LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WITNESSETH: The parties recognize that the compliance with the terms of this Agreement and the development of a spirit of cooperation is essential for mutual benefit and for the purpose of this Agreement. THEREFORE, it is mutually agreed:

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TABLE OF CONTENTS

SECTION PAGE

1 Recognition and Job Security .......................................................................................1.1 2 Definitions .....................................................................................................................2.1 3 Compensation ...............................................................................................................3.1 4 Minimum Pay Guarantees ............................................................................................4.1 5 Traveling Expenses.......................................................................................................5.1 6 Moving Expenses..........................................................................................................6.1 7 Vacation ........................................................................................................................7.1 8 Deadhead......................................................................................................................8.1 9 Miscellaneous Flying.....................................................................................................9.1 10 Transfer to Non-Flying or Supervisory and Return to Line .........................................10.1 11 Training and Testing ...................................................................................................11.1 12 Hours of Service..........................................................................................................12.1 13 Leaves of Absence......................................................................................................13.1 14 Sick Leave...................................................................................................................14.1 15 Physical Standards .....................................................................................................15.1 16 (Intentionally Left Blank) .............................................................................................16.1 17 Prisoner, Hostage or Hijacking Benefits .....................................................................17.1 18 (Intentionally Left Blank) .............................................................................................18.1 19 Investigation and Discipline ........................................................................................19.1 20 Grievance Other Than Discipline or Dismissal ...........................................................20.1 21 System Board of Adjustment ......................................................................................21.1 22 Seniority ......................................................................................................................22.1 23 Reduction in Force, Furlough and Recall ...................................................................23.1 24 Promotions and Filling of Vacancies...........................................................................24.1 25 Scheduling ..................................................................................................................25.1 26 General .......................................................................................................................26.1 27 Insurance ....................................................................................................................27.1 28 Retirement...................................................................................................................28.1 29 Agency Shop and Dues Check-Off .............................................................................29.1 30 (Intentionally Left Blank) .............................................................................................30.1 31 Duration.......................................................................................................................31.1 LETTERS OF AGREEMENT

1 Letter of Agreement – Continuous Duty Overnights 2 Letter of Agreement – Retroactive Pay 3 Letter of Agreement – Management Return to Line Flying 4 Letter of Agreement – New Aircraft Bid 5 Letter of Agreement – Jet Pay Rate Formula 6 Letter of Agreement – Alcohol Testing 7 Letter of Agreement – Attendance Policy 8 Letter of Agreement – Cancellation vs. Extension 9 Letter of Agreement – Latest Available Deadhead 10 Letter of Agreement – Sick for Junior Man 11 Letter of Agreement – Additional Furlough Protection 12 Letter of Agreement – Management Rights/ALPA Leave Resolution 13 Letter of Agreement – Personal Leave of Absence 14 Letter of Agreement – Voluntary Defined Furlough Program 15 Letter of Agreement – Pilot Pay Procedures 16 Letter of Agreement – Piedmont Small Jet Restructuring Agreement 17 Letter of Agreement – Funding of the Short Term Disability Bank 18 Letter of Agreement – Interest Arbitration Agreement 19 Letter of Agreement – Merger of Allegheny Airlines into Piedmont Airlines

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20 Letter of Agreement – Original Fence Agreement 21 Letter of Agreement – Allegheny and Piedmont Merger Committees Agreement 22 Letter of Agreement – Uniform Hat Policy Change 23 Letter of Agreement – Expedited Arbitration of Selected Cases 24 Letter of Agreement – Line Operations Safety Audit (LOSA) APPENDICES

Appendix A, Piedmont Airlines Pilots’ Seniority List Appendix B, Approved Contract Carriers Appendix C, Company Health Plan Waiver

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SECTION 1

RECOGNITION AND JOB SECURITY A. Recognition

1. In accordance with certification No. R-5507 by the National Mediation Board, dated November 7, 1984, the Company recognizes the Association as the duly designated and authorized collective bargaining representative of the pilots employed by the Company for the purpose of the Railway Labor Act, as amended. Nothing in this Agreement shall be construed to limit or deny any pilot hereunder or the Company any rights or privileges to which he or it may be entitled to under the Railway Labor Act, as amended.

2. The Association and the Company hereby adopt this collective bargaining agreement

(including all related letters of agreement between the Company and the Association). All such agreements are collectively referred to herein as the “Agreement.”

B. Scope

1. Except as provided in paragraphs 1.B.2. and 1.B.3. below, all present and future flying of any form performed in and for the service of the Company shall be performed by pilots on the Piedmont Airlines Pilots’ Seniority List in accordance with the terms and conditions of the Agreement. The phrase “present and future flying of any form performed in and for the service of the Company” includes without limitation all such flying (1) on the Company’s aircraft (whether leased or owned), or (2) under the Company’s operational control, including wet leases and contracting for other carriers or entities (government, military or commercial), but does not include dry leases to other carriers or entities.

2. Notwithstanding paragraph 1.B.1. above, the Company may assign or contract out

revenue flying for a period not in excess of ninety (90) days during the term of this Agreement if (a) such conduct is necessary to accomplish the needs of the service of the Company, and (b) the Company does have sufficient aircraft or pilots available to perform the revenue flying assigned or contracted out, and (c) no Company pilot is furloughed as a result of such contracting out of revenue flying.

3. Notwithstanding paragraph 1.B.1. above, the Company may enter into aircraft

interchange agreements with other carriers if such interchange agreements do not result in the furlough of any of the Company's pilots.

4. The Company shall not create or acquire an "alter ego" to avoid the terms and conditions

of the Agreement. C. Furlough Protection

1. No pilot on the Piedmont Pilots Seniority List as of May 16, 2000 shall be furloughed,

except as may be otherwise provided in Section 1.C.2., below. 2. The Company shall be excused from compliance with the provisions of Section 1.C.1.,

above, and the attached Letter of Agreement titled “Additional Furlough Protections”, to the extent that a circumstance over which the Company does not have control is the cause of such noncompliance. The term “circumstance over which the Company does not have control” means a natural disaster, a work stoppage by a union-represented employee group at the Company or at an air carrier whose designator code the Company utilizes in holding out its services to the public, grounding of a substantial number of the Company’s aircraft by a government agency or by voluntary action of the Company for safety reasons in lieu thereof, which in either case could not be avoided or cured by the

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Company; reduction in flying operations because of suppliers being unable to provide sufficient critical materials for the Company’s operations, revocation of the Company’s operating certificate(s), war emergency, or the Company being unable to retain or obtain, at the time of a scheduled lease termination, sufficient aircraft to utilize all pilots protected from furlough (either through re-lease of the aircraft, or lease or purchase of the same or a similar aircraft-type) except at unreasonable cost (based on the market at the time the sufficiency issue arises).

D. Successorship

1. The Company shall require that a successor (including, without limitation, any merged

company or companies, or any assignee, purchaser, or transferee of the Company), agree to be bound by all the terms of the Agreement as a condition of any transaction that results in a successor, and the provisions of this Agreement shall be binding upon any successor or merged company or companies unless or until changed in accordance with the provisions of the Railway Labor Act, as amended. Any transaction wherein a successor emerges shall be deemed a “Successorship Transaction.”

2. In the event of a Successorship Transaction in which the Successor is an air carrier, or

any person or entity that controls or is under the control of an air carrier, the Successor shall provide the Company’s pilots with a fair and equitable seniority integration with the Successor’s pilots as provided in Sections 3 and 13 of the Labor Protective Provisions specified by the Civil Aeronautics Board in the Allegheny-Mohawk merger (“Allegheny-Mohawk LPPs”), except that the integration of seniority lists of the respective pilot groups shall be governed by Association merger policy if both pilot groups are represented by the Association.

3. Upon the announcement of a Successorship Transaction, or any other transaction which

will or may result in the acquisition of another carrier by the Company or the consolidation of the Company with another air carrier, the parties will meet promptly to negotiate an appropriate fence agreement and/or to implement a seniority integration process as described in paragraph 1.D.2., above. During the period between the announcement of any transaction described in the preceding sentence and the earlier of (1) agreement between the parties on a fence agreement, (2) a completed and implemented seniority integration, or (3) the operational merger, no pilot who is furlough-protected pursuant to paragraph 1.C.1., above, and/or the attached Letter of Agreement titled “Additional Furlough Protections” (notwithstanding the exceptions contained in paragraph 1.C.2., above), will be furloughed as a result of such transaction.

4. The Company shall provide the Association forty-five (45) days notice of its intent to enter

into a Successorship Transaction. Such notice shall include the details of the Successorship Transaction, including documentation of the Company’s compliance with the requirements of this Agreement.

E. Other Protections – Asset Transfer

1. In addition to all other protections under this Agreement, if, within any twelve (12) month

period while the Agreement remains in effect, the Company sells, or transfers aircraft assets which, net of asset purchases or acquisitions during the same twelve (12) month period, constitute twenty percent (20%) or more of the aircraft of the Company (the closing of any such transaction(s) which alone or in the aggregate satisfy the aforesaid percentage being referred to as a “Triggering Event”), then:

a. The Company will give the Association a minimum of fifteen (15) calendar days

notice of a Triggering Event that involves: any person or entity that is an air carrier or that will operate as an air carrier following the Triggering Event (a

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“Transferee”); any person or entity that controls an air carrier or that will control an air carrier following the Triggering Event (a “Transferee”); any person or entity that is under the control of an air carrier or that will be under the control of an air carrier following the Triggering Event (a “Transferee”). At that time, the Association shall determine, in its sole discretion, whether or not pilots from the Piedmont Pilots Seniority List (the “Transferring Pilots”) shall transfer to the Transferee(s) or the air carrier(s) affiliated with the Transferee(s), and shall notify the Company of its election within seven (7) calendar days following such notice.

b. The number of Transferring Pilots shall be determined by calculating the average

pilot staffing on a monthly basis over the prior twelve (12) months attributable to the aircraft transferred to the Transferee(s) in connection with the Triggering Event. The Transferring Pilots shall be offered the opportunity to transfer on the basis of Piedmont system seniority provided that in order to be entitled to transfer, such pilots must be qualified to operate the aircraft related to the Triggering Event. The Company shall require any Transferee to employ the Transferring Pilots, with the integration of the Transferring Pilots into the Transferee’s seniority list to be governed by Association merger policy if both pre-transaction groups are represented by the Association and otherwise by Sections 3 and 13 of the Allegheny-Mohawk LPPs. For the purpose of this section, a pilot shall be deemed “qualified” if he or she is qualified without training (other than recurrent or substantially equivalent training, proficiency check or training necessary to qualify pilots on the operating procedures of the Transferee) to operate the aircraft transferred to the Transferee.

c. Any Transferring Pilot who was furlough-protected under Section 1.C.1., above,

and/or the attached Letter of Agreement titled “Additional Furlough Protections”, shall lose his place on the Piedmont Pilots Seniority List, if he transfers. Any Transferring Pilot who was furlough-protected under Section 1.C.1., above, and/or the attached Letter of Agreement titled “Additional Furlough Protections”, shall lose his furlough-protected status on the Piedmont Pilots Seniority List if he does not transfer.

2. Section 1.E., above, shall not apply to (a) transactions made necessary by circumstances

over which the Company has no control as defined in Section 1.C.2., above, (b) the retirement of aged aircraft in the ordinary course of business, and (c) financing transactions such as sale-leasebacks where the transferred assets continue to be used in the Company’s operations.

F. Resolution of Disputes

1. The Company agrees that any grievance filed by the Association alleging a violation of

Section 1 of the Agreement shall bypass the initial steps of the grievance process and shall be submitted, heard and resolved through binding arbitration on an expedited basis directly before the System Board of Adjustment sitting with a neutral arbitrator. The dispute shall be heard no later than fifteen (15) days following the submission to the System Board and decided no later than thirty (30) days after submission, unless the parties agree otherwise in writing.

2. In the event of a successorship transaction pursuant to paragraph 1.D., above, the

procedure in paragraph 1.F.1., above, shall apply, with the following modifications: the Association must submit any grievance alleging a violation of Section 1.D.1., above, within five (5) days following receipt of the notice provided in Section 1.D.4., above; the dispute shall be heard no later than fourteen (14) days thereafter and the System Board shall issue its decision no later than twenty-one (21) days thereafter, allowing at least a

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five (5) day period between the issuance of the decision and the consummation date of the Successorship Transaction.

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SECTION 2

DEFINITIONS A. “Aircraft-type” means the group of models of a particular aircraft. B. “AQP” (Advanced Qualification Program) means a method of qualifying, certifying, training and

otherwise ensuring the competency of flight crew members, instructors, and evaluators trained and evaluated under Federal Aviation Regulations.

C. “Blackout Days” means the interface period and company designated holidays (New Year’s Day,

Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Day after Thanksgiving, Christmas Day).

D. “Block to Block” (“block time” or “actual time”) means that period of time from the moment the

aircraft moves under its own power for the purpose of flight until the time it comes to rest at a gate or other check-in point at the next point of landing.

E. “Captain” means a pilot who is in command of an aircraft (PIC) and its crew members while on

duty and, in addition to other flight related duties, is responsible for the aircraft and who is properly qualified and designated by the Company to serve as captain and holds currently effective airman’s certificates authorizing him to serve as captain.

F. “Category” means a pilot’s status in an aircraft-type. G. “Certified Mail, Return Receipt Requested” means USPS, FedEx, UPS, DHL, or any courier

service that requires signature for delivery. H. “Currently Qualified” means qualified to perform flying in a given category, including the

completion of IOE/SOE. I. “Date of Hire” means the day a pilot is placed on the Company payroll. J. “Day” means a calendar day starting at 0001 and ending at 2400 hours (local time); however,

when a flight terminates at or before 0200 it will not alter the pilot’s scheduled day off. K. “Day Off” means a day free from all duty with the Company. L. “Deadheading” means the positioning of a pilot to or from duty. M. “Domicile” (“base”) means an airport location or locations within forty-five (45) ground miles of

each other from which a pilot is awarded or assigned flying time in accordance with the provisions of the Agreement. In co-domiciles, it will be the Company’s responsibility to provide transportation for a pilot to return to the airport from which his trip originated and that pilot will be compensated in accordance with Sections 5 and 8.

N. “Duty Assignment” means any duty performed for the Company as a pilot. O. “Duty Time” (“Duty Hours”, “Duty Period”, “On-Duty Period”) means all the time a pilot is on duty,

commencing when a pilot is required to report to duty, which will not normally be more than 60 minutes before flight departure, and ending at his release time which will be 15 minutes after the conclusion of his flight or earlier if he has completed his prescribed duties.

P. “FAA Aircrew Program Designee” means a captain on the Piedmont Airlines Pilots’ Seniority List

who has been selected in accordance with this Agreement and is authorized and qualified to perform FAA designated duties on a part time basis.

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Q. “First Officer” means a pilot who is second-in-command and any part of whose duty, in addition to other flight related duties, is to assist or relieve the captain and who is properly qualified and designated by the Company to serve as first officer and who holds currently effective airman’s certificates authorizing him to serve as such first officer.

R. “Flight Instructor” means a pilot on the Piedmont Airlines Pilots’ Seniority List who has been

selected in accordance with this Agreement and is authorized and qualified to give FAA and Company flight training on a part time basis.

S. “Flight Training” means all training which is normally conducted in flight and in an airplane or in a

simulator as described in the Company approved Flight Training Manuals.

This normally includes but is not limited to:

1. Initial operating experience requirements flights (IOE) (SOE), 2. Recent experience flights, 3. Fixed base or full flight simulator training, 4. Aircraft training, 5. Progress Check, 6. Line oriented flight training (LOFT), line oriented simulations (LOS), and 7. Proficiency and line checks.

T. “Ground Training” means all training conducted in a classroom or at any place which is not

usually associated with flight training. U. “Initial Training” means training for a category for which the pilot has not been previously

qualified. Initial training is considered a Qualification Curricula under AQP. V. “IOE (SOE) Instructor/Check Airman” means a captain on the Piedmont Airlines Pilots’ Seniority

List who has been selected in accordance with this Agreement and is authorized and qualified to perform IOE/SOE instruction and performance evaluations on a part-time basis.

W. “Leg” (“flight”) means the movement of an aircraft for the purpose of flying from a given block

departure to its next block arrival. X. “Line Check Airman” means a captain on the Piedmont Airlines Pilots’ Seniority List who has

been selected in accordance with this Agreement and is authorized and qualified to give line checks on a part-time basis.

Y. “Management Pilot” means a pilot so designated by the Company who is responsible for

managing pilots or administering Company policy. Z. “Month” means the period from the first day of, to and including the last day of, each calendar

month of the year, except that for pilot scheduling and pay purposes, January, February and March will each be considered a thirty (30) day month through the addition of January 31st and March 1st to the month of February. During Leap Year, February will be a thirty-one (31) day month.

AA. “New Hire Training” means qualification and indoctrination training for a new hire pilot. New hire

training which requires indoctrination is considered Indoctrination Curricula under AQP. BB. “Performance Evaluation” means any training wherein a pilot is evaluated for the purpose of

determining if he meets the required standard for satisfactory performance. Performance evaluation includes any written examination, oral examination, proficiency check, LOS, SPOT, LOFE and line check.

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CC. “Pilot” means captain and first officer, and unless otherwise specifically indicated, includes hard line holders, build-up line holders and reserve pilots.

DD. “Position” means status, aircraft-type and domicile. EE. “Proficiency Check Airman” means a captain on the Piedmont Airlines Pilots’ Seniority List who

has been selected in accordance with this Agreement and is authorized and qualified to give proficiency checks on a part-time basis.

FF. “Recurrent Training” means training to maintain current qualification. Recurrent training is

considered a Continuing Qualification Curricula under AQP. GG. “Report Time” means the time a pilot is required to report for a duty assignment, which will not

normally be more than 60 minutes before flight departure. HH. “Reserve Pilot” means a pilot who holds a pure reserve line or a build-up line holder when reserve

days are designated. Such pilots will be available from 0001 until 2400 on reserve days. II. “Scheduled Block-to-Block” means the time period designated in the OAG less time allotted for

bus transportation in accordance with Section 3.D. JJ. “Single Visit Training” means an annual recurrent training program which permits pilots to satisfy

their annual recurrent flight training requirements in one annual visit to the Training Department. KK. “Specific Operational Reason” means an identifiable, documented reason to decline a schedule

adjustment request other than an excess of reserve pilots to cover open trips. For example, a hard, build-up, reserve or standby pilot who is eligible for a schedule adjustment will not be denied such adjustment if there are surplus reserves on the particular day(s).

LL. “Standby Pilot” means a pilot who is awarded/assigned standby duty. Such pilots will be

available for a twelve (12) hour period. MM. “Status” means captain or first officer. NN. “Trip” means all the flights within a pilot’s trip hour period. OO. “Trip Hour Period” (“Trip Hours”, “Trip Time”) means the time elapsed between the start of an on-

duty period originating at a pilot’s domicile and the completion of the last on-duty period which terminates at his domicile.

PP. “Training” means any instruction, course of instruction or performance evaluation whether in a

programmed hours method or proficiency based method (SVT and AQP), required by the FAA or the Company, including that training contained within the FAA approved training syllabi for new hire, indoctrination, initial, transition, upgrade, differences, and recurrent training. Training is considered a day of work.

QQ. “Training Pilot” means ground school instructor, flight instructor, proficiency check airman, line

check airman, IOE/SOE check airman, and FAA aircrew program designee who performs training and/or performance evaluations on a part-time basis. References to part-time training pilots in this Agreement shall not preclude the employment of full time training pilots, whether on the Piedmont Airlines Pilots’ Seniority List or not.

RR. “Transition Training” means training in the same status but in a new aircraft-type. Transition

training is considered a Qualification Curricula under AQP. SS. “Upgrade Training” means training for a new status. Upgrade training is considered a

Qualification Curricula under AQP.

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SECTION 3

COMPENSATION A. Captain Pay

A captain will be paid at the following rates in accordance with his longevity:

CAPTAIN DASH 8-100/200 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 44.16 45.49 46.85 48.26 2 45.45 48.82 48.22 49.67 3 47.33 48.75 50.21 51.72 4 48.86 50.33 51.84 53.39 5 50.12 51.63 53.18 54.77 6 51.40 52.94 54.53 56.17 7 52.67 54.25 55.88 57.66 8 53.93 55.55 57.22 58.93 9 54.96 56.61 58.30 60.05 10 56.06 57.75 59.48 61.26 11 57.73 59.46 61.24 63.08 12 58.84 60.60 62.42 64.29 13 59.68 61.47 63.31 65.21 14 60.27 62.08 63.94 65.86 15 61.40 63.25 65.14 67.10 16 61.88 63.74 65.65 67.62 17 62.42 64.29 66.22 68.21 18 63.53 65.43 67.40 69.42 19 64.63 66.57 68.57 70.63 20 65.50 67.46 69.49 71.57 21 65.78 67.75 69.79 71.88 22 66.05 68.03 70.07 72.17 23 66.34 68.33 70.38 72.49 24 66.60 68.60 70.66 72.78 25 67.16 69.18 71.25 73.39

Note: See also LOA #16, Piedmont Small Jet Restructuring Agreement.

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CAPTAIN DASH 8-300 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 48.26 49.71 51.20 52.74 2 50.59 52.11 53.67 55.28 3 52.56 54.14 55.76 57.43 4 53.83 55.44 57.11 58.82 5 54.91 56.55 58.25 60.00 6 56.31 58.00 59.74 61.53 7 57.70 59.43 61.21 63.05 8 58.90 60.66 62.48 64.36 9 59.98 61.78 63.64 65.55 10 61.11 62.94 64.83 66.78 11 63.81 65.73 67.70 69.73 12 65.83 67.81 69.84 71.94 13 67.95 69.99 72.09 74.26 14 69.02 71.09 73.22 75.42 15 70.39 72.50 74.68 76.92 16 70.77 72.89 75.08 77.33 17 71.29 73.42 75.63 77.90 18 72.47 74.65 76.89 79.19 19 73.67 75.88 78.16 80.50 20 74.59 76.82 79.13 81.50 21 74.84 77.08 79.40 81.78 22 75.07 77.33 79.64 82.03 23 75.33 77.59 79.91 82.31 24 75.57 77.84 80.17 82.58 25 76.08 78.36 80.71 83.13

Note: See also LOA #16, Piedmont Small Jet Restructuring Agreement.

B. First Officer Pay

A first officer will be paid at the following rates in accordance with his longevity:

FIRST OFFICER DASH 8-100/200/300 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 24.84 25.58 26.35 27.14 2 28.59 29.45 30.34 31.25 3 29.78 30.67 31.59 32.54 4 30.95 31.88 32.83 33.82 5 32.12 33.08 34.07 35.10 6 32.68 33.66 34.67 35.71 7 33.25 34.25 35.27 36.33 8 33.54 34.55 35.58 36.65 9 33.81 34.82 35.87 36.94 10 34.10 35.12 36.18 37.26

Note: See also LOA #16, Piedmont Small Jet Restructuring Agreement.

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C. Minimum Guarantee and Pay Credits

1. Pilots are guaranteed a minimum of seventy-two (72) hours flight pay at their applicable hourly rate. When a pilot is not available for flight duty for an entire month, the monthly guarantee will be prorated. For purposes of prorating the guarantee, a pilot who is in training, on sick leave or on vacation is not considered unavailable and will not have his guarantee prorated.

2. A pilot holding a pure reserve line for a month will be credited with seventy-two (72) hours

or time worked, whichever is greater. For purposes of prorating the guarantee, a pilot who is in training, on sick leave or on vacation is not considered unavailable and will not have his guarantee prorated. Any time worked on a scheduled day off will be credited above the guarantee.

3. A pilot who is awarded a reserve day(s) in his build-up line, or a hard line or build-up

lineholder who is awarded a standby day as a result of an interface adjustment, or scheduling of training, or a cancellation will be credited with 4.0 pay hours, or for time worked, whichever is greater.

4. Pilots will be paid and credited for all hours flown in the Dash 8 - 300 at the rate applicable

to that aircraft. 5. Whenever a pilot is scheduled to fly the Dash 8 - 300, and is entitled to pay for trips

missed (e.g., sick leave, vacation, training), he will be paid and credited for all time at the appropriate Dash 8 - 300 rate of pay.

D. Premium Pay

1. In addition to all other compensation, whenever a pilot is entitled to premium pay, he shall receive 3.5 hours of pay at his applicable hourly rate. Such premium pay shall be in addition to his minimum monthly guarantee. Effective January 1, 2001, premium pay shall increase to 4.0 hours of pay at the applicable hourly rate.

2. Whenever a pilot is entitled to premium pay, it will be paid at the applicable rate for the

highest paying aircraft scheduled. E. Calculation of Flying Time

1. Flying time will be calculated on the basis of the actual or scheduled OAG block-to-block time by flight segment, whichever is greater.

2. Minutes added to scheduled OAG block times to compensate for busing operations at

DCA, PHL and any other airports with like operations will not be considered part of scheduled block times.

F. Taxi/Tow Pay

If a pilot is required to position an aircraft (including tow) from a remote overnight parking area (e.g. hangar) to a gate or to position an aircraft from one area of the airport to another (e.g. international arrival area to another concourse), or to position an aircraft for a non-scheduled maintenance run up, he will be credited .3 hours. Other movements of the aircraft, such as movements at or between gates for unscheduled operational reasons, will not be included.

G. Trip Pay

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When a pilot performs duty for the Company, he will be paid the greater of the following on a trip by trip basis: 1. Scheduled or actual flight time (on a leg by leg basis), whichever is greater. 2. Modified Minimum Day

a. A pilot assigned flight duty will receive a minimum of 4.0 hours of flight pay times

the number of days of the assignment.

For purposes of Modified Minimum Day calculation, any portion of a trip dropped will be treated as if it were actually flown:

Example: Mon Tue Wed

4 3.75 4.5 = 12.25 Pilot drops 1.0 on Wed=11.25 Modified Minimum Day equals 11.0 hours

Examples: Assume pilot actually flies his schedule. A pilot has a one day trip scheduled for 3.2 hours. He is credited with 4.0 hours of pay.

A pilot has a one day trip scheduled for 4.0 hours. He is credited with 4.0 hours of pay.

A pilot has a two day trip; 1st day is scheduled for 3.2 hours, 2nd day is scheduled for 6.0. He is credited with 9.2 hours of pay.

A pilot has a two day trip; 1st day is scheduled for 4.2. 2nd day is scheduled for 3.3. He is credited with 8.0 hours of pay.

A pilot is scheduled for a three day trip; 1st day is scheduled as a deadhead only, 2nd and 3rd days are scheduled for 3.4 hours. He receives a minimum of 12.0 hours of pay. A pilot is scheduled for a two day trip, with a pay credit of 10.0 hours (6.2 + 3.8 = 10.0). The trip finishes after midnight (0000) and at or before 0200 into a day off. Modified minimum pay = 12.0 hours (3 x 4.0 = 12.0) or, as it would appear on the pay sheet (6.2 + 3.8 + 2.0 = 12.0).

b. This provision works in conjunction with Cancellation, Displacement, Double

Scheduling, Rescheduling and Extension provisions of this Agreement such that the pilot will receive the greater of the applicable calculations.

3. Cancellation Pay

a. In the event a pilot is ready and available to fly and his scheduled crew is

canceled due to weather, mechanical conditions, or operational decision, the pilot shall be credited for one hundred percent (100%) of his hourly flight pay for the scheduled flight hours lost due to such cancellations, or what the pilot actually does, whichever is greater. When such cancellation occurs, a pilot will, at the Crew Scheduler's option, (1) be released from duty, (2) be reassigned to other flight duty for a period not to be scheduled to exceed fourteen (14) hours from his original report time (however, he may be reassigned to an earlier trip), (3) be placed on standby for a period of twelve hours commencing with the pilot's original report time. When the cancellation of an entire day's flying is known prior

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to the day, the standby period will be from 0500 to 1700 unless the Crew Scheduler notifies the pilot on the prior day of a different standby period.

b. If a pilot is reassigned to other flight duty, he will be credited for any time actually

worked of the scheduled crew in addition to the greater of either 100% of the hours lost due to the cancellation of his scheduled trip(s), or for the time actually worked due to the reassignment.

Example: A pilot is scheduled to fly for six (6) hours but all flights are cancelled and he is reassigned for seven (7) hours of flying. He will receive pay and credit for 100% of six (6) hours or the value of the time actually worked, whichever is greater. In the event the seven (7) hours of flying cancels, he receives pay and credit for 100% of his originally scheduled six (6) hours.

(1) If a pilot is placed on stand-by for a twelve (12) hour period, he shall be

paid and credited the greater of 100% of the cancelled trip/leg(s), 4.0 hours or for time actually worked on stand-by duty.

(2) If a pilot is placed on stand-by after commencing his trip/leg(s) or

deadhead, he shall be paid and credited for any work actually performed on the scheduled trip/leg(s) in addition to the greater of either 100% of the hours lost due to the cancellation of his scheduled trip/leg(s) or for work performed while on stand-by duty.

4. Rescheduling

a. The Crew Scheduler may reschedule crew members when necessary provided:

(1) The crew member will not be rescheduled to work on a scheduled day off, without the pilot's consent.

(2) Originally scheduled “out and back” trips will not be rescheduled into

multi-day trips, without the pilot's consent. (3) A repeated pattern of trips (AM or PM reports) may be scheduled from

AM to PM or PM to AM. However, where the pilot does not consent, the pilot will be returned to his original pattern as soon as possible, and no later than after three (3) consecutive days.

b. A crew member who has been rescheduled will be credited with the greater of his

original schedule or what he actually does. c. Unless a cancellation occurs, Crew Scheduling may not reschedule a hard line

holder to perform standby duty. Unless a cancellation occurs, a build-up line holder may not be rescheduled to perform standby duty on a day when he has a scheduled trip.

5. Extensions

a. A pilot will be considered to be extended when he is legal and able to fly his originally scheduled trip(s), his aircraft is airworthy, and he is reassigned to duty with an earlier scheduled report time than his originally scheduled report time in domicile, or a later scheduled report out time after his originally scheduled report out time in his domicile. If the pilot is rescheduled to fly an entirely different sequence, and flies no part of his originally scheduled trip, he is not extended. However, when under the conditions outlined above, the pilot does fly any portion

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of his originally scheduled trip, he is subject to the extension provisions. A pilot who is not otherwise eligible for extension pay but is (1) swapped to a broken aircraft while his aircraft continues to operate or (2) swapped to another aircraft which will cause him to arrive in domicile after he was originally scheduled to report out, will be subject to the extension provisions. In no case may a pilot be extended into an originally scheduled day off, without the pilot's consent.

Note: See also LOA #8, Cancellation vs. Extension.

b. In the event a pilot is extended for more than four (4) hours before or after his

original report or termination time in domicile, the extension will be credited as one instance towards the ‘junior manning’ cap. If a pilot has reached his ‘junior manning' cap, he may not be rescheduled to be extended beyond four (4) hours, without the pilot's consent.

c. A pilot who is extended will be paid (over his monthly guarantee) a minimum of

2.5 hours for an extension of up to five (5) duty hours, or what he actually does, whichever is greater. If the extension is for more than five (5) duty hours, the pilot will be paid (over his monthly guarantee) a minimum of 3.5 hours, or what he actually does, whichever is greater. Example: A pilot is scheduled to finish at 1700 in domicile. At 1300 he is assigned two additional flights that will have him finish at 1900. This is an extension. Example: A pilot is on a multi-day trip and is scheduled to return to domicile at 1300. He is reassigned (other than for cancellation, weather, mechanical, or individual's FAR problem) and returns at 1700. This is an extension. Example: A pilot is scheduled to report at 0900 in domicile. He is assigned a round trip at 0730. This is an extension. Example: A pilot is scheduled to begin at 0800 and end at 1700 in domicile. As a result of weather he does not finish until 1930. This is not an extension. Example: A pilot is on a three day trip. On the second day he is assigned additional flying that ends at 2150 instead of 2045. This is not an extension. Example: A pilot is scheduled to begin at 0700 and end at 1500 in domicile. As a result of a maintenance problem with his aircraft he is assigned other flying that does not return him to domicile until 1830. This is not an extension. Example: A pilot is scheduled to report in domicile for deadhead at 1000. Deadhead flight cancels and pilot is called in at 0900. This is not an extension.

H. When a pilot holds a captain's status for an entire month, but is assigned first officer duties during

a portion of the month, such pilot will be paid and credited for all time worked at the applicable captain rates. When a pilot holds a first officer status for an entire month, but is assigned to captain duties during a portion of a month, such pilot will be paid and credited for all time worked as a first officer at applicable first officer rates and for all time worked as a captain at captain rates. In addition, in the event such pilot's pay credits are below seventy-two (72) hours, his guarantee will be paid in proportion to the hours worked as captain and first officer.

I. No pilot will be required to be dual qualified in different aircraft-types. However, if a pilot is utilized

on more than one aircraft-type in a month, he will be paid and credited the hourly rate on the higher paying aircraft-type, provided more than 50% of the flying is on the higher paying aircraft-

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type. If less than 50% of the flying is on the higher paying aircraft-type, then he will be paid and credited the applicable rate for the time in each aircraft-type.

J. A pilot will have the option of receiving his pay by picking it up at his domicile or through direct

deposit (with verification provided to the pilot). K. Pay Checks

1. The Company will issue paychecks on the fifteenth (15th) and thirtieth (30th) of every

month. 2. The first paycheck will reflect fifty (50) hours of the pilot's pay, and the paycheck issued

on the thirtieth (30th) will reflect twenty-two (22) hours of pay and all remaining pay due from the previous month, including expenses.

3. The paycheck issued on the thirtieth (30th) will be attached to a pay sheet which will detail

the pilot's pay for the previous month. L. The Company will not make any deductions from a pilot's paycheck unless legally entitled to do

so. The Company shall provide the pilot with the reason, in writing, for denial of any item of requested pay or expense.

M. When a pilot's pay has been reduced as a result of Company error, which does not require

interpretation of the contract, the pilot will be paid within seven (7) business days from the point when it has been determined that the error has occurred.

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SECTION 4

MINIMUM PAY GUARANTEES

(INTENTIONALLY LEFT BLANK – SEE SECTION 3)

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SECTION 5

TRAVELING EXPENSES A. Accommodations

1. The Company will provide comfortable and adequate single occupancy commercial lodging at all overnight stations. In the event the Company wishes to use accommodations other than a hotel, the Company will first obtain approval from the Association Hotel Committee. The Company will make its best efforts to contract with hotels that have interior room entrances, exercise facilities, a restaurant either on premises or in the immediate vicinity and an environment conducive to rest. The Company will notify the MEC in advance of selecting a hotel and will consider the input of the Hotel Committee prior to making their selection.

2. If a layover exceeds five (5) hours, the Company will provide a day room (double

occupancy hotel room for both pilots, unless one crew member is male and the other is female, (in which case the pilots will be given separate, single occupancy rooms). The pilot may request a dinner voucher (value stipulated in SABRE but not less than $10) in lieu of a day room. The voucher will be provided if mutually agreed to by the pilot and the Company.

3. During ground school training newly hired pilots will utilize double occupancy commercial

lodging. All other pilots, including pilots in training, shall receive single occupancy commercial lodging.

B. Hotel Committee

1. The Company and the Association Hotel Committee will meet and review the suitability of facilities upon request of either party.

2. The Company will furnish a listing of all hotels and the method of transportation at each

location for the use of the Association Hotel Committee. C. Transportation

1. The Company will provide transportation between the airport and the lodging facility. If there is no eating facility at or convenient to the lodging facility, the Company will provide transportation to a suitable eating facility. Alternate transportation or lodging facilities utilized by a crewmember must have prior approval of the Crew Scheduler.

2. The Company will provide insurance for pilots who drive vehicles on Company business

and will also reimburse pilots for expenses (excluding traffic violations) incurred by pilots driving vehicles on Company business. Company business will include crewmembers at overnight stations who drive between the airport and hotel and crewmembers who drive to restaurants in instances in which there is no restaurant at or convenient to the hotel.

3. At points other than the pilot’s domicile, where the Company’s scheduled or prearranged

transportation is not available within thirty (30) minutes from report out, or thirty (30) minutes from block-in if the pilot is scheduled to report within 9.5 hours from actual block-in, the Company will reimburse the captain for the cab fare, unless the captain is not traveling at the same time, in which case the first officer will be reimbursed. Expenses must be substantiated by a valid receipt. Reimbursement will be available to pilots traveling to their domicile.

D. Per Diem

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1. Domestic Per Diem Pilots shall receive $1.40 ($1.45 effective May 16, 2001; $1.50 effective May 16, 2003) for each trip hour, including training away from domicile. Per diem will be paid during days off in training provided the pilot remains at the training location.

2. International Per Diem

On trips or training requiring a pilot to overnight outside the United States, the pilot will receive $5.00 per overnight in addition to his hourly per diem.

3. The hourly expense allowance for a pilot deadheading from his domicile to or from

training and/or flight duty will start at the designated report time or actual report time, whichever is later, and terminate after block-in time at his domicile.

4. New Hires

New hire pilots, while in training (through the successful completion of the checkride), will be paid at one half of the daily per diem rate as reflected in D.1. and D.2., above. Subsequent to the successful completion of the checkride, the pilot will be paid in accordance with D.1. and D.2., above.

E. The Company will attempt to negotiate agreements with the hotels it uses that eliminate the pilot’s

obligation to pay a use charge on the telephones and that obligates hotels to provide taxi cab vouchers if scheduled transportation is not available. The Company will reimburse the pilot for use charges for calls to the Company (receipt required).

F. In the event of flight deviations or circumstances of an unusual nature, the Company will either

pay the costs of transportation to domicile or the cost to cover lodging and local transportation. Expenses must be substantiated by valid receipts.

G. If scheduling software can support it, the crew card will list current lodging facilities and the

telephone numbers of those facilities.

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SECTION 6

MOVING EXPENSES A. Paid Moves

1. Moving expenses of a pilot will be paid by the Company when a pilot is assigned by the Company to move from one domicile to another, when a pilot is forced to move from one domicile to another as a result of displacement or a reduction in schedules at a domicile or systemwide. Moving expenses of all other pilot transfers shall be paid by the pilot.

2. All displacements/forced moves will be offered in order of seniority and be assigned in

inverse order of seniority, in accordance with past practice. All permanent bids will state the number of reductions, if any, in each domicile.

FOR EXAMPLE: The Company determines that LYH will be reduced by four captain positions. The permanent bid announcement will reflect that LYH is being reduced by four captain positions. The two most senior captains bid out of LYH, and no one else bids out. The two most senior captains are awarded their bids (provided their seniority will hold the positions) and are afforded paid moves. The two most junior captains in base will be displaced and also afforded paid moves.

3. Pilots offered the right to follow flying (Section 24 M.4.) will continue to receive paid

moves.

B. The Company shall reimburse moving expenses as follows: 1. Actual expense of moving up to 12,000 pounds of household effects, packing, unpacking,

shipping, drayage and replacement insurance. The Company shall engage and compensate a reputable bonded furniture moving company with suitable equipment to move normal personal and household effects in order to accomplish the move at a time designated by the pilot.

2. Meal expenses at the per diem rate in Section 5 per day for each the pilot, spouse and

child over twelve and 50% of that daily rate per day for each child under twelve and reasonable lodging expenses for pilot and family en route to the new domicile, based upon a formula of 400 land miles per day and for up to three (3) days following arrival at the new domicile or until arrival of household effects, whichever comes first.

3. A pilot will be eligible for expenses reimbursement for the relocation of two (2) personal

vehicles provided the vehicles are currently registered in the pilot’s or spouse’s name (long term leases to the pilot or spouse will also be acceptable). The expense reimbursement rate shall be 31.5 cents per mile or more if the Company increases the expense reimbursement rate for any other employee group.

4. A pilot residing in a mobile home unit will be allowed moving expenses for relocating

same, however, not to exceed expenses as provided in B.1. above. 5. The Company will pay $200.00 to each pilot who is entitled to Company paid expenses to

defray relocation expenses. In addition, pilots required to move will be permitted, upon request, to draw an advance of not more than $1000.00 of their compensation, to be repaid in equal installments by payroll deduction over a three (3) month period. Payments under this paragraph will be made within fourteen (14) days of written request.

6. Upon request, the Company will provide a pilot with documentation to assist a pilot in

terminating a lease, if necessary. In the event that the efforts of the Company are not

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successful, the Company will pay the broken lease penalty not to exceed two (2) months rent.

7. The Company will pay up to $200.00 for termination or hook up of utilities and household

appliances which result from a move to a new domicile, and all such costs will be supported by receipts.

C. A pilot who is eligible for Company paid moving expenses may elect to have the move paid from

a location other than the domicile from which the pilot is being transferred to any other location. However, the Company’s financial responsibility will not exceed the cost of moving the pilot from the domicile from which he transferred to the new domicile.

D. Pilots required to move shall be allowed one (1) round trip Space Available-Company Business

(Code SA-2) trip for pilot and family between the pilot’s former domicile and the new domicile.

E. Settlement Time 1. When the Company requires that a pilot move, the pilot will be given, upon request on the

monthly bid form, up to five (5) consecutive days off coinciding with the pilot's move to the new domicile. If a pilot requests five (5) days, he will be given the five (5) days. Flight Support and the pilot will mutually designate the moving period, except as provided by 6.E.1.a.

a. If a pilot presents written proof of intent to move (i.e.; moving contract, rental

truck contract, lease agreement, etc.), the pilot will designate the moving period. The requested move days may not fall on blackout days (see definitions).

2. In the event that a trip or trips must be dropped, the pilot and Flight Support will mutually

designate which trips are dropped. Any pilot whose trips are dropped pursuant to this section will receive priority for picking up trips in the 48 hour period (Section 25 G.3.). This will include any touching trips that interface with the beginning or end of the moving period.

3. If a pilot is not given days off when the pilot has requested them (as reflected on the

request submitted with the bid), the pilot will be considered out of domicile commencing with the date requested and expenses in Section 5 will apply for the number of days between the requested start date and the actual start date, inclusive. Expenses shall apply whether the actual start date precedes or follows the requested start date.

4. The provisions of this subsection, E will not change the minimum guarantee of the pilot

with respect to any trips dropped for the purpose of the move.

F. The Company shall be under no obligation to pay moving expenses for a new hire’s move to his initial (first) domicile assignment.

G. A pilot will be eligible for moving expenses for eighteen (18) months after commencement of line flying at the new domicile.

