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    LETTER OF AGREEMENTbetween

    AMERICAN EAGLE AIRLINES, INC.

    EXECUTIVE AIRLINES, INC.and theAIRLINE PILOTS

    in the service ofAMERICAN EAGLE AIRLINES, INC.

    EXECUTIVE AIRLINES, INC.as represented by

    THE AIR LINE PILOTS ASSOCIATIONINTERNATIONAL

    ______________________________________________________________________

    Preferential Bidding System (PBS)______________________________________________________________________

    THIS LETTER OF AGREEMENT is made and entered into in accordance with theprovisions of the Railway Labor Act, as amended, by and between AMERICAN EAGLE

    AIRLINES, INC. and EXECUTIVE AIRLINES, INC. (the Company), as represented bythe AIR LINE PILOTS ASSOCIATION, INTERNATIONAL(ALPAor the Association).

    WHEREAS this letter is intended to supplement and/or amend the PBS LOI whichremains in full force and effect, unless amended by this LOA.

    NOW THEREFORE the parties agree as follows:

    A. Definitions

    1. Administrator person from either the Company or the Associationpermitted by the PWG to use the PBS administrative interface.

    2. Credit valueunpaid virtual flight hours credited toward monthly creditwindow and threshold (ex: DTS days have an unpaid credit value of 3.75hours).

    3. Default Bid a standing bid created by each pilot that is used by the PBSif that pilot fails to enter bid preferences for a given month.

    4. Final Bid Award the PBS bid solution for an individual status in a givenmonth (e.g. the PBS bid solution for Dallas Captain Embraer (DCE) for thecontractual month of October, 2013).

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    5. Guaranteed Day Off (GDO) a day(s) off that a pilot selects adjacent tohis vacation DTS day(s). GDOs count towards a pilots minimum numberof days off and may only be used in association with DTS.

    6. Maximum Stack Height - a parameter in PBS that limits a stack after all

    pilots in the status are awarded a line.

    7. Monthly Metric targets and ranges established by the Company for useby ALPA Scheduling Committee members and Company schedulersduring the monthly pairing generation process.

    8. Pay credit valuepaid virtual flight hours credited toward monthlythreshold (ex: VC days have a pay credit value of 3 hours).

    9. PBS HotlineToll Free Number manned by ALPA representatives trainedon PBS who are available to answer questions and assist pilots with

    bidding, errors, and other PBS related questions. For a period of six (6)months from the date of implementation, the Hotline will be manned fromthe time the monthly bids open until the end of the error resolution period.Future Hotline scheduling will be determined by the PWG.

    10. Priority Stack Date (PSD) a designated date that is unstacked by PBSbefore the system unstacks any other date.

    11. Reduced Lower Limit (RLL) a regular line, outside of the normal biddingcredit window, with a value that is less than the lower limit of a pilots linecredit window. A pilots pay and guarantee will be based upon the value ofthe constructed line. Unless the PWG decides otherwise, the formula usedto determine the seniority range of the pilots eligible for being awarded anRLL in each status is determined by taking the previous three-monthaverage of the number of hard line holders in that status, adjusted by anysignificant change in block hours. An RLL may only be awarded to a pilotfor whom the system was not able to award a line within the creditwindow, is not on reserve, and who selected the RLL bid preference.

    12. Stack - the number of unawarded duty periods per day that remain in opentime at the end of a bid run.

    13. Threshold - a tool used to achieve a target credit value for each regularline determined monthly by the Administrator(s) performing the bid awardprocess by status in a bid period.

    14. Unstacking a tool in PBS that assigns open duty periods to pilots ininverse seniority order in such a way as to prevent a stack that is greaterthan the specified maximum stack height.

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    15. Vendor the software provider for the Preferential Bidding System,currently NavTech.

    B. Pilot Bid Preferences

    1. Only those bid preferences and waive options agreed upon by the PWGshall be used by or removed from the PBS.

    2. A complete list of pilot bid preferences to be used for bidding is attachedto this LOA as Appendix A. The PWG will determine the applicability of

    Appendix As bid preferences to be used after initial implementation aswell as any future bid preferences that may become available.

