P. Douglas McKeen
Senior Vice President Labor Relations

June 8, 2012
VIA ELECTRONIC MAIL

Captain Jay Pierce
Continental Airlines MEC Chair Air Line Pilots Association
3803A World Houston Parkway Houston, TX 77032

Re:Status Quo Obligations and Preliminary Injunction Order

Dear Captain Pierce:

The Company is concerned about the risk of operational disruption attributable to s-CO pilots. We have observed an increase in sick leave which coincides with communications from ALPA imposing an artificial deadline of June 15 for completion of contract negotiations, incorrectly implying that negotiations would be at impasse absent agreement by that date, and inaccurately declaring that a release from the NMB leading to a right to strike is necessary absent agreement by that date.

The Company considers ALPA and the CO MEC’s communications (as well as the UAL MEC’s recent communications) to be a campaign designed to incite concerted pilot action if an agreement is not reached by mid-June. The constant drumbeat that these negotiations must be completed by June 15 is creating an environment ripe for concerted pilot action in the event that negotiations are not completed by that time.

Under the status quo obligations of the Railway Labor Act (“RLA”), ALPA and the CO MEC are required to refrain from inciting an operational disruption, and are required to take all reasonable steps within their power to prevent any interference with the Company’s operations. You also are undoubtedly aware of the injunction currently in place against ALPA resulting from its previous interference with the Company’s operations.

The Company has no interest in spending time in court, and strongly desires to move forward in negotiations in an expeditious and productive manner. We continue to meet with the assistance of the NMB and will continue to do so in an effort to reach an agreement. Because we must maintain operational integrity in order to protect the traveling public and to ensure the Company’s success and that of its employees, however, the Company will enforce its rights under the RLA if necessary.

We expect that you, the Continental MEC, and ALPA will immediately cease any communications imposing an artificial deadline of June 15 for completion of negotiations or inciting a change in pilot behavior, and will immediately take all reasonable steps to ensure that all Continental pilots perform normal pilot operations in compliance with the RLA.

Doug McKeen (Electronic Signature)

cc:
Arthur Luby, Esq.
Bruce York, Esq.
Michael Abram, Esq.
Mike Bonds
Fred Abbott
Jennifer Coyne, Esq.
Captain Lee Moak