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SECTION 7

VACATION A. Pilots will accrue vacation credit in the following manner:

1. Pilots will accrue vacation on a prorated basis which will be determined based on the month in which they were hired. The following schedule will apply:

Month Hired # of Days Month Hired # of Days January 5 July 3 February 5 August 3 March 5 September 2 April 4 October 2 May 4 November 1 June 3 December 1 Note: Employees placed on the payroll between the first (1st) and fifteenth (15th) of the month shall be considered as employed for the full month and receive a full monthly credit. An employee placed on the payroll after the fifteenth (15th) of the month will be credited with vacation time the following month.

2. Prorated Accruals

a. A pilot on inactive status (e.g., leaves of absence, except military active duty for training, jury, bereavement and sick leaves) for periods during the calendar accrual year shall be entitled to vacation on a prorated basis in conjunction with the period of active employment in that vacation year.

b. Prorated vacation accrual shall be calculated on a monthly basis and shall be

credited where a pilot is available for more than 50% of the calendar days of that bid period. A pilot's monthly accrual rate will be 1/2 of his annual accrual rate. Fractions will be rounded to the nearest whole, with "5" rounded down.

3. The vacation year is defined as the calendar year, January 1 through December 31. 4. Once a pilot's term of employment continues past January 1 of a calendar year, he will

revert to a calendar year vacation accrual system according to the following schedule:

a. During the first full calendar year of employment a pilot will accrue five (5) vacation days (1 slot).

b. During the second (2nd) year through the seventh (7th) calendar year of

employment a pilot will accrue ten (10) vacation days (2 slots). c. After completion of seven (7) full calendar years of employment (upon the eighth

(8th) January 1st) a pilot will accrue fifteen (15) vacation days (3 slots). d. After completion of fourteen (14) full calendar years of employment (upon the

15th January 1st) a pilot will accrue twenty (20) vacation days (4 slots). 5. Vacation may be used after completion of six (6) months of employment. New hire pilots

will be eligible to bid open vacation periods published with the monthly bid packages, provided the vacation period occurs after the completion of six (6) months of employment.

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B. Vacation Pay 1. Daily vacation will be credited at the pilot’s hourly rate for the value of the trips scheduled

including deadhead for each day on which vacation is applied. 2. A pilot holding a reserve line will receive a daily vacation credit of four (4) hours times his

applicable hourly rate. A pilot holding a build-up line will receive a daily vacation credit of four (4) hours for any reserve days which occur during his vacation period.

C. Vacation Bid

1. Slots Posted

a. The Company will post available vacation for the following calendar year by

October 1. The Company will post a minimum of two (2) vacation slots for every six (6) hard lines of flying (all known flying) per base, per equipment, per status, per month.

b. In cases where this formula creates an insufficient number of slots, i.e., the total

number of accrued pilot vacation slots exceeds the number of slots created by the formula, the Company will post additional slots so that the number of accrued slots equals the number of slots available.

2. Pilot Bids

a. Pilots may submit bids for vacation periods until October 15. Bids will be awarded on the basis of seniority by November 1. Second round bids for vacation periods will be open until November 15. Bids will be awarded by seniority by December 1. Pilots who fail to bid may be assigned vacation periods by the Company.

b. Pilots shall bid fifteen (15) day windows in which they will place at least five (5)

days of credited vacation. Where a pilot indicates on his annual bid that he wishes to use more than five (5) days of vacation within a window, he will be permitted to do so, provided he does not use more than two (2) additional days. Where a pilot does not indicate on the annual bid that he wishes to use more than five (5) days of vacation within a window, Flight Support approval will be required, however the pilot will not be permitted to use more than two (2) additional days. A pilot awarded adjoining windows may start the vacation for both windows on the day of his choice provided the days thereafter run consecutively.

c. The fifteen day windows will be either the first (1st) of the month through the

fifteenth (15th) of the month, or the sixteenth (16th) of the month through the end of the bid month. The fifteen (15) day window may be increased by three (3) days for every additional day of vacation greater than five (5), at the pilot’s option. (Less than five (5) occurs only when pilots have less than five (5) vacation days remaining. All remaining days must be bid at that time.)

Note: A pilot may not bid to use additional days within a window pursuant to subparagraph b., above, and subsequently increase that same window pursuant to subparagraph c., above.

3. Scheduled days off shall not be debited against accrued vacation.

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4. In the event a previously assigned trip or duty assignment overlaps the vacation period (the 1st of the month and beyond or the 16th of the month and beyond), the pilot may, at his option, request in writing on the monthly bid, that the trip series be modified. Flight Support will modify the trip series in question at the time of the bid resolution. The days of the trip preceding the start of the vacation may be modified, dropped or other trips may be substituted. Standby will only be substituted if the pilot agrees. Flight Support’s modifications will allow the pilot to return to his domicile prior to midnight of the day preceding commencement of vacation. If a pilot’s trips series is modified, he will not be pay protected for the original trip, but will instead be compensated based upon the modification.

5. The Company can not require a pilot to work on any day inside his vacation period (the

period bounded by the end of his last scheduled work day prior to the first vacation day, and the next scheduled work day as they appear on the final bid award). For a 1-15 vacation window, a pilot who places a VA day on his first scheduled work day will not be awarded an interface trip and will not be junior manned unless he indicates in writing on the monthly bid that he is willing to work in the interface period (he is still not subject to junior manning during this period).

6. If a pilot is scheduled for a trip at the end of the vacation window, such trip may be

dropped by placing vacation day(s) on the portion of the trip inside the window. The pilot will be free from duty on all the days of the trip.

7. A pilot may elect to place vacation days on entire touching trip(s) to obtain pay credit for

the total touching trip(s) dropped, including those instances in which part of the trip falls outside the vacation window.

8. A day of vacation must be placed on the first (1st) day of a trip series inside the vacation

window and vacation days must be used on consecutive work days. 9. If a pilot is delayed into a scheduled vacation period at an outstation due to weather or

mechanical reasons, he is entitled to depart on the next flight out of the outstation to his domicile, unless his departure would result in the cancellation of a revenue flight.

10. Whenever the Company requests and a pilot accepts a duty assignment on a scheduled

vacation day, the pilot will be compensated for the value of the work performed on that day in addition to the vacation pay due. It is understood that a pilot may not be required to work during a vacation, unless the vacation is cancelled in its entirety.

D. Pilots will be permitted to swap vacation periods with Flight Support concurrence. In addition, the

Company will post available vacation periods on the monthly schedule bids. Pilots may exchange their previously awarded vacation bids or credited vacation time (including new hires who did not participate in the annual vacation bid) for available vacation periods. The new awards will be made on the monthly bid awards in accordance with seniority.

E. Vacation Cancellation

1. In the event that a pilot’s vacation is cancelled by the Company, such pilot may elect one

of the following three (3) options: a. Receive full compensation for the vacation period by crediting the pilot for the

vacation days as if the vacation had been taken as scheduled; or b. Reschedule the vacation by selecting from among the remaining open vacation

periods or selecting another time period mutually agreed to by the Company and the pilot; or

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c. Defer the vacation until the following year. 2. The Company will review awarded vacations for the upcoming month prior to publishing

the bid packages. The Company shall, whenever possible, publish which vacations will be cancelled concurrently with the bid packages.

3. A pilot whose vacation is scheduled for the upcoming month may submit a conditional bid

which will dictate the pilot’s choices if he is awarded vacation and also dictate the pilot’s choices if the vacation is cancelled. A pilot’s conditional bid will be honored.

4. A pilot whose vacation is cancelled may be reassigned to work only on those days of

work designated on the pilot’s original schedule. A hard or build-up line holder whose vacation is cancelled will only be placed on standby, not reserve.

F. Any monetary losses (e.g., deposits, non-refundable tickets) incurred by a pilot resulting from a

Company cancelled or rescheduled vacation which are validated by receipts (credit card bills, cancelled checks, etc., will suffice as receipts) shall be fully reimbursed by the Company within thirty (30) days of the pilot’s submission of the receipts and the Company is entitled to attempt recovery of monies lost. Monetary losses will not include items purchased in preparation for a vacation.

G. When the Company adds additional hard lines to any base, the Company will post any additional

vacation periods that may become available (once the pilot(s) becomes qualified in the new base) in accordance with the formula set out in C. above. When the Company reduces hard lines in any base, the Company will reduce unawarded vacation periods proportionally.

H. Recurrent training and checkrides will not be assigned to any pilot during awarded vacation

periods. I. A pilot who resigns and has given the Company fourteen (14) days advance written notice of his

intention to resign will be entitled to his accumulated vacation pay (calculated on the basis of the minimum day up to the effective day of the resignation). A pilot who is terminated, dies, or is furloughed will be paid his vacation based upon the same calculation.

J. Change In Equipment, Status or Domicile

1. If a pilot bids out of equipment, base, or status, such pilot shall rebid vacation after he

completes I.O.E., where required. Such pilot will not lose previously bid vacation period until he completes I.O.E. Such rebid shall not affect existing and approved vacation bids.

2. Displaced/Force Moved Pilots will be covered by the vacation cancellation provisions of

Section 7.E. Pilots awarded positions at a new domicile will be covered by Section 7.P. 3. A pilot who is no longer eligible to take his vacation period due to a change in equipment,

status or base (not including displaced/forced moved pilots or pilots awarded positions at a new domicile) may reschedule the vacation by selecting from among the remaining vacation periods. a. If there are no remaining vacation periods for the pilot to choose, the Company

may elect to post additional vacation periods as part of the remaining vacation in the monthly bid package.

b. A pilot who elects not to reschedule his vacation for any of the remaining

vacation periods will receive compensation for each unused vacation day for the value of the vacation day.

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c. A pilot who is unable to reschedule his vacation due to the lack of any remaining vacation periods will have the option of either receiving compensation for each unused vacation day for the value of the vacation day; or deferring the vacation until the following year.

K. Any vacation periods deferred from one year to the next will not be posted or bid in the annual

vacation bid for that next year. Instead, the deferred periods will be added to and posted as part of the remaining vacation in the bid package for January of the next year. The Company may distribute the deferred vacation in any order throughout the year, but must distribute those periods evenly. Therefore, one deferred period must be posted in all twenty four (24) vacation windows before a second window is posted in any vacation window.

L. During a pilot’s retirement year, such pilot can accrue and carry over vacation from the previous

year and will be paid the value of his last two (2) years as a lump sum upon retirement. The value of the unused vacation will be calculated on the basis of such pilot’s average day for his last three (3) months. A pilot will give the Company notice of his retirement year by notifying the Chief Pilot in writing of his intention to retire in the following year and the pilot will be permitted to carry over the vacation for that year and the following year.

M. In the event a pilot falls below the monthly guarantee as a result of dropping touching trips in

conjunction with vacation, his guarantee will be reduced by the same number of hours as he fell below the guarantee as a result of the drop. In order to return to his guarantee a pilot may, during the forty-eight (48) hour period add sufficient trip(s) from open flying (to which he shall have the highest priority) or days of standby.

N. To the degree that software will support it, a pilot’s monthly pay sheet will reflect his unused

accrued vacation. O. A pilot who holds a non-flying or supervisory position and who exercises his seniority to obtain a

position as a line pilot will lose any vacation slot(s) awarded previously. At the time such pilot commences flying as a line pilot, he may bid any remaining accrued annual vacation from among the unawarded or open vacation slots. His bid shall not affect existing and approved vacation bids.

P. Vacation at New Pilot Domiciles

1. Pilots awarded positions at a new pilot domicile will lose their previously bid vacation

periods upon commencing flying at the new domicile. 2. Pilots who have been awarded vacation, which is scheduled to begin prior to their

transfers, will be permitted to take that vacation, even if the vacation extends through the opening of the new domicile, subject to the Company’s right to cancel the vacation. If cancellations are necessary, they will be made in inverse order of seniority.

3. On the first Monday after pilots commence flying at the new base, the Company will post

available vacation for the base. The Company will post a minimum of two vacation slots for every six hard lines of flying (all known flying) per equipment type, per status, per month.

4. Pilots may submit bids for vacation periods until the following Monday. Bids will be

awarded on the basis of seniority by 1700 on the following Thursday. Second round bids for vacation periods will be open until the following Monday. Bids will be awarded by 1700 of Wednesday of the same week.

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SECTION 8

DEADHEAD A. General

1. Pilots will be compensated under the provisions of this section when deadheading (when the Company positions a pilot to or from duty). Pilots will be compensated for cancelled deadhead legs consistent with the provisions of the Cancellation pay provisions (Section 3.F).

2. When deadheading occurs at the beginning of a duty period, such duty time will

commence at the scheduled report time for the deadhead leg. When deadheading occurs at the end of the duty period, such duty time will end at block in time or fifteen (15) minutes after the block in time if “close out” duties are required.

3. If a duty period is only scheduled for deadheading, the period will be considered as a day

of work. 4. If a day involves deadheading only, a pilot shall be paid and credited at his applicable

rate with the greater of four (4) hours or the scheduled or actual hours in the deadhead. The Company will make best efforts to minimize the pilot’s duty time on such a day.

5. Deadheading is considered part of the value of the trip with which it is scheduled. 6. Pilot Request Deadhead (Flight or Ground)

a. Deadhead to Flight Duty

When the first scheduled leg(s) of a trip contains a deadhead leg(s) to flight duty, a pilot may request to utilize alternate transportation to the flight duty point. Such request shall be granted provided: (1). The originally scheduled deadhead flights are non-Piedmont flights. (2). The alternate deadhead(s) are scheduled to arrive by the originally

scheduled arrival time, or at least one hour prior to the first scheduled flights departure time, at the flight duty airport, whichever is earlier.

(3). Flight Dispatch Supervisor has not declared irregular operations.

b. Deadhead from Flight Duty

When the last scheduled leg(s) of a trip contains a deadhead leg(s) from flight duty, a pilot may request to be released from duty prior to such scheduled deadhead. Unless Crew Scheduling has a specific numbered flight assignment to give the pilot at the time he arrives at the deadhead point, such request shall be granted.

c. Deadhead To or From Training

When the scheduled deadhead leg(s) is to or from training, a pilot may request to utilize alternate transportation. Such request shall be granted, provided it does not interfere with a previously scheduled assignment.

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d. A pilot who is authorized alternate transportation (released from a scheduled deadhead pursuant to paragraphs a. through c., above) shall receive half of the pay and credit for the deadhead for which he was originally scheduled, except his trip hour period shall end at his crew scheduling release time.

e. A pilot may waive duty and rest provisions of Section 12 in order to accomplish a

pilot requested deadhead from duty. f. A pilot may request to deadhead the day prior to the start of training. Such

request shall be granted. A pilot shall be listed as Positive Space Company Business. The pilot will not be compensated for the deadhead, the day will not be considered a day of work if deadheading on a scheduled day off, and the Company is under no obligation to remove a pilot from a scheduled trip to accommodate this request. The accommodations for that night shall be booked by the Company and paid for by the pilot at the company rate.

B. Flight Deadheading

1. The Company will schedule all regularly scheduled deadhead legs utilizing the services

of certified FAR Part 121 or scheduled Part 135 air carriers. Unscheduled deadheads will be performed either by certified Part 121, or scheduled Part 135 air carriers, or by an approved contract carrier. Minimum contract carrier requirements are multi-engine and two pilots. The Company and the Association have mutually designated approved carriers itemized in Appendix B.

2. All deadheading will be booked on a “flight crew must ride” basis. The Company may

require a pilot to occupy the jumpseat if his passage would result in a denied boarding of a revenue passenger.

3. When the Company schedules a pilot to deadhead, in conjunction with a crew on that

day, the designated deadhead flight will be the first available flight after the pilot’s flight duty ends (consistent with legal connection times), or the latest available flight prior to commencing flight duty, which allows sufficient time to obtain an on-time departure, unless the MEC Chairman or his designee agrees otherwise. There is no requirement to utilize limo transportation in conjunction with deadhead flights to reduce total time spent deadheading. In the case of unscheduled deadheads, the pilot will be booked on a must ride basis on the first available flight the pilot is able to meet.

Note: See also LOA #9, Latest Available Deadhead.

4. Except as provided in A.6., above, when a pilot deadheads on a flight, the pilot will be

paid and credited at the rate of one (1) minute for each two (2) minutes of deadhead time (based upon the greater of scheduled or actual time of deadhead).

C. Ground Deadheading

1. The Company will provide a suitable means of transportation with a licensed and insured

carrier for all required surface deadheading. 2. Prior to establishing a regularly scheduled ground deadhead in excess of sixty (60) miles,

the Company and the Association will agree to such deadheading in writing. 3. When the Company requires that deadheading be by surface transportation, a pilot will

be paid and credited with one (1) minute for each two (2) minutes of deadhead time.

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SECTION 9

MISCELLANEOUS FLYING

(INTENTIONALLY LEFT BLANK – SEE SECTION 10)

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SECTION 10

TRANSFER TO NON-FLYING OR SUPERVISORY DUTY AND RETURN TO LINE A. A pilot transferred to non-flying or supervisory duty shall retain and continue to accrue seniority. B. In the event a pilot transferred to a non-flying or supervisory position has lost, or loses, his

medical certificate for medical reasons, he will continue to retain and accrue seniority as if he were on medical leave. In the event such pilot loses his medical certificate for reasons other than medical, he will retain but not continue to accrue seniority until such time as he regains his medical.

C. Return to Line

1. A pilot on non-flying or supervisory duty (including full time instructors) will be permitted to participate in all vacancy bids. The Company will treat the non-flying or supervisory pilot as a regular line pilot for the purpose of the bid, and award him a position in accordance with seniority.

2. The vacancy award will reflect the positions awarded to non-flying and supervisory pilots,

with an asterisk next to each of their names. It is understood that these pilots will not actually fill the position for the duration of the transfer off line. The Company will then award the vacancy to the next senior pilot bidding the position. At such time the non-flying or supervisory pilot desires to return to line flying, such pilot will return to the awarded position reflected on the most recent vacancy award applicable.

Note: See also LOA #3, Management Return to Line Flying.

3. When the Company determines that check airmen and full time instructors will be

returned to the line on an intermittent basis (i.e. an arrangement such as one month in training, two months on the line), such instructors will be returned to the line in accordance with the following provisions: a. The instructor will be returned to the position (including the domicile) that was

held prior to joining the Training Department, unless the instructor has bid and been awarded a vacancy for another position during his tenure in the Training Department in accordance with C.1., above.

b. Instructors who have not held a position on the line prior to joining the Training

Department must, upon the execution of this Agreement, bid a vacancy in order to determine their permanent positions in the event of an intermittent return to the line.

D. Tracking

1. The monthly bid packages will reflect all of the non-flying and supervisory pilots and the

full time training pilots assigned to each base. 2. The monthly bid package will announce the check airmen and full time instructors’ return

to the line on an intermittent basis prior to the actual return so that pilots in the base may bid accordingly.

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SECTION 11

TRAINING AND TESTING A. No pilot shall be required to pay for the use of any Company equipment or equipment outside the

Company that is required in pilot training. B. Notice of Training and Course Study/Reference Materials

1. The Company will give a pilot seven (7) days notice prior to the commencement of initial,

transition or upgrade training. 2. The Company will provide each pilot with applicable course study materials at least

seven (7) days prior to the commencement of training. If requested by a pilot and manuals are available, the pilot may check out his training manuals earlier.

3. Each domicile will have a copy of the applicable FARs, the airplane flight manuals and

the Airman’s Information Manual for pilot check-out. C. Pay for Training

1. Recurrent/Differences/SVT/AQP

a. Training Posted in the Monthly Bids

(1) A pilot attending training will be paid and credited at a rate of 3.7 hours

for each day of training, provided that the pilot is notified of his specific training dates at the time the line bids are posted for the month.

(2) Any trips scheduled on specified training dates or “touching trips” shall

be dropped from the pilot's schedule with no pay credit. A touching trip is any trip which must be dropped because it interferes (positioning or crew legality) with the crew member attending the training.

(3) Minimizing the financial impact to the individual will be a scheduling

objective when dropping “touching trips.” Flight Support may substitute trips or substitute modified trips for touching trips on the pilot’s originally scheduled workdays in order to minimize the financial impact.

(4) During the bid for open flying pursuant to Section 25 G., a pilot may elect

to pick up additional flying for the days dropped to accommodate the training. Pilots who have lost pay value due to training inserted in a bid line may request, and will have priority, for open flying at the time of the bid. If there is a conflict between two such affected pilots, seniority will govern.

b. Training Not Posted in the Monthly Bid

(1) If a pilot is not notified of his specific training dates at the time he bids the

monthly schedule, such pilot will be paid and credited for the scheduled value of the trips missed or the value of the training day, whichever is greater, including any touching trips missed.

(2) Crew Scheduling may assign a trip or trips on previously scheduled work

days, provided this assignment does not interfere with the pilot’s

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minimum days off. When this occurs, the pilot will receive the greater value between the original or reassigned trips.

c. Performance Evaluations

(1) A pilot taking a performance evaluation on a day on which he is not

otherwise on duty will be paid and credited with 3.7 hours. (2) A pilot who bids for and is awarded a performance evaluation on his

monthly schedule shall be paid and credited in accordance with 11.C.1.a., above.

(3) A pilot who is required to take a performance evaluation that has not

been published on the monthly bid award shall be paid and credited in accordance with 11.C.1.b., above.

(4) A day on which a pilot takes a performance evaluation will be considered

a day of work. d. If a pilot takes a performance evaluation in addition to any other scheduled work,

the pilot will be paid and credited with an additional 3.7 hours for the performance evaluation.

2. Initial/Transition/Upgrade/AQP

a. If a pilot is scheduled to fly (other than training) during the training month, the

value of these trips will be credited toward the guarantee. b. If a pilot agrees to fly on a scheduled day(s) off, the value of all such trips shall

be paid over and above the guarantee. 3. Home Study

If the Company elects to use any method of training such as “home study” that does not involve a formal ground school to comply with the FAA ground school requirements, a pilot will receive one hour of pay at his applicable hourly rate for each 2.5 hours of FAA approved training credit. The Company will provide the MEC Chairman with the FAA documentation of credit approval for each home study or pre-work. The Company will meet with the MEC to determine if pay credit is appropriate for study guides or written exams used to verify pilot understanding of compliance with new operational documentation which does not involve FAA training credit, and if so, the amount.

D. Pay for Days Off in Training

1. Recurrent/Differences/SVT/AQP Syllabi

a. Training Posted in the Monthly Bid

Upon pilot request, Crew Scheduling will adjust the pilot’s schedule to the minimum extent necessary so as to maintain the pilot’s minimum days free from duty.

b. Training Not Posted in the Monthly Bid

In the event training interferes with the pilot’s minimum number of days off, Crew Scheduling will adjust the pilot’s schedule so as to maintain the pilot’s minimum

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days off. The pilot will be paid and credited with the scheduled value of the trip(s) dropped or the value of the training day(s), whichever is greater.

2. Initial/Transition/Upgrade/AQP Syllabi

A pilot who is rescheduled to train on more than three (3) previously scheduled days off will be paid and credited 3.7 hours at the applicable rate for each day of training which is subsequently cancelled, and will be paid and credited 3.7 hours for each rescheduled day of training. The provisions of this paragraph will not apply if the cancellation is due to the unavailability of the pilot.

E. Training Scheduling

1. Except as provided in Paragraphs E.2. and 3., below, in a month in which a pilot attends

training, he shall be scheduled for no fewer than ten (10) days off. 2. Recurrent/Differences/SVT/AQP

a. A pilot will not be required to take any performance evaluation other than a line

check after any duty assignment on that day, excluding deadhead to the evaluation event.

b. Slots/Days for performance evaluations other than line checks will be posted in

the monthly bid package. They will be awarded on the basis of seniority. Pilots who do not bid may be assigned dates.

c. Recurrent/Differences/SVT/AQP ground training shall be scheduled for no more

than nine (9) hours per day (exclusive of breaks), and will not actually exceed 10 hours.

3. Initial/Transition/Upgrade/AQP

a. A pilot attending Initial, Transition, Upgrade/AQP training (from the beginning of ground school until the completion of IOE) will bid a schedule for the month if his syllabus is scheduled to commence after the fifteenth (15th) of the month. In such case the pilot will bid a schedule for the month and all trips that conflict with the training period will be dropped. The training schedule will take precedence over the trips on the bid line.

b. A pilot attending Initial, Transition, Upgrade/AQP training will not bid a schedule

for the month if his syllabus is scheduled to commence on or before the fifteenth (15th) of that month. A pilot not eligible to bid will be assigned a schedule at the time all other pilots are awarded their schedules (after the 48 hour period).

c. A pilot in Initial, Transition, Upgrade/AQP training shall not be released from his

training assignment and perform any flight duty until he has become currently qualified in the position for which he is being trained, except that he may be released from training if the release is made:

(1) At the completion of the ground training, including any required oral

examination, but prior to the commencement of flight training, or (2) At the completion of flight training but prior to IOE, or (3) During any portion of training due to his personal unavailability which

precludes completion of training in a reasonable time, or

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(4) Due to non-availability of flight instructors, simulator or aircraft-type in which he is being trained, or

(5) Pursuant to his withdrawal from training, or (6) To avoid cancellation of a revenue flight.

d. Ground training shall be scheduled for no more than nine (9) hours per day

(exclusive of breaks), and will not actually exceed ten (10) hours. e. A pilot shall receive a minimum of one (1) day free from all duty in every seven

(7), for up to and including a twenty-one (21) day period. These single days off need not be in a pilot's domicile.

f. If a pilot has a scheduled period of time off during training that will net less than

forty-eight (48) scheduled hours in domicile, at his option, the pilot is entitled to expenses and lodging (but not compensation) if he remains at the training site. If the scheduled period of time off will permit the pilot to return to domicile for longer than forty-eight (48) hours, he may request from the Director of Training expenses and lodging if he wishes to remain at the training site.

g. At the conclusion of the (up to) twenty-one (21) day ground school period, all

pilots involved in the training process will be entitled to a two (2) calendar day period free from all duty in domicile. The blocks of days off following ground school may not be cancelled or postponed without the pilot’s concurrence.

h. During simulator training, a pilot shall have no more than five (5) consecutive

days of training/performance evaluation sessions without at least one (1) twenty-four hour period free from all duty for a total calendar period not to exceed fourteen (14) days. In the event simulator training extends past the fourteen (14) calendar day period, the pilot will be permitted, upon request, to return to domicile for two (2) calendar days and then return to simulator training.

i. During any flight training, a pilot shall have a minimum of forty-eight (48) hours

free from all duty in every seven (7) day period. In the event the flight training extends beyond twenty (20) days, the pilot will be permitted, upon request, to return to his domicile for two (2) calendar days and then return to finish his training.

j. A pilot will receive nine (9) hours of rest between each flight training session,

whether in the aircraft or in the simulator. k. Upon successful completion of IOE/SOE, a pilot will receive three (3) days free

from all duty in domicile. The crew scheduler will make any adjustments necessary to the pilot’s schedule to allow for the three (3) day period free from duty. The blocks of days off following IOE may not be cancelled or postponed without the pilot’s concurrence.

F. Simulator Training

The provisions of this section apply to all Company and FAA required training in fixed base and full flight simulators.

1. A pilot assigned to simulator training shall be paid expenses in accordance with the

provisions of Section 5 of this Agreement.

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2. No pilot shall be scheduled for more than four (4) hours in the simulator on any calendar day. During a normal simulator session, each pilot’s flight simulator period shall be scheduled for two (2) hours. There shall be an appropriate break between flight simulator periods.

3. No single simulator period shall be longer than two hours and fifteen minutes (2:15). 4. Performance evaluations in the full flight simulator shall be subject to the following:

a. Adequate time for a pilot to adapt to the particular flying characteristics of the

flight simulator shall be provided before the evaluation is performed. b. If the Company receives FAA approval for training in the aircraft, no pilot will be

withdrawn from training for failure to satisfactorily complete a performance evaluation without having been given an opportunity to meet the performance standards in the aircraft.

c. No maneuvers shall be required during any performance evaluation other than

those included in the then current proficiency form of Piedmont Airlines. d. Each flight station that is required to be manned during performance evaluations

shall be manned by a pilot on the Piedmont Airlines Pilots’ Seniority List who is currently qualified in the aircraft. A pilot who does not satisfactorily perform on such evaluation, who has a partner who was not currently qualified in the support seat, will not have that unsuccessful checkride count against him pursuant to Section 11 G.

e. Piedmont pilots will not train in the simulator with pilots from any other airline or

contract trainees. Except, a non-probationary pilot may, at his option, agree to train in the simulator with an FAA employee who is being trained on a contract with the Company.

f. No pilot will take a regularly scheduled performance evaluation in the simulator

which commences earlier than 0600 or terminates after 0030. G. Training Progressions

1. General a. “Training Review Board (TRB)” means a board established by the Company and

the Association consisting of two Company Flight Operations Management Representatives with training expertise and the ALPA Training Committee Chairman, or their respective designees, for the purpose of reviewing a pilot’s training consistent with the provisions of this Agreement. Any meeting of the TRB shall require a full board.

b. Prior to making any recommendations for withdrawal of a pilot from training

(other than new hire initial training), the TRB will convene and provide an opportunity for participation by the pilot, his ALPA representative, appropriate instructors/check airmen, and any other party the Board deems necessary. The Board shall act by consensus.

2. Recurrent/SVT/AQP Syllabi

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A pilot candidate for Recurrent/SVT/AQP Syllabi must successfully complete the prescribed FAA approved ground and flight training syllabus within the following parameters: a. Ground Training

Ground Training shall consist of that which is contained within the approved training syllabus. A pilot who does not meet the standard will be provided with additional training prior to reexamination.

b. Flight Training

The flight training portion of the syllabus will be conducted in accordance with the approved training program. LOFT/CRM/LOS or related training will be evaluated in accordance with applicable FARs and/or FAA guidance material. No evaluative methods utilized will be construed to be a substitute for the rights contained within the performance evaluation provisions of Section 11.G.2.c., below.

c. Performance Evaluation

Simulator/Aircraft/Line Operation

(1) A pilot who does not satisfactorily complete the required items on the recurrent checkride may be provided with additional training during the ride and reevaluated in accordance with FAA guidelines and Company training manual. A pilot who does not satisfactorily complete such first ride will be provided with additional training and rechecked. The recheck will be on a subsequent day.

(2) Training Review Board Intervention Point

When a pilot does not satisfactorily complete the second checkride in paragraph 2.c.(1), above, the TRB shall make specific training recommendations plus a schedule for a third checkride. A pilot’s request for additional training will be taken into consideration. A pilot’s request for a minimum of seventy-two hours between checkrides will be granted.

(3) When a pilot does not satisfactorily complete a third checkride in

paragraph 2.c.(2) above, he will be withdrawn from such training, except as provided in Section 11 G.2.d.

d. For any month that the Company determines that the recurrent training load must

be redistributed (“the overstrength month”) by realignment of pilot base months, the following procedure shall apply:

(1) The Company will announce the pending realignment at least 30 days

prior to the posting of the applicable monthly bid. (2) Pilots whose base month is the overstrength month may bid for

realignment using the monthly bid process described in Section 24.A.3. (3) If fewer than the necessary number of pilots bid for base month

realignment, the Company shall fill the remaining slots in inverse seniority order. No pilot will be required to have his base month realigned more than once during the term of this Agreement.

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(4) The Training Review Board may recommend a fourth attempt for any pilot whose recurrent training had been accelerated due to base month realignment, whether voluntary or involuntary, under this Section.

3. Initial/Differences/Transition/Upgrade/AQP

a. A pilot candidate for Initial, Differences, Transition, Upgrade/AQP qualification

must successfully complete the prescribed FAA approved ground and flight training syllabus within the following parameters: (1) Ground and Fixed Base Simulator Training

(a) Ground Training shall consist of that which is contained within

the approved training syllabus. A pilot who does not achieve a passing grade will be provided with additional training prior to reexamination. If a pilot does not successfully complete the second examination he will be withdrawn from training.

(b) Ground and Fixed Base Simulator Training

The fixed base portion of the syllabus will be conducted in accordance with the approved training program. No evaluative methods utilized will be construed to be a substitute for the rights contained within the performance evaluation provisions of this subsection 11.G.3.

(2) Flight Training

(a) The flight training portion of the syllabus will be conducted in

accordance with the approved training program. No evaluative methods utilized will be construed to be a substitute for the rights contained within the performance evaluation provisions of this subsection 11.G.3.

(b) Progress Check

At the conclusion of the flight training syllabus, a pilot will receive a progress check. The purpose of the progress check is to determine the pilot’s readiness for a checkride. A pilot who can be recommended for a checkride at the conclusion of the progress check shall be so recommended. A pilot who requires additional training shall be provided with such training during the remaining time in the period and in up to two (2) additional hours, if necessary. The ALPA Training Committee Chairman shall be promptly advised of any pilot receiving additional training.

(3) Training Review Board (TRB) Intervention Point #1

A pilot who is not recommended for a checkride after two (2) additional hours, as provided above, shall be referred to the TRB, where specific training recommendations may be made or withdrawal may be recommended.

(4) Checkride #1

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A pilot who does not meet the required standard will be provided with the additional training and rechecked.

(5) Checkride #2: TRB Intervention Point #2

A pilot who does not meet the required standard after his second checkride will be referred to the TRB, where specific training recommendations may be made or withdrawal may be recommended. Recommendations of the TRB shall be forwarded to the Director of Training for a decision to provide additional training, checking or withdraw the pilot from training. The Director of Training shall consider all relevant circumstances, including the recommendations of the TRB. A pilot’s request for additional training will be taken into consideration.

(6) A pilot who does not meet the required standard after his third checkride

will be withdrawn from his training assignment. (7) Initial Operating Experience (IOE)

The IOE syllabus shall consist of twenty (20) hours. Upon completion of the syllabus, which may be completed early, a pilot may be:

(a) given a line check; or (b) provided with additional training and given a line check.

A pilot who undergoes a line check but fails to meet the required standard shall be referred to the Training Review Board. A pilot who does not meet the required standard on his last line check will be withdrawn.

4. Consequences of Withdrawal From Training

a. Recurrent/SVT/AQP

(1) A captain who withdraws himself from recurrent training prior to being

unsuccessful on a third checkride shall be provided with an opportunity to qualify as a first officer in his current aircraft and base. If he is successful in such qualification, he will be ineligible to bid out of such category except at the discretion of the Company. If he is unsuccessful, his continued employment shall be at the Company’s discretion.

(2) A captain who is withdrawn from recurrent training after being

unsuccessful on a third checkride shall be continued in employment at the Company’s discretion.

(3) The employment of a first officer who is withdrawn from recurrent training

shall be at the Company’s discretion. b. Initial, Transition, Differences or Upgrade/AQP Program

(1) A pilot who unilaterally withdraws from an awarded training slot by

written notice to the Chief Pilot prior to the first day of ground school shall not be awarded another bid for a training slot for six calendar months, commencing on the date the written notice is provided to the Chief Pilot.

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In the event the Company is unable to fill the vacated training slot, the pilot who withdrew shall not be awarded another training slot for a total of twelve calendar months as measured above.

(2) The Company may elect not to impose any freeze on a pilot who

withdraws for personal hardship reasons. (3) A pilot who unilaterally withdraws from an awarded training slot on or

after the first day of ground school shall be treated in accordance with Section 11.G.5 rather than in accordance with paragraphs 1 and 2 above.

(4) If the date of the pilot’s notice of withdrawal is such that the time frame

provided for in Section 24.A.4 is unavailable to fill the vacancy, the Company shall:

(a) Notify the MEC Chairman or his designee of the vacancy; (b) Offer the vacancy in seniority order on the basis of the

permanent bid system; (c) Not impose any adverse consequences on a pilot who declines

the offered vacancy. (5) A pilot who withdraws or is withdrawn from initial/ transition/differences or

upgrade/AQP training shall return to his previous position with appropriate training for requalification and shall be ineligible to bid out of such position for six (6) months from the date of his return.

(6) In the event a pilot cannot return to his previous position due to a lack of

seniority or the position’s non-existence, he shall return to a position in which he was previously qualified; if none is available, then to any position he can hold in accordance with his system seniority.

5. Opportunities to Begin a Qualification Program

a. A pilot who withdraws or is withdrawn from training for a specific category will

(after his freeze), his seniority permitting, have a second opportunity to become qualified in such category. The employment of a pilot who withdraws or is withdrawn from a second opportunity for the same category shall be at Company discretion.

b. A pilot who elects to withdraw from training shall be considered to have

completed one opportunity. The Company may elect not to consider withdrawal an “opportunity” for personal hardship reasons.

6. Panel of Review

a. A pilot who withdraws or is withdrawn from a second attempt to become a

captain in the same aircraft-type shall have his continued employment reviewed by a Panel of Review. The Panel shall be comprised of representatives of the Director of Flying and Director of Training. The pilot and a representative of the MEC shall participate in the Panel’s proceedings. The Panel will issue a Letter of Findings that specifically addresses the following factors: (1) The pilot’s seniority and length of service;

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(2) The pilot’s employment history and character of service; and (3) The pilot’s effort and commitment to the training process.

b. The Panel will recommend whether the pilot will remain employed. Decisions of

the Company not to retain a pilot are subject to the grievance procedure. The MEC representative to the Panel may not be called by any party to testify before a System Board concerning any matter arising out of the proceedings of the Panel.

c. A pilot who is retained pursuant to a recommendation of the Panel may apply in

the future for eligibility to bid a training slot. The Panel will decide such applications in writing on a case-by-case basis. Such decisions may not be modified by a System Board unless proven to be arbitrary or capricious. A decision based on the pilot’s previous training failures shall not be deemed arbitrary or capricious.

d. Notwithstanding the Panel’s authority to deny a pilot eligibility to bid a future

training slot, a pilot whose category is being eliminated due to the retirement of an aircraft-type will be given the opportunity to transition to the same status in a remaining aircraft-type.

H. Forty-Five (45) Day Right Seat Program

The Training Review Board may recommend that a captain candidate have an opportunity to participate in a program which will place him in the first officer seat of the aircraft in which he is attempting qualification for a period up to forty-five days. While in the 45 day right seat program, the pilot will be assigned to a domicile for the 45 day period. If it is not the pilot’s previous domicile, the pilot will be treated as a temporarily domiciled pilot and will be compensated at the rate applicable to the position and equipment held prior to entering training. If a pilot does not successfully complete the supplementary program, he will be withdrawn from training and permitted to return to his previously held position, provided he is able to successfully complete a checkride for that position.

I. Training and Testing – General

1. Upon a pilot’s request, he will be shown and provided with a copy of any report prepared

on his training. 2. The Company will post training pilot positions. Pilots on the Piedmont Airlines Pilots

Seniority List applying for these positions will be given appropriate consideration. The filling of these positions shall be at the discretion of the Company.

3. Training will be in accordance with the approved FAA training program. Pilots shall be

eligible for training and promotion in accordance with the procedures set out in Section 24 (Promotions and Filling of Vacancies) of this Agreement. The Company may set minimum experience standards (total flying hours) which must be met by pilots seeking captain positions, however, all such minimum standards must be uniformly applied to each bid.

4. In addition to meetings of the Training Review Board, the Director of Training and the

Association’s Training Committee shall meet at least every six (6) months to review any and all training problems and procedures. Any major changes in the training procedure will be brought to the attention of the committee and their input, suggestions and recommendations shall be given appropriate consideration.

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5. Performance evaluations will be given by an FAA examiner, and FAA Designated Examiner or a Company designated check airman.

6. A pilot who has been unsuccessful in a performance evaluation may, at his option, select

any available performance evaluator on the Piedmont Pilots’ Seniority List or an available FAA designated check airman for his recheck.

7. The Company will not require pilots to execute aircraft training agreements. 8. A first officer who has upgraded to captain in the same aircraft-type may be utilized as a

first officer in that aircraft-type. When such captain flies as a first officer, he will be paid as a captain.

9. A pilot may select a pilot on the Piedmont Airlines Seniority List to accompany him on his

upgrade performance evaluation. Upon request, an observer for other training or evaluation evolutions will be considered. The position of the observer will be contingent upon jumpseat availability. In the event the jumpseat is not available, the observer will occupy a position behind the jumpseat. The observer will be considered to be in non-flight pay status.

10. Videotapes made of pilots’ performance in the simulator or aircraft will be shown to the

pilot upon completion of the training session and erased in the pilot’s presence. If erasure is not possible, the pilot will be given the tape for erasure and return it to the Company.

11. A pilot will be granted a rest period of nine (9) hours before the return to line flying after

completion of a training session in excess of eight (8) hours, unless the Company and the pilot mutually agree to other arrangements.

J. Training Pilot – Scheduling and Pay

1. The Training Department will contact training pilots prior to the publishing of the bid

packages for the upcoming month to discuss the dates upon which the Department contemplates the training pilot performing training or checkrides.

2. Part time training pilots will bid a line of time during the normal bid process and will not

adjust their initial bid line on days they are scheduled to perform training or give checkrides. Such pilots will fly those lines, except on the days in which they perform instruction or flight checks.

3. Part time training pilots will be credited with 5.5 hours per day, or actual block hours

flown, for each day of instruction or checking, in addition to the value of any line flying performed on that day.

4. For pay purposes, the value of the block of time during which a training pilot conducts

training or checkrides will be calculated by comparing the value of that portion of the bid line for that period and the value of the period after training days have been scheduled and trips adjusted accordingly. The training pilot will be paid the greater of the two calculations. Crew Scheduling may place trips on days of previously scheduled work that were dropped to accommodate the training schedule, unless the placement of a trip results in fewer days off than were originally on the bid line. Travel days are considered days of training.

5. If a training pilot loses a day(s) off as a result of the training schedule, then the pilot and

Flight Support may mutually designate an equal number of days off as were lost, at the

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training pilot’s option during the 48 hour period. Such days off will be without compensation.

6. Part time training pilots will be paid a retainer of $220.00 per month for each month

served in such capacity. In addition, all such pilots will be paid $55.00 per day for days of instruction or flight checks in excess of four (4) per schedule period. A pilot who is designated as a part time training pilot shall be paid the retainer each month regardless of whether or not he performs training events in that month.

7. A part time training pilot conducting line checks will be credited with four and one-half

(4.5) hours per day, or the value of the duty/trip period plus $40.00 per day for each day utilized as a line check airman.

K. Initial Operating Experience IOE/SOE Captains

A training pilot designated as IOE/SOE captain will be paid $70.00 (increased to $75.00 on 5/16/01, $80.00 on 5/16/02, and $85.00 on 5/16/03) per day for days when he is used as such IOE/SOE captain.

