MEC Update 28 August, 2015

In September 2013, the ALPA Executive Council passed a resolution requiring the continuation of the retro pay holdback, which was 5% of the first payment. This action was in accordance with Section 40.3.J.10.c. of the ALPA Administrative Manual. The Executive Council took this action because of the risks in a lawsuit and administrative charges brought by pilots against ALPA and the Company concerning one aspect of the allocation by both pre-merger MECs. The ALPA Executive Council recently discussed the holdback and concluded that circumstances had not changed to justify changing it at this time as litigation over the retro payment is still pending.

Lastly, you should know that the Company, not ALPA, maintains these holdback funds for future distribution, without accrual of interest. The Company has demanded that this holdback be maintained because it is also a defendant in the lawsuits.