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op:9.75%;
 left:3.93%;width:92.32%;height:7.5%'><span style=3D'font-size:82%'><b>Exam=
ples
 of Areas of Potential Cost </b></span></span><span style=3D'position:absol=
ute;
 top:17.75%;left:8.42%;width:83.14%;height:7.5%'><span style=3D'font-size:8=
2%'><b>Synergies
 From a Merger</b></span></span></div>
 <div v:shape=3D"_x0000_s5123">
 <div class=3DB style=3D'position:absolute;top:30.0%;left:8.42%;width:83.14=
%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.5%;width:95.49=
%;
 height:100.0%'><span style=3D'font-size:88%'><span style=3D'mso-special-fo=
rmat:
 bullet;position:absolute;left:-4.71%;font-family:Wingdings'>&sect;</span><=
/span><span
 style=3D'font-size:88%'>Rental Expense (other than aircraft)&#13;</span></=
span></div>
 <div class=3DB1 style=3D'position:absolute;top:37.5%;left:13.48%;width:81.=
08%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:3.92%;width:96.0=
7%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-4.08%;font-family:Wingdings'>&sect;</span>Combining space, ground
 equipment, etc.&#13;</span></div>
 <div class=3DB style=3D'position:absolute;top:45.0%;left:8.42%;width:83.14=
%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.5%;width:95.49=
%;
 height:100.0%'><span style=3D'font-size:88%'><span style=3D'mso-special-fo=
rmat:
 bullet;position:absolute;left:-4.71%;font-family:Wingdings'>&sect;</span><=
/span><span
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pan></div>
 <div class=3DB1><span style=3D'position:absolute;top:52.5%;left:16.66%;wid=
th:82.2%;
 height:6.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-3.87%;font-family:Wingdings'>&sect;</span>Combining office space, jo=
int
 purchasing of </span><span style=3D'position:absolute;top:58.5%;left:16.66=
%;
 width:75.09%;height:6.0%'>supplies, etc.&#13;</span></div>
 <div class=3DB style=3D'position:absolute;top:66.0%;left:8.42%;width:83.14=
%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.5%;width:95.49=
%;
 height:100.0%'><span style=3D'font-size:88%'><span style=3D'mso-special-fo=
rmat:
 bullet;position:absolute;left:-4.71%;font-family:Wingdings'>&sect;</span><=
/span><span
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3;</span></span></div>
 <div class=3DB1 style=3D'position:absolute;top:73.5%;left:13.48%;width:78.=
08%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.07%;width:96.1=
6%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-4.23%;font-family:Wingdings'>&sect;</span>Combining of redundant
 staff&#13;</span></div>
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%;
 height:6.0%'><span style=3D'mso-special-format:nobullet;display:none;font-=
family:
 Wingdings'>&Oslash;</span><span style=3D'font-size:88%;mso-special-format:=
lastCR;
 display:none'>&#13;</span></div>
 </div>
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Merger
 Considerations</b></span></div>
 <div v:shape=3D"_x0000_s6147" class=3DB>
 <div style=3D'mso-line-spacing:"90 20 0";position:absolute;top:35.75%;
 left:8.42%;width:85.2%;height:6.0%'><span style=3D'mso-special-format:nobu=
llet;
 display:none;font-family:Wingdings'>&sect;</span><span style=3D'font-size:=
88%'>Mergers
 involve four fundamental challenges&#13;</span></div>
 <div style=3D'mso-line-spacing:"90 20 0";position:absolute;top:42.75%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
 top:0%;left:4.5%;width:95.49%;height:100.0%'><span style=3D'font-size:88%'=
><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Different
