Wages & Duration
• 5% or 5.5% pay reduction
o 5% wage reduction to all pay rates except 60-76 seat Turbojet Captain rate
o 5.5% wage reduction to 60-76 seat Turbojet Captain rate
• 4-year duration if less than 79 aircraft
• 5.5 years if greater than 79 aircraft
Across the Board Increases and Wage Recovery
• Across the Board Increases
o DOS + 1 2.5%
o DOS + 2 2.5%
o DOS + 3 1.0%
o DOS + 4 1.5% or 3% (Duration based on fleet size)
o DOS + 5 2.0% or 3% (Duration based on fleet size)
o 1.5% Across the Board increases each year after until new Collective Bargaining Agreement(CBA) achieved
• Wage Recovery (In addition to ATB increases)
o Increases of 0.12% or 0.125% (76 seat jet) per aircraft
o Up to
- DOS + 1 0.0%
- DOS + 2 1.0% or 1.5% (76 seat jet)
- DOS + 3 2.0%
- DOS + 4 1.0%
o If we receive 36 or more additional aircraft full wage recovery would be achieved by DOS + 4
Seat Ranges
• All scales remain the same except:
o 60-69 seat Turbojet Captain Rate increased to 60-76 seat range
o Add pay scales for 19 and 20 Years of Service to 60-76 seat Turbojet Captain Rate
o 56-74 seat Turboprop rate paid at 40-59 seat Captain Turbojet Rate
Per Diem
• Frozen at $1.55 until DOS + 4
• $1.65 at DOS + 4 and thereafter
Uniform Allowance
• DOS $0.00
• DOS + 1 $0.00
• DOS + 2 $50.00
• DOS + 3 $75.00
• DOS + 4 $235.00
• $235.00 thereafter
Vacation
• All pilots with 2 or more weeks of vacation will forgo 1 week in 2007
Multi-Class Bids I & II
• One time contract relief
• Accounts for approximately 25% of our concessions
Health Insurance
• Increase premium share to 33% from 30%
• No changes to Plan 1 deductibles, co-pays, and out-of-pocket until Jan. 1, 2009
• Limits changes to deductibles, co-pay or max out-of-pocket to 5% annual increase or industry average
• Secure prescription plan in CBA
• Modify prescription drug coverage
o $10 co-pay generic
o $500 deductible for name brand
o $50 co-pay for name brand after $500 deductible met
o No coverage for name brand if generic is available
• Language more specific than current book added to CBA
Short-Term Disability
• Reduce benefits from 66.6% to 60%
Long-Term Disability and Loss of License
• Reduced benefits from 66.6% of wages to 60%
• Benefits based on years of service
o Less than 1 year of service 1 year of benefits
o 1-2 years of service 2 years of benefits
o 2-3 years of service 3 years of benefits
o 3 or more years of service benefit to age 65
Scheduling
• 1 year of CDO Deconsolidation (pre 2004 CBA rules)
o After 1 year return to CDO Consolidation
o Enhanced Integration rules
• Preferential Bidding System(PBS) after 1 year
o Improved PBS after 1 year or 60 total aircraft
Freezes
• 24-month Captain training freeze
o Returns to current book (12-month freeze) at DOS + 4
• 24-month freeze on move to equal or lower paying position
o Permanent
Voluntary Moving Expenses
• Suspend 2 weeks hotel and per diem until DOS + 4
Training Hotel Buy-Out
• Allow pilots to voluntarily receive one-half of hotel costs during Long-Term Training if they voluntarily forgo hotel during training
SAT Adjustment
• Initial one time adjustment of SAT times with activation of FMS/GPS
Miscellaneous Improvements
• Call In Honest policy improved
• Flex Spending Account Health Reimbursement increased to $6,000 annually
• Furlough Recall Rights improved
Provisions on Duration
• Open 6 months prior to amendable date
• Mediator to be utilized at either parties’ request
• 1.5% annual ATB raises each year after
Profit Sharing
• 20% of profits from 4% - 8%
• 25% of profits from 8% - 12%
• 30% of profits over 12%
• Shared with all Mesaba employees
• Paid in cash
• Suspend at Section 6 opener
Claim
• $14.2 million
• We receive the same percentage value as the Unsecured Creditors’ Committee receives
• To be paid out to the pilot group in a to-be-determined manner