    3. The following waive options shall be included with the PBSs initialimplementation:

    a. A pilot may waive the prohibition against No Same DayPairings. If waived, the pilot must receive at least FAR minimumrest between sequences.

    b. Days off will be scheduled in blocks of at least two (2) consecutivecalendar days off within a block of seven (7) days, unless the pilotwaives this protection. If waived, he may be scheduled for one (1)calendar day off between duty periods.

    4. Paragraph 3. of the NYC Co-domicile LOA will be modified as follows:Each pairing operating out of an NYC co-domicile airport (both LGA andJFK) will begin and end at the same co-domicile airport. The bid option toaward or avoid flying solely out of either LGA or JFK will be available atimplementation.

    5. Any other bid preferences or waive options contained in Appendix A (or inthis Letter of Agreement) or those developed and agreed upon by thePWG that were not included in the PBSs initial implementation shallbecome operational as soon as practicable but no later than twelve (12)months from the date of initial implementation. After this period, the PWGwill meet as often as necessary to review updates and/or new rules for thePBS. Nothing in this paragraph will require the implementation ofadditional bid preferences or waive options or prohibit the delay inimplementation of such preferences and/or options if the PWG determinesthat it is not in the best interest of the PBS implementation to do so withinthe timeframe stated above.

    C. The Proration and Preplanned Absence Chart is attached to this LOA asAppendix B and shall be used for all scheduling purposes.

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    D. PWG Members and Duties

    1. The joint Company and ALPA PBS Working Group (PWG) establishedpursuant to the PBS LOI will continue to consist of up to five (5) Companyand up to five (5) Association representatives and their respective

    advisors. Representatives from the Company should includerepresentatives from employee relations and crew planning. TheCompany will agree to reasonable flight pay loss reimbursement to the

    Association for participation in the PWG.

    2. All decisions of the PWG will be by mutual agreement of the Associationand Company PWG members (excluding advisors) so long as the PWGworks cooperatively and efficiently within the limitations of the cost andtime limit parameters set by the Company, when making PBS decisions,(cost parameters may include but not be limited to costs regarding theimplementation of PBS functionality and/or pilot or crew planning

    productivity; time parameters may include but not be limited to meetingspecific dates for decisions that affect the implementation timeline). TheCompany IT manager(s) responsible for PBS implementation will meetwith the PWG to educate the members on any such time limits and costconstraints and will update the PWG regularly on PBS implementationprogress. Decisions of the PWG will be confirmed in writing.

    3. The PWG shall decide all issues of implementation, administration, andsubsequent modification to the PBS in accordance with this paragraph,with the exclusion of technical issues to include, but not be limited to,hosting of the application and the data, interface with the Flight OperationsSystem (FOS) or its equivalent, system security, and maintenance.

    4. All PWG members shall be provided with authority to interact with the PBSvendors representatives and will receive access to the vendors data thatis ordinarily provided to such carrier committees during the implementationprocess and system administration processes post-implementation. Thisincludes, but is not limited to, the system logic/algorithm and biddinglogic/interface.

    5. ALPAs PWG members shall be placed on Special Assignment (SA) forthe time period(s) required for them to fulfill their PWG duties each month.The Company will provide business travel passes and reimburse/fund the

    Association for the lesser of one hundred thirty (130) hours or the actualamount of FPL/SA used per month for the group. However, for the first six(6) months following PBS implementation, the Association will receive onehundred sixty-five (165) hours of FPL/SA per month. The ALPA PWGmembers responsibilities shall include but not be limited to assisting withpairing generation, running the bid awards, manning phone hotlines,

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    addressing PBS errors/disputes, attending to other PBS administrativeissues, and distributing informational publications.

    6. Bid awards will be completed at Company headquarters in a dedicatedspace for the Association until an alternate location is mutually agreed

    upon by the PWG but will be at Company headquarters for no less thanthe initial six months immediately following implementation. This includesaccess to Company headquarters and any necessary equipment.

    7. PBS software releases and updates affecting changes to biddingfunctionality will not be implemented until approved by the PWG.

    8. The Company shall ensure that a dedicated User Acceptance Testing(UAT) server is made available for use by the PWG. The Association andthe Company will have equal access to the UAT server.

    9. If an RFP is sent to PBS vendors in the future to determine whether thecurrent NavTech PBS should be replaced by another vendor, theAssociation will be engaged in the selection process to the same extent asin the current process that led to the selection of NavTech. However, if thePBS vendor is changed, the parties will meet and confer to determinewhether changes, if any, are required to this Letter of Agreement.

