Buy Out Information

Your MEC Buy-Out Committee has been working hard over the past several months to create a Buy-Out with the company that is comparable to those being given industry-wide and our current payscale. A joint letter from AFA and the Company has gone out and additional information, including a Q&A can be found in the In-flight Services section of JetNet. In order to qualify, you have to have been a Flight Attendant at American Eagle for at least 10 years. If you are interested in either of the options below, you must submit your request to the company no later than close of business on August 20, 2008. Through negotiations with the company we were also able to secure the VBR (Voluntary Bridge to Retirement). Please keep in mind that if you select any of these options, your separation from the Company is permanent without rights to recall.

The following are key points to the Buy-Out:

Special Termination Pay (STP)

􀂾 Eligibility: All active Flight Attendants who have 10 or more years of service as an American Eagle Flight Attendant, and are on active U.S. payroll from July 15, 2008 through September 30, 2008 or on a leave of absence (with reinstatement rights) for one year or less as of July 15, 2008.

􀂾 Permanent separation without recall rights.

􀂾 Severance: $12,000.

􀂾 COBRA Medical Coverage: The Flight Attendant will be eligible to continue your current health benefits at the applicable COBRA rate for up to 18 months following the effective separation date.

􀂾 Travel: None.

􀂾 Separation Date: At Flight Service discretion subject to operational needs but no later than December 31, 2008.

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Voluntary Bridge to Retirement- To be awarded in advance of other types of leaves of absence. The Company reserves the right to limit the number of Flight Attendants who may accept the program, and to discontinue the program at any time.

􀂾 Eligibility: A Flight Attendant, not currently on furlough, who is at least 50 years of age, with at least 15 years of Company Seniority as of August 31, 2008.

􀂾 Permanent separation without recall rights.

􀂾 Severance: $12,000.

􀂾 COBRA Medical Coverage: The Flight Attendant will be eligible to continue your current health benefits at the applicable COBRA rate for up to 18 months following the effective separation date.

􀂾 Travel: AA/AE travel only, D2 eligible travelers only and subject to imputed income after 90 days. At age 55, retiree travel will be identical to travel for other Eagle retirees.

􀂾 Separation Date: At Flight Service discretion subject to operational needs but no later than December 31, 2008.

If you have any further questions after reading the information posted on JetNet, please contact your Local President.

In Unity,

Your AFA-CWA American Eagle MEC