APPENDIX A LETTER-I January 29, 1994

Ms. Denise Hedges
President
Association of Professional
Flight Attendants
1004 W. Euless Blvd.
Euless, Texas 76040-5018

Dear Denise:

During the course of the negotiations that led to the Agreement effective March 23, 1994, the subject of a new non-adversarial Dispute Resolution Process was discussed and agreed to.

In order to ensure the successful implementation of the new non-adversarial Dispute Resolution Process, the Company and APFA agree that joint Alternative Dispute Resolution/Conflict Resolution training will be conducted as soon as practicable after ratification of this Collective Bargaining Agreement.

The cost of any such training shall be borne jointly between the Company and APFA. Each party shall be responsible for the costs associated with travel, incidentals and/or trip removals of their respective participants.

Prior to the implementation of the new Dispute Resolution Process, the Company and APFA will select and retain the services of an individual or firm experienced in the field of alternative dispute/conflict resolution to:

1) conduct initial training for APFA representatives and Flight Service personnel; 2) audit the dispute resolution process during the first twelve (12) months following the completion of initial training; 3) provide feedback to the parties regarding the success of the new process; and 4) conduct any retraining during the first twelve (12) months following the completion of initial training as determined appropriate by the APFA and the Company.

For purposes of computing the twelve (12) month periods described above, the twelve(12) months shall be calculated from the beginning of the contractual month next following the month in which the initial training has been completed.

In addition, eighteen (18) months following the completion of initial training, one or both parties may determine that problems exist with the Dispute Resolution Process and there is a need to consult the trainer. If there is mutual agreement regarding the existence of problems and the need to consult the trainer, both parties shall share the expense of the trainer. If there is no mutual agreement regarding the existence of problems or the need to consult the trainer, the party identifying the need for the trainer shall bear the expense of the trainer. In either case, the recommendations of the trainer are not binding on either party. Each party shall be responsible for any costs associated with travel, incidentals, and/or trip removals of their respective participants. For purposes of computing the eighteen (18) months period described above, the eighteen (18) months will be calculated from the beginning of the contractual month next following the month in which the initial training has been completed.

Appendix A, Letter-I

192

The individual or firm selected will also conduct ATrain the Trainer@ sessions so that ongoing training for new Company and APFA personnel can be jointly presented by trained Company and APFA representatives.

The Company and the APFA will take into consideration the recommendations of the individual or firm selected in regard to the implementation of the procedures described herein.

The Company and APFA will monitor the process and meet as needed to ensure its successful implementation.

Very truly yours, Jane G. Allen Vice President Employee Relations

Agreed to this date: January 29, 1994

Denise Hedges, President
Association of Professional
Flight Attendants

Appendix A, Letter-I