XJT MEC Alert
January 2, 2013

Earlier today, the Company notified XJT ALPA of its intent to seek opportunities in which to introduce larger, two-class aircraft into the legacy ExpressJet fleet under Section 26 of our collective bargaining agreement. This section provides for an expedited negotiation process to determine terms and conditions for any new aircraft placed under our current contract.

While legacy ASA already has rates established for this flying, legacy ExpressJet does not. Establishing these rates will allow legacy ExpressJet pilots to partake in the RFPs currently in the market.

At this point we have only received initial notice from the Company and we will provide more information as we receive it. We expect negotiations to commence next week and will keep you informed on our progress. Under Section 26, negotiations must be concluded within 60 days. Following that, the contract provides for 20 days of mediation and an expedited arbitration process to resolve any remaining disputed items.