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SECTION 12

HOURS OF SERVICE A. Rest Periods

1. Scheduled Rest a. All trip pairings will be scheduled with at least ten (10) hours of rest between duty

periods in domicile, except: (1) When a pilot is junior manned then he shall receive ten (10) hours of

rest; (2) When a pilot is being rescheduled, then he shall receive nine (9) hours of

rest; (3) When a pilot arrives late in his domicile, then he shall receive nine (9)

hours of rest, which may be reduced to eight (8) hours provided the pilot is offered hotel accommodations that evening.

b. The Company will not schedule reduced rest of less than nine (9) hours. c. When away from domicile, a pilot will be scheduled so as to allow for at least 8.5

hours of rest in the hotel, taking into consideration the usual amount of time needed to travel between the airport and the hotel.

Note: See also LOA #1, Continuous Duty Overnights.

2. Actual Rest

No pilot will receive less than eight hours (8:00) of rest between duty periods (from release time until next report time).

B. Duty Limitations

1. a. No pilot will be scheduled or assigned in excess of fourteen (14) hours of duty per day, including deadheading (except as otherwise provided in this Agreement). No pilot will be rescheduled or reassigned in excess of fourteen (14) hours of duty per day, unless the pilot is being deadheaded to the scheduled RON location that results from a cancelled flight on that pilot’s schedule, in which case the pilot cannot be rescheduled or reassigned to duty which exceeds fifteen hours (any duty time scheduled to exceed fourteen (14) hours cannot include flight time). A schedule, reschedule, assignment, or reassignment complies with this provision provided it is scheduled to terminate within fourteen (14) hours (fifteen hours where applicable) of the pilot’s report time.

b. No pilot will be required to exceed fifteen hours and thirty minutes (15:30) of

actual duty.

2. A pilot shall be scheduled no more than six (6) consecutive calendar days without a calendar day free from duty.

3. Duty and rest periods as provided in paragraphs A. and B. may exceed specified

limitations with the written concurrence of the MEC Chairman or designee.

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4. A pilot who is contacted after 2200 and told to report prior to 0500 will not be scheduled to exceed nine (9) hours of duty, and will not actually exceed ten (10) hours of duty.

C. Days Off

1. A pilot will be scheduled for at least ten (10) days off in domicile in any schedule period,

except for pilots in training (see Section 11). 2. If a pilot is unavailable for flight duty for part of a month, his guaranteed days off will be

prorated. This paragraph will not affect a pilot’s previously scheduled days off in a month. A pilot who receives a prorated number of days off may be assigned flight duty pursuant to Section 25 I.1.d. and e., (Junior Manning), provided his scheduled days off for the portion of the month for which he is available exceed the prorated guaranteed number of days off. A pilot is unavailable if he cannot, by virtue of conditions such as lack of qualifications or leave (excluding sick leave and bereavement leave), perform flight duty.

3. Work on a Day Off

a. A pilot who is called out (has not requested assignment to a specific trip) and utilized on a scheduled day off which appears on the final bid award (post forty-eight (48) hour period) may elect to be credited with four (4) hours of pay time for that day or time worked, whichever is greater, or take an additional day off (trade back day) on a mutually agreed upon date within forty-five (45) days. If the pilot elects to take a day off at a later date he shall be credited the value of the time worked on the day he was originally scheduled off and the value of the day dropped shall be removed from the pilot’s line. A scheduled day or days off will not be rescheduled without pilot concurrence.

b. A pilot who is utilized on a scheduled day off which appears on the final bid

award (post forty-eight (48) hour period) shall be credited for this time above the monthly guarantee.

c. A pilot who has not received a requested additional day off (trade back day)

within forty-five (45) days (pursuant to paragraph C.3.a. above), shall have the option of: premium pay as described in Section 3.D. in lieu of that additional day off, or designate a day off on the next monthly bid cycle. Such day off will be the first or last day of a trip, and not on a blackout day unless the scheduled day off which the pilot was junior manned was a company designated holiday. Pilot will not be pay protected for the day dropped as per paragraph C.3.a. above.

D. Notification

1. The Company will maintain a standard method of notifying pilots if scheduled departure time will be appreciably delayed (i.e. by more than 1.5 hours) or cancelled. Pilots will be notified as far in advance as practical.

2. The Company will not normally contact a pilot between 2200 and 0800. If there is a

change in the pilot’s schedule that requires a contact during the time between 2200 and 0800, the pilot may be called one hour prior to the revised report time, or sooner if necessary, provided the call is made so as to minimize the disruption to the pilot’s rest.

3. The Manager of Flight Operations will consider D.1. and D.2. priorities in crew scheduler

training and take prompt corrective action in instances of incorrect implementation. This provision will not be construed to constitute the sole or exclusive remedy in the event the Company violates this provision.

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4. A pilot who is unable to report for duty will notify Crew Scheduling as far in advance as is practicable.

E. A pilot will not be required to keep the Company advised of his whereabouts on days off or while

on vacation. F. When a trip or series of trips commences in one schedule period and ends in the following month,

all of the hours flown in the first month will be credited to the first month. The remainder of the hours flown will be credited in the next month.

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SECTION 13

LEAVES OF ABSENCE A. Military Leave

Military leave will be granted in accordance with applicable federal law. B. Jury Duty Leave

A pilot who wishes to serve jury duty will be permitted to do so. The pilot will be expected to advise Crew Scheduling in a timely manner of notice indicating possible jury service. Upon a showing of satisfactory evidence of the amount of compensation received for jury duty, the pilot will incur no loss of pay for the period of jury duty. Assignment to jury duty shall not preclude the pilot’s eligibility to bid.

C. Medical Leave

1. A pilot certified by a physician as unable to perform the duties to which he is assigned due to sickness, injury, pregnancy or other medical condition(s), and who has exhausted sick leave compensation benefits, shall be granted a medical leave of absence.

2. Duration

a. A pilot with up to three (3) years of active service with the Company may remain

on medical leave for no more than a total continuous period of five (5) years unless extended by the mutual consent of the Company and the Association. Such pilots will maintain and accrue longevity and seniority for the first three years of the leave. Subsequent to the first three years, such pilots will retain but not accrue seniority or longevity and will be required to pay the Company group rate for medical insurance, if desired.

b. A pilot with more than three (3) years of service with the Company may remain

on medical leave for no more than a total continuous period of five (5) years unless extended by the mutual consent of the Company and the Association. Such pilots will maintain and accrue longevity and seniority for the duration of the leave.

c. Pilots on medical leave will not accrue vacation or sick days.

3. A pilot on medical leave must keep the Company advised of his current address and

phone number, and shall cooperate with reasonable requests for updated information regarding his status and expected return-to-work date.

4. A pilot returning from medical leave will be permitted to exercise his seniority to obtain a

position at the domicile at which he was previously based. In the event that the domicile no longer exists, the pilot will be permitted to exercise his seniority systemwide to obtain a position and such pilot will be entitled to a paid move pursuant to Section 6.

5. When the pilot becomes medically requalified, he will promptly notify the Chief Pilot of his

intent to return in writing. The Company will return the pilot to active pay status within thirty (30) days or the next bid (if no requalification training is necessary), whichever comes first. If requalification training is necessary, he will be assigned to the next regularly scheduled training class, but the pilot will be returned to active pay status no later than thirty (30) days after the pilot notifies the Company of the intent to return.

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D. Personal Leave 1. A pilot may be granted a personal leave of absence without pay for up to ninety (90)

days. When such leave is granted, the pilot shall retain but not accrue seniority and longevity during the personal leave. If a pilot on a personal leave of absence would otherwise have been furloughed during any period of leave, he shall be placed on furlough status as normal.

2. A pilot on a personal leave of absence shall not engage in employment without the

approval of the Company. A pilot on a leave of absence must notify the Company at least thirty (30) days in advance of the expiration of the leave period of his intentions to return to active status, request an extension, or resign. The pilot will be returned to service in the position held prior to the leave, and will commence flying in the bid period immediately following the notice of intent to return, unless qualification has lapsed. If requalification training is necessary, he will be assigned to the next regularly scheduled training class, but the pilot will be returned to active pay status no later than 30 days after expiration of the leave.

3. The Company will make every effort to grant a pilot emergency personal leave upon the

request of a pilot for up to ninety (90) days in the event of a death or severe illness of a family member, or a natural disaster (Acts of God). The terms of an emergency personal leave will be identical to those covered by medical leaves.

E. Bereavement Leave

In the event of a death in the pilot’s immediate family, the pilot shall be granted leave from all duties with the Company if requested, commencing with the day of the death until the day after the funeral, inclusive. The pilot will be credited for trips missed for the day before, the day of and the day after the funeral, if the pilot is scheduled to work on those days. The pilot will not incur any loss of seniority or longevity for this period of time. Additional time needed or unusual circumstances concerning other than immediate family members will be addressed on a case-by-case basis. “Immediate family” is defined as the pilot’s spouse, father, mother, father-in-law, mother-in-law, son, daughter, sister, brother, grandparent, grandchild, stepparent, step parent-in-law, or child for whom the pilot is guardian, or domestic partner (as defined by USAirways benefits program). For the purposes of this paragraph the pilot will list the domestic partner with the chief pilot’s office.

F. Association Leave

If a pilot is elected to any national office of the Association, he shall be granted a leave of absence without pay to carry out the duties of that office. The leave shall not exceed the term(s) of office. The Company shall be notified at least thirty (30) calendar days prior to the commencement of and return date from such a leave.

1. During a pilot’s term of office, the pilot may obtain flying in the same manner as non-line

holders in order to maintain currency as a pilot. 2. A pilot returning from Association leave will not be paid by the Company until qualified on

the aircraft which he is awarded. Retraining costs will be borne by the Company. The pilot may exercise his seniority rights systemwide to obtain a position.

3. Pilots on Association leave will retain and continue to accrue seniority and longevity for

the length of the leave, however, the pilot will not accrue sick or vacation days. G. Maternity Leave

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1. A pregnant pilot who is certified by a physician as unable to fulfill her duties will be granted a medical leave of absence in accordance with Paragraph C, (Medical Leave) above. A pilot who ceases to perform flight duties pursuant to this paragraph will be eligible to receive accumulated sick leave and/or disability benefits on the same basis as any other illness or disability.

2. Notwithstanding Paragraph G.1., above, a pilot may take maternity leave following

termination of pregnancy of up to six (6) weeks (eight (8) weeks in the case of a cesarean delivery) with seniority and longevity accruing.

H. Family Leave

In any case, where the provisions of the Family Leave Act are more beneficial than the provisions of this contract, pilots will be entitled to the more beneficial provisions of the Act; where the provisions of the Act are less beneficial, the Agreement shall apply.

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SECTION 14

SICK LEAVE A. Accrual

1. Pilots will accrue sick leave credit at the rate of 4.0 hours for each month of active service.

2. A pilot will not lose any unused sick leave accrued before or pursuant to the previous

Agreement. 3. Sick leave will fully accrue on the first of each month, except in the month in which a pilot

exhausts accrued sick leave credit prior to medical leave; in which case, if the pilot exhausted sick leave after the fifteenth (15th) of the month, the pilot will accrue sick leave for that calendar month. If, however, the pilot depleted his sick leave prior to or on the 15th of that calendar month, he will not accrue sick leave credit for that month.

B. Pay

1. A pilot who is unable to perform assigned duty due to illness or injury will be credited for the trip(s) missed and will have the value of the trip(s) missed deducted from his sick leave credit.

Note: See also LOA #10, Sick for Junior Man.

2. A pilot who is unable to perform assigned duty due to illness or injury on a reserve or

standby day will be credited with four (4) hours of flight pay and four (4) hours of time will be deducted from his sick leave credit.

3. A pilot who uses sick leave after a trip has commenced will receive sick leave credit for

the portion of the trip missed, but will not be paid for the deadhead home or per diem. The ill pilot will be deadheaded to domicile on the first on-line flight on a positive space basis. Where the severity of the illness warrants, the deadhead will be on a must ride basis. The ill pilot will not be required to occupy the jumpseat.

Note: See also LOA #7, Attendance Policy.

4. Return to Service

a. A pilot who is able to return to work after his original trip has been assigned shall

notify Crew Scheduling of his availability by 1700 on the day before he wishes to return, and shall coordinate his return to duty with Crew Scheduling. Crew Scheduling’s objective will be to return the pilot to the trip. If the pilot cannot reasonably be returned to the original trip, the pilot may be assigned to another trip or assigned to standby (reserve for a reserve line holder) for the remaining day(s) of the original trip.

b. Upon return to work, the pilot will be paid and credited for the remainder of his

original trip (except he shall not be paid and credited for deadheading or per diem expense associated with his return to trip) or assigned to another trip. If assigned to standby (reserve for a reserve line holder), he will be paid and credited with the greater of four (4) hours or what he actually flies on each day. If the total of such pay and credit is less than the value of his originally scheduled trip, he shall be paid and credited with the difference. If assigned to another trip

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and the total of such pay and credit is less than the value of his originally scheduled trip, he shall be credited with the difference.

C. To the degree supported by payroll software, pilots’ monthly pay sheets will reflect the pilot’s

amount of unused accrued sick leave.

D. Regular days off preceding, during, and immediately following absence will not be counted when determining the number of days of sick leave allowance to be deducted. Sick leave will not overlap on paid vacation days.

1. If a pilot becomes ill or injured while on vacation and such injury requires hospitalization

or surgery, the pilot may postpone the remainder of the vacation and elect to receive sick leave for the remainder of the vacation period instead. Such pilot may select from the remaining open vacation periods to reschedule the postponed vacation. The vacation may not be deferred until the following year unless there are no open vacation periods remaining in the year in which the postponed vacation occurs.

2. If a pilot is on sick leave at the time his vacation is due to be taken, the vacation period will be rescheduled upon a written request of the pilot. Such pilot may select from the remaining open vacation periods to reschedule the postponed vacation. The vacation may not be deferred until the following year unless there are no open vacation periods remaining in the year in which the postponed vacation occurs. If the vacation is postponed and the pilot wishes to return from sick leave prior to the end of the vacation period, the pilot will be eligible to bid open flying and/or placed on standby on previously scheduled work days until the termination of the originally scheduled vacation period.

E. The Chief Pilot or Coordinator may require a pilot on sick leave to furnish the Company with a

doctor’s certificate describing the sickness or injury provided the Company pays the expense of the examination. The pilot will not submit an insurance claim for said examination.

Note: See also LOA #7, Attendance Policy, and LOA #10, Sick for Junior Man.

F. In the event a pilot on sick leave is unable (physically incapacitated) to bid for the following month

and qualifies to use sick leave for that month, the pilot will be paid for trips missed based upon the previous month's schedule.

G. Retiree Sick Leave Payout

A retiring pilot may sell accrued sick leave at fifty percent (50%) of his applicable hourly pay rate at the time of retirement, up to an amount equal to the amount necessary (maximum three-hundred (300) hours) to compensate for the time between age sixty-five (65) and the time he begins receiving unreduced Social Security benefits, to the extent that he has sufficient sick leave accrual to accommodate such amount. A retiring pilot who does not have sufficient sick leave accrued to accommodate for such amount may sell all accrued sick leave at fifty percent (50%) of his applicable hourly pay rate. The amount of sick leave eligible to be sold will be determined by multiplying the monthly amount the pilot will receive from the Defined Benefit Pension Plan for pilots under the Social Security Supplemental Benefit by the number of months between age sixty-five (65) and the date the pilot is eligible for unreduced Social Security benefits.

H. Attendance Bonus Program

1. A pilot who does not call in sick during the first six calendar months (January 1st to June

30th), or the second six calendar months (July 1st to December 31st), will, at the discretion of the pilot receive Fifty Dollars or remove an occurrence.

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2. A pilot who does not call in sick during an entire calendar year will, at his discretion receive a bonus of Two Hundred and Fifty Dollars or remove another occurrence, in addition to the first six month selection in 14.H.1.

3. The Six month bonus will be paid on the July 30th or January 30th paycheck. 4. The Year bonus will be paid on the January 30th paycheck. 5. The maximum payout for the entire year will be Three Hundred Dollars or the maximum

number of occurrences dropped will be Two (2).

Example one: Pilot has perfect attendance for the entire year. The pilot will receive $50 on the July 30th paycheck (or drop an occurrence) for the period of January 1st to June 30th. The pilot will also receive $250 on the January 30th paycheck (or drop an occurrence) for the period of January 1st to December 31st. Example two: Pilot calls out sick on April 1st but does not call out sick for the remainder of the year. The pilot will receive $50 on the January 30th paycheck (or drop an occurrence) for the period of July 1st to December 31st.

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SECTION 15

PHYSICAL STANDARDS A. The physical standards required of a pilot shall be the standards established by the Federal

Aviation Administration (FAA), including its waiver policy, as administered by the FAA. Physical exams required of a pilot to comply with the FARs will be at the pilot’s expense.

B. A pilot shall not be required to submit to any medical examination without the pilot’s consent

unless required by governmental authority or unless the Company has good cause to believe that the pilot’s health or physical condition is impaired to the extent it could affect the pilot’s duties. In such case, the Company may require that the pilot undergo a medical examination from an accredited physician who shall be selected by the Company. The Company will bear all costs associated with this examination.

Note: See also LOA #7, Attendance Policy.

C. Any pilot hereunder who fails to pass a medical examination required by the Company pursuant

to paragraph B, above, may, at his option, have a review of the case in the following manner:

1. The pilot may employ a qualified physician of his own choosing and at his own expense for the purpose of conducting a medical examination for the same purpose as the medical examination made by the Medical Examiner in Paragraph B. above.

2. A copy of the findings of the physician chosen by the pilot shall be furnished to the

Company and in the event that such findings verify the findings of the physician in accordance with Paragraph B. above, no further medical review of the case shall be afforded.

3. In the event that the findings of the physician chosen by the pilot disagree with the

findings of the physician designated in Paragraph B., the pilot is entitled upon request, to be examined by another physician mutually agreeable to the pilot and the Company. The Company and the pilot will equally share the cost of this examination, offset by any insurance coverage. Copies of the physicians’ report shall be furnished to the Company and the pilot.

4. The case shall be settled on the basis of the findings of the third examination, if

necessary.

5. If it is determined that the pilot has continuously met the medical standards established in paragraph A. above, any sick leave credits paid to such pilot during the period of removal from availability from flying will be credited to the pilot’s sick leave account. In addition, the pilot will be made whole for any/all losses incurred as a result of being removed from the line as per paragraphs B and C, above.

D. A pilot who loses a first class medical certificate shall be permitted, upon request, to fly as a first

officer at applicable rates. E. Testing

1. The Company may establish a drug and alcohol testing program to meet its requirement for FAA random and periodic testing and its need for pre-employment and reasonable cause testing, and testing associated with NTSB classified accidents and/or incidents.

Note: See also LOA #6, Alcohol Testing.

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2. The Company’s drug and alcohol testing program will permit pilots the opportunity to provide a split sample.

a. If the pilot elects to provide a split sample, such pilot will complete a form, in

duplicate, one copy to be retained by the pilot, which will reflect the decision to provide a split sample.

b. The pilot will pay the cost of collection, retention, and testing of the split sample,

and the pilot’s share of the cost will be payroll deducted. In the event the FAA regulations regarding the cost of a split sample should change requiring the Company to pay all or part of such cost, this paragraph shall be modified to reflect such Company obligation.

c. If the pilot’s primary sample tests positive, the pilot may elect to have the

Company direct the laboratory to forward the second sample to a National Institute on Drug Abuse (NIDA) approved laboratory to be designated by the Association. The pilot must make the election to test the second sample within seventy-two (72) hours of actual notification of a positive test on the primary sample.

d. If the second sample tests negative it will void the result of the primary sample

test.

3. The Company will provide any transportation necessary to and from the collection site if it is outside the airport terminal (except Salisbury and like distances).

4. Pilots will not be required to take random and/or periodic tests on their days off. Pilots

are not required to take reasonable cause tests on their days off except as required by applicable regulations.

5. In the event a random test interferes with a pilot’s schedule, such pilot will take the

random test unless otherwise directed by the Company, and will not suffer any loss of pay or credit for any time lost. Pilots who require schedule adjustments as a result of the testing will be treated as rescheduled pilots as defined in Section 3.F.4., and handled in accordance with the contractual provisions relating to rescheduled pilots.

6. A pilot will be considered to be on duty until the pilot completes the test or is returned to the airport, whichever comes last.

7. Tests will be performed so as not to interfere with the contractual rest provisions. 8. In cases where a group of employees are to be tested, pilots who have completed their

duties will be tested ahead of on-duty employees.

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SECTION 16

(INTENTIONALLY LEFT BLANK)

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SECTION 17

PRISONER, HOSTAGE, OR HIJACKING BENEFITS A. Any pilot, while in the employ of the Company, who becomes or is reported to be illegally

interned, taken hostage or hijacked or missing while on trip hours in connection with domestic and/or international flying shall be paid on a monthly basis the average of the previous three (3) months total pay checks. Where such pilot would be entitled to longevity raises, the pilot shall be paid in accordance with those raises. This monthly compensation shall continue until such pilot is released. No payroll deductions will be made during this time for uniforms. Other deductions previously authorized by the pilot will continue in effect.

B. The monthly compensation allowable under this Agreement to a pilot shall be credited to such

pilot on the books of the Company and shall be disbursed by the Company in accordance with written directions from the pilot. The Company shall require each pilot hereafter employed to execute and deliver to the Company a written direction in the form hereinafter set forth.

C. Any payments due to any pilot under this section which are not covered by a written direction as

above required, shall be placed into an interest bearing account in the pilot’s name at a Savings and Loan Institution of the Company’s choice, and in the event of the pilot’s death, shall be paid to the legal representative of the pilot’s estate.

D. Pilots shall maintain and continue to accrue seniority and longevity during periods in which this

section is applicable.

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WRITTEN DIRECTION TO: Piedmont Airlines, Inc. You are hereby directed to pay all monthly compensation allowable to me and any other benefits stipulated in the Agreement, under conditions which cause direct payment to be impossible, under sections of the Agreement between Piedmont Airlines, Inc., and its pilots as represented by the Air Line Pilots Association, then in effect as follows: $ or % per month to (Name and Address), as long as living, and thereafter to (Name and Address). The balance, if any and any amounts accruing after the death of all persons named in the above designations shall be held for me or, in the event of my death before receipt thereof, shall be paid to the legal representative of my estate. The foregoing direction may be modified from time to time by letter addressed to the Company and signed by the undersigned, and any such modification shall become effective upon mailing of such letter by the undersigned.

Pilot's Signature WITNESS:

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SECTION 18

(INTENTIONALLY LEFT BLANK)

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SECTION 19

INVESTIGATION AND DISCIPLINE A. Fact Finding Hearing

1. No suspension, termination or letter of warning will be imposed until a face-to-face meeting is held between a Flight Operations Manager, the pilot and (if desired by the pilot), an Association representative(s). In the case of a letter of warning, the pilot may elect a telephone conference in lieu of a face-to-face meeting. Such meeting or conference will be conducted in a timely manner. The Company will provide the pilot at least three (3) days notice of the meeting or conference.

2. Pending such meeting or conference, the Company may hold a pilot out of service, with

pay, for a period not to exceed the period elapsed until the Company’s disposition is issued pursuant to paragraph A.3. below.

3. The purpose of the meeting or conference is to ensure an opportunity to establish all

pertinent facts prior to any disciplinary action. The Chief Pilot or his designee shall, within fourteen (14) calendar days of the conclusion of the fact-finding meeting, render a disposition in writing and mail said disposition to the pilot, return receipt requested. The disposition shall state the action taken and the reasons therefore, and shall be signed by the Chief Pilot or his designee. A copy of the disposition will also be mailed at the same time to the MEC Chairman, Grievance Chairman, and the ALPA Contract Administrator.

4. It is understood that the Company may discuss the matter at issue with the pilot prior to

the fact-finding meeting or conference. It is also understood that a pilot may refuse to discuss the matter at issue until he has had a chance to confer with the Association and an Association representative (of the pilot’s choosing) is present.

B. 1. The Company may elect to send a non-disciplinary letter of counseling to a pilot. In that

event there shall be no requirement to conduct a meeting or conference pursuant to A.1. above. The letter of counseling will be delivered in person or by certified mail, return receipt requested. A copy of the letter will also be mailed at the same time to the MEC Chairman, Grievance Chairman, and the ALPA Contract Administrator.

2. Every letter of counseling will include the following language: “This letter is not

disciplinary in and of itself. You should refer to Section 19 of the Pilot Agreement for further information about your rights with regard to this letter.”

3. The Company shall consider any letter of counseling as cleared after the time frame

stated in the letter, up to a maximum of two years of active service from the date of issuance if no further similar documented incident has been recorded during that period. Upon pilot request the documentation will be destroyed.

C. 1. When notice of any disciplinary action described in A.1. above has been received by a

pilot and he is dissatisfied, the pilot shall have the right to appeal to the “Piedmont Pilots' System Board of Adjustment” as provided for in Section 21 of this Agreement and such appeal shall be made within thirty (30) days from the date the pilot and the Association receive notification of the disciplinary action. All submissions to the System Board of Adjustment shall be made in conformity with Section 21.

2. When a pilot wishes to contest any other Company action that the pilot believes is

disciplinary, including a letter of counseling, the pilot may file a grievance as provided for in Section 20. In the event a pilot elects to file a grievance under this Section, that shall

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not be dispositive of the applicable burden of proof or whether the matter being grieved is disciplinary in nature.

D. All time limits within this Section may be extended orally or in writing, by mutual agreement. Oral

agreements shall be confirmed in writing as soon as practical. E. If, as a result of any hearing or appeal as provided, a pilot is exonerated, the pilot shall, if held out

of service, be reinstated without loss of seniority, longevity, and benefit accruals, and shall be paid for such time lost in an amount which he would have ordinarily earned had he been continued in service during such period.

F. If, as a result of any hearing or appeal a pilot is exonerated, his personnel record shall be cleared

of the charges and related documents within ten (10) days of the final decision. G. When it is mutually agreed that a stenographic report be taken of the investigation and hearing or

appeal in whole or in part, the cost will be borne equally by both parties to the dispute. In the event it is not mutually agreed that a stenographic report of the proceedings be taken, any stenographic report taken of such investigation and hearings made by either of the parties to the dispute shall be furnished to the other party to the dispute, upon request, provided that the cost of such stenographic record so requested shall be borne equally by both parties to the dispute.

H. Probationary pilots are not entitled to file grievances under this section, provided, however, a

probationary pilot will be permitted access to this grievance procedure and System Board of Adjustment when the charges upon which discipline or discharge or letter of counseling are based relate to a decision involving safety of flight.

I. Initial written notification of discipline or discharge shall be delivered in person or by certified mail,

return receipt requested. J. The Company shall not place any negative report or derogatory material in the pilot’s personnel

file without providing the pilot an opportunity to inspect, review and initial the material or report. The pilot shall be allowed to place in his personnel file a statement of the incident.

K. The Company shall consider any disciplinary action as cleared after the time frame stated in the

disciplinary action up to a maximum of two years of active service from the date of issuance if no further similar documented incident has been recorded during that period. Upon pilot request the documentation will be destroyed.

L. When the Company requires a pilot’s presence for a meeting on his day off, the pilot will be paid

2.0 hours for that day. Such a day will not be considered a day of work for minimum day off purposes.

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SECTION 20

GRIEVANCE OTHER THAN DISCIPLINE OR DISMISSAL A. A grievance under this Section is defined as a dispute between the parties growing out of an

interpretation or application of any of the terms of this Agreement. Any pilot or group of pilots may file a grievance. Grievances must be filed in writing.

B. Grievances must be filed with the Vice President of Flight Operations or his designee, within sixty

(60) days of the time the affected pilot(s) become aware of the alleged violation of the Agreement. It is not intended that this limitation precludes claims arising out of bookkeeping or pay errors. The grievance must set forth a statement of facts giving rise to the grievance and the relief or remedy requested.

C. Grievances under this Section shall be handled in accordance with the following procedure:

1. An initial hearing shall be held by the Vice President of Flight Operations, or his

designee, within fifteen (15) calendar days after the Company receives the grievance. 2. The Company shall give a pilot(s) at least seventy-two (72) hours notice of the time and

date of the hearing. 3. The pilot may be represented at such hearing by any person as he may designate. 4. Within ten (10) days following the completion of such hearing, the Company will issue its

decision in writing to the pilot with a copy to the MEC Chairman, Grievance Chairman and ALPA Contract Administrator.

5. If the decision of the Company is not satisfactory to the pilot(s) or the Association, the

case may be appealed to the System Board of Adjustment within thirty (30) days of the receipt of the decision.

D. Probationary pilots are not entitled access to the grievance procedure under this Section or to the

System Board of Adjustment under Section 21. Grievances other than those involving discipline and dismissal (except those delineated in 19 G.), may be filed over contract disputes which affect probationary pilots.

E. All time limits within this Section may be extended, orally or in writing, by mutual agreement. Oral

agreements shall be confirmed in writing as soon as practical. F. Witnesses and representatives who are employees of the Company shall travel on a Space

Positive Company Business on-line pass to and from the hearing.

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SECTION 21

SYSTEM BOARD OF ADJUSTMENT A. In compliance with Section 204, Title II, of the Railway Labor Act, as amended, a System Board

of Adjustment is established for the purpose of adjusting disputes or grievances arising under the terms of this Agreement. Such Board will be known as the Piedmont Airlines Pilots’ System Board of Adjustment.

B. The Board shall be comprised of three (3) members, one selected by the Association, one

selected by the Company, and one neutral member. The three member Board shall hear all disputes presented to it; provided, however, that the parties may agree, in writing, prior to the meeting of the Board to convene a two (2) member Board consisting solely of the Association member and the Company member.

C. Each party shall advise the other, in writing, of the name of its representatives and such

designation shall continue into effect until successors are appointed. Either party shall have the right to change its representative periodically, provided that notification of such representative for any particular dispute must be made prior to the start of the scheduled hearing.

D. Selection of Arbitrator

1. Upon the filing of a submission with the Company members and the Association members, the Company and the Association shall, within fifteen (15) days, designate the neutral member to sit with the Board, and if agreement is reached, shall advise the members of the Board of the name and address of the neutral member. If no neutral member is designated after fifteen (15) days of the submission, the following neutral arbitrators are deemed acceptable and the parties shall select one arbitrator from that list to serve as chair. If a selection cannot be made by agreement, then the parties shall alternately strike names from the list until one remains and such remaining arbitrator shall serve as Chair. If the alternate strike selection is not accomplished within five (5) working days after the parties fail to agree on a chair because one party has failed to participate in the alternate strike procedure, the other party may contact an arbitrator in sequence and commence the scheduling of the hearing.

a. Herbert Fishgold b. Robert O. Harris c. Gil Vernon d. Jack Dunsford e. Larry Holden f. Nick Zumas g. Carol Wittenberg

2. In addition, the parties will agree upon the date(s) the neutral will hear the case, which

shall be within ninety (90) days of contacting the neutral. In the event the neutral does not have any dates available within the succeeding ninety (90) days, a date will be chosen within the next thirty (30) days, or the parties will agree upon another neutral under the same schedule outlined above.

3. After being selected to serve as chair, the arbitrator’s name shall automatically be

removed from the list and replaced by another to be mutually agreed upon. An arbitrator removed from the list may be returned to it by mutual agreement of the Company and the Association. In no case can the number of names on the panel drop below five (5), and if only five (5) names remain, arbitrator’s names will cease being dropped from the list until the list again exceeds five (5) names.

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E. The Board will have jurisdiction over grievances filed pursuant to the terms of this Agreement. The Board will not have any power to alter or amend the provisions of this Agreement, nor to propose changes in hours of employment, rates of compensation or working conditions.

F. The Board will consider any grievances properly submitted to it by the Association or the

Company when such grievance has not been previously settled in accordance with the terms provided for in this Agreement.

G. The Board, as comprised with the neutral member sitting as the Chairman of the Board, shall

meet with the purpose of hearing and deciding the case to be determined. The Board will render its decision in writing as promptly as possible. A majority vote of two (2) Board members shall be sufficient to make a decision which shall be final and binding and conclusive on the Company and the Association.

H. The expenses and reasonable compensation of the neutral member will be borne equally by the

parties. Each of the parties will assume the compensation, travel expense and other expenses of the Board members selected by it and the witnesses called by it. Grievants, witnesses, and representatives who are the employees of the Company shall receive Space Positive Company Business transportation for traveling to and from the location of the hearing.

I. All submissions of dispute referred to the Board shall be addressed to the Board with one (1)

copy each to the Company and the Association and one (1) copy for each member. One (1) copy of the submission shall be submitted to the neutral third member, if appointed. Each such submission shall show:

1. Question or questions at issue; 2. Statement of facts; 3. Position of the Association; 4. Position of the Company.

J. The Board shall meet in the city where the general offices of the Company are maintained as

required pursuant to G., above. K. The Board will hear cases in an order agreed upon by the Company and the Association,

however, in the event the Association and the Company cannot agree upon which cases shall be presented first, the Company and the Association will alternate, on a one-for-one basis, the selection of cases.

L. Pilots having a grievance being heard by the Board may be represented at Board hearings by

such person or persons as they may choose and designate. The Company and Association may be represented by such person or persons as they may choose and designate. Evidence may be presented either orally or in writing, or both. All witnesses testifying orally or by deposition shall do so under oath.

M. On request of individual members of the Board, the Board may by a majority vote, or shall at the

request of either the Association representatives or the Company representatives thereon, summon any witness employed by the Company and who may be deemed necessary by the parties to the dispute, or by either representatives constituting the Board, provided such summons does not unnecessarily interfere with the operations of the Company.

N. Each and every Board member shall be free to discharge his duty in an independent manner

without fear that his individual relations with the Company, the Association or with employees may be affected in any manner by any action taken by him in good faith in his capacity as a Board member.

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O. Each and every witness summoned by the Board or called by either party shall be free from retaliation or adverse action by either the Association or the Company because of his giving testimony in good faith.

P. The expense of stenographic services necessary to transcribe Board proceedings shall be borne

equally by the parties.

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SECTION 22

SENIORITY A. Seniority as a pilot shall be based upon length of service as a pilot with the Company

commencing with the date of hire. Individuals hired into flight operations management (Director of Flying, Director of Training, Chief Pilots, Program Managers, Instructors/Check Airmen, or equivalent positions) will be granted seniority numbers only after consultation regarding their seniority date with the MEC Chairman. In no case shall the seniority date precede the individual’s attainment of one of the positions designated in this paragraph.

B. When two or more pilots are employed on the same date, they shall be placed on the seniority list

according to the last four (4) digits of their Social Security numbers; i.e., the lower Social Security number shall receive the lower seniority number.

C. Application

Seniority shall govern pilots in case of promotion and demotion; their retention in case of reduction in force and recall to duty; their assignment or reassignment due to expansion or reduction in force, expansion or reduction in schedules, or reallocation of lines of flying; and their bids of schedules, vacancies, and vacations, except as modified by other provisions of this Agreement.

D. The pilot’s seniority list in effect on the date of this Agreement is attached hereto as Appendix “A”

and shall be known as the Piedmont Airlines Pilots’ Seniority List. Such list will contain the names of all pilots entitled to seniority, active or inactive, and indicate the seniority to which each pilot is entitled. The seniority list will be updated at least annually and be posted on a Company bulletin board of each domicile on July 1 of each year. Upon request, a pilot will be provided a copy. On a monthly basis, the Company will provide the MEC Chairman with a copy of the seniority list and crew manning report.

E. A pilot will be permitted thirty (30) days after the posting of any pilots’ seniority list to protest to the

Company any error or omission affecting his seniority. A pilot making no protest within 30 days of the July 1 list may not thereafter protest the same alleged error or omission on any subsequent list. A pilot on leave away from his domicile at the time of posting of the July 1 list will have thirty (30) days from the date of return to work to file such protest.

F. Probation

1. A pilot will be on probation for a period not to exceed the first twelve (12) months of active service (active service does not have to be consecutive) as a pilot with the Company.

2. Any program used to evaluate probationary first officers will be published prior to

implementation of such program and will be distributed to all new hires thereafter. 3. Should a probationary pilot receive a negative evaluation from either a pilot or a manager

and the Company deems the evaluation meritorious, such evaluation will be discussed with the probationary pilot in a timely manner.

4. Prior to the decision to terminate a probationary pilot, the Company will discuss the

situation with the Association MEC Chairman or his designee. G. A pilot shall forfeit all employment and seniority rights and his name shall be removed from the

seniority list under the following conditions: 1. he resigns or retires;

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2. he is terminated; 3. he declines recall or fails to notify the Company of his intent to return to work from a

furlough in accordance with Section 23; or 4. he fails to return to work after the expiration of a leave of absence.

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SECTION 23

REDUCTION IN FORCE, FURLOUGH AND RECALL A. A pilot who is released from the service of the Company due to a reduction in force and who is

subsequently re-employed shall continue to accrue seniority, and will retain longevity accrued to the time of release. A pilot who keeps the Company advised of his address will be re-employed in order of seniority.

B. A pilot furloughed by the Company will file his proper address with the Company at the time of

furlough. Any change in address must be supplied to the Company promptly.

1. For furloughs lasting less than 90 days and caused by cessation of operations connected with a labor dispute, act of God or other unforeseen circumstances, the following recall procedure will apply: A pilot will be notified by the Company by “Reply Requested” telegram, or certified letter, “Return Receipt Requested”, of recall with the Company. After delivery of such notice to the last address on file with the Company, the pilot will be allowed a period of three (3) days within which to notify the Company of his intent to return to duty. A furloughed pilot will be allowed two (2) days plus the shortest air travel time after reply to the Company’s notice to report for duty at the point specified by the Company. The Company may extend this period of time to return to active duty.

2. For all other furloughs, the following recall procedure will apply: A pilot will be notified by

the Company by “Reply Requested” telegram, or certified letter “Return Receipt Requested”, of recall with the Company. After delivery of such notice to the last address on file with the Company, the pilot will be allowed a period of seven (7) days within which to notify the Company of his intent to return to duty. A furloughed pilot will be allowed fourteen (14) days plus the shortest air travel time after reply to the Company's notice to report for duty at the point specified by the Company. The Company may extend this period of time to return to active duty.

3. A pilot may refuse (bypass) recall without forfeiting his recall rights provided:

a. The pilot lists his preference for bypass with the chief pilot’s office. b. The bypass would not require the pilot to subsequently go through initial training. c. He is not the most junior pilot to be recalled.

C. Pilots to be furloughed will be notified in writing at the last filed address. Pilots will be given thirty

(30) days notice of furlough or pay in lieu thereof, except where such notice is precluded by strikes, acts of God, or other causes beyond the control of the Company. Furlough pay will be calculated by using the amount of pay accrued by each pilot in the equivalent time period immediately prior to the furlough. Upon request, a furloughed pilot will be paid for any unused vacation days.

D. Pilots, while on furlough, will continue to accrue longevity for pay purposes for those periods in

which they have received compensation in lieu of notice. E. Furloughs will occur in reverse order of seniority. A furloughed pilot will retain recall rights for ten

(10) years from the date furloughed. A pilot who has not been recalled within ten (10) years will forfeit his seniority and will not be entitled to recall, unless the Company extends the period of eligibility for recall rights.

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SECTION 24

PROMOTIONS AND FILLING OF VACANCIES A. Permanent Vacancies

1. Permanent vacancy shall be any vacancy anticipated to exist for longer more than three (3) consecutive bid periods.

2. To the degree known, the Company will provide advance notice of the posting of

permanent vacancies and approximate dates by posting such information in the domiciles and in the computer.

3. All known vacancies will be posted and placed in the computer on the first Monday of

each month. Pilots shall have until 1700 on Thursday of the same week to submit new permanent bids. Awards and any resulting vacancies will be posted by 1700 on the Friday of that week. Pilots, other than primary bid awardees, shall have until 1700 on the following Monday to change their permanent bid for purposes of the resulting vacancy awards. Secondary awards will be made by 1700 on Tuesday. Holidays may necessitate minor adjustments to this schedule. Bids are not considered submitted until received by Flight Support.

4. Vacancies which are not known prior to the first Monday of the month, and which the

Company determines require action before the time frame set forth in paragraph 3, above, shall be posted (and placed in the computer) promptly. The closing date for submitting new permanent bids under this paragraph shall not be less than ten (10) days from posting of the vacancy unless agreed to by the MEC Chairman, or his designee, in writing. Awards shall be posted no later than seven (7) days after the close of bidding.

5. Vacancy postings will include the following information: the number of vacancies to be

filled, the equipment type, status, the domicile at which each vacancy exists and the date on which the vacancy is to be effective. Any changes to the equipment type, status, domicile, as set forth in a vacancy posting will require a rebid.

6. A change in the number of vacancies will not require a rebid, but pilots will be permitted

to condition their permanent bids on the number of vacancies actually awarded.

For example, six (6) SBY captain slots are posted. A pilot may state on his permanent bid that he wants a SBY captain position provided at least four slots are awarded. If three slots or less are awarded, then the pilot will not be awarded the bid. All vacancies will be posted at all domiciles and all vacancy postings will be available through the Company’s computer at all stations.

B. Permanent Bids

1. All pilots must submit permanent bids which are dated indicating preferences for all

status, equipment and domicile listings to Flight Support. A permanent bid file will be maintained and will be available for any pilot to inspect his bid during normal office hours.

2. A permanent bid may be changed at any time. Changes may be submitted in writing,

signed and dated by the pilot, to Flight Support by registered mail, certified mail, regular or overnight mail, electronic transmission (telefax), or may be delivered personally by the pilot or his designee.

3. If a pilot does not have a permanent bid on file, or the bid reflects insufficient choices to

accommodate seniority, the pilot shall be considered to be bidding in his current position,

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and if his seniority no longer entitles the pilot to such position, the pilot shall be considered to be bidding in the highest paying position to which his seniority entitled such pilot at his base.

4. Bids are effective immediately upon submission. A pilot’s permanent bid listing on file

shall be cancelled when the pilot submits a new permanent bid. C. If no pilot bids a vacancy, the vacancy will be assigned to the junior qualified pilot systemwide.

D. New hires will bid both equipment and domicile, in accordance with their seniority number.

E. A displaced pilot will be entitled to occupy any position in accordance with seniority, provided

such pilot is able to successfully complete the training for that position. Displaced pilots are entitled to moving expenses as provided in Section 6.

F. Settlement Time for Voluntary Moves and New Hires 1. Pilots Completing Training

Any pilot who completes initial (new hire) training, or any pilot who completes transition or upgrade training and is changing domiciles, may choose subparagraph a. or b. below. A pilot who elects subparagraph b. will also be entitled to the benefits specified in paragraphs F.3 through F.6. below. A pilot who completes transition or upgrade training and does not change domiciles is entitled only to the benefits specified in subparagraph b.

a. The Company will assign the pilot four consecutive days off in the period from

completion of LOGT to immediately after completion of SOE. If the pilot so desires, the Company will provide a scheduled deadhead to the pilot’s domicile on the day prior to these four days off. A day involving deadhead to domicile only will not constitute a day off.

b. The Company will assign the pilot three consecutive days off in the period from

completion of LOGT to immediately after completion of SOE. If the pilot so desires, the Company will provide a scheduled deadhead to the pilot’s domicile on the day prior to these three days off. A day involving deadhead to domicile only will not constitute a day off.