 systems&#13;</span></span></div>
 <div style=3D'mso-line-spacing:"90 20 0";position:absolute;top:49.5%;left:=
8.42%;
 width:83.14%;height:6.0%'><span style=3D'position:absolute;top:0%;left:4.5=
%;
 width:95.49%;height:100.0%'><span style=3D'font-size:88%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Different fle=
et
 types&#13;</span></span></div>
 <div style=3D'mso-line-spacing:"90 20 0";position:absolute;top:56.49%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
 top:0%;left:4.5%;width:95.49%;height:100.0%'><span style=3D'font-size:88%'=
><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Workforce
 integration issues&#13;</span></span></div>
 <div style=3D'mso-line-spacing:"90 20 0";position:absolute;top:63.24%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
 top:0%;left:4.5%;width:95.49%;height:100.0%'><span style=3D'font-size:88%'=
><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Cultural
 differences</span></span></div>
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.0%;
 left:4.86%;width:90.44%;height:9.25%'><span lang=3DEN-GB>Merger/Fragmentat=
ion
 Models</span></div>
 <div v:shape=3D"_x0000_s47107">
 <div class=3DB style=3D'position:absolute;top:28.99%;left:8.42%;width:83.1=
4%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.5%;width:95.49=
%;
 height:100.0%'><span style=3D'font-size:88%'><span class=3DBB style=3D'pos=
ition:
 absolute;left:-4.71%'>&#8226;</span></span><span lang=3DEN-GB style=3D'fon=
t-size:
 88%'>Two Structural Merger Models&#13;</span></span></div>
 <div class=3DB1><span style=3D'position:absolute;top:36.25%;left:16.66%;
 width:87.45%;height:5.25%'><span style=3D'font-size:86%'><span class=3DB1B
 style=3D'position:absolute;left:-3.64%'>&#8211;</span></span><span lang=3D=
EN-GB
 style=3D'font-size:86%'>The full operational integration model with employ=
ees </span></span><span
 style=3D'position:absolute;top:41.5%;left:16.66%;width:75.09%;height:5.25%=
'><span
 lang=3DEN-GB style=3D'font-size:86%'>merged&#13;</span></span></div>
 <div class=3DB1><span style=3D'position:absolute;top:48.0%;left:16.66%;wid=
th:84.26%;
 height:5.25%'><span style=3D'font-size:86%'><span class=3DB1B style=3D'pos=
ition:
 absolute;left:-3.77%'>&#8211;</span></span><span lang=3DEN-GB style=3D'fon=
t-size:
 86%'>No operational integration. A holding company with </span></span><span
 style=3D'position:absolute;top:53.25%;left:16.66%;width:77.71%;height:5.25=
%'><span
 lang=3DEN-GB style=3D'font-size:86%'>operational entities (the double brea=
sting
 model)&#13;</span></span></div>
 <div class=3DB><span style=3D'position:absolute;top:60.0%;left:12.17%;widt=
h:90.26%;
 height:6.0%'><span style=3D'font-size:88%'><span class=3DBB style=3D'posit=
ion:absolute;
 left:-4.14%'>&#8226;</span></span><span lang=3DEN-GB style=3D'font-size:88=
%'>Fragmentation
 Models involving the sale of part </span></span><span style=3D'position:ab=
solute;
 top:66.25%;left:12.17%;width:79.4%;height:6.0%'><span lang=3DEN-GB
 style=3D'font-size:88%'>of an airline &#13;</span></span></div>
 <div class=3DB1><span style=3D'position:absolute;top:73.25%;left:16.66%;
 width:82.58%;height:5.25%'><span style=3D'font-size:86%'><span class=3DB1B
 style=3D'position:absolute;left:-3.85%'>&#8211;</span></span><span lang=3D=
EN-GB
 style=3D'font-size:86%'>A transaction between two carriers involving asset=
s </span></span><span
 style=3D'position:absolute;top:78.75%;left:16.66%;width:75.09%;height:5.25=
%'><span
 lang=3DEN-GB style=3D'font-size:86%'>only&#13;</span></span></div>