    10. This PBS Letter of Agreement is not an agreement or waiver permittingthe Company or Association to unilaterally make any change(s) to theBasic Agreement (e.g. if the PWG changes a rule for one status, thatdoesnt mean it applies to other statuses nor does it continue beyond thatmonthly bid solution). The PWG may waive portions of the Schedulingrules contained in the Basic Agreement it deems necessary for producinga satisfactory bid solution. If the PWG desires to have a waiver remainbeyond a particular monthly bid solution, it may only do so with theconsent of the MEC Chairman.

    E. Contract Changes to the Basic Agreement

    1. Scheduling

    a. Monthly scheduling bid packets shall be distributed electronically.The Company shall also make available in each domicile pilot crewroom a reasonable number of printed bid packets as determined bythe PWG.

    b. The Company shall ensure that pilots who are ineligible to passthrough Canadian immigration are not awarded pairings operatinginto Canada. In such instances, the PBS shall consider the pilot as

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    ineligible to operate such a pairing and will award another pairing(s)that complies with his bid preference(s).

    c. The PBS shall honor the minimum experience requirements of FAR121.438 (a) and prohibit two (2) pilots over age 60 (FAR 121.383

    (d)(2)) from flying together internationally by awarding anotherpairing(s) to a first officer based upon his bid preferences. Theprovisions in Section 11.R.1. and R.2. of the collective bargainingagreement shall only apply to CDO lines of time that are awardedoutside of PBS.

    2. Line Construction

    a. RLL may be voluntarily bid by any pilot. The PWG will determinethe applicable credit range and number of awarded lines, if any, perstatus, for the RLL. RLLs will be authorized for use each bid month

    unless the PWG agrees otherwise. Only pilots selecting the RLLoption may be awarded such a line.

    b. A pilot may waive the ninety-one (91) hour max bid line value(Modify Section 10.D.2.). A pilot indicates his desire to waive thisprotection by bidding Max in the credit window.

    c. If the company builds CDO pairings, they will be offered for bid aslines of time prior to the PBS awarding process. CDO lines of timewill be published electronically. The Company may junior-assignany CDO lines of time which go un-bid in each respective statusduring this process. This junior assignment will be processed ininverse seniority order following the awarding of PBS lines of time.

    d. CDOs may be awarded to pilots in lines of times outside of PBS inaccordance with the following:

    1. A pilot holding a CDO line of time will receive no less thanthree (3) consecutive calendar days off following a CDO orblock of consecutive CDOs, including the day of arrival. Theday of arrival will not count towards a pilots minimum eleven(11) days off, and

    2. If a pilot completes a CDO assignment (inclusive of a ReadyReserve shift thats used for the purpose of covering CDOsequence(s)), then:

    a. He may be released to rest for the remainder of thecalendar day; or,

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    b. If he is a reserve pilot, he can be immediately givenanother assignment for that night in accordance withthe following:

    1. The pilot may be assigned another CDO; or,

    2. The pilot may be assigned a regular overnightfollowing a minimum of twelve (12) hours ofrest, but his duty day on the day following thisregular overnight will be no more than eight (8)hours. Such pilot must notify crew schedulingno later than one (1) hour after the start of hisduty day following the regular overnight that heis limited to an eight (8) hour duty day.; or,

    3. The pilot may be assigned to a Ready Reserve

    shift for the purpose of covering CDOsequence(s).

    4. No other flying will be assigned to the pilot onthis calendar day.

    c. If the pilot performing the CDO is a line holder and isgoing into at least three (3) days off, then he can pickup Open Time in accordance with the following:

    1. He may pick up a CDO as Open Time thatdeparts on that same calendar day; or,

    2. He may pick up a regular overnight thatdeparts on that same calendar day following aminimum of twelve (12) hours of rest, but hisduty day on the day following this regularovernight will be no more than eight (8) hours.Due to FOS limitations, a pilot picking up ortrading into such trip using automation agreesto waive this limited duty day restriction.

    a. If Crew Scheduling assigns additionalflying to a line holder who has picked upOT on a day off that should be limited toeight (8) hours of duty pursuant to thisparagraph and the additional flying isscheduled to exceed the eight (8) hourlimitation then, when he is notified of theadditional flying, such pilot will have the