2. Pilots Not In Training

A pilot awarded a bid to a domicile other than his current domicile (a “lateral bid pilot”) is entitled to the benefits provided in paragraphs F.3. through F.6. below.

3. The level of settlement benefits available under this section will be determined by

whether the pilot is a “relocating pilot” or a “non-relocating pilot.” A “relocating pilot” is one who physically relocates his permanent residence within one hour’s driving time of the new domicile airport and who can document such relocation. A “non-relocating pilot” is one who changes domicile, but does not meet the definition of a relocating pilot. No pilot is entitled to the settlement benefits specified in this section more than once in any twelve-month period, unless the pilot is awarded a higher-paying position.

a. The relocating pilot is entitled to:

(1) up to a four day block (“moving days”) during which the move is to take

place. The pilot must request that these moving days fall within the

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twelve months following the effective date of the bid. Any or all of these four days may be sold back to the Company for $50.00 per day.

(2) upon request, have any of the days used for moving be in addition to the

pilot’s minimum days off in that month. In those cases where the additional days would have been days of work, such days above the monthly minimum will result in proration of the pilot’s monthly pay guarantee.

b. A non-relocating pilot is entitled to up to a two-day block (“settlement days”).

Such pilot must request that these days occur not later than two full bid periods after completion of SOE (or after the effective date of the bid for lateral bid pilots). The two-day block may not be sold back and will not be granted in addition to the pilot’s minimum days off in that month.

4. Bidding and Awarding or Denial of Moving/Settlement Days

a. A pilot who wants his days to fall in a month in which he is not eligible to bid will submit a written request to Flight Support. All other pilots will submit their written request on the monthly bid. A pilot will receive the number of days requested. The Company will award the dates requested to the extent possible without compromising the operation.

b. A relocating pilot who is denied moving days on any of the dates requested will

receive out-of-domicile expenses as provided in Section 5 for up to thirty days between the requested start date and the first actual moving day. Expenses shall apply whether the actual start date precedes or follows the requested start date. In cases where the Company denies the relocating pilot’s requested move days, the Company and the pilot will make best efforts prior to the publication of the final bid award to reach agreement on alternate moving days that fall as close as possible to the originally requested days.

c. A relocating pilot who requests all or part of his moving days to fall within the first

four days of the bid period is not entitled to expenses under subparagraph 4.b. 5. Each pilot who completes initial training and any pilot who changes domicile will receive a

Company-provided hotel room on his first night in the new domicile. Each relocating pilot (other than new hire pilots) will also be provided a hotel room for one night in conjunction with his moving days. Each pilot who changes domicile will be provided space positive transportation from his current domicile to his new domicile after completion of his last assignment in his current domicile and prior to his duty assignment in his new domicile.

6. When a pilot changes domicile and the effective date is delayed, the pilot will be treated

in accordance with the Temporary Vacancy provisions if he is required to fly from a domicile other than the new domicile.

7. The above procedures will be explained to newly hired pilots during their initial training,

including the procedure for electing to request moving days prior to their first bid month.

G. No pilot will be required to report to a new domicile on less than seven (7) days notice.

H. A temporary vacancy will be any vacancy anticipated to exist for three (3) or fewer consecutive bid periods and will be posted and awarded in accordance with the provisions for permanent vacancies unless mutually agreed otherwise. A temporary vacancy may be extended beyond ninety (90) days by agreement of the Company and MEC Chairman. Such vacancies will be filled as follows:

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1. By available qualified pilots at the domicile; 2. If no available qualified pilots at the domicile accept the temporary vacancy, the

temporary vacancies will be offered to qualified pilots systemwide. 3. If no available qualified pilots accept the temporary vacancy, such vacancies will be

assigned to the junior available qualified pilot systemwide. 4. For purposes of this section, “available” means that the pilot filling the temporary vacancy

will not, in turn, have to be replaced while filling the temporary vacancy.

I. A pilot filling a temporary vacancy away from his domicile will be paid an expense allowance on a twenty-four (24) hour basis for the duration of the temporary assignment, in accordance with Section 5, Traveling Expenses, for the period of the temporary vacancy. A pilot will be entitled to leave his belongings in his hotel room at the temporary domicile for the duration of the temporary assignment. Where the cost is reasonably comparable and where available, the Company will provide “suite” accommodations for pilots on temporary assignment.

J. A pilot holding a temporary vacancy away from domicile will be permitted to drive his car once to and from that domicile and be reimbursed at the rate of 31.5 cents per mile based on the shortest road mileage between those two points. If the Company increases the mileage rate for any other group within the Company, the increased rate will be applied to the pilots.

K. In the event of displacement, temporary bid holders or assignees will be displaced from their temporary domicile prior to permanent lineholders at that domicile, irrespective of their seniority.

L. A pilot holding a temporary vacancy will be entitled to bid monthly schedules at the domicile to which he is temporarily assigned in accordance with seniority.

M. Base Bidding Rights 1. All pilots, regardless of seniority, are entitled to base rights. The intent of granting base

rights is to allow pilots based at a specific domicile to remain at that domicile in the event that equipment at that domicile is replaced by other equipment. Pilots permanently assigned to a domicile as of the date of an equipment substitution bid are those entitled to base rights provisions.

2. One-for-One Equipment Substitution

Positions created as a result of the equipment substitution will be open for bid by all pilots at the domicile (not systemwide) and will be awarded in accordance with seniority. Example: JAX operates twelve Dash 8s. Four Dash 8s are removed and replaced by four regional jets. JAX pilots bid on the regional jets first; if all vacancies are not filled after the domicile bid, then remaining positions are bid systemwide.

3. Reduction in Domicile Flying

When the Company reduces the amount of flying in a domicile such that positions are eliminated and the flying is lost from the Company (for example, the aircraft is sold and not replaced), the pilots whose positions were eliminated (the junior pilots on that equipment) will be permitted to bid any position their seniority can hold systemwide. Example: ORF operates five Dash 7s. The Dash 7s are sold. Dash 7 pilots may bid any position systemwide; i.e., there need not be a vacancy for the DHC-7 pilots to obtain a position.

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4. Transfer of Flying

When flying (aircraft) is transferred from one domicile to another, the pilots in that equipment in the original domicile will have first option of “following” the flying to the new domicile. Positions will be awarded by seniority. In the event that not all of the positions at the new domicile are filled, they will be opened for bid systemwide. Pilots displaced as a result of the transfer of flying may bid to occupy any position his seniority can hold systemwide. Example 1: SBY operates ten Dash 8s. Four Dash 8s (and appropriate number of pilots) are being transferred to EWN. SBY Dash 8 pilots will have the first opportunity to bid the EWN positions. Such positions will be awarded by seniority. If an insufficient number of SBY pilots bid for the EWN positions, the remaining EWN positions are open for bid systemwide. Extra pilots will be displaced from SBY in inverse order of seniority and are entitled to hold any position (no vacancy required) their seniority will allow them to hold. Example 2: EWN is closing with the flying being transferred to JAX and eight of the JAX Dash 8s are being replaced by regional jets. JAX pilots have the first right to bid on the replacement aircraft, but then EWN pilots will be permitted to hold any position their seniority permits them to systemwide, including the regional jet positions in JAX. The flying which was transferred from EWN would be handled under example 1, above, and if all the positions were not filled, the remainder would be offered for bid systemwide. Example 3: EWN has two Dash 8s. That flying is being transferred to JAX, and the two Dash 8s are being replaced with regional jets in JAX. The regional jet positions in JAX are open for bid systemwide, and the EWN pilots have displacement rights systemwide. The EWN pilots cannot follow that flying because a different aircraft is involved.

N. Promotions

1. A pilot will be compensated at his new rate commencing with his first revenue flight in

that equipment, except as provided in N.2., below. 2. When a pilot is bypassed for promotion due to the operational needs of the Company, the

pilot will be compensated at the rate of the position his seniority would have entitled him to hold commencing with the date the bypassing pilot takes the check ride. The bypassed pilot’s pay will be calculated from his total pay/credit in the equipment he continues to fly.

3. Minimum standards or flight experience (hours) required for upgrade may be set or

modified by the Company at its discretion. These standards will be uniformly applied to any given upgrade bid award.

O. Category Freezes

1. Captain

A captain who successfully completes training in a new category shall not be awarded another category for one (1) year commencing with the first day of revenue service in such new category unless: a. the category is for newly introduced or re-introduced, higher paying aircraft; or b. the category was obtained as a result of displacement; or c. the pilot loses his First Class medical certificate.

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2. First Officer

a. A first officer who successfully completes training in a new category shall not be awarded another category for twenty-four (24) months commencing with the first day of revenue service in such new category unless:

(1) the category is for newly introduced or re-introduced aircraft; or (2) the category was obtained as a result of displacement; or (3) the category will afford the pilot a captain upgrade; or (4) the category will afford the pilot preparation for captain upgrade in

accordance with paragraph b., below.

Note: See also LOA #4, New Aircraft Bid. b. In the event the pilot desires to upgrade in equipment other than that which he is

currently flying, such pilot may bid a first officer position in the equipment in which he desires to upgrade, provided that it is estimated that the pilot will be able to hold a captain’s position in that equipment within three (3) months of the projected completion of his training. A pilot who bids pursuant to this paragraph must bid to upgrade by the end of the three (3) month period in the equipment in which he was most recently trained.

3. The Company may waive, uniformly, the category freeze provisions for any given time

period.

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SECTION 25

SCHEDULING A. The Company shall make reasonable efforts to address line purity, including AM-PM rotations.

Consideration shall also be given to trip grouping during the line development process. The Association’s Scheduling Committee will meet with the Company on a regular basis. Meetings will be held at a mutually acceptable time and place. The Company will provide the Association with timely access to the information, including aircraft schedules and construction parameters, used by the Company to construct pilots’ monthly schedules and will consider Association input. If any suggested changes are not approved by the Company, they will provide the Association with the reason(s) therefore. The Company will not unreasonably withhold approval of any changes.

B. Bidding Monthly Schedules

1. Bid packages will be made available to all pilots electronically at or before 1700 hours on

the second Friday of each month. Bid packages may be published prior to the second Friday, but the second Friday will remain the operative date from which to calculate the return of the bids and awards. The MEC Chairman will be informed of any deviations from the above schedule. Receipt of such advice shall not constitute a waiver of the right to grieve violations of this provision.

2. Pilots shall bid electronically by 1700 hours on the following Tuesday and will receive

electronic confirmation of said bid.

3. Bids shall be awarded to hard line holders by 1700 hours on the third Friday of the month. The 48 hour bid requests are due by 1700 on the following Sunday. Those bid results, the build-up awards and reserve lines for bidding will be published by 1700 on the next Wednesday. Reserve line bids will be returned by 1200 on the next Friday and reserve line awards will be published by 2000 on the same day.

4. Bidding will be accomplished by completing the prescribed bid form and depositing it in a

place designated by the Company at the pilot’s domicile. In addition, pilots will be permitted to telefax bids to Flight Support. An all electronic bidding process may be implemented with the approval of the MEC. Such considerations for approval include but are not limited to the availability of the necessary internet connections and computer equipment at hubs and domiciles. Prior to conversion to an all electronic bidding process, as described above, the Company shall continue to utilize the bidding process currently in use.

5. During any month a pilot is on vacation, military/sick leave for more than a week at the

time the bid packages are published, Flight Support, in response to the pilot’s written request, will mail the applicable bid package via overnight mail to the address provided by the pilot. Such pilot may call in his monthly bid to Flight Support prior to bid closeout.

6. Should circumstances change such that the time frame specified in paragraphs B.1. -

B.3. above is no longer feasible, the parties will meet and confer to consider alternate time frames. Any changes must be approved by the MEC.

C. Contents of the Monthly Bid

1. The monthly bid packages will contain:

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a. All known trip series (including charters, if known) arranged in schedules for the month as hard lines, except up to a maximum of five percent (5%) of total flying time which shall be documented in the monthly bid and may be composed of: (1) Flight(s) or trip(s) which do not fit into lines; and/or (2) Flight(s) or trip(s) which are preselected to correct a shortage of block

hours or staffing in a base; and/or (3) Flight(s) or trip(s) which are preselected for IOE.

b. An anticipated number of reserve lines; and c. An anticipated number of build-up lines; and d. All known training, flight checks (inclusive of dates), all awarded and available

vacation windows.

2. “Hard Lines” of time shall contain trips and/or trip series arranged in a schedule for the month. Hard lines may include charter flying. a. Hard lines of time shall, whenever possible, be constructed with between

seventy-five (75) hours of pay credit and eighty-five (85) hours of pay credit, including deadhead time. Hard lines of time shall be constructed with no more than ninety (90) hours of pay credit, including deadhead time.

b. Every hard line will contain at least ten (10) days off. Single days off, except for

the first and last day of the bid period, shall not count toward the minimum ten (10) days off.

c. Hard lines will not contain out-of-base trips or reserve days, and may only

contain standby days (SB) when necessary to accommodate a conflict in that pilot’s interface period.

3. “Build-Up Lines” shall be awarded at the time of the Final Award and shall be constructed

from trips and/or series of trips that become available as a result of vacation awards, training, flight checks, leaves of absence, and trip(s) that are not in hard lines (such trips to be included in the maximum of 5% open flying). a. At the time bid packages are published there will be no indication of work days

and days off. b. At the time of bidding a pilot may:

(1) designate one block of four (4) days off as free from duty. Where there

are concurrent or overlapping bids and Flight Support determines that not all of the bids can be awarded, seniority will govern subject to b.(3) below.

(2) indicate whether he wants his training to be on days on or non-minimum

days off. (3) indicate the dates during which he wishes to take his vacation. In a

vacation month he may link his block of four days off with his vacation days. Such requests will be honored and shall take precedence over non-vacationing pilots’ four day block requests.

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c. At the time of the Final Award:

(1) Build-up lines may include charter flying. (2) Reserve days and out of base trips may be built into the Build-Up Lines. (3) Build-Up Lines shall be constructed with a minimum of ten (10) days free

from duty at the domicile. (4) Days off will be built into a minimum of one (1) four (4) day and two (2)

two (2) day blocks. (5) Flight Support will construct build-up lines with available flying prior to the

placement of reserve days. Flight Support may utilize a 2 hour buffer for 30 in 7 conflicts. Example: Assume 3 build-up lines in a base and a thirty day month: Line 1. No reserve days; Line 2. 18 trip days and 2 reserve days; Line 3. 10 trip days and 10 reserve days.

(6) If the number of build-up lines is less than anticipated, additional reserve

lines will be constructed and assigned to those pilots not able to hold build-up lines.

4. “Reserve Lines" when awarded, shall show days of availability, days free from duty, and

golden days.

a. Reserve lines for bid shall contain: (1) Minimum of 10 days free from duty in domicile. (2) Days off will be built into a minimum of one (1) four (4) day and two (2)

two (2) day blocks, however, no more than one (1) one day period off will be placed in a reserve line.

(3) Company may publish one (1) blank reserve line for every three (3)

reserve pilots with concurrent vacation slots. At the time of the Reserve Final Award a blank reserve line will be constructed as provided in 25.C.4.c.

b. At the time of bidding the pilot may:

(1) Request up to four (4) days off as golden (non-assignable and non-

moveable). Golden days may be requested in one (1) four (4) day block or two (2) two (2) day blocks. Where there are concurrent or overlapping bids for golden days and Flight Support determines that not all of the requests can be awarded, seniority will govern subject to b.(3), below. Flight Support will attempt to grant the requested golden days.

(2) Indicate whether he wants his training to be on days on or non-minimum

days off. (3) Indicate the dates during which he wishes to take his vacation. In a

vacation month a pilot may link his golden and vacation days. Such

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requests will be honored and shall take precedence over non-vacationing pilot golden day requests.

c. At the time of the Reserve Final Award:

(1) Reserve lines shall be constructed with a minimum of ten (10) days free

from duty at the domicile. (2) Days off will be built into a minimum of one (1) four (4) day and two (2)

two (2) day blocks, however, no more than one (1) one day period off will be placed in a reserve line.

(3) Designate a four day block of days off as golden (non-assignable and

non-moveable). Where there are concurrent or overlapping bids for golden days and the crew scheduler determines that not all of the bids can be awarded, seniority will govern subject to b.(3), above.

D. Construction and Award of Monthly Bid Schedule

1. All eligible pilots may bid for lines based upon their position. All bids shall be awarded in accordance with seniority. Awards will be published in each domicile. In addition, pilots may determine which line they have been awarded by contacting crew scheduling or an alternate method approved by the MEC. A pilot whose bid has not been received, did not bid enough lines, or submitted an incomplete bid form, will be assigned the lowest numerical line after all other pilots senior to him in the same position have been awarded their lines.

2. Upon completion of bidding, Flight Support shall make only the necessary adjustments to

awarded lines to provide for the month-to-month interface, vacation, training, minimum days free from duty and other approved leaves.

3. Eligibility to Bid

a. Pilots attending Initial, Transition, or Upgrade training (from the beginning of

Ground School to the completion of I.O.E.) will not bid a schedule for the month, except when the Ground School is scheduled to begin after the fifteenth (15th) of the month. In such cases the pilot will bid a schedule for the month and all trips that conflict with the training period will be dropped. The training schedule will take precedence over the days shown on the bid line.

b. Pilots not eligible to bid will be assigned a schedule at the same time all other

pilots are awarded their schedules. c. A pilot shall not bid in a month where he is scheduled for leave (other than

vacation) in excess of fifteen (15) days in the bid period. d. Pilots who have been on an approved leave will provide the Chief Pilot with

appropriate documentation regarding the termination of the leave. Where the documentation specifically indicates that the pilot will be available for more than fifteen days of the month in question, the pilot will be permitted to bid.

e. Pilots scheduled for recurrent training and flight checks (including simulator)

during the bid period will be scheduled in accordance with the applicable paragraphs of Section 11, the Training and Testing section of the Agreement. Except for the 1st CQ, pilots who do not pass CQ will still be allowed to bid a monthly schedule.

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4. High Minimums

a. Where a pilot in training has successfully completed the check ride by the close of the 48 hour period, he will be awarded a build-up line to avoid pairing crew members, each with less than 100 hours of time in the category, or to avoid a reserve line assignment. The pilot(s) affected as a result of the build-up line assignment to a high minimums pilot shall have their minimum monthly guarantee increased by five (5) hours. Pilots unable to complete a check ride prior to the close of the 48 hour period will be assigned to a reserve line in the next bid period and may be scheduled in accordance with this paragraph for the subsequent month(s).

b. In conjunction with the above paragraph, line flying may be assigned to newly

qualified pilots as high minimum lines. Such assignment will not extend beyond one (1) complete bid period following the completion of the FAR required I.O.E. training for pilots transitioning from Part 121 captain to captain positions or from first officer to first officer positions, or for a maximum of two (2) bid periods following the completion of the FAR required I.O.E. following upgrade or initial training. The number of hours which will be required for a pilot to complete high minimums (within the parameters above) will be established by the Company, however, the number of hours will be uniformly applied to all pilots falling under this section in any given month.

E. Month to Month Interface

1. The monthly interface shall consist of the first four days of the month. During this time Flight Support may add, remove and/or swap trips from a bid line(s) that are in conflict with the previous month's schedules, including FAR conflicts (not more than a 2 hour buffer on 30 in 7).

2. No adjustments (trip modifications or removal of a day(s) off) will be made to a pilot's

schedule outside the interface period to accommodate the interface, except that Flight Support may drop a trip or portion thereof (without reassignment) and the pilot will receive pay for the trip dropped.

3. Any pilot starting a trip series at the end of the month will continue the pairing (or the

published transition pairing) until its completion, consistent with the FARs. If the pilot cannot continue the trip pairing until its completion, then Flight Support may adjust such pilot's schedule in the interface period in accordance with the following sequence:

a. In construction of the month-to-month interface, on the final bid award, Flight

Support may place on the schedule a trip(s) or standby day(s) as required to complete the line on days where the pilot was originally scheduled to fly.

b. A standby pilot is required to contact Crew Scheduling prior to 2100 on the day

before each standby day. c. A pilot on standby will be on call from 0500 until 1700, unless the Crew

Scheduler notifies the pilot when he calls, of a different twelve (12) hour period in the calendar day.

d. A pilot on standby may be utilized outside the designated standby period

provided the pilot commences assignment within the designated period (report time not to exceed times specified in 25.F.1.e.).

e. A pilot on standby may pick up flying or trade his standby day with open flying.

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f. A pilot in this category will not be assigned active reserve without his consent. 4. Any trip that can not be placed on a bid line on an existing day of work will be assigned to

a hard, build-up or reserve line. If the trip is to be assigned to a hard or build-up line the trip will be assigned in inverse order of seniority to a pilot whose line can accommodate the assignment in compliance with the FARs.

5. In the event a pilot loses a guaranteed day(s) off in the interface period, such pilot will be

permitted to drop an equal number of days during that bid period. The trip dropped will be mutually designated by the pilot and Flight Support.

F. Reserve

1. Reserve Availability

a. A reserve pilot may be assigned to perform duty between 0001 on the first day of

his reserve period and ending at 2400 on the last day of his reserve period. b. A reserve pilot shall be contactable (i.e., on-call) between 0500 and 1900 each

calendar day of his reserve period, unless the Crew Scheduler notifies the pilot when he calls in, in accordance with Paragraph f., below, of a different consecutive 14 hour period in the calendar day.

c. A pilot will not be scheduled to commence an on-call period with:

(1) fewer than nine (9) consecutive hours free from on-call/duty following his

last release from an on-call or duty period of 4.5 or fewer hours; or (2) fewer than ten (10) consecutive hours free from on-call/duty following a

duty period of more than 4.5 hours. (3) Where necessary, the commencement of the next on-call period will be

delayed to provide a minimum of eight hours free from on-call/duty from the end of the previous on-call or duty period. In addition, the duration of the ensuing on-call period will be reduced by the amount of time it is delayed, without modifying its scheduled ending time.

d. A reserve pilot will not be called out for duty scheduled to terminate beyond

nineteen (19) hours from the commencement of his on-call period. e. A reserve pilot is required to report from call out within:

(1) 120 minutes at KLGA. (2) 90 minutes at airports with busing operations. (3) 75 minutes at all other airports.

f. A reserve pilot will contact Crew Scheduling no later than 2100 on the day prior

to commencing a period of reserve.

2. Reserve Assignments

a. First Out/Last Out

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(1) Pilots scheduled for reserve may indicate a preference for being placed on a "first out" or "last out" status for a period or remaining period of reserve, by contacting Crew Scheduling at least twenty four (24) hours prior to the beginning of the period or remaining period. These requests shall be honored in seniority order. Preferences also apply to out of base assignments.

(2) Exceptions to First Out/Last Out

(a) First out/last out requests will not be honored when to do so

would result in a conflict with another Agreement provision. (b) First out requests may not be honored if the number of days of a

pilot's availability and the number of days of the trip to be assigned are not the same. Last out requests may not be honored if the pilot's number of days of availability are the only days which are the same as the trip to be assigned.

(c) Specified preference for "first out" or "last out" will not apply in

situations where a pilot has not received or completed high minimums. While the Company may use this section to preclude the assignment of two pilots who have not completed high minimums, this section may not be used to increase the time of a pilot who has not completed high minimums over a more senior pilot on reserve on a "first out" status. In addition, once the Company utilizes a pilot who would otherwise be considered not to have completed high minimums, with another pilot who also has not completed high minimums, both will be considered as having completed high minimums from that point on, and "first out"/"last out" preferences will apply.

(d) If a reserve pilot requests line flying during the week preceding

his check ride, he will be afforded line flying. If displacement is required, the displaced pilot will be treated in accordance with Section 25.J.

b. First Out/Last Out Documentation

The Company will document reserve assignments on the monthly schedule. Documentation will include what, if any, preference was expressed for first out/last out. The monthly schedule will be made available for review upon request of the Association Scheduling Committee Chairman.

c. Reserve availability is restricted to the reserve pilot's domicile unless the

Company assigns a reserve pilot to active reserve duty, or assigns the reserve to a specific out of base trip.

d. A reserve pilot may be assigned a trip up to twenty-four (24) hours prior to

scheduled report time for a trip in domicile, and up to forty-eight (48) hours for an out of domicile trip. Upon assignment, the pilot may request release from continued reserve availability until the scheduled report time. Such release will be dependent upon the availability of other coverage and on operational considerations at the time.

3. Active Reserve

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a. A reserve pilot may be requested to stand as an active reserve at any airport so designated by the Company. In such instances, duty will commence at the time of report at the pilot's domicile, and continue until the pilot has either been assigned to a flight(s), or until he has been returned to his domicile. A pilot on active reserve will not be required to remain on duty in excess of eight (8) hours without being assigned.

b. If a pilot who is standing active reserve is then assigned flying and/or a trip(s),

the pilot's total duty time, starting from the pilot's original report time, shall not be scheduled to exceed fourteen (14) hours and such pilot shall not actually remain on duty in excess of fifteen and one half (15.5) hours.

c. To assign a pilot an active reserve period, the Company and the Association

must first agree and designate a suitable lounge facility to accommodate the time when a pilot is waiting for a flying assignment.

4. Out of Domicile Reserve

By mutual agreement with scheduling, a pilot may be on reserve at a location other than his domicile. Such reserve duty will be governed by the contractual reserve provisions, and the Company will incur no additional expense for the out of domicile assignment (hotel rooms, etc.).

5. Maximum On Duty

a. A reserve pilot, excluding an active reserve pilot in paragraph 3 above, who is

called to duty for less than four and one half (4.5) hours and released may be subject to assignment for a period not to exceed fourteen (14) hours of scheduled duty time from the original report time. Upon completion of duty of less than four and one half (4.5) hours, the pilot may return home unless Crew Scheduling, at the completion of the initial duty period, assigns the pilot to a specific trip at that time which will depart within the following two (2) hours.

b. A reserve pilot who is called to duty for more than four and one half (4.5) hours

and is released will be free from duty for a minimum of ten (10) hours or the remainder of the calendar day in which the duty commenced, whichever is greater.

c. A reserve pilot who is contacted after 2200 and told to report prior to 0500 will not

be scheduled to exceed nine (9) hours of duty, and will not actually exceed ten (10) hours of duty.

6. Call Out

a. The Company will attempt to negotiate group rates for pagers for use by reserve

pilots. b. In areas where co-domiciles exist, one of the airports will be designated as the

primary airport and reserve reporting requirements will be based on that location. In the event the primary airport is deactivated, pilots who reside more than the report times stipulated in 25.F.1.e. from the newly designated primary airport will not be required to report within those report times. However, thereafter, the pilot must be able to report to the new primary airport within the same amount of time as it would have taken him to report to that airport at the time of the deactivation of the previous primary airport or the designated report time for the new airport,

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whichever is greater. It is agreed that this provision applies to all those affected by previous deactivations of primary airports.

Example: Primary airport is originally ORF. Pilot lives thirty (30) minutes from ORF and 90 minutes from PHF. PHF becomes the new primary airport. The pilot need not report to PHF within seventy-five (75) minutes, but can not exceed ninety (90) minutes to report.

7. Reserve pilots will be permitted to trade days of reserve with other reserve pilots,

provided the respective pilots' availability remain the same. 8. A reserve pilot will have at least one (1) day free from duty in each seven (7) day period.

For the purpose of calculating days off, a reserve day will be considered a day of work. 9. Flying Into Days Off

a. A reserve pilot who is assigned to begin a trip that is scheduled to end after

midnight on his last day of reserve will be replaced prior to midnight by Crew Scheduling. In the event that it is not possible to provide such replacement, the pilot will be released as soon as practical after such time.

b. If the pilot is required to continue beyond midnight and is not able to be replaced

until the following day, the pilot will be compensated for all time flown on the additional day, but not less than the minimum value of the day, and if requested by the pilot, an additional day off if that day had been scheduled as a day off. Such time will be credited above the pilot's guarantee.

10. Overnight Assignments

A reserve pilot will not be assigned to a trip that would require him to remain overnight away from domicile for a period of more than four (4) consecutive nights, unless he agrees otherwise.

G. Initial Award of Hard Lines, The 48 Hour Period, Final Bid Awards, and Award of Open Flying

1. Initial Award and 48 Hour Period

a. The schedules of hard line holders will be adjusted to accommodate vacation,

training, leaves of absence and other conflicts, etc. The initial award will be published in domiciles.

b. Open time which becomes available as a result of the above paragraph and

other open time will be posted in the appropriate domicile simultaneously with the published bid award of the hard lines.

c. Hard line holders may bid open flying, in the domicile, forty-eight (48) hours

following the publishing of the bid awards for hard line holders. Pilots may submit their bids to Crew Scheduling by telefax, Company computer, or personal delivery. All awards will be in accordance with seniority. Pilots are responsible for calculating FAR 30 in 7, 100 hour, seven in a row, etc. impact when requesting adjustments, and shall verify those calculations on their bid submission.

d. Schedule Adjustments During the 48 Hour Period

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(1) During the forty-eight (48) hour period, hard line holders can make the following adjustments, but the pilot may not adjust more than six (6) days, exclusive of days of work added on originally scheduled days off: (a) Add a trip(s) on a scheduled day(s) off, provided the add does

not cause the pilot to exceed 28.5 hours in 7 days or 97.5 hours in a month.

(b) Vertical swaps with open time (trades which involve at a

minimum the same calendar days) will be awarded provided the swap does not cause the pilot to exceed 28.5 hours in 7 days, 98.0 hours in a month or compromise a stand-by day and there is no specific operational reason to decline the request.

(c) Non-vertical swaps with open time (trades which involve different

periods of the month) will be awarded provided the swap does not cause the pilot to exceed 28.5 hours in 7 days, 98.0 hours in a month, compromise a stand-by day and there is no specific operational reason to decline the request.

(2) Flight Support will record all denied requests for adjustment and make

this documentation available for review, upon request, by the Association Scheduling Committee Chairman.

2. Bidding and Awarding of Premium Trips

a. The intent of the premium trip designation procedure is to reduce the potential for

junior manning by designating premium opportunities on days where the available pilot resources might not be sufficient to cover the flying. It is not intended to cause a reduction in the number of pilots or a change in the method historically used to determine pilot staffing levels. The Company will use the procedure in good faith and in the manner presented in negotiations.

b. In conjunction with the initial bid award, the Company will designate premium

trips in accordance with the following formula: For each day of the bid period, if the number of available pilot resources (pilots eligible and available for a build-up or reserve line) by status fails to exceed the number of open trips system wide by eight (8), a sufficient number of premium trips will be designated until the number of pilot resources plus the number of premium trips equals or exceeds the sum of open trips plus eight (8).

Example:

Status system wide

Open Trips

Trigger (+8)

Pilot Resources

Minimum Premium Trips Required

Captains 20 28 24 4 First Officers

6 14 26 None Required

In this example on a given day the Company must designate at least 4 premium trips for Captains; however, they are not required to designate any premium trips for First Officers.

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c. Premium trips will be bid and awarded during the forty-eight (48) hour period and in the same fashion as non-premium trips.

d. Upon publication of the final bid award, and for ninety-six hours thereafter, the

Company will place premium trips in open flying in accordance with the following formula: For each day of the bid period, if the number of available pilot resources (pilots assigned a reserve or standby day) by status fails to equal or exceed the number of open trips system wide, a sufficient number of premium trips will be designated until the number of pilot resources plus premium trips equals or exceeds the number of open trips.

Example:

Status system wide

Open Trips

Trigger (0) Pilot Resources

Minimum Premium Trips Required

Captains 16 16 12 4 First Officers

20 20 10 10

In this example on a given day the Company must designate at least 4 premium trips for Captains and 10 premium trips for First Officers.

e. To be awarded any premium trip, the pilot must meet all contractual scheduling

parameters, such as 28.5 hours in seven days, 98 hours in a month, and the 1000 hour metering provision.

f. Premium trips will be awarded at 1700 on each day of the 96 hour period. The

awards will be made in accordance with Section 25.G.3.a-f., except that if no pilots within a domicile bid a trip, the trip will be awarded on the basis of seniority to pilots from other domiciles who bid it. Pilots with reserve lines may bid for premium trips during the 96 hour period, but awards will be at the discretion of the Company.

g. Premium designations for both trips will expire 96 hours after the publication of

the Final Bid Award.

3. Pay for Premium Trips

a. At the end of the month, the Company will compare the number of days of work that appeared on an initial bid award for line holders and the final bid award for build-up and reserve line holders with the number of days the pilot actually worked during the month. In order to be eligible for premium pay, a pilot must have actually performed work on a greater number of days than appeared on the pilot’s initial or final bid award, whichever is applicable.

b. For every additional day worked on a premium trip above the number of

scheduled days of work in the applicable bid award, the pilot will receive a premium of 3.5 hours of pay (effective 1/1/2001 the premium pay will be increased to 4.0 hours of pay).

c. Days of work lost due to bereavement or any action of the Company

(rescheduling, cancellation, FAR compliance, IOE requirements, etc.) will count as days of work for purposes of this section.

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d. No premium will be paid for any trips that remain or become open more than 96 hours after publication of the Final Bid Award. No premium will be paid for any trip or day that is assigned by the Company rather than bid by the pilot pursuant to subsection A. All premium pay is above monthly guarantee (pro-rated guarantee, if applicable).

4. Final Bid Awards

a. Notification of awards will be made by the publishing of the final bid awards,

which will include the publishing of build-up and reserve lines at the appropriate domicile(s) seventy-two (72) hours after the close of the forty-eight (48) hour period.

b. Open and Unassigned Flying

Following the processing of bids for the 48 hour period, open time will be posted with the final bid award. Notification will be made by posting in the computer and by memo.

5. Trip Adds, Trip Drops, and Trip Trades During the Schedule Period

a. Open flying, by domicile, remaining after the forty-eight (48) hour period, and

flying that becomes available during the bid period, will be awarded on a first come-first assigned basis, by seniority.

b. All such open flying will be available through the computer which will be updated

daily. c. Requests for schedule adjustments shall be filed by 1500. Requests received

after that time will be considered as 'received' on the following day. d. The Manager of Flight Operations or his designee will review and act upon

requests made by 1500 on the day following receipt of the hard copy of the adjustment request.

e. It is the pilot's obligation to contact crew scheduling to determine the status of his

request(s) for schedule adjustment. f. The Crew Scheduler will record all denied requests for adjustment and make this

documentation available for review by the Association Scheduling Committee Chairman.

g. A pilot may, during the schedule period, drop or trade days of scheduled flying.

(1) Trip Adds will be awarded to hard, build-up and reserve pilots. Requests

will be awarded provided the add does not cause the pilot to exceed 28.5 hours in 7 days or 97.5 hours in a month, and provided there is no specific operational reason to decline the request.

Awards of trip adds to reserve pilots may be delayed due to the uncertainty of the reserve's schedule.

(2) Vertical Swaps (trades which involve at a minimum the same calendar

days), will be awarded provided the swap does not cause the pilot to exceed 28.5 hours in 7 days, 97.5 hours in a month, compromise a

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stand-by day and there is no specific operational reason to decline the request.

(3) Non-vertical swaps with open time (trades which involve different periods

of the month) will be awarded provided the swap does not cause the pilot to exceed 28.5 hours in 7 days, 97.5 hours in a month, compromise a stand-by day and there is no specific operational reason to decline the request.

h. Reserve days may be awarded to pilots on their days off. A pilot who desires a

reserve day add will call Crew Scheduling no later than 1500 on the day before his days(s) off to indicate he wishes to add a reserve day(s). Award will be made on a seniority basis and will be communicated by telephone by 2100 that day.

i. Trip drops may be initiated by requesting that Crew Scheduling place the drop

into open flying or by arranging for another pilot to fly the trip. In the event no other pilot picks up the trip, the pilot requesting the drop will fly the trip.

j. Trip trades may be initiated by requesting the exchange of trips between two

pilots. Such requests will normally be made and approved at least forty-eight (48) hours prior to trip departure unless denied due to a specific operational reason.

k. A pilot who trades or drops trips which would project him below his guarantee,

will have his guarantee reduced by the same number of hours as he fell below the guarantee as a result of the trade or drop. The crew scheduler will not normally approve trades/drops that would place the pilot in this situation.

l. Trades must involve either days of flying or days of reserve. The trading of trips

in exchange for reserve days will not normally be permitted. m. The trading of trips between pilots in different domiciles is permitted, however,

the Company will not assume any cost liability (e.g. rooms, deadheading, additional duty time, etc.) that might be associated with such trades.

n. A pilot may bid for and be awarded an out of base trip provided the award occurs

within thirty-six (36) hours of the trip's report time. The Company will be responsible for necessary lodging, deadheading, additional duty time and other costs associated with awards of such trips.

o. Last minute swaps between pilots shall be approved with at least 20 minutes

notice prior to departure, provided the swap does not conflict with contractual or FAR limitations.

H. Crew Meals

The Company recognizes the need to address the pilots’ nutritional requirements during duty periods. The Company will accomplish this by providing crew meals when there is not at least a forty-five minute break within each six hours of duty, commencing with the first departure time in a duty period and ending with the last arrival in that duty period. The Company shall attempt to arrange for hotels to provide a continental breakfast for a pilot who departs from the hotel before breakfast is available. In instances where a captain determines that an unscheduled crew meal is necessary, the captain will contact Flight Control. Flight Control will either provide the crew meals or a break. The quality of the meals will be monitored by the Company and the Association Hotel Committee. If the Association proposes a specified alternative crew meal provider, and/or

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change of location, menu or timing of crew meals, the Company will adopt such change(s) provided it is verified that the change(s) will not result in increased cost to the Company.

I. Junior Manning

1. When required in order to maintain the integrity of the schedule, pilots may be called out and utilized in accordance with the following sequence:

a. Pilots who have indicated a desire to pick up additional flying, if the report time

for the uncovered trip(s) is more than twenty-four (24) hours away. b. Reserves in domicile. c. Reserves out of domicile, if practical. d. The most junior pilot available at the domicile* (no sooner than twenty-four (24)

hours prior to the trip report time) by contacting available pilots in inverse order of seniority.

e. The most junior pilot available at another domicile* (no sooner than twenty-four

(24) hours prior to the trip report time). * "At the domicile" means at the domicile reflected on the crew card for any given

trip.

Note: See also LOA #10, Sick for Junior Man.

2. The above procedure will be followed except in cases where pilots are extended pursuant to Section 3.G.5.

3. A pilot whose schedule would be disrupted by the junior man assignment (i.e., conflicts

with the FARs or the contract duty and rest provisions), will not be considered available if other pilots are available whose schedules would not be disrupted by the assignment.

4. A pilot who has been assigned a trip(s) pursuant to I.1.d. and e. above, will be treated in

accordance with Section 12.C.3.a. for purposes of compensation and the potential scheduling of an additional day off (trade back day).

5. No pilot can be junior manned, pursuant to I.1.d. and e. above, more than:

a. In any calendar month, two (2) calendar days. b. For the year 2000, four (4) calendar days. c. Commencing January 1, 2001, four (4) calendar days per calendar year, no more

than three (3) of which may be on days off.

In addition, no pilot may be junior manned pursuant to I.1.d. and e., on a scheduled day off which takes him below his guaranteed days off for that month, unless the pilot agrees otherwise. Pilots who are junior manned will be sent confirmation of the junior man assignment prior to commencing the trip to which they were junior manned.

6. Premium Pay for Junior Manning

Whenever a pilot is junior manned he will receive premium pay (pursuant to Section 3.D) for such according to the following rules:

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a. For the year 2000, at the pilot’s option, he will receive either 3.5 hours of pay at the applicable rate OR receive credit toward the junior man caps (as identified in Section 25.I.5) and an additional day off (trade back day).

b. Commencing January 1, 2001, at the pilot’s option, he will receive 4.0 hours of

pay at the applicable rate and receive credit toward the junior man caps (as identified in Section 25.I.5) OR receive credit toward the junior man caps (as identified in Section 25.I.5) and an additional day off (trade back day).

7. The Company will maintain a log of all pilots who are contacted pursuant to this provision.

The log will reflect the time the pilot was contacted and the result. The log sheets will be maintained for at least one year. The log will be made available upon request for review by the Association Scheduling Committee Chairman.

8. Moveable Reserve Day

a. No more than four (4) times per calendar year, a reserve line holder may be

assigned flight duty on one of his days off provided it is not one of his golden (non-assignable/non-moveable) days off.

b. The moveable day may only be the first or last day of a block of days off, unless

the pilot agrees otherwise. c. If a reserve line holder works on a scheduled day off as a result of the moveable

day, he will either be credited for that day above his monthly guarantee or he will be granted another day off. At his request, he will be granted another day off in that schedule period when possible (but in no event later than thirty (30) days), such day to be placed at the beginning or end of an existing block of days off upon the mutual agreement of the Crew Scheduler and the reserve line holder.

d. A reserve line holder may be assigned to flight duty pursuant I.1.d. and e. above,

on his one moveable day, without regard to seniority. J. Displacement

1. When a pilot is displaced from all or part of his scheduled flight assignment by a management pilot, a reserve pilot obtaining flying prior to a check ride, or is displaced due to IOE or training (including check rides), such pilot may be reassigned at the time of notification of the displacement, to a trip(s) operating over the same calendar period (or less) or be free from all duty for that period. The pilot shall be credited as if he had flown the originally scheduled trip (including deadhead) or for the actual trip(s) flown, whichever is greater.

2. If a pilot is displaced by a management pilot (except for IOE/SOE), such pilot may be

reassigned at the time of notification of displacement to a trip(s) that originates no earlier than two (2) hours prior to the scheduled report time of his original trip and terminates no later than two (2) hours after the scheduled report out time of his original trip.

K. Double Scheduled Trips

If two pilots are scheduled to fly the same trip on the same day the senior pilot will have the choice of whether or not to remain on the trip, unless the trip is flown on different equipment. The pilot removed from the trip will be treated in accordance with Paragraph J, above.

L. FAR Conflicts

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1. In the event a pilot cannot perform his scheduled flight duties because of a conflict with the FAR's (other than those caused by the pilot's failure to meet his responsibilities such as carrying his medical certificate) he will be pay protected and released until such time as he can return to duty. Such pilot may be returned to his originally scheduled trip or reassigned pursuant to the Rescheduling provisions on days he was scheduled for flight duty. If rescheduled, the pilot will be credited for his originally scheduled trip(s) (including deadhead), or time flown, whichever is greater.

