Some initial info on the NWA TA:


Pay
Across-the-Board decrease of 23.9%
Across-the-Board decrease of 23.9%

Defined Contribution Plan
2006-07: 5%
2008: 6%
2009: 6.5%
2010: 7%
2011/thereafter: 8%

Equity
• Claims-based approach.
• ALPA claim of $888M
• Based on total claims pool of 5.1-5.6B
• Approximates 13.4% of claims before any dilution

Profit Sharing
Allocation: Percentage of W-2 Wages
Payout:
A. If the Company's pre-tax margin is less than or equal to 10%, the payout would be equal to 10% of pre-tax income (excluding unusual, special or extraordinary items) in excess of $1M.
B. If the Company's pre-tax margin is greater than 10%, the payout would be equal to:
(1) 10% of what pre-tax income (excluding unusual, special or extraordinary items) would have been if the pre-tax margin were 10% less $1M; PLUS
(2) 15% of pre-tax income (excluding unusual, special or extraordinary items) in excess of the pre-tax income amount if the pre-tax margin were 10%.

Success Sharing Performance Bonus Plan
The goals will be based on a metric or combination of metrics. Examples:
• On-time performance
• Customer satisfaction
• Financial measures
• Attendance
Pilot payout thresholds will be as follows: (as a % of W-2 wages)
• Threshold - .5%
• Target - 1.0%
• Maximum -1.25%
Payouts to be paid in March of the following year.

Monthly Maximums
DOS + 12: Range from 75-88 with 2 hour flex by position (1/2 hour increments up to 4 months per year).
After DOS + 12: Range from 80-88 with same flex.
Reduce Reserve Days Off to 12/11.
Reduce Pay for Full Month Sick in Flex Month.
Agree to discuss at a later time a procedure permitting a pilot to pick up open time to fill to the maximum and direct the remainder to the ALPA Bank.

Staffing
Eliminate open time in the monthly
schedule bidding process.

Monthly Guarantees
Blockholder: Reduce to 68 hours.

Crew Augmentation
Replace Captain Augment with First Officer Augment.

Pay Items
RIGs: 1 for 3.75 for all aircraft. Increase back of clock to 1 for 2.
Trip: Redefine "Hours Flown" to pay on a trip basis, rather than a flight basis.
Deadhead: 50% pay and 100% credit for deadheading. No turn off of negative bank flyback.

Layover Hotels
Eliminate "downtown" and "downtownlike" location requirements for domestic locations.

Vacation
Reduce Daily Vacation Rate to 2.8 hrs.

Sick Leave
Enhanced Sick Management program.
Reduce short term sick pay as follows for rolling 12 month period:
1st call – 100%
2nd call – 75% (100% with a doctor’s
excuse)
3rd and additional call – 75%
Downline calls paid at 100%
Sick call makeup permitted (pay, credit and number of calls).

Duration
12/31/10 or 12/31/11 depending on date of exit from C11.