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    option to advise Crew Scheduling thatdue to the eight (8) hour duty limitationhe elects not to perform the flying. If thepilot does not advise Crew Schedulingof his election to not perform the flying,

    he will be expected to complete suchthe additional flying and will be paid theinvoluntary premium.

    d. Delete Section 10.C.1.d., Q&A 10-6.

    e. Delete Section 10.D.4.. Sections 10.D.1., 3., and 5. will only applyto CDO lines of time awarded outside of PBS.

    f. Modify Section 10.E.1. to the following: Should a pilot be awardeda schedule which contains a trip sequence that continues into the

    next bid period, the pilot will complete the trip sequence. Section10.E.2. will only apply to CDO lines of time awarded outside ofPBS.

    g. Section 11.D. referencing schedule conflict resolution during thetransition period will only apply to CDO lines of time awardedoutside of PBS.

    3. The Company cannot withhold Open Time flying from the PBS bid awardprocess, without consent from the PWG (Modify Section 11.F.).

    4. Reserves

    a. A separate (from PBS) monthly bid process will be implemented toallow pilots who have reserve days awarded through PBS turnedinto Standby shifts. Pilots will be awarded preferences forparticular Standby shifts (e.g., S1, S2, etc.) in seniority order.

    b. Unless otherwise agreed to by the PWG, only concurrent reservebidding will be used for the awarding of reserve schedules.

    5. Training

    a. If a pilots training schedule is changed or cancelled after thefinalized monthly bid award is published his awarded schedule willbe adjusted as follows;

    1. If the pilot was awarded a line, the Company may add opentime on the days he was originally scheduled for training (ortravel to training). He will receive the contractual minimum

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    days off for the month and will be paid the greater of the linehe was originally awarded, the reconstructed line, theminimum line guarantee or what he actually flies. Shouldthere be insufficient open time available to construct acomplete line, then;

    a. The pilot will have the choice of having reserve daysadded on the days he was originally scheduled fortraining (or travel to training) while respecting hispreference(s) for days off; or

    b. The pilot may elect to retain his originally awardedmonthly schedule with a reduced guarantee equal tothe value of his pay credits.

    2. If the pilot was awarded a reserve line, the Company may

    add reserve days on the days he was originally scheduledfor training (or travel to training) respecting his preference(s)for days off. He will receive the contractual minimum daysoff for the month and will be paid the greater of seventy-five(75) hours or what he actually flies. Alternatively, the pilotmay elect to retain his originally awarded monthly schedulewith a reduced guarantee equal to the value of his paycredits.

    b. Modify Section 3.M. so that a pilot is paid 78 hours or the paidhours reflected on his final bid award, whichever is greater, for hisfirst month of training and 75 in each subsequent month. Travel totraining will be entered as a planned absence with the appropriatepay credit. This credit shall be applied towards the pilots adjustedmonthly guarantee if within a month containing training.

    c. The company will begin the process of implementation ofNavTechs function of allowing pilots to bid forAQP recurrenttraining (CQ) within one (1) year from implementation of PBS.

    d. A pilot who is not assigned a travel day prior to recurrent (CQ inAQP) training will be scheduled to receive fourteen (14) hours freefrom duty prior to the start time of his training.

    6. Vacation

    a. DTS

    1. A pilot holding a line of time may utilize up to four (4) unpaidDTS days and up to two (2) GDOs adjoining his vacation for

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    each vacation block, including vacation blocks that begin inone month and end in the next. Four (4) DTS days are themaximum allowable within a contractual month if a pilot hastwo (2) or more vacation blocks in that month that areconsecutive. A pilot may only use GDOs if he elects to use

    DTS.

    EXAMPLE: A pilot may request, and the company willprovide, two (2) DTS days at the beginning of his vacationblock and two (2) DTS days at the end of his vacation block.

    EXAMPLE: A pilot may request, and the company willprovide, four (4) DTS days at either the beginning or end ofhis vacation block.

    EXAMPLE: A pilot may request, and the company will

    provide, one (1) DTS day at the beginning of his vacationblock and two (2) DTS days at the end of his vacation blockor two (2) DTS at the beginning of his vacation and one (1)DTS day at the end of his vacation block.