2. Where a pilot exceeds one thousand (1000) hours for a year, the pilot will be pay

protected for the remainder of the scheduled month(s) already bid, and not subject to reassignment. If a pilot exceeds one thousand (1000) hours prior to bidding, the pilot will be paid minimum monthly guarantee for the remaining month(s).

M. Management Flying

1. "Management pilots" means those pilots so designated by the Company, whose

compensation is not governed by the terms of this Agreement. 2. A management pilot or full time instructor may displace a line pilot. When a line pilot is

displaced from his trip(s), the pilot will be subject to the provisions of Section 25.J. 3. A management pilot or full time instructor may pick up time from open flying, but not prior

to twenty-four (24) hours prior to the report time of the trip when the trip falls before the 5th of the month. After the 5th of the month, management and instructor pilots may be assigned trips from open flying unless a line pilot has previously requested the trip.

a. Any full-time training pilot whose seniority is not sufficient to permit him to be

awarded a captain status will only be assigned (or pick up) captain open time needed to maintain his qualification as a training captain with the sole exception of captain open time which would have resulted in a line captain being junior-manned. Any other open time assigned (or picked up) by this training pilot shall be from first officer open time.

4. Management pilots and full time instructors shall not bid nor hold a hard, build-up, or

reserve line of time. N. General

When a pilot (either reserve or line holder) is assigned a trip that requires a deadhead or hotel information other than that provided on the crew card, the crew scheduler will provide that information, including the deadhead record locator number, as soon as practical.

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SECTION 26

GENERAL A. The Company will make available space in each domicile crew room for a bulletin board to be

supplied by the Association for the posting of matters of Association business. B. All orders to pilots involving a change in domicile assignment, promotion, demotion, furloughs,

recalls and leaves of absence will be in writing. Company orders or information that does not require a pilot response may be transmitted electronically via email (not to be used for junior manning, rescheduling, etc.).

C. A pilot will not be required to pay for or reimburse the Company for any equipment that becomes

unserviceable, lost, stolen or destroyed, nor will a pilot be required to pay for aircraft or ground equipment damaged while performing his duties unless the damage is caused by recklessness or intentional misconduct of the pilot.

D. Crew Scheduling/Flight Control Tapes

1. All recordings shall be kept in secure (locked) storage in the care of the Manager of Flight

Support. The Manager of Flight Support and the Vice President of Flight Operations shall authorize access to this storage facility. The Association will be notified of those personnel authorized access. This access will be limited to a reasonable number of individuals and will not include crew schedulers.

2. All tapes will be retained for a period of no less than seventy-five (75) days, except in

instances where there is a dispute regarding a specific recorded conversation in which case the tape will be copied and retained until both parties agree that the tape may be erased. Upon request, the Association MEC Chairman or Grievance Chairman or his designee and the pilot affected will be provided with the opportunity to review the original tape recorded conversation.

3. A log shall be maintained by the Manger of Flight Support indicating the date, time, by

whom, and reason a tape has been removed for review. No tape will be removed and examined without appropriate log entries.

4. Upon request, accompanied by an explanation as to the basis for the request, from the

MEC Chairman to the Vice President of Flight Operations, the MEC Chairman will be afforded access to a specific recorded conversation between Crew Scheduling and a pilot, and upon request, be provided with a copy.

5. The Grievance Chairman and the pilot will be notified when an investigation reveals that

a specific recorded conversation may be used in a disciplinary matter involving a pilot. This notification will occur at least five (5) days prior to the initial grievance meeting.

6. In the event that a dispute arises relative to which the existence or nonexistence, and/or

content of a conversation recorded on the tapes may be relevant, such tapes may be consulted by the Manager of Flight Support or designee and a representative of the Association and used as an aid in determining if a conversation took place and/or what was said. Tapes shall not be randomly or regularly reviewed or screened for the purposes of discovering potential violations, but may be reviewed to promote the highest standards of courtesy and professionalism.

7. In the event an original tape that is requested within the initial seventy-five (75) day

period is erased, misplaced, destroyed or otherwise unavailable (except for acts of God or other circumstances beyond the control of the Company (e.g., failure or interruptions in

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power or equipment)), there shall be a rebuttable presumption that the material previously contained therein is favorable to the pilot and/or the Association.

8. During any telephone conversation, either the pilot or the crew scheduler may request

that a conversation be transferred to a telephone line that is not being recorded. Either party may refuse such a request.

9. If there appears to be an alteration to or tampering with a recording, that recording will

not be used as evidence at a hearing. 10. Prior to implementing, should the Company implement tape recording on other lines, the

Company and the Association will agree on the governing provisions. E. The provisions of this Agreement will apply equally to all pilots regardless of color, race, creed,

national origin, age or sex in accordance with applicable law. F. The Company will consider and, upon request, discuss the recommendations of the Association

Safety Committee. The pilots, through this Safety Committee, will have the opportunity to make recommendations to the Company on major modifications to aircraft, changes to minimum equipment lists or other changes that affect the pilot group.

G. Manuals issued/re-issued to pilots by the Company will be paid for by the Company. Each pilot

must maintain his manual in good condition at all times. Any pilot who transfers to another aircraft type or terminates employment shall return previously issued manuals in current, good condition, or he shall reimburse the Company $50.00 for each manual to cover replacement. Reimbursement may be deducted from the pilot’s paycheck.

H. Passes

1. The Company will continue to make free and reduced rate travel available to pilots,

retired pilots and eligible family members under the terms of the existing pass policy. 2. The Company will provide a must ride pass for the spouse of a retiring pilot when flying

his last trip. I. At domiciles where free parking is not available, the Company will pay the cost of parking for

pilots. If a pilot is scheduled to fly or deadhead from an airport and parking is not provided for his automobile, public facilities may be used and charges will be paid by the Company. Such charges shall be submitted on an expense form and will be supported by a receipt.

J. Pilots are required to provide Crew Scheduling with a current telephone number at their domicile

and, if different, at their residence. K. A pilot requested by the Company to participate in an aircraft accident/incident investigation

involving Company aircraft will be permitted to do so without loss of pay. A pilot requested by the MEC Chairman to participate in a Company aircraft accident investigation will be released from duty upon request of the MEC Chairman.

L. Monitoring Devices

1. a. The Company shall not use any information gathered from a cockpit voice

recorder in any disciplinary or discharge action. The Company will not for the purpose of discovering pilot irregularities review data from ACARS (other than OOOI times), a flight data recorder (FDR), or other electronic devices, on a regular or random basis, or to target particular pilots.

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b. Before reviewing any data from ACARS (other than OOOI times), a flight data recorder or other electronic devices as part of an investigation that could lead to discipline or discharge, the Company must either (a) have an independent, reasonable justification for believing that a parameter has been exceeded; or (b) during a maintenance inspection of the FDR that was conducted for legitimate maintenance reasons, have encountered a parameter that has been exceeded. In any discipline or discharge action in which the Company seeks to rely upon data obtained through a review conducted pursuant to (b) above, the Company will bear the burden of proving both compliance with the preconditions for review set forth in (b) and that the pilot’s actions were reckless.

2. Any time the Company reviews the CVR or FDR, in conjunction with an incident/accident,

the Association will be able to listen to the CVR and/or have access to the FDR data. 3. Videotapes made of pilots’ performances in the simulator or aircraft will be shown to the

pilot upon completion of the training session and erased in the pilot’s presence. If erasure is not possible, the pilot will be given the videotape for erasure and return it to the Company.

4. Prior to the installation or use of any new electronic recording systems or devices on any

aircraft for the purpose of recording pilot en route performance parameters, the Company will notify the Association of such intent and confer with the MEC Chairman regarding the intended purpose of such equipment.

M. If any portion of this Agreement is declared illegal, it shall not in any way affect the remaining

provisions of the Agreement. N. Pilots are eligible to participate in any continuing education program that may be available to

other Company employees and the Company will apply no more restrictive criteria to the pilots for determining suitability of courses as it does other Company employees.

O. To assist MEC members in attending designated MEC meetings, written notice of these meetings

(four (4) per year, two (2) of which may be of no more than three (3) days duration and two of which may be of no more than two (2) days duration), will be given to the Company in the first seven (7) working days of the previous month after discussion of possible dates with the Manager of Flight Support. MEC members will make every effort to bid around meeting dates. The MEC will assist in monitoring compliance with this bidding responsibility. 1. If the MEC member’s awarded bid line conflicts with the scheduled meeting date(s) and

the MEC member had requested that the conflicting trips be dropped from his schedule, the trip(s) in question will be dropped into open flying and assigned in accordance with appropriate provisions of this Agreement.

2. For two (2) MEC meetings prior and when contract negotiations are ongoing, Negotiating

Committee members (maximum 3) may be included in the MEC meetings provided in O.1., above, and in addition such negotiating committee members shall be released on the same basis for scheduled negotiations.

3. Reimbursement of Flight Pay Loss

a. When a pilot is removed from active flight status for the purpose of conducting

Association business, where the removal is authorized by the Company and the MEC Chairman or his designee, the MEC Chairman or his designee shall submit a report which reflects the amount of flight pay loss authorized for the pilot no later than the 10th of the succeeding month. Such report shall include the information set out in O.3.b (1)-(5), below. The foregoing shall not apply to a pilot

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who trades trips, unless the trip flown by the pilot on Association business is of a lesser value, in which case the authorized flight pay loss will reflect the differential.

b. The Company will compensate that pilot performing such authorized business as

reflected by the pilot’s schedule (excluding per diem; standby and reserve days to be compensated at four (4) hours per day) and will, within thirty (30) days following the month in which such flight pay loss was incurred, advise the Association as to the total amount of such reimbursement. The Company will submit an invoice to the MEC Chairman or his designee detailing the following: (1) The name(s) of the pilot(s); (2) The date(s) off the line for Association business; (3) The number of scheduled hours missed (including deadhead and

training); (4) The applicable hourly rate; (5) The amount of loss calculated in dollars.

c. The amount of flight pay loss billed to the Association will be calculated by

multiplying the scheduled number of hours missed, times the applicable hourly rate, plus fringe benefit costs of 28%.

d. Notwithstanding paragraph b. above, the Company will not bill the Association for

the first $70,000 of flight pay loss, for each year of the contract. 4. Scheduled workdays that are dropped from a pilot’s line for ALPA business shall count

for scheduling limitation purposes. P. Pilot Duties

Required pilot duties will not include such duties as loading of baggage or passengers, fueling aircraft, or ticketing.

Q. The captain of a flight has the authority to authorize a “last minute” request of an authorized

individual (as set forth in the Piedmont Flight Operations Manual) to occupy the additional crew member jumpseat, provided that the captain advises Operations prior to the departure that the jumpseat is occupied.

R. The Company will notify in advance pilots engaged in international operations when immunization

and visas are required. The Company will reimburse currently employed pilots (and any pilots not notified of the necessity for any of the above prior to accepting employment) for the cost of visas, immunizations, and passports when they are required.

S. The Company and the Association will share the cost of providing each pilot with a copy of this

Agreement, printed and bound Jeppesen size, within thirty (30) days from the date of signing of this Agreement. Future pilots shall be provided with a copy of this Agreement during initial ground school.

T. The Company shall continue to provide liability insurance coverage for pilots and their estates

against suits by third parties and other employees arising from the pilots’ performance of their duties as flight deck crewmembers for the Company up to the maximum of such policies as presently carried for such corporate liability.

U. During the initial ground school for new hires, the Company will make the classroom facility

available for the Association to address the new hire class during non-class hours.

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V. Pilot Personnel and Training Files

A pilot’s personnel file, pilot file and training file shall be opened on request for inspection by the pilot.

W. Nothing in this Agreement shall be construed to limit or deny any pilot hereunder any rights or

privileges to which he may be entitled under the provisions of the Railway Labor Act, as amended.

X. The Company will pay for supplies used in scheduled operations, i.e., maps, VFR charts, enroute

charts, approach plates, operations manuals, and Jeppesen manuals. Y. Any masculine pronoun used in this Agreement shall be deemed and understood to designate

any employee whether male or female. Z. Should the Company place into revenue service aircraft other than aircraft for which rates are

specified in this Agreement, the Association and the Company will meet pursuant to the processes of Title I, Section 6 of the Railway Labor Act, not later than sixty (60) days before the aircraft is to be placed in scheduled service, to agree upon rates of pay. The rates of pay agreed upon will be retroactive to the first day the aircraft is placed into revenue operation.

AA. Uniforms

1. A newly hired pilot will be responsible for the purchase of his uniforms consisting of one

(1) hat, one (1) tie, one (1) jacket, two (2) trousers, two (2) shirts, and one (1) overcoat. The Company will furnish jacket insignias, epaulets and hat emblems at no cost to the pilot. a. The cost of the initial uniform purchase may be deducted from the pilot’s

paycheck on terms set by the Company for all employees.

b. If a pilot leaves employment prior to paying for the uniform, the remaining cost will be deducted from his final paycheck.

2. The Company will contribute one half (1/2) the replacement costs of uniforms.

a. The pilot’s one half (1/2) cost of replacement uniforms may be deducted from the

pilot’s paycheck at a rate not to exceed $25 per paycheck. b. If a pilot leaves employment prior to paying for the uniform, the remaining cost

will be deducted from his final paycheck.

3. Failure of a pilot to turn in insignias, epaulets or emblems will leave the pilot responsible for replacement, and such replacement cost may be deducted from the pay of the pilot if the pilot has less than three (3) years of service with the Company. A pilot is responsible for replacement of lost or damaged insignias, epaulets or emblems.

4. Before making any changes in uniform requirements, flight bag or overnight bag

specifications, the Company will consult with the Association Uniform Committee. In the event the Company determines to change the uniform or any part thereof, to the extent determined by the Company to be feasible, pilots may be required to change to new uniform items at the time of normal replacement. If the pilot is required to replace uniform items at other than the normal replacement time, the Company will pay a pro rata share of the pilot's one half (1/2) of replacement. For example, if a pilot is required to replace a uniform item with a changed uniform item at the point of half its normal life, the Company will pay an additional one fourth of the replacement cost. Normal life for uniform items is:

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Trousers: 18 months; Jacket: 36 months; Hat: 36 months; Tie: 24 months; Overcoat: 36 months.

5. To the degree supported by payroll software, the Company will include, on each pilot’s

paysheet, the outstanding amount owed on uniform purchases and the amount paid.

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SECTION 27

INSURANCE A. Life Insurance

1. The Company will provide life insurance in the amount of one (1) times a pilot’s annual compensation.

2. The Company will provide accidental death and dismemberment (AD&D) insurance in the

same amount as the life insurance. 3. The Company will ensure that neither the life insurance policy nor the AD&D policy

contains exclusions for any activity in which a pilot engages in the ordinary course of employment such as, but not limited to, test flying.

4. Subject to enrollment guidelines established by the insurance carrier, a pilot will be

eligible to purchase additional life insurance up to five (5) times annual earnings, or a maximum of $250,000.00.

5. Upon request, a pilot’s premiums will be payroll deducted.

B. Health and Dental Insurance

1. The Company will continue to provide the medical and dental insurance coverages in effect December 1, 1989. In the event the Company contemplates changes from the coverages in effect, including deductibles and co-payments, it will notify and consult with the Association MEC Chairman at least thirty (30) days prior to any change. Changes will not result in a net loss of coverage. The Association may file a grievance if it questions the comparability of any changes. The System Board of Adjustment shall have jurisdiction over such grievances.

2. Premiums paid by a pilot for dependent medical coverage will not be increased by more

than $10.00 per month on an annual basis, and premiums for dependent dental coverage will not be increased by more than $7.50 per month. If the Company uniformly implements premium contributions for individual coverage applicable to all other employee groups, pilots may be required to contribute to premiums for individual coverage at a level not to be increased by more than $5.00 per month on an annual basis for medical coverage and $3.75 per month for dental coverage; provided however, that the total pilot contribution for individual and dependent coverage may not increase by more than $10.00 per month in any one year for medical coverage and not more than $7.50 per month over the life of the Agreement for dental coverage.

3. A pilot may opt out of the Company-provided health plan coverages (i.e., health, dental,

and prescription drug) and receive forty dollars ($40) per month in lieu of such coverages, provided he signs a waiver (see appendix C) relieving the Company and the Association of any liability for the pilot’s choice (or the consequences of such choice) not to participate in the Company-provided health plans. If the Company increases the amount paid to other Company employees who opt out of the Company-provided health coverages from forty dollars ($40) per month, pilots who opt out will receive the same increase.

4. A retired pilot will be permitted to pay the group rate premium in order to keep health and

dental insurance in effect until he is eligible for Medicare. A retired pilot will be permitted to purchase through the Company a health insurance plan to supplement Medicare and provide the same benefit level as an active pilot.

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C. By August 1, 1994 there shall be a Flexible Compensation Plan available to pilots, under which a pilot may make pre-tax contributions for medical and dental premium contributions, unreimbursed medical expenses and dependent care coverage to the degree permitted by applicable law and regulations.

D. Short Term Disability

1. First 16 Weeks a. A pilot eligible for Short Term Disability will be paid 72 hours per month (prorated

for portions of a month) on a semi-monthly basis at his applicable hourly rate immediately prior to the time disability commences.

(1) “Prorated for portions of a month” will be applied by dividing seventy-two

(72) by the number of days in the month and multiplying that number by the number of days to be paid disability payments.

Example: Disability payment starts April 16. 72 divided by 30 = 2.4 x 15 days = 36 hours.

(2) It is agreed that in calculating short term disability benefits in accordance

with these provisions that no pilot will be paid in excess of the published value of his line for the month in question, nor shall any pilot be compensated for less than seventy-two (72) hours as a result of proration.

b. A pilot will not be eligible for this benefit until his sick leave and fully accrued

vacation benefits are exhausted or seven (7) days have passed, whichever comes later. Sick leave will be used prior to vacation.

(1) When sick leave hours are depleted down to the point where a pilot only

has enough remaining sick hours to cover a portion of a day, it will be depleted on that day and any remaining vacation leave will be applied to the following day.

(2) Sick leave means the sick leave a pilot has accrued as of the date the

disability begins, as set out in Section 14 A. Vacation benefits means the vacation a pilot has accrued as of the date the disability begins, which is calculated by determining how many vacation days he is entitled to for the year in which the disability commences, dividing that number by 12 (months), and multiplying that number by the total number of months which have passed prior to the month that disability commences. All partial vacation days will be rounded down to a full day.

Example 1: The pilot ceases work on April 1. He is eligible for 15 days of vacation for that year and has taken no vacation thus far.

15 divided by 12 = 1.25 vacation days accrued per month. 1.25 is multiplied by 3 (months which have passed in that year) = 3.75 (rounded down to 3) vacation days accrued prior to the leave.

NOTE: In accordance with Section 13.C.2.c., “Pilots on medical leave will not accrue vacation...” Thus, once a pilot uses all of his sick and

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vacation benefits, he ceases accruing vacation and sick leave benefits until the termination of his medical leave.

Example 2: A pilot who is eligible for 15 vacation days in the current year remains on medical leave for 3 months. That pilot is now eligible for 12 vacation days for the current year. 15 divided by 12 = 1.25. 1.25 x 3 = 3.75 (3). 15 - 3 = 12

Example 3: A pilot ceases work on April 1. He has 10 hours of accrued sick leave. He is eligible for 15 vacation days in the current year so he has accrued 3.75 (3) vacation days thus far. He has the following April Schedule:

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APRIL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Scheduled Pay Credit 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Sick (SK) SK SK VA VA VA START DISABILITY BENEFITS Vacation (VA) Pay Credit 5.0 5.0 5.0 5.0 5.0 72 DIVIDED BY 30 = 2.4 x 22 DAYS = 52.8 HRS

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Scheduled Pay Credit 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 = 85 HRS Sick (SK Vacation (VA)

Pay Credit for April: 10.0 hours sick pay 15.0 hours vacation pay

+ 52.8 hours disability benefits = 77.8 hours total pay for April

Example 4: Assume all sick leave has been used and 3 vacation days have been accrued such that the 7 day waiting period would be in effect pursuant to Section 27.D.1.b., and the pilot has the following April schedule:

APRIL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Scheduled Pay Credit 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 Sick (SK) VA VA VA VA START DISABILITY BENEFITS Vacation (VA) Pay Credit 5.0 5.0 5.0 5.0 5.0 72 DIVIDED BY 30 = 2.4, 2.4 x 23 DAYS = 55.2 HRS

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Scheduled Pay Credit 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 = 85 HRS Sick (SK Vacation (VA)

Pay Credit for April: 15.0 hours vacation pay

+ 55.2 hours disability benefits = (70.2) hours below monthly guarantee

72.0 hours total pay for April

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(3) In the event a pilot who applies for short term disability benefits has no sick or vacation leave accrued, he must wait for seven (7) days from the date of disability before he is eligible to receive short term disability benefits.

(4) In the event a pilot has seven (7) or more days of accrued sick leave

and/or vacation, such pilot is eligible to receive short term disability benefits on the day following exhaustion of both the pilot’s sick and vacation leave accounts.

Example: A pilot becomes disabled on the 15th of the month. He has eight days of work scheduled commencing the 16th and concluding on the 27th. He has eight days of combined sick and vacation leave accrued to that point. Sick and vacation days are applied to days of work, in accordance with the applicable sections of the contract. The pilot’s last day of vacation falls on the 27th. The pilot becomes eligible for benefits on the 28th of the month. Whether the pilot is scheduled to work or not on the 28th is not relevant to this example.

(5) In the event a pilot has less than seven (7) days of vacation and sick

leave, he must first use whatever sick and vacation leave he has, and if seven (7) days have passed from the date of disability, he is eligible to receive benefits on the day following the exhaustion of both the sick and vacation leave accounts. If seven (7) days have not passed from the date of disability, and the pilot has used all of his sick and vacation leave, he must wait for seven (7) days to have passed from the date of disability to receive benefits.

Example 1: A pilot becomes disabled on the 15th of the month. He has five days of work scheduled commencing the 16th and ending the 22nd. He has five days of combined sick and vacation leave accrued to this point. Sick and vacation days are applied to days of work, such that the pilot has exhausted all leave on the 22nd. He becomes eligible for benefits on the 23rd of the month. Whether he is scheduled to work or not on the 23rd is not relevant to this example. Example 2: A pilot becomes disabled on the 15th of the month. He has five days of work scheduled between the 16th and the 21st. He has two (2) days of combined sick and vacation leave. The combined leave is applied to two days of work, such that the pilot has exhausted all leave on the 18th. The pilot becomes eligible on the 22nd of the month to receive benefits (i.e., the pilot must wait until seven (7) days have passed from the date of disability). Whether the pilot is scheduled to work or not on the 23rd is not relevant to this example.

c. Payments will commence on the payday following the date eligibility and disability verification documents are processed by the Eligibility Review Panel.

d. The Short Term disability plan will provide benefits for periods when the pilot is

not medically qualified for flight duty.

e. Funding for this benefit will be paid half by the Company and half by the pilots. Pilots will fund their portion by “banking” up to nine hundred (900) hours for the group.

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f. Pilots will bank one (1) hour per month for the first three (3) months of the plan and no more than one-half (1/2) hour per month thereafter. Following the initial accumulation for the first three (3) months, when the bank reaches nine (900) hours, pilot banking will cease. When the bank falls below five hundred (500) hours, the pilots automatically shall resume banking until nine hundred (900) hours are accrued.

g. All pilots will be uniformly required to bank by month, and the bank may exceed

nine hundred (900) hours due to excess collection in any given month. h. In the event that the funding levels are found to be inadequate, the Company and

the Association will meet and agree to revised funding levels. i. The Eligibility Review Panel will consist of one (1) member appointed by the

Association and one (1) member appointed by the Company. The jurisdiction of the panel is limited to determining the eligibility of a pilot for benefits described in Section 27.D.1. The Panel will be charged with review of requests for disability payments.

j. A majority vote of the Panel members will be sufficient to determine whether

benefits will be awarded. In the event the members of the Panel disagree about whether the pilot is medically able to perform the duties of a pilot, or at the request of the Panel or the pilot, the issue will be submitted for final decision to an FAA medical examiner mutually agreed to by the parties. The cost of the FAA medical examiner will be divided by the Company and the pilot.

k. Oversight of the bank:

Panel members will notify the appropriate Company personnel regarding the commencement and cessation of banking payments, and will be charged with devising a semi-annual accounting statement which will reflect the number of hours used and hours remaining in the bank.

2. Continuing Short Term Disability Plan for Remainder Up to 104 Weeks

a. Pilots will receive 60% of their eligible pay to a maximum of $3000.00 per month.

Eligible pay is eighty (80) hours at the applicable hourly rate immediately prior to the time disability commences.

b. Disability benefits provided under this program will be offset by worker’s

compensation and social security disability insurance benefits. c. All other aspects of this program will remain the same as those which are

currently in effect. E. Long Term Disability

1. Pilots will receive 60% of their eligible pay up to a maximum of $3000.00 per month. Eligible pay is eighty (80) hours at the applicable hourly rate immediately prior to the time disability commences.

2. Disability benefits provided under this program will be offset by worker’s compensation

and social security disability insurance benefits. 3. All other aspects of the present Long Term Disability program will remain the same as

that which is currently in effect.

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SECTION 28

RETIREMENT A. Defined Benefit Plan

1. The Company shall pay the entire cost of providing retirement and survivor benefits under the Retirement Plan for Pilots of Piedmont Airlines, Inc. The Plan is incorporated herein by reference and shall not be amended, changed, varied, modified or discontinued during the term of this Agreement and any status quo period under the Railway Labor Act, including any amendment required by law, except as agreed to by the pilots in the service of Piedmont Airlines, Inc. as represented by the Air Line Pilots Association and the Company.

2. The Social Security Bridge provided for in Section 6 of the Retirement Plan for Pilots of Piedmont Airlines, Inc., dated January 1, 1989, as amended, shall be amended to extend the Social Security Bridge to cover pilots who become permanently and totally disabled before the FAA-mandated retirement age for pilots (currently age 60). Such disabled pilot(s) will commence the Social Security Bridge benefit at age sixty (60). To be eligible, at the time a pilot becomes permanently and totally disabled, he must be fifty (50) or more years of age, have ten (10) or more years of service with the Company and be permanently and totally disabled under the Social Security definition of disability.

B. 401k Savings Plan

1. The Company and the Association shall establish the Piedmont Airlines Pilots’ 401(k) Savings Plan which shall be incorporated herein by reference and shall not be amended, changed, varied, modified or discontinued during the term of this Agreement and any status quo period under the Railway Labor Act, including any amendment required by law, except as agreed to by the pilots in the service of Piedmont Airlines, Inc. as represented by the Air Line Pilots Association and the Company.

2. The Company match to the pilot’s 401(k) contributions shall be as follows: Years of service Pilot contribution Company match Less than 4 2% 1% 4-9 5% 2.5% 10-14 6% 3.0% 15-19 7% 3.5% 20 & over 8% 4.0%

3. Pilots hired subsequent to May 16, 2000 will be subject to a five (5) year cliff vesting requirement. Specifically, a pilot subject to such cliff vesting who leaves the employ of the Company with less than five (5) years active service, will forfeit Company Matching 401K account, including any investment gains or losses, as determined by the fund manager.

29-1

SECTION 29

AGENCY SHOP AND DUES CHECK-OFF A. Each pilot of the Company on the Piedmont Airlines, Inc., Pilots’ Seniority List shall be required,

as a condition of employment, beginning sixty (60) days after the effective date of this Agreement or sixty (60) days after the completion of his probationary period, whichever shall last occur, (1) to be or become a member of the Association, or (2) to pay the Association a monthly service charge for the administration of this Agreement and representation of the pilot. Such monthly service charge shall be equal to the Association’s regular monthly dues, initiation fee, and periodic assessments, including MEC assessments, which would be required to be paid by such pilot if a member; provided, that neither membership nor the payment of a service charge shall be required in respect to any such pilot (a) for whom membership is not available upon the same terms and conditions generally applicable to any other member, or (b) as to whom membership was denied or terminated for any reason other than the failure to tender periodic dues, initiation fees and assessments uniformly required by the Association or the Piedmont MEC as a condition of acquiring or retaining membership. The Association shall treat members and non-members alike in calculating the amounts due, in establishing the due date of payments and in determining whether a pilot’s account is delinquent.

B. If any pilot of the Company on the Piedmont Airlines, Inc., Pilots’ Seniority List required to make

payment of a service charge becomes delinquent in the making of such payments, the Association shall notify such pilot by certified mail, return receipt requested, copy to the Vice President - Flight Operations of the Company, his successor or designee, that he is delinquent in the payment of such service charge as specified herein and the total amount of money due and the period for which he is delinquent and that he is subject to discharge as an employee of the Company. Such letter shall also notify the pilot that he must remit the required payment within a period of fifteen (15) days or be discharged. The notice of delinquency required under this paragraph shall be deemed to be received by the pilot, whether or not it is personally received by him when mailed by the Treasurer of the Association by certified mail, return receipt requested, postage prepaid to the pilot’s last known address, or to any other address which has been designated by the pilot. It shall be the duty of every pilot covered by this Agreement to notify the Association’s Membership Services Department of every change in his home address, or of an address where the notice required by this paragraph can be sent and received by the pilot if the pilot’s home address is at any time unacceptable for this purpose.

C. If, upon the expiration of the fifteen (15) day period provided in paragraph B. above, the pilot still

remains delinquent, the Association shall certify in writing to the Vice President - Flight Operations of the Company, his successor or designee, copy to the pilot, both by certified mail, return receipt requested, that the pilot has failed to make payment within the grace period and is therefore to be discharged. The Vice President - Flight Operations, his successor or designee, shall thereupon take proper steps to discharge such pilot from the service of the Company as soon as possible, and in any event within twenty-one (21) days after receipt of the notice provided for herein and shall advise the pilot of his termination.

D. A protest by a pilot who is to be discharged as the result of an interpretation or application of the

provisions of this Agreement shall be subject to the following procedures:

1. A pilot who believes that the provisions of Section 29 have not been properly interpreted or applied, as they pertain to him, may submit a request for review in writing within ten (10) days from the date of receipt of notice by him in the form of his copy of notice to the Company with respect to him as provided in Paragraph B. above. Such request must be submitted to the Vice President - Flight Operations or designee who will review the protest and render a decision in writing with respect thereto not later than ten (10) days following the receipt of the request for review. If for any reason the pilot has not received a copy of the notice specified in subparagraph B. above requesting his discharge, the ten

29-2

(10) days in which the pilot may submit a request for review shall start to run from the date on which the Company notifies the pilot that he is to be discharged.

2. The Vice President - Flight Operations of the Company shall forward his decision to the

pilot with a copy to the Treasurer of the Association, who shall promptly be designated in writing by the Association for this purpose. Said decisions shall be final and binding on all interested parties unless appealed as hereinafter provided. If the decision is not satisfactory to either the pilot or the Association, either may appeal the decision by filing a notice of appeal. Such notice shall be sent to the Company, to the other party, and to the National Mediation Board within ten (10) days of the receipt of the decision, and must contain a request for the National Mediation Board to provide a list of five (5) neutral referees. A neutral referee may be agreed upon by the pilot and the Association within ten (10) days after receipt of the list of neutral referees. If the parties cannot agree on a neutral referee, a referee will be chosen from the panel supplied by the National Mediation Board. The alternate strike method shall be used to select a neutral referee with the pilot initiating the first rejection. Such final selection of a neutral referee shall be accomplished within ten (10) days after the receipt of the list of neutral referees. If the parties have not reached agreement by the alternate strike method within the aforementioned ten (10) day period, the first name listed on the five (5) name panel provided by the National Mediation Board shall be designated the neutral referee.

3. The decision of the neutral referee shall be requested within thirty (30) days after the

hearing of the appeal unless otherwise agreed by the pilot and the Association, and shall be final and binding on all parties to the dispute. The fees, charges and other reasonable expenses of such neutral referee shall be borne by the party making the appeal.

E. During the period a protest is being handled, as herein provided, and until the final decision by

the Vice President - Flight Operations, his designee or the neutral referee, the pilot shall not be discharged or otherwise disciplined by the Company nor lose any seniority rights because of non-compliance with the terms and provisions herein.

F. 1. A pilot discharged by the Company under the provisions herein shall be deemed to have

been “discharged for cause” within the meaning of the terms and provisions of the Pilot Employment Agreement.

2. The Association shall indemnify and hold the Company harmless against any and all

claims, demands, suits or other forms of liability that may arise out of or by reason of the provisions of this Section 29. The Company shall promptly notify the Association of any such claims of liability made against the Company.

G. This Section shall become effective as of the date of signing by all parties and shall be subject to

changes in the same manner as specified in Section 31. H. Method of Payment

1. During the life of this Agreement, the Company agrees to deduct from the pay of each pilot covered by this Agreement and remit to the Air Line Pilots Association, within forty-five (45) days of the pay day which dues are deducted, membership dues uniformly required by the Air Line Pilots Association, as a condition of acquiring or retaining membership, and in accordance with the provisions of the Railway Labor Act, as amended, or a service charge provided such pilot voluntarily executes the following agreed upon form. This form, “Assignment and Authorization for Payment of Association Service Charge and Dues”, also to be known as Service Charge and Dues Form, shall be prepared and furnished by the Air Line Pilots Association.

29-3

ASSIGNMENT AND AUTHORIZATION FORM PAYMENT OF

ASSOCIATION SERVICE CHARGE AND DUES TO: PIEDMONT AIRLINES, INC. I, , hereby authorize and direct Piedmont Airlines, Inc., to deduct from my pay such monthly dues as are now or may hereafter be established in accordance with the Constitution and By-Laws of the Association, or service charge in an amount equal to such dues, for remittance to the Air Line Pilots Association. I agree that this authorization shall be irrevocable for one year from the date hereof or until termination of the check-off agreement between Piedmont Airlines, Inc., and the Association, whichever occurs sooner. If the check-off agreement is terminated, this authorization shall be automatically terminated. In the absence of a termination of the check-off agreement, this authorization may be revoked effective as of any anniversary date of the signing hereof by written notice given by me to Piedmont Airlines, Inc., and the Association by Certified Mail, Return Receipt Requested, during the ten (10) days immediately preceding any such anniversary.

Signature of Pilot Address of Pilot ALPA Number Payroll or Employee # Date

Disclosure Statement Required by Federal Tax Law Dues, contributions, and gifts to ALPA are not

tax deductible as charitable contributions. However, they may be tax deductible as ordinary

and necessary business expenses.

29-4

2. When a member of the Air Line Pilots Association properly executes such Service Charge and Dues Form, the Treasurer of the Air Line Pilots Association shall forward an original copy to the Vice President - Flight Operations, Piedmont Airlines, Inc. Any Service Charge and Dues Form which is incomplete or improperly executed will be returned to the Treasurer.

Any notice of revocation as provided for in this Agreement or by the Railway Labor Act, as amended, must be in writing, signed by the pilot and delivered by Certified Mail, addressed to the Vice President - Flight Operations, Piedmont Airlines, Inc., with a copy to the Air Line Pilots Association. Service Charge and Dues Forms and notices received by Piedmont will be stamp dated on the date received and will be effective on that date.

3. When the Service Charge and Dues Form, as specified herein, is received by the Vice

President - Flight Operations, Piedmont Airlines, Inc., on or before the first day of the month, deductions will commence with the second payday of the month following, and will continue thereafter until revoked or cancelled as provided in this Section. The Company will remit to the Air Line Pilots Association, a check in payment of all dues and assessments collected on given payday, within forty-five (45) days of the payday in which dues are deductible. These remittances will be subject to normal accounting practice with respect to adjustments necessary because of the methods involved in the deduction procedure. The Company remittance of Air Line Pilots Association membership dues to the Air Line Pilots Association will be accompanied by a list showing names, payroll numbers and amounts deducted for pilots for whom deductions have been made in that particular period.

4. a. No deductions of Air Line Pilots Association dues will be made from the wages of

any pilot who has executed a Service Charge and Dues Form and who has been transferred to a job not covered by this Agreement, who is on furlough, or who is on leave without pay. Upon return to work as a pilot covered by this Agreement, whether by transfer, termination or leave without pay, or recall from furlough, deduction shall be automatically resumed, provided the pilot has not revoked the assignment in accordance with the other appropriate provisions of this Section and of the Railway Labor Act, as amended.

b. A pilot who has executed a Service Charge and Dues Form and who resigns or

is otherwise terminated (other than by furlough) from the employ of the Company, shall be deemed to have automatically revoked his assignment and if he is reemployed, further deduction of Air Line Pilots Association dues will be made only upon execution and receipt of a new Service Charge and Dues Form.

5. Collections of any back dues owed at the time of starting deductions for any pilot and

collection of dues missed because the pilot’s earnings were not sufficient to cover the payment of dues for a particular pay period, will be the responsibility of the Air Line Pilots Association and will not be the subject of payroll deductions.

6. Deductions of membership dues shall be made monthly provided there is a balance in

the paycheck sufficient to cover the amount after all other deductions authorized by the pilot or required by law have been satisfied. In the event of termination of employment, the obligation of the Company to collect dues shall not extend beyond the monthly period in which his last day of work occurs.

30-1

SECTION 30

(INTENTIONALLY LEFT BLANK)

31-1

SECTION 31

DURATION This Agreement will become effective on May 16, 2000 and will continue in full force and effect until May 15, 2004, and will renew itself without change on each succeeding May 16th thereafter, unless written notice of intended change is served in accordance with Section 6, Title I, of the Railway Labor Act, as amended, by either party thereto at least sixty (60) days but not more than one hundred and eighty (180) days prior to May 15, 2004, or any May 15th thereafter. IN WITNESS WHEREOF, the parties have signed this Agreement this 16th day of May 2000. FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Director of Flying Peter Genero, Jr. Negotiating Committee Chairman Rudolph J. Schroeder, III Negotiating Committee Member David H. Freeman Negotiating Committee Member

Letter 1-1

LETTER OF AGREEMENT between

HENSON AVIATION, INC. and the

AIR LINE PILOTS in the service of

HENSON AVIATION, INC. as represented by

AIR LINE PILOTS ASSOCIATION INTERNATIONAL

CONTINUOUS DUTY OVERNIGHTS THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act as amended by and between HENSON AVIATION, INC., (hereinafter referred to as the “Company”) and the Air Line Pilots in the service of PIEDMONT AIRLINES, INC. as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL (hereinafter referred to as the “ASSOCIATION”). In the event the Company decides to utilize continuous duty overnight schedules, it will provide notice to the Association at least 45 days prior to publishing any such schedules for bid. Upon such notice the Company and the Association will meet promptly and agree upon the pay and working conditions applicable to such schedules. Dated: November 30, 1989 FOR THE AIR LINE PILOTS ASSOCIATION FOR HENSON AVIATION, INC. Brian M. Lynch Stephen R. Farrow Air Line Pilots Association Henson Aviation, Inc.

Letter 2-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

RETROACTIVE PAY THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the new collective bargaining agreement contains pay provisions which will go into effect on May 16, 2000; and WHEREAS, the Company and the Association desire to address the delay in pay increases due to the protracted nature of negotiations through retroactive pay; and WHEREAS, the Company and the Association recognize that the pilots have already contributed the productivity associated with such retroactive pay; and WHEREAS, the Company and the Association desire to create an orderly method for distribution of retroactive pay for such received productivity; NOW, THEREFORE, it is mutually agreed by and between the parties to this Letter of Agreement that:

1. Effective May 16, 2000, all pay provisions of the new Agreement shall be reflected in the regular pilot pay checks.

2. On June 15, 2000, in a separate paycheck, all pilots who have or will earn retroactive pay

under the provisions of this Letter shall receive such pay. 3. Pilots entitled to retroactive pay, who terminate service prior to its distribution under

paragraph 2, above shall receive, with their final paycheck, all retroactive pay due to them upon termination of service.

4. Pilots shall receive retroactive pay as follows:

All pilots who are on the Company's payroll as of May 16, 2000, shall receive 1% of their gross wages (including 401(k) plan deferrals) that they have earned for the period of May 16, 1998 until May 16, 2000.

5. Final calculations of all retroactive pay shall be completed no later than June 10, 2000

and shall be subject to Association review and approval.

This Letter of Agreement shall become effective upon signing and shall remain in effect and run concurrent with the basic Agreement. Dated: May 16, 2000

Letter 2-2

FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Director of Flying Peter Genero, Jr. Negotiating Committee Chairman Rudolph J. Schroeder, III Negotiating Committee Member David H. Freeman Negotiating Committee Member

Letter 3-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

MANAGEMENT RETURN TO LINE FLYING THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). This shall confirm our agreement in our recent negotiations that certain named management pilots will have a one time opportunity to exercise their seniority to return unrestricted to full time line flying rather than being limited to return pursuant to Section 10.C.2. Therefore, should the following individuals return to the line, they may exercise system seniority to secure a position:

Buchanan, John R. Any of the above named individuals who exercise this option and subsequently return to a management position, shall be subject to the limitation of Section 10.C.2. should they return again to line flying. This Letter of Agreement shall become effective upon signing and shall run concurrent with the basic Agreement. Dated: May 16, 2000 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Director of Flying Peter Genero, Jr. Negotiating Committee Chairman

Letter 3-2

Rudolph J. Schroeder, III Negotiating Committee Member David H. Freeman Negotiating Committee Member

Letter 4-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

NEW AIRCRAFT BID THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WITNESSETH If, during the term of the Agreement, as provided for by Section 31 (Duration) of the Agreement, the Company announces its plan to introduce into revenue service aircraft other than Dash 8 series 100, 200, or 300 aircraft, any pilot who was employed by the Company on the date of signing of the Agreement shall be permitted notwithstanding Section 24 O.2.a.(1) to bid and be awarded a First Officer position on that aircraft. This Letter of Agreement shall become effective on the date of signing and will continue in full force and effect concurrent with the basic Agreement. Dated: May 16, 2000 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Director of Flying Peter Genero, Jr. Negotiating Committee Chairman

Letter 4-2

Rudolph J. Schroeder, III Negotiating Committee Member David H. Freeman Negotiating Committee Member

Letter 5-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

JET RATE FORMULA THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Company and the Association believe that it is mutually advantageous to have a formula to determine a jet aircraft rate (to be adjusted annually while the basic Agreement is applicable) for the first a 50-59 seat jet aircraft-type placed into revenue service at the Company, and may be mutually advantageous to have a formula to determine a jet aircraft rate (to be adjusted annually while the basic Agreement is applicable) for the first 30-39 seat jet aircraft-type placed into revenue service at the Company; NOW, THEREFORE, it is agreed as follows: A. The following formula shall be used to determine the initial rate should the Company bring a 50-

59 seat jet aircraft into revenue service. This initial rate shall apply for the first 50-59 seat jet aircraft brought into revenue service, as well as any additional jet aircraft of the same aircraft-type. This Letter of Agreement shall not apply to an aircraft that is FAA certified for more than fifty-nine (59) seats, or fewer than fifty (50) seats, unless the parties mutually agree to a similar process for the first 30-39 seat jet aircraft pursuant to paragraph E., below.

