, it would allow more flying at a connection carrier versus less flying at the mainline. And once again, we had Delta pilot jobs that would be outsourced.

Q Now, let's go to item 3 on the term sheet under section 1. That's the minimum international flying designated flying levels?

ALPA - Correct.

Q Okay. And ALPA has agreed to remove that, but there's still a disagreement with regard to costing issues for that; correct?

ALPA That's correct.

Q Okay. And ALPA believes that a credit should be provided? ....

Q And when the company told you about this, it told you that it was a net number, that if -- for example, if $100 million worth of work were outsourced, work that had cost $100 million in-house, but it cost $50 million to be done outside, it was only giving the credit for the net, the $50 million improvement to the company?

ALPA - Correct.

Q Isn't that the way it was described to you?

ALPA - That the numbers are 300 million outsourced and a net of 150.

Q And when that work goes out from the company, real human beings lose their jobs; correct?

ALPA - Correct.

Q All right. Delta employees?

ALPA - As pilots would lose their jobs.

Q Well, how many pilots lost their jobs when the number of 70-seaters was increased flying at the Delta connection carrier in 2004?

ALPA There's 500 pilots furloughed.