    EXAMPLE: A pilot may request, and the company willprovide, two (2) DTS days at either the beginning or the endof his vacation block or one (1) DTS day at the beginning ofhis vacation block and one (1) DTS day at the end of hisvacation block.

    EXAMPLE: A pilot may request, and the company willprovide, any combination of up to four (4) DTS days and two(2) GDOs at the beginning, end, or any combination thereof,surrounding a pilots vacation block.

    EXAMPLE: A pilot may request, and the company willprovide, up to four (4) DTS days and two (2) GDOs for avacation block in the first week of the month and up to four(4) DTS days and two (2) GDOs for another vacation blockin the fourth week of the same month.

    2. A pilot must notify the Company if he desires to utilize DTSand GDO day(s) no later than two (2) days following themonthly vacation award process. The DTS and GDOawarding process will be available upon implementation ofPBS and will be fully automated within ninety (90) days ofimplementation.

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    3. DTS days are days off above a pilots minimum days off andvacation days and do not count towards proration of days offwhich occurs with vacation.

    4. Modify Section 8.I.J. to comply with these rules.

    b. Vacation Slide

    1. A pilot may choose how many days to slide his vacationblock and whether to slide before or after his awardedvacation start date.A pilots slide preferences are subject tothe awarding logic of the PBS.

    2. Reserves will be treated the same as line holders for thepurposes of how many days a block of vacation may be slid.

    3. Modify Sections 8.I.G., 8.I.H., and 8.I.I.1. to comply withthese rules. A pilot may choose DTS or vacation slide butnot both.

    c. A pilot may waive his vacation up to twenty-four (24) hours prior tothe opening of the monthly bid window in order to have tripsawarded over the vacation block. A pilot who waives his vacationwill be paid three (3) hours per vacation day at one-hundred (100)percent for vacation plus the value of the trip awarded at one-hundred (100) percent and in accordance with Section 3.F.

    d. Section 8.I.B.1.a. will only apply to CDO lines of time awardedoutside of PBS.

    e. Modify Section 8.I.B.2. so that reserves are deducted 3 hours perday of vacation from their PTO.

    f. Delete Section 8.I.N.1.

    g. Except as otherwise provided in accordance with the proration tablein Appendix B, days off will not be awarded in a vacation block.

    7. General

    a. The Company shall pay all fees associated with the PBS.

    b. Pilots will be supplied with a PBS login that is accessible via aninternet connection (outside of the company network). TheCompany will provide any desktop, mobile device, or equivalentprogram for personal use that is supported by the vendor. If such

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    program is not available within six (6) months from the date of initialimplementation of PBS, the Parties will meet and confer todetermine any viable alternatives.

    c. The opening screen of the NavTech bidder interface will have a

    hyperlink to Eagle.ALPA.org.

    d. If the Company is offering Reduced Block (part-time) and/or zero-time lines, they will be awarded in seniority order in status and inaccordance with Section 10.G.

    e. Pilots with expiring passports and medical certificates will beallowed to participate in the monthly PBS process but may besubject to disciplinary action and loss of pay if passports and/ormedical certificates are not current by the first day of the followingmonth.

    f. Delete all contractual references to Composite and Relief lines.

    g. Replace Section 11.C.5 with the following: For a pilot returning fromany type of leave of absence, there is no prohibition on the pilotsability to bid for a monthly schedule so long as he is projected to bequalified and available for at least one (1) day in the month he isbidding for. This provision will not apply to the projected date that apilot is scheduled to finish long term (QC) training.

    h. Trades, between crew members and/or Open Time, drops, and pickup of Open Time either processed manually or through TTOT, thattouches flying during the last six (6) days of the month, will beblocked from the start of the bid award process at noon Central ofthe seventeenth (17th) until the final awards have been posted atnoon Central of the twenty-third (23rd ) day of the month.

    i. The Company will not change or cancel a pilots preplannedabsence(s) scheduled in the next bid month from the time themonthly bid window opens to the time the finalized monthly bidawards are published unless the company and the affected pilotmutually agree otherwise. However the Company may assign apilot to long term training (and QC in AQP) that commences in thecurrent month in accordance with the provisions of Section 17.C.