B. JET RATE FORMULA

1. The “Industry” is defined to include each U.S. certified carrier which operates jet aircraft in the 50-59 seat range excluding airlines that (1) operate an aircraft with one hundred (100) or more seats on May 1, 1999 or, (2) are not in existence on May 1, 1999, if the majority of the carrier’s fleet consists of aircraft which are one hundred (100) seats or more at the time this formula is applied.

2. The parties will determine the top five (5) hourly pay rates in the Industry for fifteen (15)

year Captains. The parties will determine the top five (5) hourly pay rates in the Industry for five (5) year First Officers. If two or more airlines share the same fifteen year Captain rate or five (5) year First Officer rate, then the previous longevity year (or earlier, if necessary) will be examined to determine which airline’s rates belong in the top five in the Industry. The five (5) airline wage rates used for calculating the Captains rates may be the same as, or different than, those used for First Officers. If there are fewer than five (5) carriers in the Industry, then the calculation, below, will utilize the rates of whichever carriers are in the Industry.

3. The parties will calculate the simple average of the top five (5) hourly pay rates in the

Industry for fifteen (15) year Captains. Using the same five (5) airlines as yielded the top rate for fifteen (15) year Captains, will calculate the simple average for each year one

Letter 5-2

through fourteen (1-14). These averages shall be the Captain pay rates for years one through fifteen (1-15) at the Company.

4. The parties will calculate the simple average of the top five (5) hourly pay rates in the

Industry for five (5) year First Officers. Using the same five (5) airlines as yielded the top rate for five (5) year First Officers, will calculate the simple average for each year two through five (2-5). These averages shall be the First Officer hourly pay rates for years two through five (2-5) at the Company. The year one (1) jet First Officer rate will be identical to the year one (1) Dash 8 First Officer rate at the Company.

5. The parties will utilize the simple average of the top five (5) hourly pay rates in the

Industry for fifteen (15) year Captains (the “Captain Comparison Point”) in determining the hourly pay rates for years sixteen through twenty-five (16-25). Years sixteen through twenty five (16-25) will be calculated by finding, for each year, the percentage increase from the Dash 8 year fifteen (15) Captain rate to the relevant Dash 8 pay longevity year and then applying the same percentage to the Captain Comparison Point to find the relevant corresponding longevity year in the jet pay scale. These will be the Captain pay rates for years sixteen through twenty-five (16-25) at the Company.

6. The parties will utilize the simple average of the top five (5) hourly pay rates in the

Industry for five (5) year First Officers (the “First Officer Comparison Point”) in determining the First Officer hourly pay rates for years six through ten (6-10). Years six through ten (6-10) will be calculated by finding, for each year, the percentage increase from the Dash 8 year five (5) First Officer rate to the relevant Dash 8 pay longevity year and then applying the same percentage to the First Officer Comparison Point to find the relevant corresponding longevity year in the jet pay scale. These will be the First Officer pay rates for years six through ten (6-10) at the Company.

7. The initial hourly jet rate of pay for the first 50-59 seat jet aircraft-type put in revenue

service at the Company shall be calculated using the formula set forth in paragraphs B.1-6., above, on the date the first 50-59 seat jet aircraft is placed into revenue service and will become effective on the date the first 50-59 seat jet is placed into revenue service.

C. Annual Jet Rate Adjustments

1. The hourly jet rate of pay for the first 50-59 seat jet aircraft-type put in revenue service at the Company will be recalculated annually in accordance with the provisions of paragraph C.2., following.

2. Once the initial hourly jet rate of pay for the first 50-59 seat jet aircraft-type put in revenue

service at the Company is determined, new hourly rates of pay for that jet aircraft-type will be recalculated using the formula set forth in paragraphs B.1-6., above, (which may include rates from the same or different airlines than that used in the initial, or any subsequent, recalculation) on May 1st of each year (the effective date of each Dash 8 wage increase in the basic Agreement) and will become effective on May 1st of each year (the effective date of each Dash 8 wage increase in the basic Agreement).

D. Once an initial rate is determined for such 50-59 seat jet aircraft, the rate determined above shall

become an aircraft specific rate for the first jet aircraft-type put into revenue service. For example, if the first 50-59 seat jet aircraft brought into service by the Company is the Canadair CRJ-50, the initial rate determined by the formula above will be only for the CRJ-50, and not any other new aircraft-type. Should the Company bring a second jet aircraft-type (or any other new aircraft-type) into revenue service, the New Aircraft clause in Section 26.V. shall be applicable, unless the parties mutually agree otherwise for the first 30-39 seat jet aircraft-type pursuant to paragraph E., below.

Letter 5-3

E. Notwithstanding the third sentence of paragraph D., above, should the Company consider procuring a jet aircraft-type with a seating capacity of 30-39 seats, the parties agree to meet to attempt to establish wage rates for such jet aircraft-type in a manner similar to that described in B. and C., above, provided that at that time there are a minimum of three (3) carriers within the “Industry”, as defined in paragraph B.1., above, operating jet aircraft within the 30-39 seat range. The parties further agree that, should a process similar to that described in B. and C., above, be agreed upon, none of the rates set in this process shall be lower than the Dash-8 rates in effect at the time the calculation is completed (i.e., on the date the first 30-39 seat jet aircraft is placed into revenue service), nor higher than the then applicable 50-59 seat range jet rate (either actually in use at the Company or to be calculated on the date the first 30-39 seat jet aircraft is placed into revenue service). Should a process similar to that described in B. and C., above, be agreed upon and used, just as described in D., above, the rate determined shall become an aircraft specific rate for the first 30-39 seat jet aircraft-type put into revenue service. Should it not be possible to establish rates for such 30-39 seat jet aircraft using a process similar to that described in B. and C., above, because there are an insufficient number of carriers to comprise the “Industry”, or should the Association or the Company feel that the carriers then operating jet aircraft within the 30-39 seat range are not representative, the New Aircraft clause in Section 26.Z. of the basic Agreement shall be applicable.

This Letter of Agreement shall be effective upon signing and shall remain in effect and run concurrent with the basic Agreement. IN WITNESS WHEREOF, the parties have signed this Letter of Agreement this 16th day of May, 2000. Dated: May 16, 2000 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Director of Flying Peter Genero, Jr. Negotiating Committee Chairman Rudolph J. Schroeder, III Negotiating Committee Member

Letter 5-4

David H. Freeman Negotiating Committee Member

Letter 6-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

ALCOHOL TESTING THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Company and the Association have a mutual interest in the settlement of ALPA grievance No. 95-09MEC; and WHEREAS, the parties wish to define more clearly the Company’s current Alcohol Misuse Prevention Program (AMPP), effective January 1, 1995, as it pertains to pilots; It is therefore mutually agreed and understood that:

1. The Company will allow pilots who come forward seeking alcohol rehabilitation assistance prior to notification of a testing situation to pursue such assistance and enabling the pilot’s return to work after professional evaluation and/or treatment.

2. Alcohol testing of pilots shall be limited to: (a) that required by the federal regulations

and/or (b) the authority that the Company has under the Agreement. 3. No pilot will be sanctioned or disciplined by the Company as the result of an inaccurate

alcohol test. 4. Any pilot whose required EBT alcohol test registers a confirmed positive result of

between 0.02 and 0.039 BAC, provided that pilot has no “uncleared” confirmed positive EBT alcohol test (See paragraph 10, herein): (a) must be referred for a professional evaluation by an evaluator of his or her choice; (b) may be subject to a disciplinary suspension of up to fourteen (14) days; and (c) may not reenter active service until after completing all regulatory requirements for doing so.

5. Any pilot whose required EBT alcohol test registers a confirmed positive result of 0.04

BAC or higher shall be referred for a SAP evaluation by a SAP of his or her choice and is subject to discipline up to and including termination. Any pilot whose required EBT alcohol test registers a confirmed positive result of 0.02 BAC or greater, while having an “uncleared” confirmed EBT (See paragraph 10, herein), shall be referred for professional evaluation by an evaluator of his or her choice and is subject to discipline up to and including termination.

6. As in all other instances of investigation and discipline, determinations related to alcohol

testing will be made subject to Section 19 of the Agreement. In addition, determinations related to alcohol testing will be based on an examination of all the facts and

Letter 6-2

circumstances involved, including the pilot’s length of service, employment record and the events surrounding the test itself.

7. Any pilot undergoing alcohol evaluation and/or treatment may use all Company and

contractual benefits. This section shall not be construed to either increase or decrease the benefits to which a pilot is entitled.

8. Return to service from alcohol evaluation and/or treatment will be governed by Sections

14 and/or 13 of the Agreement, as appropriate. 9. A pilot who tests positive may, at his or her sole option, voluntarily elect to undergo a

blood-alcohol test and voluntarily elect to provide the results of that test to the Company for consideration as a factor in determining the level or appropriateness of discipline. The blood sample must be drawn within two (2) hours of release after the confirmatory test and must comply with recognized standards for ensuring accurate identity of donor, chain of custody and testing methodology. The Company will make every effort to release a pilot as soon as possible after testing positive.

10. The Company shall consider a positive confirmed EBT test between 0.02 and 0.039

(including any discipline and related documents) as cleared after a two year period of active service from the pilot’s return to work or the end of any follow-up testing program (whichever is later), provided the pilot does not test at or above .02 for alcohol on a confirmed EBT, or positive for drugs, during that period.

11. In the event the Company purchases alcohol testing equipment on the conforming

products list, calibration, maintenance and repair records of that equipment and records of testing of people done on that equipment will be retained by the Company as required by the regulations or for five (5) years (whichever is longer) and will be available for inspection by the Association or any pilot subject to testing, upon reasonable notice to the Company and to the extent permitted by law. In the event that the Company utilizes the results of alcohol tests on equipment that it does not own, the Company will make available to the Association the following records. All records to which it can obtain access and may legally release, provided the Association gives reasonable notice, and only under the following situations: (a) when the Association has cause to believe that the equipment being used is malfunctioning; and/or (b) following any positive test of a pilot. “Reasonable notice” under this provision will normally consist of two (2) business days. Under no circumstances may the Company take any action under Section 19 of the Agreement without first providing access to the following records, subject to the limitations above: (a) the affected pilot’s alcohol test results as well as (b) any and all records of testing of people done on that equipment and calibration, maintenance and repair records for that equipment over the thirty (30) days up to and including the day of the positive test as well as for any days since the positive test results. The Association recognizes that there may be a need for the Company to redact certain records in the interest of confidentiality.

12. At least thirty (30) days prior to making any changes to the AMP Program, the Company

will provide the Association with notice of intended change(s) and will meet and confer regarding the same.

13. The Association will withdraw grievance No. 95-09 MEC.

Letter 6-3

This Letter of Agreement shall become effective upon signing and shall run concurrent with the basic Agreement. Dated: June 17, 1995 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. J. Randolph Babbitt Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis Michael J. Minerva MEC Chairman Vice President - Human Resources Peter J. Dalton Negotiating Committee Member

Letter 7-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

ATTENDANCE POLICY THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS the Company and the Association have a mutual interest in reliable attendance and have agreed upon the following to settle Grievance No. PDT 94-73-MEC (Attendance Policy);

1. The Company agrees to withdraw the October 3, 1994 “Crewmember Attendance Policies and Procedures” as it applies to pilots and (a) will follow the provisions in the Piedmont-ALPA Agreement regarding Scheduling, Sick Leave and Physical Standards and (b) implement the provisions contained in the revised April 18, 1995 “Pilot Attendance Policy and Procedures” (See Attachment).

2. The Association agrees to withdraw Grievance No. PDT 94-73-MEC (Attendance Policy). 3. The Company agrees that it will provide the Association with 30 days notice concerning

changes, revisions, amendments or other modifications to the April 18, 1995 “Pilot Attendance Policy and Procedures” and that it will meet and confer with the Association over such changes, revisions, amendments or other modifications.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the basic Agreement. FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. J. Randolph Babbitt Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Chief Pilot

Letter 7-2

Raymond Sweeney MEC Vice Chairman Peter J. Dalton Negotiating Committee Member

Letter 7-3

Paragraph 2.2.0 Standards of Personal Conduct A. Attendance The following policy statement regarding attendance and tardiness is taken from the Employee

Handbook. “Tardiness and/or poor attendance will be considered as a valid reason for corrective disciplinary

actions, not to exclude separation of employment from the Company in accordance with established policy, where corrective efforts are ignored.”

Tardiness is clear cut: if you are not present and prepared to perform assigned duties as

scheduled, you are tardy. Poor attendance can be more subjective, but it is important to understand that a determination of

poor attendance is based on the amount of work missed, regardless of the reason, and that work missed due to illness is not exempt from a determination of poor attendance.

In summary, Piedmont sets a goal of perfect attendance, but recognizes that not every employee will meet that. However, there is a level of repeated absences that calls into question fitness for this type of employment. It is those who have reached a level of excessive absence that need corrective efforts so we can improve our overall reliability, which will improve our product.

2.3.0 Pilot Absence Procedures 2.3.1 Pilot Sick Leave Procedures

A pilot who is unable to work because of illness or injury must follow certain procedures to help the Company minimize the impact of his or her absence and to prevent disruption of service. In any situation where a pilot is required to contact Crew Scheduling, that contact must be made by the employee and may not be made by any other person acting on the employee's behalf, except in cases where the employee is physically incapable of using a telephone.

A. Sickness While at Domicile

1. If a pilot becomes ill or injured at domicile and cannot accept his/her next assignment, he/she must inform Crew Scheduling as soon as practicable.

2. Reserve pilots must advise Crew Scheduling as soon as practicable after they become ill

or injured rather than waiting until Crew Scheduling contacts them for assignment. 3. Pilots who report in sick and are hospitalized must advise Crew Scheduling as soon as

practicable. 4. Pilots must notify Crew Scheduling of their status prior to each subsequent schedule trip

or trip series when they are on sick leave. Calls should be made as soon as practicable and no later than 1700 if the pilot is able to return to a multi-day trip that has been assigned to another pilot.

B. Sickness While On Duty

A pilot who becomes ill while on duty and is unable to continue working for that reason shall notify Crew Scheduling as soon as practicable.

C. Verification of Illness

Letter 7-4

Pursuant to Article 14.E of the Pilot Agreement, the Company may require a pilot to provide a doctor’s certificate for any illness or injury that results in a sick call. The medical verification certificate must provide the following information:

1. Date treated and illness or injury; 2. Diagnosis during the time of the illness or injury; 3. Specific information regarding the pilot's ability to work and any restrictions

imposed on activities; and 4. Expected date of return to work.

D. Abuse of Sick Leave

Abuse of sick leave or failure to follow these procedures may result in disciplinary action, up to and including discharge. Certain patterns of sick calls are suggestive of abuse and may be subject to heightened scrutiny. Examples include:

1. A sick call made after attempting to drop a trip. 2. Sick calls that occur between lengthy periods of days off or in conjunction with vacation

days. 3. Sick calls that occur in conjunction with commuting problems. 4. Sick calls that occur after being assigned on a scheduled day off.

2.3.2 Absence for Other than Illness

Absences for other than illness (bereavement, jury duty, emergencies, etc.) must be discussed as soon as practicable with a Chief Pilot.

Letter 8-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

CANCELLATION VS. EXTENSION THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Company and the Association agree that it is desirable to clarify the parties’ understanding of the current pilot Agreement with regard to what constitutes an extension and how extensions are to be paid; NOW THEREFORE, IT IS AGREED THAT:

1. In Grievance No. PDT 95-31-LYH (Sutton), the Association grieved the Company’s failure to pay Captain Sutton for an extension on April 25, 1995. Captain Sutton was scheduled to fly DCA-LYH as the last leg of his trip. He was reassigned to fly DCA-RDU-LYH, which caused him to return to his domicile approximately one hour after his originally scheduled report out time. The Company responded “As we discussed, Captain Sutton was paid in accordance with the cancellation provision of the contract (flight 3433 DCA-LYH was canceled). Germane documentation is attached. Accordingly, the grievance is denied.”

2. In Grievance No. PDT 96-43-JAX (Freeman), the Association grieved the Company’s

failure to pay First Officer Freeman for an extension on February 27, 1996. First Officer Freeman was scheduled to fly MCO-JAX as the last leg of his trip. He was reassigned to fly MCO-GNV-JAX, which caused him to return to his domicile after his originally scheduled report out time. First Officer Freeman wrote on his Flight Crew Pay Credit Adjustment Sheet: “On Feb 27 I was rescheduled on the last day of my trip to flag stop Gainesville en route to JAX. This caused me to arrive after my scheduled report out time. Request extension pay in accordance with paragraph 3.F.5. of the contract.” The Payroll Department responded “Your original leg CNXED & you were rescheduled. CNX vs. Actually done applies and Actually done was greater.”

3. In Grievance No. PDT 96-45-SBY (Genero), the Association grieved the Company’s

failure to pay Captain Genero for an extension on April 20, 1996. Captain Genero was scheduled to fly BWI-SBY as the last leg of his trip. He was reassigned to fly BWI-DCA-SBY, which caused him to return to his domicile approximately thirty-five minutes after his originally scheduled report out time. The Payroll Department refused to pay extension pay as requested by Captain Genero, stating: “Your last leg canceled. Cancellation provision of the contract applies.”

4. The following grievances present the same issue as that raised by PDT 95-31-LYH

(Sutton), PDT 96-43-JAX (Freeman), and/or 96-46-SBY (Genero): 95-57-LYH (Group), 95-68-LYH (Reed), 95-77-ORF (Group), 96-04-ORF (Lynch), 96-42-ORF (Lothrop) and 96-43-JAX (Freeman).

Letter 8-2

5. The Company agrees that, from this day forward, it will not claim that cancellation pay is sufficient to compensate pilots in situations similar to the ones described and listed above and that it will pay extension pay to pilots in situations similar to the ones described and listed above.

6. The Company shall, within 30 days of the execution of this Agreement, pay the following

pilots the difference between what they were paid and 2.5 or 5.0 hours of pay (as appropriate under Section 3.F.5.c.) at the pilot’s then current rate and credit the following pilots with an instance towards the junior manning cap (if appropriate under Section 3.F.5.b.), for the days listed:

• Captain John Sutton, April 25, 1995 (95-31-LYH) • Captain Mark Fiedler, May 24, 1995 (95-57-LYH) • First Officer William Towne, May 24, 1995 (95-57-LYH) • Captain Gregory Reed, August 11, 1995 (95-68-LYH) • Captain Gregory Reed, August 23, 1995 (95-68-LYH) • Captain Robert Wyman, October 16, 1995 (95-77-ORF) • First Officer Nicholas Pierce, October 16, 1995 (95-77-ORF) • Captain Brian Lynch, September 22, 1995 (96-04-ORF) • Captain Peter Lothrop, April 23, 1996 (96-42-ORF) • First Officer David Freeman, February 27, 1996 (96-43-JAX) • Captain Peter Genero, April 20, 1996 (96-45-SBY)

7. Upon proper credit and payment of the pilots listed in paragraph 6, above, PDT 95-31-

LYH (Sutton), 95-57-LYH (Group), 95-68-LYH (Reed), 95-77-ORF (Group), 96-04-ORF (Lynch), 96-42-ORF (Lothrop), 96-43-JAX (Freeman) and 96-45-SBY (Genero), will be deemed to have been satisfactorily resolved.

8. The System Board shall hear the following cases at the System Board session scheduled

for September 18 and 19, 1996: 95-38-ORF (Group), 95-39-ORF (Group) and 95-58-ORF (Peeples).

This Letter of Agreement shall be effective upon signing and shall remain in effect and run concurrent with the basic Agreement. Dated: September 18, 1996 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. J. Randolph Babbitt Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis MEC Chairman

Letter 9-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

LATEST AVAILABLE DEADHEAD THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”).

1. The parties reaffirm their recognition of the importance to the Piedmont pilots of the need to spend the least amount of time away from home; and, accordingly, recognize the pilots’ legitimate desire to be scheduled on the latest available deadhead flight prior to commencing flight duty. The parties also recognize the Company’s legitimate desire to obtain on-time departures.

2. The Company reaffirms its obligation to schedule pilots on the last available deadhead

prior to commencing flight duty in accordance with Section 8.B.3. of the Agreement and in a manner consistent with its past practice as reflected in crew cards. The Company agrees that it will not arbitrarily refuse to schedule a pilot on the latest available deadhead.

3. Whenever a pilot believes that the Company has improperly refused to allow the pilot to

deadhead on the latest available deadhead flight prior to commencing flight duty, the Company shall, upon request by either the pilot or the Association, provide the pilot and the Association with a written explanation for the denial which specifically identifies the relevant factors providing the basis for the denial. A pilot or the Association must submit any such request for an explanation within five (5) days after the desired deadhead flight was to take place. The Company shall provide its explanation within five (5) days of receipt of the request.

4. This Letter of Agreement is intended to clarify, not change, the scope or nature of the

parties’ rights under Section 8.B.3. Therefore, neither party is waiving any rights it has under the current collective bargaining agreement prior to the execution of this Letter of Agreement.

5. Based on the foregoing, the Association agrees to withdraw with prejudice grievance nos.

95-11 and 96-02. The parties agree that the withdrawal of these grievances is for the purpose of settlement and is no reflection of the merits of the claims.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the Basic Agreement. Dated: November 8, 1996

Letter 9-2

FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Bob H. Pantazis Michael J. Minerva MEC Chairman Vice President - Flight Operations

Letter 10-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

SICK FOR JUNIOR MAN THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Association and the Company have entered into a collective bargaining agreement effective April 1, 1994 (hereinafter referred to as “the Contract”); and, WHEREAS, Section 25 I.1.d. and e. of the Contract set forth the manner in which pilots may be involuntarily assigned to duty on scheduled days off (“junior manned”); and, WHEREAS, the Contract does not set forth specific terms which govern pilots who are unable to report after being junior manned due to illness or injury; and, WHEREAS, the Association has filed a grievance (96-30-ORF) alleging a violation of the contract in connection with pilots who were unable to report after being junior manned due to illness or injury; and, WHEREAS, the parties have met to discuss their concerns and interests in connection with pilots who were unable to report after being junior manned due to illness or injury; and, WHEREAS, the parties have reached an agreement concerning the treatment of such pilots prospectively; and, WHEREAS, the parties are desirous of committing that agreement to writing: NOW, THEREFORE, it is mutually agreed as follows:

1. If a pilot is involuntarily assigned duty on a scheduled day off pursuant to Section 25 I.1.d. and e. of the Contract, and the pilot is, or becomes, unable to report for such duty because of illness or injury within the meaning of Section 14 of the Contract, then the Chief Pilot or Coordinator may elect to require the pilot to furnish the Company with a doctor’s certificate describing the illness or injury.

2. If the Chief Pilot or Coordinator elects to require the pilot to furnish the Company with a

doctor’s certificate, then the pilot shall be on Sick Leave and shall receive pay treatment in accordance with Section 14.B. of the Contract.

3. If the Chief Pilot or Coordinator elects to require the pilot to furnish the Company with a

doctor’s certificate, then the cost of the examination will be paid by the Company in accordance with Section 14.E. of the Contract.

Letter 10-2

4. If the Chief Pilot or Coordinator does not elect to require the pilot to furnish the Company with a doctor’s certificate, then the pilot shall not be on Sick Leave and shall not receive pay treatment in accordance with Section 14.B. of the Contract. There shall be no deduction from such pilot’s sick leave credit under this circumstance.

5. The Association will withdraw Grievance 96-30-ORF.

This Letter of Agreement shall become effective retroactive to December 13, 1996, upon ratification by the Piedmont Pilots Master Executive Council and approval of the President of the Association, and shall remain in full force and effect concurrently with the Contract. FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. J. Randolph Babbitt Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis MEC Chairman

Letter 11-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

ADDITIONAL FURLOUGH PROTECTION THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). NOW, THEREFORE, IT IS AGREED THAT:

1. In the event that the ALPA-USAirways collective bargaining agreement is amended on or before May 1, 2001 (including the amendment pending ratification as of this date, March 15, 2000), to permit USAirways commuter carriers to operate a higher number of jet aircraft than is allowed as of [date of signing of this Agreement], no pilot on the Piedmont Airlines Pilots Seniority List as of the effective date of the amendment shall be furloughed, except as may be provided otherwise in Section 1.C.2., of the Agreement.

2. In the event of an amendment to the ALPA-USAirways agreement as described in

paragraph 1, above, on or before November 1, 2000 to permit USAirways commuter carriers to operate two hundred (200) or more jet aircraft, then no pilot on the Piedmont Airlines Pilots Seniority List as of the effective date of the amendment shall be furloughed, except as may be provided otherwise in Section 1.C.2. of the Agreement. If, on the effective date of the amendment, the number of pilots on the Piedmont Airlines Pilots Seniority List is lower than the number on the list on the date of signing of this Agreement, then (a) the Company will hire a minimum of ten (10) pilots per month until the number of pilots on the seniority list is equal to the number on the list as of the date of signing, and (b) when that number is reached, no pilot then on the list shall be furloughed except as may be provided otherwise in Section 1.C.2. of the Agreement.

3. In the event a “flow through” agreement, which has been agreed to by ALPA and the

Piedmont Airlines MEC, is executed, whereby pilots on the Piedmont Airlines Pilots Seniority List will be entitled to employment at USAirways under such terms and conditions as may be specified in such agreement, then upon the effective date of such agreement the obligations of paragraphs 2(a) and (b) above shall become null and void.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the Basic Agreement. Dated: May 16, 2000

Letter 11-2

FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis John R. Buchanan MEC Chairman Director of Flying Peter Genero, Jr. Negotiating Committee Chairman Rudolph J. Schroeder, III Negotiating Committee Member David H. Freeman Negotiating Committee Member

Letter 12-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

MANAGEMENT RIGHTS/ALPA LEAVE RESOLUTION THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). This shall confirm our agreement regarding the disputes pending before the Federal District Court and the National Mediation Board regarding the recent negotiations and the contents of the new collective bargaining agreement. It is agreed by both parties that:

1. The contract document published by the Association (hereto Attachment A) and any Letters of Agreement subsequently executed, including this Letter of Agreement constitute the PDT/ALPA Pilot Contract. The Company does not relinquish any of its rights to manage the Company by publication of this contract without the management rights clause; nor does ALPA, by entering into this Letter of Agreement, relinquish any of its rights regarding the exercise of, or restriction upon, the Company’s rights to manage the Company.

2. The Company withdraws and rescinds its letter of July 1, 1994. 3. The Association agrees to withdraw its Civil Action in No. 94-1051A in the U.S. District

Court for the Eastern District of Virginia, Alexandria Division, with prejudice within thirty (30) days following the full execution of this Letter of Agreement.

4. This Letter of Agreement shall be provided to the National Mediation Board hearing

officer conducting the hearing in Interpretation No. 146, Case No. A-12575 within thirty (30) days of the full execution of this Letter of Agreement and such case shall be withdrawn upon that basis.

5. A Piedmont pilot holding the position of National Officer (including Executive Vice

President) and/or MEC Chairman, he (or his designee) shall be granted Association Leave and paid in accordance with Section 26.O.3, for the National ALPA activities: Executive Council meetings, Executive Board meetings and Board of Director’s meetings. This leave will apply to only one pilot. The Company shall be provided, on an annual basis, with the dates of the scheduled activities to the maximum extent possible. In addition, attached are the dates currently scheduled for 1995 and 1996. The Company will be advised of any changes in the dates as soon as they are known.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the collective bargaining agreement (i.e. the PDT/ALPA Pilot Contract).

Letter 12-2

Dated: FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. J. Randolph Babbitt Stephen R. Farrow President Vice President - Flight Operations Bob H. Pantazis Michael J. Minerva, Jr. MEC Chairman Vice President - Human Resources Raymond Sweeney MEC Vice Chairman

Letter 13-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

PERSONAL LEAVE OF ABSENCE THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS the parties agree that the meaning of Section 13.D. of the Agreement, the personal leave of absence section, should be confirmed; and WHEREAS the parties agree that Captain Ronald Houff’s personal leave of absence should be dealt with as a one-time exception to the Agreement; NOW IT IS THEREFORE AGREED that:

1. The parties confirm that Section 13.D.1. of the Agreement means the following. A pilot may be granted a personal leave of absence without pay for up to 90 days, including any extensions. Therefore, unless agreed to by the MEC and the Company:

a. A leave of absence originally scheduled for fewer than 90 days may be extended

to total up to 90 days, but no more. b. A leave of absence originally scheduled for 90 days may not be extended beyond

90 days. c. A pilot may not be granted consecutive personal leaves of absence or personal

leaves of absence in close proximity to one another. 2. Captain Houff’s personal leave of absence was a one-time exception to Section 13.D.1.

Captain Houff’s leave terminated on January 23, 2001. 3. As a result of Captain Houff’s personal leave of absence, his seniority will fall seven

spaces, to between Captains Schonk and Martell, and his longevity will be adjusted to reflect 117 fewer days of Company service for longevity purposes.

4. To ameliorate the effects of Captain Houff’s personal leave of absence, there were two

additional upgrades to Captain scheduled with the March 2001 upgrade class; i.e., a total of 12 Captain upgrades, in order to prevent a decline to other pilots’ quality of life as a result of this one-time exception to Section 13.D.

In witness whereof the parties have signed this agreement on the 16th day of April, 2001.

Letter 13-2

FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Peter J. Dalton MEC Chairman FOR THE PILOT: Ronald L. Houff Captain

Letter 14-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

VOLUNTARY DEFINED FURLOUGH PROGRAM THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Company has notified the Association that due to the economic distress experienced by the Company in the aftermath of the terrorist hijacking on September 11, 2001, the Company has instituted immediate reductions in capacity; and WHEREAS, the Company and Association agreed to seek volunteers to participate in a Defined Furlough Program to mitigate the negative effect that immediate furlough would have on pilots; and WHEREAS, both the Company and the Association wish to reduce the level of involuntary furloughs through this program; and WHEREAS, the Company and the Association wish to offer a program to allow more senior pilots to be furloughed for a defined period in place of more junior pilots who would otherwise be properly furloughed under the terms of the pilot Agreement; NOW THEREFORE IT IS AGREED THAT:

1. This Voluntary Defined Furlough Program is being offered for the first time and nothing in this Letter of Agreement requires that this Program be invoked in any other circumstances.

2. This Voluntary Defined Furlough Program is in addition to all the provisions in the pilot

Agreement. It is understood that pilots who could not be subject to involuntary furlough may participate in this Program.

3. Pilots will have until close of business on October 1, 2001 to contact George Powell by

telephone at (410) 341-3007 and ask to be included in this Voluntary Defined Furlough Program. Pilots should follow-up the oral contact with written confirmation of their interest in being included in the Program by fax to Mr. Powell no later than close of business on October 1, 2001. In the event that more pilots volunteer than the Company chooses to furlough, pilots will be “awarded” voluntary furlough under this Program in seniority order. Pilots will be notified by October 5, 2001, by personal telephone contact and by October 10, 2001 by certified mail, return receipt requested, of their inclusion in this Program, the effective date of furlough, and the specific return to work day.

4. Pilots on voluntary furlough under this Program will continue to accrue longevity and

seniority for pay purposes.

Letter 14-2

5. Pilots who request and are awarded voluntary furlough under this Program will be paid as soon as possible, but no later than the November 30, 2001 paycheck, for any accrued and unused vacation time at the greater of 4.0 per day or the awarded vacation calculation (if already awarded an October vacation).

6. Travel benefits for the pilot on voluntary furlough and his family will continue for ninety

(90) days after the effective date of furlough. Companion travel will cease on the effective date of furlough.

7. All benefits provided in Section 27 of the pilot Agreement will continue for pilots who go

on voluntary furlough under this Program through the end of the month of furlough which contains the effective date of their furlough. For example, for a pilot with an effective date of furlough of October 7, 2001, all benefits will continue until November 6, 2001.

8. Pilots who go on voluntary furlough under this Program will not be responsible for any

additional premium fees for the first thirty (30) days after the effective date of furlough. 9. Pilots who go on voluntary furlough under this Program may continue to participate in the

group health benefits plan by paying the COBRA rate applicable to their plan thereafter. 10. Pilots who go on voluntary furlough under this Program will be awarded a specific return

to work date, and will be expected to return to work on that date unless their seniority would subject them to involuntary furlough at that time.

11. Pilots who go on voluntary furlough under this Program may extend the voluntary

furlough once for a period of three (3) or six (6) months. 12. a. Pilots who go on voluntary furlough under this Program may be recalled earlier

than the specific return date specified in Paragraph 10, above, (or as extended by the pilot in Paragraph 11, above) in accordance with Section 23.B.2. of the Pilot Agreement and the following.

b. The Company may not recall pilots on voluntary furlough under this Program

before it recalls pilots who are on involuntary furlough except voluntary furloughees who are line qualified may be recalled prior to the recall of involuntary furloughees who were not qualified line pilots at the time of furlough. In this case, the Company will use the voluntary furloughee to fly until the involuntary furloughee is retrained. The Company will make best efforts to expedite the process of retraining the involuntary furloughee.

13. Voluntary furloughees will return to service under the provisions of Section 13.C.4. 14. The Company will not object to applications for unemployment insurance by pilots

because they are participants in the voluntary furlough under this Program. It is understood that the pilots who volunteer under this Program are simply replacing a certain number of pilots who would otherwise be furloughed by the Company, and that, therefore, the pilots who choose furlough under this Program are to be treated the same as pilots who are involuntarily furloughed for unemployment insurance purposes.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the basic Agreement. Dated: October 11, 2001

Letter 14-3

FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Peter J. Dalton MEC Chairman

Letter 15-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

PILOT PAY PROCEDURES THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, over the past year, the Company failed to pay several pilots within five business days from the point when it was determined that a reduction in their pay occurred as a result of Company error which did not require interpretation of the Pilot Agreement, as required pursuant to Section 8.A.6.b. of the Agreement; and WHEREAS, the Company recognizes that it must improve its procedures in order to ensure that it will pay pilots as required by Section 8.A.6.b. of the Agreement in the future; NOW THEREFORE, the Company and the Association hereby agree as follows:

1. The Company violated Section 3 (Compensation), including but not limited to Section 3.M., and related provisions of the Agreement, by failing to pay pilots within five (5) business days from the point that an error has occurred in which a pilot’s pay has been reduced as a result of Company error which does not require interpretation of the contract. For example:

• such a pay error occurred on January 30, 2001 and was reported to the Company by

Captain Peter Dalton on February 2, 2001 (see 2001-19) • such an error occurred on or about January 30, 2001 and was reported to the

Company by Captain Donald Eck on or about February 7, 2001 (see 2001-19) • such an error occurred on or about January 15, 2001 and was reported to the

Company by Captain Sherri Pippin on or about January 16, 2001 (see 2001-19) • such a pay error occurred on or about January 30, 2001 and was reported to the

Company by First Officer Jason Tobin on or about February 2, 2001 (see 2001-19) • such a pay error occurred on or about March 30, 2001 and was reported to the

Company by First Officer Jason Tobin on or about April 5, 2001 (see 2001-19) • such a pay error occurred on or about May 30, 2001 and was reported to the

Company by Captain Donald Eck on or about June 4, 2001 (see 2001-36) • such an error occurred on or about June 29, 2001 and was reported to the Company

by Captain Donald Eck on or about July 10, 2001 (see 2001-36) • such an error occurred on or about September 30, 2001 and was reported to the

Company by First Officer James Ford on or about October 1, 2001 (see 2001-36

additional violation) • such an error occurred on or about November 30, 2001 and was reported to the

Company by Captain Peter Genero on or about January 4, 2002

Letter 15-2

• such an error occurred on or about November 1, 2001 and was reported to the Company by First Officer Jennifer Olson on or about January 2, 2002

• such an error occurred on or about January 30, 2002 and was reported to the Company by First Officer Jennifer Olson on or about February 4, 2002

• such an error occurred on or about February 28, 2002 and was reported to the Company by First Officer Jason Tomlinson on or about March 4, 2002.

and none of these pilots was paid within five (5) business days in any of these instances.

2. The Company will pay as it is obligated under Section 3.M. of the Pilot Agreement, i.e., it

will pay pilots within five (5) business days from the point that an error has occurred in which a pilot’s pay has been reduced as a result of Company error which does not require interpretation of the Pilot Agreement.

3. Except for First Officer Tomlinson, it is believed that the Company has now paid the pilots

listed in Paragraph 1, above, the amount(s) by which their paycheck(s) had been reduced as a result of a Company error which did not require interpretation of the Agreement. It is agreed that Captain Tomlinson will be paid the 22.4 hours he is owed no later than March __, 2002 and, if in any of the other instances listed in Paragraph 1 such pay has in fact not been received, the Company will provide immediate payment upon notification.

4. [Description of changes the Company is making to improve payment. K. Collins to draft.] 5. The Company will grant a remedy to the harmed pilots listed in Paragraph 1, above, on a

non-precidential basis. Such remedy will consist of an hour of pay at the pilot’s current rate of pay paid for each instance of violation, to be paid by separate check (or if the pilot prefers, by direct deposit) within five (5) business days of the signing of this LOA. Such payment will be accompanied by a note stating this Letter of Agreement as the source of the payment.

6. Based on the foregoing, the Association agrees that the following are resolved: ALPA

Case Nos. PDT 2001-19-MEC (Group), PDT 2001-23-MEC (Group) and 2001-36-MEC (Group), as well as the additional instances involving First Officer James Ford on or about September 30, 2001, Captain Peter Genero on or about November 30, 2001, First Officer Jennifer Olson on or about November 1, 2001, and First Officer Jennifer Olson on or about January 30, 2002.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the Basic Agreement. Signed this __th day of March, 2002 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Donald B. Eck, Jr. Kristen Collins MEC Grievance Chairman Vice President - Human Resources & Labor Relations

Letter 16-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

PIEDMONT SMALL JET RESTRUCTURING AGREEMENT THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. d/b/a USAirways Express (hereinafter referred to as the “Company”) and the airline pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). A. 1. The provisions of this Letter of Agreement are predicated on meaningful participation in

the restructuring program by other labor groups and management and salaried personnel at Piedmont.

2. The purpose of this Letter of Agreement is to accommodate the restructuring of

USAirways/Piedmont and to aid in securing approval of USAirway’s/Piedmont’s loan guarantee application to the ATSB. The Company agrees to continuously provide updated, current information regarding the status of said loan application to the Piedmont MEC Chairman or his designee.

B. Relief Provided

1. Section 27.B. of the basic pilot Agreement shall be modified to provide that pilots shall pay for the individual portion of their Health Insurance coverage at the rate of $20 per month for the PPO and $25 per month for the indemnity plan. These rates apply whether pilots elect individual or family coverage.

2. An additional 5 years and 1 day duration on the current basic Piedmont Pilot Agreement,

i.e., the basic Piedmont Pilot Agreement amendable date changes from May 16, 2004 to May 17, 2009 (with Section 6 Notice 60 to 180 days prior). The parties will re-open a limited number of quality of life issues (of insignificant economic impact) in May 2005. The parties may each submit a maximum of 5 issues for resolution in binding interest arbitration if they are unable to resolve such issues in negotiations. Within 120 days after execution of this Letter of Agreement, the parties shall meet and confer to develop the specific terms for such interest arbitration. If the parties are unable to reach agreement within 120 days on specific terms for such interest arbitration, the provisions of the basic pilot Agreement (including, but not limited to Section 21) shall be applied to such interest arbitration, except that the second sentence of Section 21.E. shall not apply in such interest arbitration.

3. All current Dash 8 Captain rates (rates as of May 16, 2002) will be reduced 8%. Current

Dash 8 First Officer rates (rates as of May 16, 2002) will be reduced 7% and the first year First Officer rate will be reduced an additional $1.00 per hour. All Captain and First Officer rates will be subject to a 2% annual increases on May 16 in 2003 and 2004 and a 3% increase on May 16 in each of the following years: 2005, 2006, 2007, 2008 and 2009. Rate charts are attached as Appendix A to this Letter of Agreement.

Letter 16-2

4. Current Per Diem shall be reduced from $1.45 to $1.35 per hour until May 16, 2003, when it shall increase $ .05 (to $1.40), with additional $ .05 increases on May 16, 2005, 2007 and 2009.

5. Taxi/Tow pay, as described in Section 3.F. of the basic pilot Agreement, shall be reduced

to .0 then back to .3 on May 16, 2009.

6. Pilots hired at Piedmont after the effective date of a final Agreement on this Restructuring/Small Jet Agreement will not be eligible for Piedmont’s Defined Benefit Plan.

7. Except as provided in paragraph C. of this Letter of Agreement, Paragraph 1.C.1. of the

basic Piedmont Pilot Agreement shall be deleted. C. In the event of a successorship transaction of any kind or description, including, but not limited to

a merger (except a merger with another wholly owned subsidiary of USAirways Group, Inc.), assignment, purchase, transfer or change of control of the Company, in which the Successor is an air carrier, or any person or entity that controls or is under the control of an air carrier (1) the hourly rates of pay for Dash 8 turboprops will be the greater of the then existing rates of pay established pursuant to paragraph B.3. of this Letter of Agreement or the rates set out in Section 3.A. and B. of the Basic Agreement dated May 16, 2000, and (2) on the date of the announcement of any such transaction, the provisions of Section 1.C.1. of the basic pilot Agreement shall again become operable for any pilot then on the Piedmont Pilots Seniority List who is not on furlough status as of that date.

D. 1. Pursuant to the “small jet agreement” (Attachment B to the mainline Restructuring

Agreement ratified 8/8/02), for the regional jet aircraft that are financed by USAirways, a number consistent with that agreement will go to the wholly-owned subsidiaries of USAirways Group, Inc. who participate in restructuring, including the “Jets for Jobs” program.

2. The parties hereby accept and agree to the terms for operation of small jet aircraft as

specified in Attachment B to the mainline Restructuring Agreement ratified 8/8/02. No more than fifty percent (50%) of “new vacancies” and 100% of “backfill vacancies”, as those terms are defined in Attachment B-3 to the mainline Restructuring Agreement ratified 8/8/02, at Piedmont Airlines will be offered to US Airways Affected Pilots and/or U Pilots. The pilot positions in jet aircraft not required by the terms of Attachment B to the mainline Restructuring Agreement ratified 8/8/02 to be staffed with USAirways Affected Pilots and/or U Pilots will be staffed by pilots from the Piedmont Pilots System Seniority List, excluding former USAirways Affected Pilots and/or U Pilots.

