A. Permanent Changes:

A-1 Amend Sections, 3-B-7-a, 3-B-7-c, 3-B-8-a-(1), 3-C-1-a, 3-C-1-b, 5-B-1-d,
5-B-1-e, 20-D-4-b and 20-E-2 by replacing all references to sixty-five (65) hours
with seventy (70) hours.

A-1-a Amend Section 3-C-1 to reflect the following:
For unpaid absences known at the time monthly schedules are awarded,
the minimum monthly guarantee for line construction is reduced by 2.26
hours per day in a 31-day month and 2.33 hours per day in a 30-day
month. The maximum flight credit hours for line construction as defined in
Section 5-B-1-d is reduced by 2.9 hours per day in a 31-day month and
3.1 hours per day in a 30-day month. During monthly bidding the pilot
may elect not to have the maximum flight credit hours reduced.

A-2 Add a new provision 5-B-1-d-(1) to reflect the following: Notwithstanding
the maximum credit values of 5-B-1-d above, a lineholder may select a maximum
monthly PBS schedule construction limit of eighty-seven (87) credit hours on the
B747-400, B777 and B767 fleets and eighty-nine (89) credit hours on the B737-
300/500 and A320/319 fleets. This selection will be available to input in both the
pilot’s monthly and standing bids. No adjustments will be made to this modified
credit parameter for buffering purposes. The 87 hour limit will not apply on the
B747-400, B777 and B767/757 fleets if it would cause the pilot to be mathematically unblockable (i.e. mathematically impossible to award a line within
the selected window) as defined in Section 5-B-1-e.

A-3 The “LCO flex month” provisions are eliminated as follows: Eliminate
Sections 5-G-1-d-(3), 5-G-1-d-(3)-(a), 5-G-1-d-(3)-(b), 5-G-1-e-(1)-(c), 5-G-1-e-
(1)-(d), 5-G-1-e-(1)-(e). Amend Sections 5-G-1-d-(2), 5-G-1-d-(2)-(a), 5-G-1-e-
(1)-(b), 5-G-2-e-(2), 5-G-4 and 22-E-5 to remove reference to those Sections
eliminated and remove any references to “flex months”.

A-4 Add a new provision 11-K-1-g to reflect as follows: On or after December
1st of each vacation year, the Company may solicit volunteers to participate in the
vacation pay-out program. The Company will first solicit volunteers before
involuntarily paying out vacation in any category. The number of vacation days
so solicited for each category shall count against the Section 11-K-1-b pay out
limits. Notwithstanding Section 11-K-1-f, successful volunteers with remaining
unassigned vacation days will not be bypassed during the involuntary
assignment of monthly vacation. For any pilots volunteering vacation under this
provision, all vacation pay out rules must be complied with (e.g., 14-day limit,
legal splits, etc.).

A-5 Any pilot who has been issued a notice of furlough and is involuntarily
assigned a short-notice vacation (less than 60 days notice) as provided for in
Section 11-E-2-c, may choose to cancel all vacation days that fall within his last
thirty (30) days of employment. The pilot must notify the Company by the first day
of the pilot month preceding the month in which the vacation occurs, or within five
(5) days of receiving the vacation assignment, whichever is later.

A-6 Add a new provision 5-B-1-f to reflect as follows: PBS parameters will be
set to provide PBS constructed lineholder schedules with a minimum of one (1)
calendar day off at home domicile within every seven (7) consecutive calendar
days. This parameter shall apply between trips, between trips and reserve duty
and between trips and training of less than five (5) days. A lineholder may select
to not apply this parameter on a monthly basis or in his standing bid.

A-7 Reinstate LOA 93-02 (Trip trade with Open Time) in its entirety and paragraphs 1-a and 1-c through 1-g of LOA 96-01 (Schedule Flexibility).

B. Schedule Improvement Tests -

The category(ies) to be tested, the duration of such tests, and other test parameters must be mutually agreed upon between the Company and Association except as provided below.

B-1 Pairing Construction – the Company and SSC will test changes to
improve the quality of pairings. As a minimum, the parties agree to the following
tests:

B-1-a Limiting domestic published pairings to a maximum of four (4)
calendar days
B-1-b Basing rest requirements on the length of the duty day (rather than
basing rest on the amount of flight time), as described in Appendix A

B-1-c Modifying the QWL limits in LOA 00-20

B-2 PBS Line Construction - the PBS JIT will test changes to improve the
quality of lines. When JIT meetings are held, trip drops, if necessary, will be
Company-paid on a displacement basis for up to two (2) Association participants.
As a minimum, the parties agree to the following tests:

B-2-a Increasing the amount of unawarded flying permitted by PBS

B-2-b Expanding Section 20-D-2 to allow the Company to construct
additional lines out of open time after the initial monthly seniority-
based rundown is awarded

B-2-c Allowing a pilot to opt for a mandatory number of calendar days off
at home domicile if he exceeds a specified number of consecutive
days worked, with the numbers to be determined by the JIT

B-3 Trip Trade - The Trip Trade JIT will test changes to improve the trip trade
system. The JIT will function in accordance with the MOU dated September 21,
2007.

B-3-a As a minimum, the parties agree to the following:

B-3-a-(1) To investigate a procedure which would allow lineholders
to split trips in order to trade into or out of portions of trips

B-3-a-(2)To test relaxed coverage constraints in the seniority based
rundown, in conjunction with the PBS test described in paragraph

B-2-b above (i.e. building post award move-up lines)

B-3-a-(3) To improve the trip trade interface, to include the
consideration of using outside vendors.

B-3-b No later than six (6) months after this agreement is signed, the
Company will develop a new unimatic landing currency freeze code
that does not interfere with a pilot’s ability to trip trade.