    F. Administrative Settings

    1. The Company will manage parameter settings related to staffing and theAssociation will manage parameter settings related to bid line quality.

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    Unless otherwise written herein, only the PWG may alter settings andparameters contained in the administrative interface.

    2. The monthly line credit window will be a range from sixty-eight (68:00) toninety-eight (98:00) hours. Section 3.D. will be modified such that a pilots

    monthly minimum guarantee will be the total pay credit value of hisawarded bid line, subject to the adjustments of Section 3.F. CDO lines oftime awarded outside of PBS will have a minimum line guarantee ofseventy-two (72:00) hours.

    a. The credit window will be divided into the three (3) following creditsections with the values shown below for the initial bid run:

    Max: 85:00 98:00Norm: 72:00 89:00Min: 68:00 76:00

    A pilot will not be awarded a line whose credit value falls outside ofthe Norm credit section unless he elects Min or Max on his monthlybid ballot. Each month the PWG will determine if any modificationsare necessary to the credit sections. If the PWG modifies the Normcredit section to be less than seventy-two (72:00) hours for astatus, then the Min credit section must be set at a range lowerthan the bottom of the Norm credit section. All pilots in that statuswith a Norm credit award will receive a minimum line guarantee ofseventy-two (72:00) hours. All pilots in the Min credit section willreceive a minimum line guarantee of sixty-eight (68:00) hours.However, if the PWG posts a modified Min credit section prior tothe opening of monthly bidding, a pilot bidding in the Min creditsection will have a minimum line guarantee that is no less than thebottom of the new, adjusted Min credit section.

    b. The threshold for the Norm credit section for the initial bid solutionrun for each status will be set to the bottom of the credit section (i.e.72:00). If no acceptable solution is able to be produced with thisthreshold, then the Association Administrator(s) will determine theappropriate threshold setting to be used in order to find anacceptable solution subject to the PWG and with the understandingthat reserve targets must be met.

    3. Notwithstanding paragraph E.3. above, the percent of residual Open Timeallowed by PBS after the completion of any bid award must be minimaland fall within a range of zero percent (0%) and three percent (3%).However, a solution(s) will not be modified to achieve a residual OpenTime percentage to be less than one percent (1%). The Min Open CreditPercent administrative parameter will not be used.

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    4. The Company will place all known absences into a pilots schedule so thatthey are visible in that pilots PBS user interface no later than the time themonthly bid window opens.

    5. The priority stack date administrative function will only be used with theconsent of the PWG with the understanding that reserve targets must bemet. Any date(s) used as a priority stack date will be made a CriticalCoverage day in accordance with Section 3.I.3. for that status.

    6. Identifying information of pilots affected by Avoid Employee Number orany other bid preference of similar effect, will be available to the PBS

    Administrators but will not be made public. In addition, the fact that a pilotis avoided by another pilot will not be used by the Company to initiate orsupport any disciplinary action(s) against either pilot.

    7. Stack heights will not be utilized unless a solution approved by the PWGcannot otherwise be created.

    8. All initial solutions will be run without reserve constraints set in theadministrative interface. Reserve staffing will be determined by the

    Company based on historical information and operational requirements.

    9. The PWG will review and determine the Rules contained in Appendix A.

    G. Bid Run Process/Timeline

    1. Limit bid run window to three (3) days only.

    2. Incorporate bidding timeline Appendix C.

    H. Error/Dispute Resolution

    1. A pilot must report a potential PBS bid award error via the PBS Hotline oremail to [email protected] within three (3) calendar days of the bid awardspublication.If the error is not brought to the PBS Hotlines attention withinthree (3) calendar days of the bid award, the Company will not be requiredto fix the error.

    2. If the PBS Hotline determines that a PBS bid award error has occurred,they will correct the error. Corrections may include finding similarreplacement flying or adjusting days offto correspond with the pilots bidpreference(s). Pay and days off will be protected. A pilot who should havebeen awarded a line will not be assigned to reserve.

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    3. If the PBS Hotline determines that a PBS bid award error has notoccurred, but the pilot does not agree with that determination, the pilotmay request that the PBS Hotline raise the issue with the PWG for a finaldetermination. Such final determination will not be subject to the grievanceprocedures outlined in Sections 20 and 21. The PWG may consult with the

    vendor if they deem it necessary.