3. Upon pilot ratification of this Letter of Agreement and signature by ALPA’s President,

Piedmont Airlines, Inc. would become a wholly-owned subsidiary of USAirways Group, Inc. that is participating in restructuring, including the Jets for Jobs program, i.e., Piedmont would become a Participating Wholly-Owned Carrier for purposes of Attachment B of the mainline Restructuring Agreement ratified 8/8/02, entitling Piedmont pilots to all the benefits of that document, including, but not limited to, job opportunities at Mid-Atlantic Airlines and flow through to USAirways. Piedmont commits to use its maximum efforts to secure regional jet aircraft for operation by the Piedmont pilots as contemplated by such Agreement.

E. The relief granted in paragraph B. of this Letter of Agreement, and any Agreement resulting from

them, are considered all the concessions by Piedmont pilots required to accommodate any ATSB loan guarantee applied for by the Company or USAirways Group, Inc.

Letter 16-3

F. The relief granted in paragraph B. of this Letter of Agreement, and any Agreement resulting from them, are considered all the concessions that will be requested or required of Piedmont pilots in any restructuring, reorganization or bankruptcy of any kind applied for or declared by the Company and/or USAirways in 2002. As there is a bankruptcy filing pending during the time of pilot ratification, this Letter of Agreement will be treated by the parties and protected in the same manner as USAirways Group, Inc., USAirways, Inc. and ALPA agreed in Attachment N to the mainline Restructuring Agreement, and the current basic Piedmont Pilot Agreement will be protected in the same manner as those parties have agreed in the July 12, 2002 Letter re: “Tentative Agreement Concerning Restructuring Program” (the interim bankruptcy protection letter) at Mainline as follows:

1. The Company will not file or support any motion pursuant to 11 U.S.C. Sections 1113,

1113(e), 1114, 1114(h) or any other provision of the Bankruptcy Code, seeking rejection or modification of, or relief or interim relief from, the basic pilot Agreement or this Restructuring Agreement.

2. The Company will actively oppose any such Motion if filed by another party.

3. If this Restructuring Agreement is not completely and unconditionally effective, and the

May 16, 2000, basic Piedmont Pilot Agreement therefore remains effective without the modifications contained herein, the above two paragraphs are inapplicable and have no force or effect, and the Company may make or refrain from opposing any such Motion with regard to the basic Piedmont Pilot Agreement.

G. Piedmont pilots will be eligible for participation in profit sharing through December 31, 2008, on a

basis proportional to the first-year dollar value of all the relief granted in paragraph B, above, divided by the average annual dollar value from July 1, 2002 through December 31, 2008, of the concessions from all USAirways Group employees.

H. This Letter of Agreement must be ratified by the Piedmont pilots and executed by the Association

to be final and binding. I. The ratification process for this Letter of Agreement shall be conducted in a manner to assure

that the result will be determined no later than October __, 2002. J. ERJ-145/CRJ-50 Rates and New Hire Training

1. Embraer Regional Jet (ERJ-145) and/or the Canadair Regional Jet (CRJ-50) rates shall be as follows: Year Captain First Officer 1 48.00 20.00 2 52.00 24.45 3 53.50 26.19 4 55.13 30.43 5 56.81 31.37 6 58.48 32.58 7 59.91 8 61.64 9 63.65 10 65.48 11 67.37 12 69.31 13 71.85 14 73.33 15 75.64

Letter 16-4

16 76.06 17 76.82 18 77.59

The above rates shall increase 3% annually on May 16 of each year. Rate charts attached as Appendix B to this Letter of Agreement.

2. New Hires, including USAirways Affected Pilots or U pilots, accepting employment at

Piedmont, will train at the first year F/O rate applicable to the equipment for which such pilot is training.

K. 37-44 Seat Small Jet Rates

Rate charts attached as Appendix C to this Letter of Agreement. L. Repayment of Monies Owed Due to Retroactive Application

Any amounts due to the Company as a consequence of the retroactive application of the provisions of this Letter of Agreement to September 1, 2002 will be paid back through payroll deduction in twelve (12) equal installments over the twelve (12) months following signing of this Letter of Agreement. Any amount due and owing when a pilot leaves the service of the Company will be deducted from his final paycheck.

M. The Company agrees to implement the Commuter Policy contained in Appendix D of this Letter of

Agreement. N. This Letter of Agreement constitutes an amendment to a pre-bankruptcy collective bargaining

agreement and does not alter the existing priority of payments in bankruptcy. O. Other than as provided in this Letter of Agreement, no change to any other provision of the basic

pilot Agreement and no change to any other compensation, benefits or work rules. P. Duration

Upon signing, this Letter of Agreement shall be effective as of September 1, 2002 and shall run concurrent with the basic Piedmont Pilot Agreement as amended and extended hereby.

Dated this 30th day of October, 2002 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Olav C. Holm MEC Chairman

Letter 16-5

Peter Genero, Jr. Chairman, Negotiating Committee

APPENDIX A

Letter 16-6

CAPTAIN DASH 8-100/200 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 44.16 45.49 46.85 48.26 2 45.45 48.82 48.22 49.67 3 47.33 48.75 50.21 51.72 4 48.86 50.33 51.84 53.39 5 50.12 51.63 53.18 54.77 6 51.40 52.94 54.53 56.17 7 52.67 54.25 55.88 57.66 8 53.93 55.55 57.22 58.93 9 54.96 56.61 58.30 60.05 10 56.06 57.75 59.48 61.26 11 57.73 59.46 61.24 63.08 12 58.84 60.60 62.42 64.29 13 59.68 61.47 63.31 65.21 14 60.27 62.08 63.94 65.86 15 61.40 63.25 65.14 67.10 16 61.88 63.74 65.65 67.62 17 62.42 64.29 66.22 68.21 18 63.53 65.43 67.40 69.42 19 64.63 66.57 68.57 70.63 20 65.50 67.46 69.49 71.57 21 65.78 67.75 69.79 71.88 22 66.05 68.03 70.07 72.17 23 66.34 68.33 70.38 72.49 24 66.60 68.60 70.66 72.78 25 67.16 69.18 71.25 73.39

FIRST OFFICER DASH 8-100/200 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 24.84 25.58 26.35 27.14 2 28.59 29.45 30.34 31.25 3 29.78 30.67 31.59 32.54 4 30.95 31.88 32.83 33.82 5 32.12 33.08 34.07 35.10 6 32.68 33.66 34.67 35.71 7 33.25 34.25 35.27 36.33 8 33.54 34.55 35.58 36.65 9 33.81 34.82 35.87 36.94 10 34.10 35.12 36.18 37.26

APPENDIX A

Letter 16-7

CAPTAIN DASH 8-300 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 48.26 49.71 51.20 52.74 2 50.59 52.11 53.67 55.28 3 52.56 54.14 55.76 57.43 4 53.83 55.44 57.11 58.82 5 54.91 56.55 58.25 60.00 6 56.31 58.00 59.74 61.53 7 57.70 59.43 61.21 63.05 8 58.90 60.66 62.48 64.36 9 59.98 61.78 63.64 65.55 10 61.11 62.94 64.83 66.78 11 63.81 65.73 67.70 69.73 12 65.83 67.81 69.84 71.94 13 67.95 69.99 72.09 74.26 14 69.02 71.09 73.22 75.42 15 70.39 72.50 74.68 76.92 16 70.77 72.89 75.08 77.33 17 71.29 73.42 75.63 77.90 18 72.47 74.65 76.89 79.19 19 73.67 75.88 78.16 80.50 20 74.59 76.82 79.13 81.50 21 74.84 77.08 79.40 81.78 22 75.07 77.33 79.64 82.03 23 75.33 77.59 79.91 82.31 24 75.57 77.84 80.17 82.58 25 76.08 78.36 80.71 83.13

FIRST OFFICER DASH 8-300 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 24.84 25.58 26.35 27.14 2 28.59 29.45 30.34 31.25 3 29.78 30.67 31.59 32.54 4 30.95 31.88 32.83 33.82 5 32.12 33.08 34.07 35.10 6 32.68 33.66 34.67 35.71 7 33.25 34.25 35.27 36.33 8 33.54 34.55 35.58 36.65 9 33.81 34.82 35.87 36.94 10 34.10 35.12 36.18 37.26

APPENDIX B

Letter 16-8

CAPTAIN ERJ-145/CRJ-50 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 54.02 55.65 57.31 59.03 2 58.53 60.28 62.09 63.95 3 60.21 62.02 63.88 65.80 4 62.05 63.91 65.83 67.80 5 63.94 65.86 67.83 69.87 6 65.82 67.79 69.83 71.92 7 67.43 69.45 71.54 73.68 8 69.38 71.46 73.60 75.81 9 71.64 73.79 76.00 78.28 10 73.70 75.91 78.19 80.53 11 75.83 78.10 80.44 82.86 12 78.01 80.35 82.76 85.24 13 80.87 83.29 85.79 88.37 14 82.53 85.01 87.56 90.19 15 85.13 87.69 90.32 93.03 16 85.61 88.17 90.82 93.54 17 86.46 89.06 91.73 94.48 18 87.33 89.95 92.65 95.43

FIRST OFFICER ERJ-145/CRJ-50 RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 22.51 23.19 23.88 24.60 2 27.29 28.11 28.96 29.82 3 29.48 30.36 31.27 32.21 4 34.25 35.28 36.34 37.43 5 35.31 36.37 37.46 38.58 6 36.67 37.77 38.90 40.07

APPENDIX C

Letter 16-9

CAPTAIN 37-44 SEAT SMALL JET RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 47.90 49.33 50.81 51.83 2 50.68 52.20 53.76 54.33 3 52.01 53.57 55.18 55.97 4 55.01 56.66 57.15 57.64 5 56.78 58.48 58.87 59.37 6 58.80 59.98 61.17 62.40 7 60.09 61.29 62.51 63.76 8 61.92 63.16 64.42 65.71 9 63.80 65.08 66.38 67.71 10 65.75 67.07 68.41 69.78 11 67.73 69.08 70.46 71.87 12 69.75 71.15 72.57 74.02 13 71.86 73.30 74.77 76.26 14 74.03 75.51 77.02 78.56 15 75.54 77.05 78.59 80.16 16 76.29 77.82 79.38 80.96 17 77.06 78.60 80.17 81.77 18 77.83 79.38 80.97 82.59

FIRST OFFICER 37-44 SEAT SMALL JET RATES

Year 05/16/06 05/16/07 05/16/08 05/16/09

1 22.51 23.19 23.88 24.60 2 27.29 28.11 28.96 29.82 3 29.48 30.36 31.27 32.21 4 34.25 35.28 36.34 37.43 5 35.31 36.37 37.46 38.58 6 36.67 37.77 38.90 40.07

APPENDIX D

Letter 16-10

COMMUTER POLICY

This policy will become effective on December 2, 2002 and will be reviewed six months thereafter. The policy may be changed at that point by mutual agreement between the Company and the Union. 1. This commuter policy applies only to travel on US Airways and US Airways Express flights. 2. Pilots are responsible for reporting to assignments in a timely manner. These provisions are not

intended to relieve Pilots of that responsibility. 3. A commuting Pilot must identify himself to the Company as a commuter and designate a city,

acceptable to the Company, as his origination airport on a form to be provided by the Company. As an alternative, any city within 100 sm of the designated city may be used in lieu of the origination city. A Pilot must submit an additional form for any requested changes in the origination airport.

4. Any Pilot commuting to an assignment under the terms of this policy must be listed in SABRE as

a non-revenue passenger on a primary and a back-up flight, both of which must have available seats. The Pilot must list at least two (2) on-line flights not more than forty-eight (48), but not less than twenty-four (24) hours, in advance of the scheduled departure time for the flight that he expects to use to commute to work.

5. Once a mutually agreeable procedure is established, pilots may elect to use jumpseat privileges

for primary and back-up flights on which they are listed and when doing so will be considered to have complied with the provisions of this section.

6. The primary flight on which the Pilot elects to list must be scheduled to arrive at the airport where

he is assigned to commence a trip in advance of the show time. There must be at least one (1) back-up flight scheduled to depart from the same airport later than the primary flight on which he is listed. This back-up flight shall also be scheduled to arrive prior to his show time.

7. Pilots commuting to an assignment must arrive at the designated gate for the primary flight on

which they are listed at least thirty (30) minutes prior to the scheduled departure time for that flight.

8. After arriving at the departure gate, if the Pilot becomes aware of a delay/cancellation or the

unavailability of a non-revenue passenger seat on his primary flight, he will immediately notify Crew Scheduling. The Pilot will provide the flight number and departure time of the back-up flight(s).

9. Following the delay or cancellation of the primary flight the Pilot will report to the departure gate of

his back-up flight as soon as practicable. 10. As soon as the Pilot becomes aware that he will not be able to report for duty at or before his

show time because of further flight delays or cancellations or non-revenue passenger seat availability he will immediately call Crew Scheduling.

11. The Pilot will make every effort to report to the location at which he was scheduled to begin his

trip as soon as possible following the flight cancellation. The Pilot and Crew Scheduling may mutually agree to an alternative location to which the Pilot will report.

12. Crew Scheduling may reassign a Pilot to other flight or reserve duty if it is available. 13. Pilots who are unavailable for duty under this policy will not be paid or credited for any flights

missed and the Pilot’s minimum monthly guarantee will be reduced by the amount of scheduled flight time for all flights missed.

APPENDIX D

Letter 16-11

14. If a Pilot complies with the requirements above, and through no fault of the Pilot, does not arrive in time for his trip the Company will take no disciplinary action against the Pilot provided the Company is notified immediately.

15. If the Company is unable to verify that the Pilot complied with these requirements, he will be

considered a “no-show” for his trip and may be subject to disciplinary action. 16. A Pilot may use the commuter policy protection no more than three (3) times in any consecutive

twelve (12) month period.

Letter 17-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

FUNDING OF THE SHORT TERM DISABILITY BANK THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Company has notified the Association, pursuant to Section 27.D.1.b.(5).h. of the pilot Agreement, that funding levels for the Short Term Disability Bank are inadequate; and WHEREAS, the Company and Association, pursuant to Section 27.D.1.b.(5).h. of the pilot Agreement, met and discussed revised funding levels; and WHEREAS, the Company has asked the Association, pursuant to Section 27.D.l.b.(5).h. of the pilot Agreement, to address the funding deficit in the Short Term Disability Bank beginning January 1, 2003; NOW THEREFORE IT IS AGREED THAT:

1. a. For four months only, beginning in the first full month after the complete execution of this Letter of Agreement (e.g., all signatures have been affixed to it), Section 27.D.2.(5).f. of the Agreement will be modified to provide that pilots will bank two (2) hours per month into the Short Term Disability Bank, with one (1) hour taken out of each pilot’s 15th and 30th paycheck in those four months.

b. Beginning in the fifth month after the complete execution of this Letter of

Agreement, the provisions of Section 27.D.2.(5).f. will again apply as written in the pilot Agreement, i.e., banking will only occur if the Bank is below or falls below five hundred (500) hours, in which case banking will automatically occur at the rate of one-half (1/2) hour per month per pilot until nine hundred (900) hours are accrued in the Bank.

c. For example, if this Letter of Agreement is completely executed by October 12,

2003, pilots will have 1.0 hours deducted from each of their paychecks on the 15th and 30th of November 2003, the 15th and 30th of December 2003, the 15th and 30th of January 2004, and the 15th and 30th of February 2004, such hours will be used to fund the Short Term Disability Bank.

2. The Company agrees that the pilot banking of hours provided for in paragraph 1, above,

is all that it will ask from the Association and is in complete satisfaction of any and all liability the Association may have to the Company for any under funding or deficiencies in the Short Term Disability Bank to date.

Letter 17-2

3. Nothing in this Letter of Agreement shall prevent Section 27.D.1.b.(5).h. of the pilot Agreement from being invoked in the future if the Short Term Disability Bank funding levels are found to be inadequate.

This Letter of Agreement shall become effective upon signing and shall run concurrent with the basic pilot Agreement. Dated this 15th day of October, 2003 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations Olav C. Holm MEC Chairman

Letter 18-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

INTEREST ARBITRATION AGREEMENT THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS, the Company and the Association have agreed to re-open a limited number of quality of life issues of insignificant economic impact (“quality of life issues”) in May 2005; and WHEREAS, the Company and the Association have agreed to utilize interest arbitration in the event they are unable to reach agreement on such quality of life issues; and WHEREAS, the parties recognize the need to have a process for such interest arbitration; Now, therefore, the parties have agreed to final and binding interest arbitration to resolve a maximum of 10 (5 for each party) quality of life issues and on the following terms: I. NEGOTIATIONS A. Direct Negotiations

The parties shall engage in direct negotiations in an attempt to resolve the quality of life issues which are the subject of this Letter of Agreement. If there remain unresolved issues to be submitted to interest arbitration hereunder, such hearing shall be scheduled as set forth below. There shall be 20 days of direct negotiations sessions within a period of four months (unless the parties mutually agree otherwise), beginning May 1, 2005. Such days of negotiations shall be pre-scheduled by mutual agreement of the parties in blocks of three days or more, with appropriate travel and preparation time provided for the pilots (the Association will be responsible for the flight pay loss for the pilots for all negotiation, preparation and travel days).

B. Status of Tentative Agreements

1. Prior to the start of negotiations the parties will identify their respective “designated representatives.” The parties agree that all Tentative Agreements developed by the parties and agreed upon in writing by the parties’ “designated representatives” will be subject to appropriate and customary methods of ratification and, if ratified, will become part of the collective bargaining agreement, and will become effective in the manner agreed to by the parties.

2. If the Association does not ratify the package of TA’d items, the parties may mutually

agree to re-negotiate some or all of the items (and attempt to re-ratify) or not.

Letter 18-2

3. Following all negotiation and ratification (one round required, any additional by mutual agreement), if there are any items over which the parties negotiated that still remain unresolved (whether because a TA was not reached on them or they were not ratified) each of the parties may take up to 5 of these unresolved items to interest arbitration.

4. If, after the negotiation and ratification process (one round required, any more by

agreement), interest arbitration is necessary, the Board will be chosen within 15 days of the later of the end of re-negotiations or the date the results of the Association ratification process is known.

5. Pre-Hearing conference will be held within 2 to 3 months of the choosing of the Board

and the Interest Arbitration will be held within 2 to 3 months of the end of the Pre-Hearing conference.

II. ESTABLISHMENT OF INTEREST ARBITRATION BOARD AND INTEREST ARBITRATION

PROCEDURES A. Preamble

The Company and the Association have agreed upon the following process for establishing a binding Interest Arbitration Board.

B. Board Composition

1. The Interest Arbitration Board (“Interest Board”) will be comprised of 3 members, 1 selected by the Association, 1 selected by the Company, and 1 neutral member, selected in accordance with paragraphs II.B.2. and 3. below.

2. The Company and the Association shall, within 20 days of deciding that an Interest Board

is required, exchange the names of the parties’ representatives who will sit on the Interest Board and designate the neutral member to sit with the Interest Board. If agreement is reached as to the designation of the neutral member of the Interest Board, the Company and the Association shall advise the members of the Interest Board of the name and address of the neutral member. If no neutral member is designated after such 20-day period, the following neutral arbitrators are deemed acceptable and the parties shall select 1 such neutral arbitrator from that list to serve as the neutral member of the Interest Board. The parties will choose 1 neutral arbitrator from the list by alternately striking names from the list until 1 name remains. The parties will determine the order of striking by the flip of a coin. The winner of the coin toss will have the choice to strike first or second. If the alternate strike selection is not accomplished within 5 working days after the parties fail to agree on a neutral member because 1 party has failed to participate in the alternate strike procedure, the other party may contact an arbitrator in sequence and commence the scheduling of the hearing.

a. Robert O. Harris b. Gil Vernon c. Jack Dunsford d. Larry Holden e. Nicholas Zumas f. Carol Wittenberg

3. The neutral member will serve as Chairman of the Interest Board, and will convene and

conduct the Board’s proceedings in accordance with Section II.D., below. 4. The parties’ representatives will be voting members of the Interest Board.

Letter 18-3

C. Pre-Hearing Procedures

1. The Interest Board will convene a Pre-Hearing Conference within the timeframe provided for in I.B.5. above. The schedule for all pre-hearing procedures will be set by mutual agreement of the parties, with due regard for the orderly resolution of this proceeding; provided, however, that if the parties are unable to agree by 30 days prior to the start of the hearing, then the Interest Board will determine the schedule.

2. The parties will endeavor to prepare a Joint Statement of Issues, a Stipulation of

Uncontested Facts and a set of Joint Exhibits for submission to the Interest Board no later than 7 days prior to the hearing. In preparing the Joint Statement of Issues, the parties will simultaneously exchange lists of open issues, designating the subject matter and contract subsection. To the extent there is disagreement between the parties as to identification of arbitrable issues, the Joint Statement of Issues will reflect such disagreement and set forth each party’s statement of arbitrable issues with respect to those areas of disagreement. The Interest Board will be empowered to resolve such disagreements prior to the hearing.

a. Arbitrable issues must be single, separate, and specific proposed changes to the

parties’ collective bargaining agreement. Arbitrable issues may concern only what are considered, based on prevailing standards used by the federal courts, to be mandatory subjects of bargaining. Examples of such proposed changes are:

i. “hotels shall include a requirement that there be a restaurant on the

premises” (but not “change the provisions governing hotels”); or ii. “the Company has five days to render a written decision to a pilot after

the close of a grievance hearing” (but not “change the grievance procedures”);or

iii. “lines will be constructed so as to have report times consistently am or

pm for the entire month” (but not “improve schedules”); or iv. “investigatory and/or disciplinary meetings shall not be scheduled on a

pilot’s day off” (but not “improve investigation and discipline procedures”).

Note: The 4 examples set forth above are not intended to limit arbitrable issues

to the issues described in the 4 examples set forth above. D. Hearing Procedures

1. The Interest Board will conduct hearings to receive sworn testimony, exhibits and other evidence in order to create a written record, including a verbatim transcript. The Interest Board will receive direct and rebuttal presentations from the parties, including such pre-filed testimony and exhibits as the parties may choose to provide, provided that each witness will be made available upon request for cross-examination at the hearing.

2. Each party will have the obligation of proceeding first in connection with their case(s) to

affect a contractual change. Otherwise, the order of presentation of the parties’ cases before the Interest Board will be set by mutual agreement of the parties. Failing mutual agreement, the Interest Board Chairman will resolve the matter by coin toss.

3. The schedule for hearing and closing argument will be determined by the Interest Board,

with due consideration of the schedules of the Interest Board members and regard for the

Letter 18-4

orderly resolution of the proceeding. Post-hearing briefs will be submitted no later than 30 days after the close of the record, unless the parties agree to oral closing arguments.

4. The Interest Board will have the authority to resolve any disputes not resolved by

agreement of the parties regarding scheduling or order of presentation. 5. Following the close of the record, the members of the Interest Board will meet

(telephonically or in person) to review and discuss the record prior to the preparation of a first draft of the Award and will thereafter meet to review and discuss the first draft of the Award.

6. The final Award of the Interest Board will be made by the neutral Chairman, in

consultation with the party representative members of the Interest Board. The award shall:

a. be based solely on the record created in accordance with the procedures set

forth herein, and b. be in writing and signed by a majority of the members of the Interest Board, and c. be final and binding.

E. Scope Of Issues

The scope of issues submitted to the Interest Board will be limited to quality of life issues of insignificant economic impact.

F. Administrative Matters

1. The fees and expenses of the members of the Interest Board, and the costs of the hearing room, court reporter and transcript, will be shared equally between the Company and the Association.

2. Each party will bear all costs and expenses relating to the presentation of its case. 3. The parties, by mutual agreement, will designate one location as the site of all hearings

and conferences. Failing mutual agreement, the matter will be resolved by the Interest Board.

4. All time limits set forth herein may be extended by mutual agreement.

G. Duration

Upon signing, this Letter of Agreement shall be effective as of July __, 2003, and shall run concurrent with the basic Piedmont Pilot Agreement as amended and extended hereby.

Dated this 15th day of October, 2003 FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President Vice President - Flight Operations

Letter 18-5

Olav C. Holm MEC Chairman Peter Genero, Jr. Negotiating Committee Chairman

Letter 19-1

LETTER OF AGREEMENT between

ALLEGHENY AIRLINES, INC. and

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

ALLEGHENY AIRLINES, INC. and

PIEDMONT AIRLINES, INC. as represented by

THE AIR LINE PILOTS ASSOCIATION

MERGER OF ALLEGHENY AIRLINES, INC. INTO PIEDMONT AIRLINES, INC. THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between ALLEGHENY AIRLINES, INC. (hereinafter referred to as “Allegheny”) and PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Piedmont”) and the air line pilots in the service of Allegheny, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS US Airways Group, Inc. has announced that it will consolidate the operations of Allegheny and Piedmont; and WHEREAS a merger of Allegheny into Piedmont is the preferred method for achieving such consolidation; and WHEREAS the cooperation of the Association is necessary to achieve any such merger; NOW, THEREFORE, the parties agree as follows: A. The Association will not seek to enforce Section 1.D.1. of its collective bargaining agreement with

Allegheny (Allegheny-ALPA CBA) in connection with the contemplated transaction. B. All pilots on the Allegheny seniority list at the time of the merger will be offered positions at

Piedmont with longevity accruals at ALG applicable to compensation and all other longevity entitlements provided for by the collective bargaining agreement between Piedmont and the Association (Piedmont-ALPA CBA). The Association will cooperate in merging the Allegheny and Piedmont pilot seniority lists under the Association's merger policy as expeditiously as possible.

C. Prompt meetings will be held to negotiate an appropriate merger/fence agreement. The existing labor agreements at each operation, as modified by this Letter of Agreement, will remain in effect pending a merger of the operations, except that Section B.2. of the Allegheny Small Jet Restructuring Agreement will be modified to contain only the first sentence (regarding duration).

D. Until complete operational integration of Allegheny and Piedmont is achieved, Allegheny pilots

may be assigned to the training necessary to become Piedmont pilots out of seniority order, for the purpose of accomplishing an orderly transition.

E. The Association will irrevocably withdraw the pending Allegheny small jet grievance (number USX

03-171) as moot, but neither that withdrawal nor anything else in this agreement will be used in any way by any party in the forthcoming arbitration concerning the Piedmont small jet grievance (number MEC GROUP 2003-21).

Letter 19-2

F. The Association will move promptly to establish system-wide representation for the combined Piedmont-Allegheny pilot’s crafts or class, including filing an appropriate application with the National Mediation Board seeking such representation.

G. Upon certification of the Association as the system-wide representative of the Pilots craft or class,

the Piedmont-ALPA CBA, including its duration clause, will govern the merged operation. Neither Piedmont nor the Association will have an obligation to negotiate an amended collective bargaining agreement governing the merged operation prior to the reopening of the Piedmont-ALPA CBA.

H. The Allegheny-ALPA CBA will be considered null and void, and no grievance, lawsuit or other

claim will be filed seeking to enforce the Allegheny-ALPA CBA, once a merger and operational integration is completed.

I. The Association will engage its best efforts to assist in effectuating an expeditious merger of the

Allegheny and Piedmont operations. J. Allegheny pilots will continue to be subject to the Allegheny insurance programs until they

transition to become Piedmont pilots, at which time they will become subject to the Piedmont insurance programs.

K. Until operational integration and merger is accomplished, the Allegheny Pilots Defined Benefit

Retirement Plan (“DB Plan”) will be continued in effect. Upon completion of the merger, Piedmont will continue to provide DB Plan coverage to Allegheny pilots who have such coverage at the time of the merger. At Piedmont's election, such coverage shall be accomplished by continuing sponsorship of the Allegheny DB Plan as a separate plan or by merging the Allegheny DB Plan into the existing Piedmont Pilots DB plan.

L. Until operational integration and merger is accomplished, Pilots may continue participation in the

Allegheny 401(k) Plan. Upon completion of the merger, Allegheny pilots will continue to have a 401(k) plan available to them. At Piedmont's election, such 401(k) coverage shall be provided through continued sponsorship of the Allegheny 401(k) plan as a separate plan, or by allowing Allegheny pilots to participate in the existing Piedmont 401(k) plan and either freezing the Allegheny 401(k) plan or merging it into the Piedmont 401(k) plan. Under either approach, Allegheny pilots will receive credit for both their service for Allegheny and their service for Piedmont, and existing Allegheny 401(k) balances shall be 100% vested.

M. Allegheny pilot disciplinary grievances, and grievances alleging contractual violations that could

result in a back-pay award to a pilot(s), that remain unresolved at the time of merger, may, at the Association's election, be continued in process up to and including arbitration, and the resolution of such grievances shall be binding upon Piedmont. A discharged pilot awarded reinstatement shall be entitled to the application of Paragraph B above.

N. Allegheny pilot grievances alleging contractual violations that do not involve back-pay will not be

processed after the merger, and any resolution of such grievances will not be binding upon Piedmont, as the Piedmont Pilot CBA will supersede such resolutions.

O. No grievance, lawsuit, or other claim will be filed seeking to enforce an obligation in conflict with

the requirements of this Letter of Agreement. IN WITNESS WHEREOF the parties have signed this Letter of Agreement this 17th day of March, 2004.

Letter 19-3

FOR THE AIR LINE PILOTS ASSOCIATION FOR ALLEGHENY AIRLINES, INC. Duane E. Woerth Keith D. Houk President President FOR PIEDMONT AIRLINES, INC. Patrick J. Flannery MEC Chairman John Leonard President

Letter 20-1

LETTER OF AGREEMENT between

ALLEGHENY AIRLINES, INC. and

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

ALLEGHENY AIRLINES, INC. and

PIEDMONT AIRLINES, INC. as represented by

THE AIR LINE PILOTS ASSOCIATION

ORIGINAL FENCE AGREEMENT REGARDING THE CONSOLIDATION

OF ALLEGHENY AIRLINES, INC. INTO PIEDMONT AIRLINES, INC. THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between ALLEGHENY AIRLINES, INC. (hereinafter referred to as “Allegheny”) and PIEDMONT AIRLINES, INC. (hereinafter referred to as “Piedmont” or “Company”) and the air line pilots in the service of Allegheny and Piedmont, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS Allegheny and Piedmont are wholly-owned and controlled subsidiaries of US Airways Group, Inc. (hereinafter referred to as “US Airways”); and WHEREAS US Airways will consolidate the operations of Allegheny into Piedmont to form a single transportation system, with Piedmont as the surviving entity; and WHEREAS the respective Allegheny and Piedmont MECs have decided that the respective Merger Committees will manage the consolidation and address the related issues in the consolidation process, as well as in a forthcoming associated Seniority Integration process between Allegheny and Piedmont ALPA pursuant to ALPA Merger and Fragmentation Policy; and WHEREAS Allegheny and Piedmont Management and the Allegheny and Piedmont Merger Committees have agreed to a fenced operation pending full operational integration, or as modified by the associated Seniority Integration process between Allegheny and Piedmont ALPA pursuant to ALPA Merger and Fragmentation Policy; and WHEREAS aircraft and pilots will transfer from the Allegheny fenced operation to Piedmont gradually pending full operational integration; NOW, THEREFORE, the parties agree as follows: A. As Allegheny’s aircraft, assets and personnel are transferred into Piedmont and pending a full

operational integration, a fence will separate the Allegheny operation from the Piedmont operation. The Allegheny side of the fenced operation will be governed by the collective bargaining agreement between Allegheny and ALPA (Allegheny-ALPA CBA), as amended. The Piedmont side of the fenced operation will be governed by the collective bargaining agreement between Piedmont and ALPA (Piedmont-ALPA CBA), as amended. Once an Allegheny pilot starts training at Piedmont, they become covered by the Piedmont-ALPA CBA. However, such pilots will continue to be represented by Allegheny MEC representatives in all contractual matters until full operational integration is achieved. All Parties to this LOA agree to waive the appropriate scope provisions (Section 1.B.1.) of the applicable CBAs as they solely apply to this LOA during the interim transition period prior to full operational integration. “Full operational integration” for

Letter 20-2

purposes of this LOA shall mean the date upon which (i) the transfer of aircraft from Allegheny to Piedmont and the training of then current Allegheny pilots to fly for Piedmont is completed and (ii) Piedmont has placed into effect the integrated pilot seniority list compiled in accordance with ALPA Merger and Fragmentation Policy. “Then current Allegheny pilots” shall mean those whose names appear on the then current Allegheny system seniority list except those who are in leave status as per Sections 13 and 14 of the Allegheny-ALPA CBA, or who are not then active pursuant to either Section 23 of the Allegheny-ALPA CBA or who are in termination status.

B. Pilots on the Allegheny side of the fenced operation will be restricted to bidding for vacancies and

flying schedules for the Allegheny fenced operation. Until full operational integration, pilots on the Allegheny side of the fenced operation shall have no right to bid, be awarded or assigned any flying, including but not limited to lineholder or reserve positions, ferry flights, charters, training flights, etc., on the Piedmont side of the fenced operation. Pilots on the Piedmont side of the fenced operation will be restricted to bidding for vacancies and flying schedules for the Piedmont fenced operation. Until full operational integration, Piedmont pilots in the “formerly Allegheny” operation and pilots in the “pre-consolidation” Piedmont operation shall have no right to bid, be awarded, or assigned any flying, including but not limited to lineholder or reserve positions, ferry flights, charters, training flights, etc., on the Allegheny side of the fenced operation.

C. An Allegheny Pilot will be considered to have transferred to the Piedmont operation on his/her

first day of training in connection with the consolidation transaction. Until completion of operational integration, above, such pilots may exercise seniority rights only as provided in Paragraph D, below, unless otherwise mutually agreed between the parties.

D. It is understood that seniority and longevity are two separate issues. The seniority issues related

to this consolidation will be ultimately determined through the associated Seniority Integration process defined in ALPA Merger and Fragmentation Policy. The Letter of Agreement of March 17, 2004, between Allegheny, Piedmont and ALPA is clarified as follows: Allegheny Pilots who transfer to the Piedmont operation will carry over their longevity accruals at Allegheny applicable to compensation and all other longevity entitlements, as well as their sick leave banks, and pension and 401(k) entitlements. Allegheny pilots who transfer to the Piedmont operation shall carry forward previously awarded Allegheny vacation periods. In addition a pilot who meets the requirements of the April 29, 1999 Letter of Agreement between Allegheny and ALPA shall carry over vacation accruals that shall be honored by Piedmont as currently awarded in 2004.

E. As flying is gradually transferred from the Allegheny operation to the Piedmont operation, a fence

will separate the formerly Allegheny Piedmont operation from the pre-consolidation Piedmont operation. The fence separating the Allegheny operation from the two Piedmont operations will remain in effect until the training of all Allegheny pilots into the Piedmont operation is completed. As an exception to the fences and other restrictions contained herein, as of the effective date of this LOA, the Company may utilize reserve pilots (those that are on a scheduled day of reserve) from both of the Piedmont operations to cover open flying in either one of the Piedmont operations. As an additional exception, the Company may also utilize pilots from both of the Piedmont operations to cover flying in either one of the Piedmont operations in the event of a TDY. Such TDY opportunities shall follow the procedures outlined in Section 24.H. of the Piedmont-ALPA CBA.

F. For the no-jeopardy/limited jeopardy purposes of AQP as applied to the consolidation training:

1. Line Oriented Flight Training (hereinafter LOFT) under AQP is “no-jeopardy” training. Performance deficiencies will be corrected and documented as satisfactorily completed.

2. Special Purpose Operational Training (hereinafter SPOT) under AQP contains elements

similar to those found in LOFT, including “no jeopardy” training.

Letter 20-3

3. Line Operational Evaluation (hereinafter LOE) under AQP requires evaluation of both crewmembers, crew competence and performance. Therefore, Line Operational Evaluation contains an element of “jeopardy”.

4. The Piedmont-ALPA CBA shall govern Allegheny Pilots training in connection with this

consolidation. It is understood that the Allegheny Pilots will not be limited to only the “Transition” provisions provided in Section 11 of the Piedmont-ALPA CBA. Additionally, the “observer” allowed in Section 11.I.9. of the Piedmont-ALPA CBA may be anyone on the combined seniority list. Furthermore;

a. The ALPA Training Committee Chairman that is the Training Review Board

member described in the Piedmont CBA Section 11.G.1.a. shall consist of the Allegheny ALPA Training Committee Chairman or his designee.

b. The training department shall provide Allegheny pilots with all relevant training

material at least 6 weeks prior to reporting for training. c. Upon request by any pilot who can demonstrate that he does not have access to

a computer, the company shall make available a computer for the time necessary to complete any pre-classroom assignments.

d. As described in Piedmont-ALPA CBA 11.I.6., a pilot who has been unsuccessful

in a performance evaluation may, at his option, select any available performance evaluator on the Integrated Seniority List or an available FAA designated check airman for his recheck.

e. Pilots completing training in connection with the consolidation transaction will

return to his/her domicile as part of the formerly Allegheny Piedmont operation, or will occupy a vacancy within that operation at another pre-consolidation Allegheny domicile or formerly Allegheny Piedmont domicile.

f. This paragraph will be subject to any further conditions addressed in the

integrated seniority list and related documents.

G. Pending the implementation of an integrated seniority list and related conditions, a pilot in the formerly Allegheny Piedmont operation may exercise his/her relative Allegheny seniority only to perform flying with respect to that operation, including, but not limited to, bidding for monthly schedules and vacancies. Such pilot may not bid for a vacancy within the pre-consolidation Piedmont operation until the implementation of an integrated seniority list and related conditions, subject to any additional terms that may be agreed upon during the associated Seniority Integration process pursuant to ALPA Merger and Fragmentation Policy.

H. Pending the implementation of an integrated seniority list and related conditions, pilots in the pre-

consolidation Piedmont operation may exercise their relative Piedmont seniority only to perform flying with respect to that operation, including, but not limited to, bidding for monthly schedules and vacancies. Such pilots may only bid for vacancies within that operation.

I. The Company will allow bidding by Allegheny seniority for training within status at each domicile.

The Company will provide both MEC Chairmen with information, on a monthly basis, regarding the number and timeline of aircraft that will be transferred, the number of pilots being trained, and the anticipated number of regular lines, build up lines and reserve lines for the formerly Allegheny Piedmont operation.

J. No pilot shall have his/her probationary period extended or renewed as a result of the

consolidation of Allegheny and Piedmont.

Letter 20-4

K. No pilot shall be displaced from his/her position (including any position to which the pilot has been awarded a bid or for which he/she is in training) or from his/her domicile by the implementation of the integrated seniority list and related conditions. Once the seniority integration process is completed and the integrated seniority list is implemented, that seniority list and the Piedmont-ALPA CBA will govern future filling of vacancies, displacements, furloughs and all other seniority-related events or occurrences within the Piedmont operations.

L. It is understood that ALPA will provide Piedmont with a fully integrated seniority list by July 25, 2004. Piedmont shall accept and implement such an integrated list. If not implemented sooner, such list shall be effective no later than the first day of the second full bid period after (i) the integrated list is completed and delivered to Piedmont and, (ii) the transfer of aircraft from Allegheny to Piedmont is completed and, (iii) the training of then current Allegheny pilots (as defined in Paragraph A of this LOA) to fly for Piedmont is completed.

M. Once operational integration and implementation of an integrated Piedmont Pilot Seniority List

and related conditions have been completed, any remaining fences provided herein shall be removed, subject to any additional terms agreed to in the associated seniority integration process pursuant to ALPA Merger and Fragmentation Policy. At that time, the Piedmont-ALPA CBA will govern the consolidated operation and the Allegheny-ALPA CBA will be rendered null and void as provided in Paragraph H of the March 17 LOA. The terms of this Agreement, including the underlying consolidation transaction, shall not cause Paragraph C of the Piedmont Small Jet Restructuring Agreement to become operable.

N. Any and all disputes as to the interpretation or application of this LOA shall be submitted in writing

to all parties hereto within eight (8) days of the facts giving rise to the dispute. Thereafter, if the dispute is not resolved within seven (7) days by the agreement of all parties, the dispute shall be submitted to the neutral referee chosen from the list of neutrals whose names appear within the Piedmont-ALPA CBA for the final and binding decision. Hearings shall be commenced within ten (10) days of the conclusion of the seven (7) day period referred to immediately above and completed within five (5) days. In all cases a decision shall be rendered within fourteen (14) days of the conclusion of the hearing. The cost of arbitration shall be shared equally by the Company and by the Association, except that if the dispute is between the pilot groups the Association shall bear all of the costs.

O. Each MEC will be recognized by the Company with respect to its own CBA until full operational

integration. P. In conjunction with the application of Paragraph C of the Piedmont Small Jet Restructuring

Agreement, the following additional provisions shall apply. If subsequent to the consolidation of Allegheny into Piedmont, there should be a successorship transaction of any kind or description, including, but not limited to a merger (except a merger with another wholly owned subsidiary of US Airways Group, Inc.), assignment, purchase, transfer or change of control of the Company, in which the Successor is an air carrier, or any person or entity that controls or is under the control of an air carrier, any pre-consolidation Allegheny pilots who (1) remain on the Piedmont seniority list as of the announcement of any such transaction, and (2) if not for the consolidation, would have been entitled to the hourly pay rate and furlough protection snapback provision set forth in Paragraph C of the Allegheny Small Jet Restructuring Agreement dated November 14, 2002, and (3) are not on furlough status as of the announcement of any such transaction, and (4) whose placement on the Piedmont seniority list is above all Piedmont pilots who would not be furlough-protected by the provisions of Paragraph C of the Piedmont Small Jet Restructuring Agreement dated October 30, 2002, shall be provided the same hourly pay rate and furlough protection snapback afforded the pre-consolidation Piedmont pilots under Paragraph C of the Piedmont Small Jet Restructuring Agreement.

Letter 20-5

Q. The Company may hire new pilots; such new pilots hired during the term of this LOA will, for seniority purposes, be placed on the integrated seniority list below the lowest seniority pilot on the integrated seniority list.