    4. If the PWG is unable to reach a final determination, the pilot may file agrievance.

    I. Pairing Generation Process

    1. The Company will control the allocation of flying to a domicile. TheAssociation will participate in the pairing generation process in conjunctionwith Crew Planning.

    2. The Company will establish a monthly metric to be used by theAssociations scheduling representatives and company planners. Thismetric will be used in creating pairings and to determine the target rangerequirements for the pairing solution. Ifthe Associations suggestedpairing solutions meet the Companys performance metric target ranges,to include but not be limited to, productivity, block hours per day, TAFBhours, deadhead time, total pilots required to fly the schedule, and thesolution can be completed within the time limits required to meet themonthly bid process at no additional expense to the Company, then the

    Associations solution will be used. If theAssociations suggested pairingsolutions meet, to a great extent, the Companys targets listed above, the

    Associations solution will be given serious consideration.

    3. The Company shall not build pairings lasting more than four (4) days inlength unless waived by the ALPA Scheduling Committee for a particularmonthly bid solution.

    4. The Company will provide the Association with one (1) extra license to theAOS Optimizer software, or its replacement, in addition to that provided byLetter 09-04, to be effective no later than 1/1/14.

    5. When data pulls are performed for pairing generation, that data shall beprovided electronically to the Associations scheduling representatives nolater than the end of that business day.

    6. This Paragraph I. will become effective within thirty (30) days of theratification of this Letter of Agreement.

    J. PBS Trainer Training

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    1. The Company will arrange for the vendor to train the parties in using andadministering the system and will also train the Associations PBS trainers.The Associations trainers will train the pilot group in using the vendorssystem.

    2. At least three (3) ALPA PWG members (designated by the MECChairman) will receive the same PBS vendor-provided training asprovided to management in utilizing the software and its administrativefunctions. All PWG members must serve a one-year commitment to thePWG. When a trained ALPA PWG member vacates his position on thecommittee, the Company will provide vendor training for his replacement.

    3. A maximum of twenty-five (25) Association PBS trainers will be placed onSA, with reasonable flight pay loss, to provide pilot training. If there is aninsufficient number of Association PBS trainers assigned to providetraining at their awarded base, the Company will provide positive space

    travel and lodging for other Association PBS trainers to provide thenecessary training. This training will start prior to the first parallel bidprocess month and will continue for three (3) bid periods after finalimplementation.

    K. Pilot PBS Training (Current pilots and new hires)

    1. The Company will provide initial PBS training to all active status pilotsprior to the PBS implementation. Pilots returning to active status and newhire pilots will receive PBS training as part of their basic indoctrination orrequalification training class. After implementation, PBS training will beincluded in each recall or new-hire class.

    2. All pilots who participate in initial PBS training will be compensated .3hours at their applicable hourly rate.

    3. The PBS training facilities, curriculum, and materials will be paid for by theCompany and developed by the PWG with coordination from the vendor,and:

    a. will provide a comprehensive overview of PBS to each pilot.

    b. will consist of classroom training and/or online training that utilizesthe most recent editions of:

    1. the PBS training CD2. the PBS Users Manual, and3. the PBS Quick Start Guide

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    4. Classroom training provided by the company will not occur on a pilotsdays off, unless requested by the pilot.

    L. Beta Testing / Parallel Bidding / Implementation

    The parameters set for parallel testing will be the same used for actual livebidding. Otherwise what the parallel shows and what the pilots get post-testingwill not look the same.

    M. Unless specifically modified by the provisions of this Letter of Agreement, allprovisions of the collective bargaining agreement, effective January 1, 2013,remain in full force and effect. Upon reaching final agreement of the PBS LOAlanguage, the company and the Association will review the collective bargainingagreement for any remaining contract language that is in conflict with thisagreement and make any required edits or deletions.

    This LETTER OF AGREEMENT shall become effective on the _____ day of _____,2013 and shall remain in full force and effect concurrently with the Agreement.

    FOR THE FORAIR LINE PILOTS ASSOCIATION THE COMPANIES

    ____________________________ __________________________Lee Moak Dan GartonPresident President American Eagle Airlines

    ____________________________ __________________________Anthony Gutierrez Jim WinkleyMEC Chairman Vice President Flight Operations

    __________________________Pedro FabregasPresident Executive Airlines