R. This Letter of Agreement shall become effective on the date of signing and shall run concurrent

with the Piedmont-ALPA CBA. IN WITNESS WHEREOF the parties have signed this Letter of Agreement this 26th day of July, 2004. FOR THE AIR LINE PILOTS ASSOCIATION FOR ALLEGHENY AIRLINES, INC. Duane E. Woerth Keith D. Houk President President FOR PIEDMONT AIRLINES, INC. Gordon W. Daniel ALG Merger Committee Chairman Keith D. Houk President Owen T. Smyth ALG Merger Committee Member Stephen R. Farrow Vice-President - Flight Operations Charles J. Martinak ALG Merger Committee Member Bob H. Pantazis PDT Merger Committee Chairman Dale A. Mojta PDT Merger Committee Member Benjamen C.F. Oxley PDT Merger Committee Member

Letter 21-1

LETTER OF AGREEMENT between

ALLEGHENY AIRLINES, INC. and

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

ALLEGHENY AIRLINES, INC. and

PIEDMONT AIRLINES, INC. as represented by

THE AIR LINE PILOTS ASSOCIATION

ALLEGHENY AND PIEDMONT MERGER COMMITTEES AGREEMENT Conditions on an Integrated “Date of Hire” Seniority List that will be directly linked to the Original Fence Agreement. It is understood that it eliminates the fence restrictions between formerly Allegheny Piedmont and Pre-Consolidation Piedmont. A. The parties agree that the respective pilot seniority lists should be consolidated on a date of hire

basis, subject to the conditions set forth in this agreement. The integrated seniority list is attached (Attachment A) hereto and incorporated herein.

B. STATUS PROTECTION

1. As of the effective date, all active Piedmont Captains and active Piedmont First Officers may not be displaced from their then current status or seat by a formerly Allegheny Piedmont pilot (hereinafter “protected Piedmont pilot”). After January 1, 2005 the four most junior protected Piedmont pilot’s aforementioned protected status within each status or seat shall be removed for each aircraft removed from service at Piedmont and as further stated below.

2. If any inactive pilot (as of the effective date) returns to active status and is senior to a

current protected pilot within the status or seat that he or she is returning to, such pilot will assume the one time protected status from the most junior Piedmont pilot.

C. DOMICILE PROTECTION

1. As of the effective date, the combined sum of 156 Captains and 142 First Officers within status or seat of protected Piedmont pilots at then current Piedmont domiciles (CHO, CLT, EWN, ORF/PHF, ROA, and SBY) shall be staffed by protected Piedmont pilots. Thereafter, in the event of a reduction or closure in the aforementioned domiciles, the combined staffing levels shall be reduced by that amount or as contained herein.

2. As of the start of Allegheny pilot training to Piedmont, any vacancies occurring in a

formerly Allegheny Piedmont domicile are available for bidding by all pilots on the Integrated Seniority List.

3. As of the start of Allegheny pilot training all Allegheny, formerly Allegheny Piedmont, and

Pre-Consolidation Piedmont pilots shall be eligible to bid for all Piedmont operations vacancies. If an Allegheny pilot is awarded a position at a Piedmont domicile, the Company will assign such pilot to the next Piedmont Consolidation training class so that he or she may occupy that position.

Letter 21-2

4. As of the effective date, if a position outside of then current Piedmont domiciles is awarded to a protected Piedmont pilot, that pilot will lose his or her protected status and the combined sum, within status or seat, contained within Paragraph B.2., shall be reduced by one. It is understood that if any of the above original Piedmont domiciles are closed that the protected Piedmont pilots shall carry their protected status to another originally (as contained in Paragraph B.2.) Piedmont domicile.

D. VACANCY REVIEW BOARD (VRB)

A board consisting of one Allegheny and one Piedmont pilot representative shall monitor the combined airline system pilot staffing. Additionally, the VRB shall participate with the Company during the postings of pilot vacancies and awards for the duration of this agreement.

E. STATEMENT OF UNITY

As of the effective date of this agreement, all decisions affecting the combined corpus of the pilot group prior to merger of the ALG-PDT MEC will be made by consensus of the MEC Chairmen or their designees.

F. DURATION

The aforementioned terms and conditions will become effective as of July 1, 2004 or as otherwise stated and will expire on December 31, 2005.

IN WITNESS WHEREOF the parties have signed this Letter of Agreement this 27th day of July, 2004. FOR ALLEGHENY AIRLINES, INC. FOR PIEDMONT AIRLINES, INC. Gordon W. Daniel Bob H. Pantazis ALG Merger Committee Chairman PDT Merger Committee Chairman Owen T. Smyth Dale A. Mojta ALG Merger Committee Member PDT Merger Committee Member Charles J. Martinak Benjamen C. F. Oxley ALG Merger Committee Member PDT Merger Committee Member

Letter 22-1

January 18, 2006 Michael J. Scrobola Vice President – Flight Operations Piedmont Airlines 5443 Airport Terminal Road Salisbury, MD 21804-1545 Dear Mr. Scrobola: This letter will confirm our agreement regarding modification of the Piedmont Airlines, Inc. uniform policy, making hats an optional part of the required uniform. The uniform hat is now an optional uniform piece and is no longer a required uniform item to be supplied/replaced by the Company. The Company will no longer be required contractually to provide hats from this point on or at any expense to the Company. Any pilot electing to utilize this optional uniform piece will purchase it at his/her own expense. However, should the pilot decide to purchase a hat, the Company will provide the hardware, at no cost to the pilot, as long as it is available. If, in the future, hats again become a required uniform item, the Company will supply/replace hats as required by applicable sections of the Collective Bargaining Agreement. Respectfully, Calvin P. Dilks Chairman, Piedmont ALPA MEC

Letter 23-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

EXPEDITED ARBIRATION OF SELECTED CASES THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS the Company and Association have a backlog of cases awaiting final disposition by the Piedmont Pilots’ System Board of Adjustment; and WHEREAS the parties desire to find a method to accelerate the hearing of these cases; and WHEREAS implementing a special program to arbitrate selected cases on an expedited basis should significantly reduce the backlog of cases awaiting a hearing; NOW THEREFORE the Company and Association agree as follows: The following shall set forth the procedures to be utilized for expedited arbitration for the purpose of resolving disputes which may arise under the provisions of the Piedmont Pilots’ Agreement:

1. Prior to each expedited arbitration hearing the Company and the Association shall mutually agree on the selection of one neutral as provided in Section 21 of the collective bargaining agreement (“CBA” or “Agreement”) who, together with one Association-appointed member and one Company-appointed member, shall constitute the Expedited Arbitration Board of Adjustment (the “Board”). The Board will convene at a date and time mutually agreed to by the parties. Unless the parties agree otherwise, all hearings will be held in Salisbury, Maryland, at a location mutually agreed upon by the parties.

2. The Board shall be authorized to hear and decide only those cases that are mutually

selected by the parties for resolution through expedited arbitration. 3. At least seven (7) days prior to a particular day of expedited arbitration, the parties shall

specify which grievances shall be heard. 4. Unless the parties mutually agreed otherwise, awards issued by the Board will not

establish precedent and will not be used or referred to in the future by either party except to enforce the terms of the award.

5. The Board shall only have jurisdiction over grievances that have been processed in

accordance with, but not resolved through, the procedures set forth in the Piedmont Pilots’ Agreement and submitted to the System Board of Adjustment in accordance with Section 21 of the Agreement and this Letter of Agreement.

Letter 23-2

6. Selection of a case for expedited arbitration shall constitute a waiver by the parties of their respective procedural rights under the arbitration provisions of Section 21 of the Piedmont Pilots’ Agreement. However, unless specifically modified by this Agreement, the provisions of Section 21 shall govern the expedited arbitration process. The decision of the Board is final and the matter cannot be submitted to another System Board.

7. Each party shall be represented by any one (1) person that may choose and designate

and each party shall be limited to one (1) additional representative to testify or provide relevant clarifying information.

8. The parties agree to submit as joint exhibits (i) the Agreement under which the dispute

arose, and (ii) the submission document as required by Section 21 of the Piedmont Pilots’ Agreement.

9. Each party shall have no more than thirty (30) minutes to present its case and no more

than five (5) minutes for rebuttal and/or closing. This thirty (30) minute period will include the party’s opening statement and the direct examination of its own witness. Each party shall have the right to submit documentary evidence during either its case-in-chief or its rebuttal.

10. Unless the parties agree otherwise in advance, there will be no electronic recording or

transcripts made of the proceedings. 11. Neither pre-hearing nor post-hearing briefs will be allowed. 12. At the conclusion of each case, the Board shall issue a written award without opinion. 13. The Board is expressly prohibited from incurring expenses other than those expenses

authorized in advance by agreement of the parties. 14. This Letter of Agreement shall become effective on September 21, 2006, and shall

remain in full force and effect until May 16, 2009, unless renewed in writing by mutual agreement of the parties.

IN WITNESS WHEREOF the parties have signed this Letter of Agreement this 10th day of October, 2006. FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President President and CEO Calvin P. Dilks Michael J. Scrobola MEC Chairman Vice President - Flight Operations

Letter 24-1

LETTER OF AGREEMENT between

PIEDMONT AIRLINES, INC. and

THE AIR LINE PILOTS in the service of

PIEDMONT AIRLINES, INC. as represented by the

AIR LINE PILOTS ASSOCIATION

LINE OPERATIONS SAFETY AUDIT (LOSA) THIS AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by and between PIEDMONT AIRLINES, INC. (hereinafter referred to as the “Company”) and the air line pilots in the service of the Company, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter known as the “Association”). WHEREAS the Company and the Association understand that the implementation of an operational data collection and analysis system that is developed in a non-punitive, problem-solving approach to flight operations is of enormous benefit and that the analysis and subsequent investigation of operational data is an effective method of achieving the objective of a safe flight operation; and WHEREAS the Company and the Association have agreed to modify the terms of their collective agreement in order to implement a Line Operations Safety Audit (LOSA) program to collect and analyze line operations data for the sole purpose of enhancing safety; and WHEREAS the Association is concerned about the invasion of the privacy of its individual members such workplace recorded observations represent; and WHEREAS the Company and the Association intend that no pilot be identified, disciplined, discharged, or subjected to any additional individual training/checking as a result of the use of any LOSA program information; and WHEREAS the Association desires to jointly with the Company maintain control over the collection, use, or dissemination of such data; NOW THEREFORE the Company and Association agree as follows:

1. The sole purpose of the LOSA shall be to evaluate Company systems for flight safety. 2. Voluntary crew participation, wherein any Flight Crew member at his or her sole

discretion may refuse any observer access to the flight deck without cause. 3. Observations will only be conducted during normal revenue flight operations. 4. Joint management/pilot union sponsorship, committing both to active, willing participation

for the benefit of a safer operation. This includes understanding and overcoming any cockpit rider security concerns in advance, educating the pilot group on the process and benefits of the LOSA program, and committing to make changes as may be indicated in the final report.

5. Non-identifiable, confidential, and non-punitive data collection to facilitate the long term

gain without jeopardy.

Letter 24-2

6. Use of a targeted observation instrument (LOSA Forms). 7. All LOSA observations shall be conducted solely by trained observers whose

participation has been approved by the Association. Observers will be trained and calibrated to preclude false negative and incorrect judgment errors in the conduct of the observation.

8. Storage of the observations will be in a neutral, mutually agreed upon, trusted data

collection site. All LOSA records, data, or any part thereof shall be securely stored in such a manner as will prevent unauthorized access.

9. Data-cleaning “roundtables” consisting of management and pilot union members to

ensure the quality of the observations before they become data points. 10. Targets for flight operations enhancements shall be data-derived; the final product report

shall be used to create an airline Action Plan to reach the target(s). 11. The end results are fed back to line pilots so that pilots will understand the findings and

how the airline plans to improve the system. 12. The Company shall not use any records or data collected under this Agreement for any

purpose other than the enhancement of flight safety through evaluation of Company systems and procedures.

13. No Flight Crew member shall be subject to adverse comment, report, punitive action,

individual training, or any form of disciplinary action whatsoever, directly or indirectly, as a result of his or her participation in a LOSA.

14. This Letter of Agreement shall be effective on the date of signing and will continue in

effect through the completion of a minimum of one LOSA cycle (to include the data collection, analysis, and implementation of changes). Thereafter, either party may serve written notice of cancellation of this LOA on 30 days notice, provided no data obtained under this Agreement shall be maintained or archived as of the effective cancellation date.

IN WITNESS WHEREOF the parties have signed this Letter of Agreement this 26th day of October, 2006. FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Duane E. Woerth Stephen R. Farrow President President and CEO Calvin P. Dilks Michael J. Scrobola MEC Chairman Vice President - Flight Operations Stephen A. Ormsbee Stephen B. Keefer Central Air Safety Committee Chairman Director of Safety

APPENDIX A

A-1

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

1 COGAN, BRUCE 02/26/73 00075 2 WILLIAMS, GLEN 08/30/73 62512 3 DZENKOWSKI, DANIEL 07/25/77 62553 4 CZARNIK, STANLEY 07/11/78 62570 5 SHOEMAKER, THOMAS 02/26/79 63023 6 ERDMAN, DENNIS 03/19/79 63040 7 GUY, LARRY 04/23/79 00441 8 PETRONE, JOHN 01/08/79 00401 9 STANDISH, WELLES 04/16/79 00438 10 GENERO, PETER 04/16/79 00440 11 MC CARTHY, JAMES 05/29/79 63070 12 SMITH, FRANK 06/02/80 63187 13 MARTINA, ALBERT 10/20/80 00644 14 ROSS, PAUL 10/20/80 00642 15 DILKS, CALVIN 10/20/80 00640 16 SNYDER, RICKY 04/14/78 00323 17 FRISCHKORN, DAVID 01/07/81 60115 18 MC MULLEN, MICHAEL 01/07/81 63244 19 DALKA, FRANCIS 07/27/81 63283 20 HALL, JOSEPH 03/01/82 00865 21 HAGADONE, TODD 07/26/82 00981 22 FREEDMAN, BRUCE 06/13/83 63374 23 HUSTED, GLENN 06/13/83 63399 24 FREEMAN, WILLIAM 01/30/84 01327 25 SWEENEY, RICHARD 03/29/84 00546 26 GREENWOOD, KEVIN 04/02/84 01378 27 BRANDT, ELLIOT 05/30/84 01461 28 WATERLAND, THOMAS 07/05/84 63462 29 BERGER, EUGENE 07/30/84 01522 30 HAIN, RODNEY 07/30/84 63463 31 GANNON, DAVID 02/18/85 01700 32 PANTAZIS, BOB 02/18/85 01686 33 PRICE, RANDALL 03/26/85 00587 34 MORENO, JUAN 05/01/85 01770 35 EAVES, DONALD 05/01/85 01763 36 STROTHER, MARK 05/13/85 01793 37 SHERICK, DENNIS 06/03/85 63506 38 HOFMANN, ROBERT 06/20/85 01830 39 VICK, ROBERT 07/29/85 63522 40 NAKHOUL, PETER 08/09/85 00599 41 BUCHANAN, JOHN 08/12/85 01907 42 REED, GREGORY 09/16/85 01952 43 MONROE, DAVID 10/14/85 01989 44 WHITE, EDWIN 10/14/85 01990 45 YOUNG, MICHAEL 10/14/85 01993 46 RUIZ, JORGE 12/02/85 02032 47 TRAHEIM, DAG 12/02/85 02036 48 DANIEL, GORDON 12/16/85 63548 49 HELMEN, HARRY 01/06/86 02057 50 WILLIAMS, GREGG 01/06/86 02059

APPENDIX A

A-2

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

51 JOHNSON, RANDALL 01/20/86 63562 52 GURZI, DANIEL 02/03/86 02093 53 WYMAN, ROBERT 03/10/86 02141 54 HOWARD, WALTER 03/19/86 63574 55 SUTTON, JOHN 04/01/86 02164 56 BURNLEY, ALAN 04/01/86 02165 57 LINK, DANIEL 04/07/86 00608 58 MAST, DAVID 04/07/86 00609 59 HUNTINGTON, ROBERT 05/05/86 02189 60 SWAN, STEPHEN 06/09/86 63586 61 ELLIS, DALE 08/04/86 02324 62 SMITH, DONALD 09/22/86 00615 63 MILLER, MARK 09/22/86 00623 64 HARRINGTON, JOHN 09/29/86 63612 65 HANNAGAN, MICHAEL 09/29/86 63613 66 BURKUS, MICHAEL 09/29/86 63617 67 SWEENEY, RAYMOND 10/06/86 02402 68 KRATZER, RODGER 11/06/86 63644 69 DEEGAN, KEVIN 12/01/86 02454 70 SCHULTZ, RANDALL 01/05/87 02497 71 SCHONK, STUART 01/05/87 02505 72 MARTELL, JOHN 02/02/87 02549 73 SCLAFANI, JOSEPH 06/08/87 02762 74 MODLIN, MICHAEL 07/06/87 02802 75 ASH, THOMAS 07/06/87 02803 76 WHITE, RICHARD 07/06/87 63735 77 SOLLENBERGER, BRAXTON 08/03/87 00678 78 HASHBARGER, RICK 08/03/87 00668 79 ALBERT, GLENN 08/03/87 02859 80 BREINING, DAVID 08/17/87 63749 81 SLATER, RONALD 10/05/87 63765 82 HOEBEN, HENRICUS 11/02/87 03054 83 BEREHAN, ABRAHAM 12/01/87 03091 84 THOMAS, MARTIN 12/01/87 03095 85 GREEN, STEPHEN 01/04/88 00672 86 HANDLEY, JEAN 02/29/88 63062 87 JUCKER, RUDOLF 03/07/88 03203 88 ORMSBEE, STEPHEN 03/07/88 03204 89 POWERS, EDWARD 06/06/88 68055 90 PFEIFLE, JOHN 07/11/88 03379 91 GEIGER, HARRY 08/15/88 03443 92 CRIBB, ALAN 08/15/88 03444 93 RUSSO, JOSEPH 09/06/88 03480 94 DIETER, BRETT 09/12/88 03507 95 BLOUT, MICHAEL 10/17/88 03538 96 SEDERS, DENNIS 11/28/88 68109 97 TROMER, GARY 01/03/89 03611 98 NAWROCKI, DAVID 01/30/89 69013 99 YACKS, BRADLEY 02/09/89 00766 100 FLEMMING, RICHARD 02/09/89 00763

APPENDIX A

A-3

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

101 SMITH, THOMAS 04/03/89 03734 102 LESLIE, DAVID 04/03/89 03735 103 GREASER, EARL 05/22/89 00753 104 WERLING, KENNETH 06/30/89 03852 105 BECK, ROBERT 06/30/89 03856 106 DUNLAP, JON 07/31/89 03896 107 JOHNSON, STEPHEN 07/31/89 03899 108 KEEN, RICHARD 07/31/89 03904 109 MC KIM, BURT 07/31/89 03905 110 KLINGER, RONALD 08/31/89 03943 111 DAUGHERTY, KEITH 09/18/89 69122 112 WASHAM, WORTH 10/02/89 03995 113 SZALAI, STEPHEN 10/02/89 04003 114 BOJANOWSKI, ROBERT 10/02/89 04007 115 MONEY, THOMAS 10/16/89 00909 116 TUNIS, JOSEPH 10/16/89 00795 117 MERCY, PETER 10/30/89 04050 118 BREAKELL, ROBERT 10/30/89 04052 119 GAYLORD, J. GRAHAM 10/30/89 04055 120 PROVOST, JOHN 10/30/89 04058 121 PHILLIPS, BRIAN 10/30/89 04061 122 LLORENTE, NESTOR 01/02/90 04146 123 HOLM, OLAV 01/02/90 04147 124 ORIOT, DOMINIC 01/02/90 04149 125 BARKER, ROY 01/02/90 04150 126 MOJTA, DALE 01/02/90 04152 127 SHETTER, STEVEN 01/02/90 04153 128 STULL, SIMON 01/08/90 00923 129 PURSELL, EARL 01/08/90 00930 130 JOHNSTON, FORREST 01/08/90 00929 131 KERNAN, MATTHEW 01/08/90 00920 132 MC MAHAN, JAMES 01/08/90 00921 133 WADEMAN, ALLEN 01/29/90 00935 134 LINDENBERG, BRUCE 01/29/90 00932 135 STORDOCK, STEVEN 04/23/90 63876 136 TAYLOR, HARRY 05/20/90 00940 137 FERRAND, MALCOM 06/04/90 04294 138 CASS, DENISE 07/16/90 63917 139 SMYTH, OWEN 08/13/90 63948 140 GERHART, JAMES 09/17/90 00978 141 SELLGREN, PETER 09/17/90 00971 142 FREEMAN, DAVID 01/07/91 04393 143 NELSON, CHARLES 01/08/91 04398 144 TOMA, FRANK 05/01/91 00984 145 MARTINAK, CHARLES 05/07/91 00985 146 MARTOCCHIO, JOHN 06/03/91 00986 147 MALINCHAK, JOSEPH 06/03/91 01063 148 CROSIER, MICHAEL 10/21/91 04506 149 SAMPSON, RICHARD 11/20/91 01135 150 TAYLOR, BRUCE 01/13/92 04537

APPENDIX A

A-4

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

151 SPOHN, JOHN 02/03/92 64136 152 WILLIAMS, JEFFREY 03/02/92 64147 153 BENEDETTO, DAVID 03/30/92 64167 154 O LEARY, RICHARD 04/27/92 64249 155 BUCKLEY, BRIAN 05/11/92 04626 156 MIDDLETON, ROBERT 05/11/92 04630 157 CURRY, JEFFREY 05/11/92 04631 158 SHREWSBURY, JOHN 05/26/92 64289 159 OKST, DAVE 01/05/93 04769 160 HANNAH, BRIAN 06/21/93 64543 161 KAHLE, KENNETH 07/26/93 64567 162 HEINEMAN, JOHN 01/31/94 05135 163 EPKE, ROBERT 01/31/94 05137 164 HUDSON, REGINALD 09/19/94 05537 165 MORSE, PAUL 09/19/94 05540 166 BEARDSLEY, ALAN 01/09/95 05626 167 BALLARD, ROBERT 02/27/95 05696 168 POWLEY, JOHN 03/05/96 06177 169 BALASCIO, MARK 03/05/96 06180 170 JOHNSON, BARRY 04/09/96 06243 171 ANDERSON, SCOTT 06/24/96 06373 172 MC TIGHE, DOUGLAS 07/10/96 65563 173 TEMPLETON, PAUL 07/16/96 06412 174 GUSTAFSON, OSCAR 08/06/96 06433 175 LUNDQUIST, NICHOLAS 08/08/96 65608 176 SMITH, DAVID 08/08/96 65568 177 KAIAFAS, COSTAS 01/20/97 65795 178 POWERS, ALAN 07/29/97 66018 179 GOESTEL, JENS-OLE 03/03/98 07373 180 YOKANOVICH, NICHOLAS 03/03/98 07374 181 STRAUBEL, JAMES 03/19/98 66417 182 MASON, THOMAS 05/04/98 07454 183 GOLDIZEN, BRYAN 05/04/98 07456 184 TSUBOTA, TERUAKI 05/04/98 07457 185 CONNER, JASON 05/04/98 07461 186 WILLIAMS, JEFFREY 05/04/98 07463 187 ZETTERBERG, FOREST 05/04/98 07467 188 RATHKE, JAMES 05/04/98 07471 189 RUTLEDGE, PHILIP 06/24/98 66641 190 SMITH, VIRGINIA 07/06/98 07583 191 SCHERBERGER, MARK 09/08/98 07684 192 SHORT, LEONARD 12/14/98 67136 193 MIKULAK, JASON 01/04/99 07856 194 KING, JOHN 03/01/99 08010 195 SEEBA, ANNETTE 03/01/99 08014 196 BELLEROSE, MICHAEL 03/01/99 08021 197 GUSTAFSON, JENNIFER 03/01/99 08023 198 WELBORN, LISA 03/01/99 08026 199 DEARSTYNE, WADE 03/01/99 08029 200 FAULRING, MARCEL 03/01/99 08033

APPENDIX A

A-5

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

201 CLAUS, WILLIAM 04/12/99 08089 202 BUMANN, RYAN 04/12/99 08090 203 O KEEFE, WILLIAM 04/14/99 67354 204 QUACO, JASON 04/14/99 67356 205 HARMS, KEVIN 05/03/99 08138 206 FRYHLING, SKIP 05/03/99 08139 207 BARON, CORY 05/03/99 08140 208 NOYES, ROBERT 07/06/99 08270 209 PINION, ANTHONY 07/06/99 08273 210 WEGNER, MICHAEL 07/06/99 08277 211 TRENDA, DAVID 07/06/99 08278 212 MORITZ, CRAIG 08/25/99 67622 213 BURDETTE, JASON 08/25/99 67619 214 HOWARD, JOHN 09/07/99 08492 215 LANGLEY, LEIGH ANNE 10/18/99 08578 216 ANDERSON, FAYE 10/18/99 08579 217 FARMER, ALEAH 10/18/99 08581 218 BAKER, MICHAEL 11/01/99 08641 219 COWGER, CHADWICK 11/01/99 08646 220 NEWCOMB, PATRICK 11/30/99 08749 221 CARPER, DAVID 01/03/00 08797 222 SURFACE, WILLIAM 01/03/00 08798 223 DAVIDSON, MISTY 01/03/00 08802 224 POTTIER, FREDERIC 01/31/00 08890 225 GREEN, WILLIAM 02/14/00 67984 226 ORACZEWSKI, STANLEY 02/14/00 67987 227 COURSEY, MICHAEL 03/06/00 08985 228 PEREZ, BENIGNO 03/06/00 08986 229 O BRIEN, TODD 03/20/00 70088 230 ABRUZZO, MICHAEL 05/01/00 09120 231 BEAUDOIN, MICHAEL 05/01/00 09121 232 QUIRK, GINA 05/01/00 09122 233 DRAPER, EDMUND 05/01/00 09125 234 DETWILER, GREG 05/15/00 70256 235 FIKSE, WADE 06/05/00 09219 236 DUFF, CHRISTOPHER 06/05/00 09224 237 BANKSTON, BRENTON 06/19/00 70316 238 YODER, PAUL 06/19/00 70324 239 DEBENHAM, DAVID 07/05/00 09304 240 KEHL, MARC 07/05/00 09306 241 YOUNG, FRANCIS 07/05/00 09307 242 ANDRUS, MICHAEL 07/05/00 09308 243 ADDINGTON, CHRISTOPHER 07/05/00 09309 244 COLBERT, RONAN 07/05/00 09312 245 EASON, KENNETH 07/19/00 70381 246 GIARDINA, CARMINE 07/19/00 70384 247 DENNEY, RUSSELL 07/19/00 70380 248 GONZALEZ, NOELIA 08/14/00 09414 249 MILES, EDWARD 08/14/00 09415 250 SCHEPISE, JOHN 08/14/00 09418

APPENDIX A

A-6

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

251 KREBS, MARK 08/16/00 67444 252 WILLS, ANDREW 09/05/00 09462 253 HETRICK, TODD 09/18/00 70509 254 BRUCE, TIMOTHY 09/18/00 70504 255 HAWKINS, DONALD 09/25/00 09492 256 SMITH, B. CAMERON 10/02/00 09529 257 MILLER, DAVID 10/02/00 09531 258 BOCKLER, MICHAEL 10/02/00 09532 259 MASON, ROBERT 10/18/00 70613 260 LELLI, STEPHEN 10/18/00 70612 261 ROSE, BRADLEY 11/06/00 09647 262 SMITH, MICHELE 11/06/00 09648 263 BAETZHOLD, WILLIAM 11/06/00 09649 264 HENNESSEY, KEVIN 11/06/00 09650 265 TYGER, DANIEL 12/27/00 70743 266 GARVER, PHILIP 12/27/00 70740 267 SCHINELLER, KENNETH 12/27/00 70741 268 MC IVOR, COLM 01/02/01 09733 269 RADOMSKY, VLADIMIR 01/15/01 70798 270 SGRIGNOLI, TODD 01/15/01 70799 271 HOUGHTON, CHASE 01/15/01 70795 272 DENNIS, RICHARD 02/05/01 10175 273 PATRONIS, NICHOLAS 02/05/01 10176 274 MANNA, JOSEPH 02/12/01 70841 275 MEIGS, ERIC 02/12/01 70842 276 MAC DONALD, EUGENE 02/12/01 70840 277 SOLGA, GREGORY 02/12/01 70845 278 KELLY, ELIJAH 03/06/01 10289 279 PATTERSON, DAVID 03/06/01 10291 280 SCHLAFMANN, JAY 03/06/01 10292 281 SKOWRONSKI, PAUL 03/21/01 70923 282 LE DIGABEL, DENIS 03/21/01 70925 283 LODES, CLAUDIO 04/02/01 70974 284 TAYLOR, JAMES 04/02/01 70976 285 BERREVOETS, MICHAEL 04/02/01 70971 286 BUERGEL, CHRISTOPHER 04/02/01 70972 287 LEANO, JOSE 04/03/01 10412 288 PENGELLY, SHANE 04/03/01 10415 289 WADE, ROLLA 04/16/01 71058 290 GIOVAGNOLI, RON 04/16/01 71049 291 PONICI, ADRIAN 04/16/01 71055 292 HALL, STEVEN 05/01/01 10507 293 MAGNESS, JASON 05/01/01 10509 294 CARLIN, JANVIERE 05/01/01 10511 295 KLINE, DEREK 05/14/01 71351 296 KRAFT, DENLEE 05/14/01 71352 297 GERBUS, DANIEL 06/05/01 10664 298 LEGGETT, ROBERT 06/06/01 71503 299 BLONDIN, SHANE 06/06/01 71502 300 ISHLER, TIMOTHY 06/15/01 71650

APPENDIX A

A-7

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

301 BOIVIN, GREGORY 06/15/01 71646 302 HOOKS, TIMOTHY 07/02/01 71876 303 MAKANOFF, ERIC 07/02/01 71878 304 RADOSAV, ADRIAN 07/02/01 71881 305 OXLEY, BENJAMEN 07/05/01 10803 306 SMITH, ANTHONY 07/05/01 10807 307 MAGOULAS, KYRIAKOS 07/05/01 10809 308 DEAN, DERRICK 07/17/01 71975 309 GUNKEL, GARY 08/06/01 72137 310 CAMERON, KEVIN 08/07/01 10974 311 CALLANDER, KRISTA 08/07/01 10980 312 BUNGO, CHRISTINE 08/07/01 10981 313 NEALL, JEFFREY 08/07/01 10982 314 ROBISON, KIMBERLY 09/04/01 11070 315 LOZANO, DANIEL 09/04/01 11073 316 TOWNSEND, CHARLOTTE 09/04/01 11075 317 LEIST, MATTHEW 11/27/01 11985 318 SCHWARTZ, MICHAEL 12/12/01 72479 319 SANDNES, PETTER 12/12/01 72478 320 QUINBY, COLIN 01/02/02 12114 321 FELTZ, DEREK 01/02/02 12115 322 MC GUIGAN, SCOTT 01/02/02 12120 323 FITZGERALD, ROBERT 01/02/02 12123 324 LANUZA, ALVARO 01/08/02 72588 325 THOMPSON, DOUGLAS 01/08/02 72581 326 SILVA, RICHARD 02/04/02 12416 327 SCROBOLA, MICHAEL 04/01/03 00577 328 GAMBLE, ALBERT 11/10/03 13620 329 THORNTON, ROBERT 02/02/04 13723 330 LAUX, ROBERT 02/02/04 13725 331 GORKA, LEE 02/02/04 13729 332 ERIKSON, SHANE 03/22/04 13782 333 HETLET, JASON 03/22/04 13785 334 VAN LEEUWEN, DANIEL 04/19/04 13828 335 COATES, CARA 04/19/04 13829 336 JETT, DOUGLAS 04/19/04 13831 337 YECKLEY, DANIEL 04/19/04 13832 338 JONES, ROBERT 04/19/04 13834 339 MEYER, TODD 04/19/04 13835 340 FRIZZELLE, WILLIAM 05/06/04 13862 341 SCHILL, VICTOR 05/06/04 13864 342 YOUNG, JASON 05/06/04 13866 343 HOISTAD, TYLER 05/06/04 13868 344 PALMER, BRADLEY 05/06/04 13870 345 MC NELIS, BETHANY 05/06/04 13872 346 BETSCH, DAVID 06/02/04 13963 347 KNISLEY, JASON 06/02/04 13967 348 PARDUE, CHAZ 06/02/04 13969 349 FLORIN, CHRISTOPHER 06/02/04 13970 350 MC DONALD, MICHAEL 06/21/04 14011

APPENDIX A

A-8

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

351 ATKINSON, ELIZABETH 06/21/04 14012 352 BRENNAN, RYAN 06/21/04 14013 353 DYCK, SCOTT 06/21/04 14016 354 GARIN, STEVEN 06/21/04 14018 355 KINNEY, THERON 06/21/04 14019 356 MARKHAM, JEFFREY 06/21/04 14021 357 WARING, ELIZABETH 06/21/04 14022 358 COWGER, BRYAN 07/19/04 14080 359 MLNARIK, JOSHUA 07/19/04 14082 360 FRETSCHEL, MICHAEL 07/19/04 14083 361 WINTER, RICK 07/19/04 14086 362 ECKELBERG, TRAVIS 07/19/04 14087 363 KINGSLEY, WILLIAM 07/19/04 14088 364 DARRAGH, THOMAS 07/19/04 14089 365 TIMPANE, ERIK 07/19/04 14091 366 MC NELIS, RYAN 07/19/04 14092 367 DANIELS, CASEY 07/19/04 14099 368 MC GLADE, KYLE 07/19/04 14100 369 GARBAT, TIMOTHY 08/16/04 14287 370 CAVANAUGH, ZACHARY 08/16/04 14288 371 ANDERSON, ANNA 08/16/04 14289 372 BARONI, MATTHEW 08/16/04 14291 373 GOEKE, GREGORY 08/16/04 14292 374 CARLSON, BO 08/16/04 14293 375 JOHNSON, BRYAN 08/16/04 14296 376 THOMASSON, LORI 08/16/04 14297 377 QUADY, SAMUEL 08/16/04 14298 378 BECK, COLIN 09/08/04 14401 379 WHEELER, MICHAEL 09/08/04 14402 380 BOYETTE, DANIEL 09/08/04 14404 381 TUTAK, CHRISTOPHER 09/08/04 14405 382 BECKERICH, GEORGE 09/08/04 14410 383 HUDDLE, DAVID 09/08/04 14412 384 STEWARD, JOHN 10/18/04 14575 385 WEGSCHEID, RYAN 10/18/04 14577 386 CAIN, CLIFTON 10/18/04 14578 387 GOSSELING, JOSHUA 10/18/04 14579 388 LUTES, STACY 10/18/04 14583 389 ABBOTT, CRAIG 11/01/04 14661 390 MESSERSCHMIDT, BRIAN 11/01/04 14663 391 BENNETT, ANTHONY 11/15/04 14724 392 RAJALA, DAVIN 11/15/04 14725 393 DRAGER, KRISTOFER 11/15/04 14728 394 BOGEN, ANDREW 11/15/04 14731 395 MERDAN, PATRICK 12/06/04 14778 396 CARIVEAU, NATHAN 12/06/04 14780 397 BREZICHA, ANDREW 12/06/04 14781 398 FEDON, KRISTIN 12/06/04 14785 399 KEANEY, PETER 12/06/04 14787 400 LEAVENS, PAUL 12/06/04 14788

APPENDIX A

A-9

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

401 SHOCKMAN, JONATHAN 12/28/04 14838 402 GLADE, MATTHEW 12/28/04 14839 403 TRENDA, DANIEL 12/28/04 14841 404 COMELLA, AUGUST 02/14/05 14987 405 KRUGER, JESSE 02/14/05 14988 406 JORDAN, KEVIN 02/14/05 14989 407 SULLIVAN, CATHERINE 02/14/05 14992 408 BURGOS, TONI 02/14/05 14997 409 KORTUM, WALTER 02/14/05 14998 410 THOMPSON, GREGORY 03/14/05 15128 411 KUBIAK, DANIEL 03/14/05 15130 412 JOHN, NICHOLAS 03/14/05 15135 413 GRESSETT, JOHN 03/14/05 09526 414 BALL, KEITH 03/14/05 15136 415 COX, MARK 03/14/05 15138 416 QUINN, SCOTT 04/18/05 15290 417 FARLEY, MEGAN 04/18/05 15293 418 ALLEN, STEVEN 04/18/05 15295 419 SCHMIDT, JOSEPH 04/18/05 15296 420 TABOR, BRITTON 04/18/05 15297 421 KRANZ, JOHN 06/06/05 15634 422 KUBAN, ERIC 06/06/05 15635 423 FOSKUHL, RUDY 06/06/05 15636 424 PATEL, ERIK 08/08/05 16092 425 MEANS, PHILLIP 08/08/05 16093 426 RICE, ANDREW 08/08/05 16097 427 OWENS, CHRISTIAN 10/10/05 16497 428 GUNDERSON, JOSHUA 10/10/05 16498 429 FINNEN, KENT 10/10/05 16502 430 SCHMIDT, GLENN 10/10/05 16503 431 FRIEND, COREY 10/10/05 16504 432 GREER, PETER 10/10/05 16507 433 MCILQUHAM, CHAD 10/10/05 16508 434 RACANELLI, JOHN 10/10/05 16511 435 ROOS, SHANNON 10/10/05 16512 436 CORMAN, RICHARD 03/06/06 17286 437 SKINNER, JOSEPH 03/06/06 17287 438 KOUNEEV, DIMETRY 03/06/06 17288 439 SHAVER, MICHAEL 03/06/06 17290 440 BRIGAGAO, DANIEL 03/06/06 17292 441 COOPER, DANIEL 03/06/06 17293 442 OSPINO, DAVID 03/27/06 17361 443 MESSENGER, JASON 03/27/06 17362 444 ADDISON, DAVID 03/27/06 17364 445 KENNEY, MICHAEL 05/22/06 17661 446 MC COMBS, RYAN 05/22/06 17662 447 ROCCASALVA, ANDREW 05/22/06 17663 448 KANZINGER, ROSS 05/22/06 17664 449 MANNELLO, MARK 05/22/06 17665 450 KOPPANEN, MARKKU 05/22/06 17666

APPENDIX A

A-10

PIEDMONT AIRLINES PILOT SENIORITY LIST JANUARY 2007

NUMBER NAME DATE OF HIRE EMP. NO.

451 ANDERSEN, SARAH 05/22/06 17667 452 ZACHARIASON, CHAD 05/22/06 17668 453 VEIRS, MICHAEL 05/22/06 17669 454 FLOOD, MATTHEW 05/22/06 17675 455 FLOOD, MARK 05/22/06 17676 456 DEMETER, AARON 06/12/06 17846 457 WERNER, JOHN 06/12/06 17847 458 MOORE, ZACHARY 06/12/06 17848 459 WOOLWINE, MATTHEW 06/12/06 17850 460 WILDNER, WILLIAM 06/12/06 17851 461 STALKER, ERIC 06/12/06 17852 462 STEPANEK, BRIAN 06/12/06 17853 463 SIMEK, JAMIE 07/17/06 18033 464 HECKMAN, MICHAEL 07/17/06 18035 465 FIORELLI, ROBERT 07/17/06 18036 466 SEGALE, NICHOLAS 08/14/06 18193 467 RYAN, AMBER 08/14/06 18195 468 SCHOOLER, TERRANCE 08/14/06 18196 469 ALDERINK, MICHAEL 08/14/06 18197 470 CHAODHARY, MODASSAR 08/14/06 18198 471 GERSTEL, BRIAN 08/14/06 18199 472 PETEK, PERRY 10/16/06 18502 473 SCHAFER, MICHAEL 10/16/06 18503 474 HOWARD, ANTHONY 10/16/06 18504 475 FOSTER, JUSTIN 10/16/06 18505 476 CORRADO, JOSEPH 10/16/06 18507 477 MATOL, PATRICK 10/16/06 18508 478 O NEIL, PATRICK 10/16/06 18509 479 SPANJER, DAVID 10/16/06 18511 480 MCILQUHAM, DUSTIN 10/16/06 18513 481 PARTAIN, BRADLEY 10/16/06 18514 482 BAMBER, STEVEN 10/16/06 18515

APPENDIX B

B-1

The following carriers and charter companies are approved for use by the Company when deadheading pilots outside their domicile: 1. All scheduled Part 121 carriers. 2. All scheduled Part 135 carriers. 3. Charter

a. Salisbury Maryland Air Lines Easton Airport (800) 451-5693 East Coast Flight Service Easton Airport (410) 820-6633 Mid-Atlantic Charter Salisbury (410) 548-1433

(410) 860-3727 b. Lynchburg

Falwell Aviation Falwell Airport (804) 845-8769 c. Norfolk

Piedmont Aviation Norfolk Int’l (804) 857-3273 (800) 486-4041

Air Charter Services Norfolk Int’l (804) 422-0033 d. Patrick Henry

Flight International Newport News (804) 886-5755 e. New Bern

ISO Aero Services Kinston Airport (919) 522-1135 f. Jacksonville

Jacksonville Jet Service Jacksonville Int’l (904) 741-4222 (800) 283-5388

Corporate Airways Craig Regional (904) 641-0001 g. Tampa

Signature Aviation St. Petersburg (813) 531-1441 Jet Executive St. Petersburg (813) 530-3453

FOR THE AIR LINE PILOTS ASSOCIATION FOR PIEDMONT AIRLINES, INC. Bob H. Pantazis Stephen R. Farrow MEC Chairman Vice President - Flight Operations

APPENDIX C

C-1

PIEDMONT AIRLINES, INC. MEDICAL/DENTAL/PRESCRIPTION DRUG PLAN WAIVER

PILOT’S NAME: In accordance with Company policy and the collective bargaining agreement between Piedmont Airlines, Inc. and the Air Line Pilots Association, I elect to waive coverage under the Company-maintained Medical, Dental and Prescription Drug Plans (together, the “Company Health Plans”). I understand that I will be responsible for any medical, dental, and prescription drug expenses that my family members or I incur (unless the expenses are covered under another health plan). I understand that by waiving my coverage under the Company Health Plans, the Company will make a monthly payment to me of $40.00 (or such higher amount as the collective bargaining agreement requires). I understand that the monthly payment will commence in the first month I would have been eligible to be covered under the Company Health Plans if I had not waived such coverage. I further understand that I may revoke this waiver of coverage and enroll for prospective coverage under the Company Health Plans during the annual open enrollment period for the Company Health Plans and at such other times as may be permitted by the Company Health Plans such as change in life status situations. I understand that if I enroll for prospective coverage, the coverage may be subject to pre-existing condition limitations in accordance with the Company Health Plans and applicable law. I agree to provide the company proof of coverage under another health care plan and to hold harmless the Company and the Air Line Pilots Association for any expenses or liabilities incurred as a consequence of my election to waive coverage under the Company Health Plans. Pilot’s Signature Date

RETURN TO: Piedmont Airlines, Inc.

Attn: Human Resources 1000 Rosedale Avenue Middletown, PA 17057