 <div class=3DB1><span style=3D'position:absolute;top:85.0%;left:16.66%;wid=
th:82.39%;
 height:5.25%'><span style=3D'font-size:86%'><span class=3DB1B style=3D'pos=
ition:
 absolute;left:-3.86%'>&#8211;</span></span><span lang=3DEN-GB style=3D'fon=
t-size:
 86%'>A transaction between carriers involving assets and </span></span><sp=
an
 style=3D'position:absolute;top:90.5%;left:16.66%;width:75.09%;height:5.25%=
'><span
 lang=3DEN-GB style=3D'font-size:86%'>people</span></span></div>
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  type=3D"#_x0000_m1026" style=3D'position:absolute;left:54pt;top:48pt;widt=
h:612pt;
  height:90pt'>
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  <p:placeholder type=3D"title"/></v:shape><p:shaperange
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  style=3D'position:absolute;left:54pt;top:156pt;width:612pt;height:324pt'>
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 top:9.0%;left:8.42%;width:83.14%;height:8.5%'><span lang=3DEN-GB
 style=3D'font-size:91%'>US Consolidation Since </span></span><span
 style=3D'position:absolute;top:17.75%;left:8.42%;width:83.14%;height:8.5%'=
><span
 lang=3DEN-GB style=3D'font-size:91%'>Deregulation</span></span></div>
 <div v:shape=3D"_x0000_s48131" class=3DB><span style=3D'position:absolute;
 top:30.0%;left:12.17%;width:90.82%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 class=3DBB style=3D'position:absolute;left:-4.12%'>&#8226;</span></span><s=
pan
 lang=3DEN-GB style=3D'font-size:88%'>In the 1980&#8217;s numerous mergers =
and at
 least two </span></span><span style=3D'position:absolute;top:36.25%;left:1=
2.17%;
 width:79.4%;height:6.0%'><span lang=3DEN-GB style=3D'font-size:88%'>exampl=
es of
 fragmentation transactions&#13;</span></span><span style=3D'position:absol=
ute;
 top:43.75%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 class=3DBB style=3D'position:absolute;left:-4.71%'>&#8226;</span></span><s=
pan
 lang=3DEN-GB style=3D'font-size:88%'>In the 1990&#8217;s no mergers - nume=
rous </span></span><span
 style=3D'position:absolute;top:50.0%;left:12.17%;width:79.4%;height:6.0%'>=
<span
 lang=3DEN-GB style=3D'font-size:88%'>fragmentation transactions&#13;</span=
></span><span
 style=3D'position:absolute;top:57.25%;left:12.17%;width:87.82%;height:6.0%=
'><span
 style=3D'font-size:88%'><span class=3DBB style=3D'position:absolute;left:-=
4.26%'>&#8226;</span></span><span
 lang=3DEN-GB style=3D'font-size:88%'>In 2000&#8217;s one earlier merger
 (TWA/American) </span></span><span style=3D'position:absolute;top:63.5%;
 left:12.17%;width:79.4%;height:6.0%'><span lang=3DEN-GB style=3D'font-size=
:88%'>and
 one recent fragmentation transaction&#13;</span></span><span style=3D'posi=
tion:
 absolute;top:71.0%;left:12.17%;width:91.19%;height:6.0%'><span
 style=3D'font-size:88%'><span class=3DBB style=3D'position:absolute;left:-=
4.1%'>&#8226;</span></span><span
 lang=3DEN-GB style=3D'font-size:88%'>Pending US Airways/America West merge=
r may </span></span><span
 style=3D'position:absolute;top:77.25%;left:12.17%;width:79.4%;height:6.0%'=
><span
 lang=3DEN-GB style=3D'font-size:88%'>be the tip of the iceberg</span></spa=
n></div>
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visibility:hidden'><p:slide coordsize=3D"720,540"
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  href=3D"master03.xml#_x0000_s1029"/><p:shaperange
  href=3D"master03.xml#_x0000_s1030"/>
 <div v:shape=3D"_x0000_s1030" class=3DO>
 <div style=3D'text-align:right;position:absolute;top:92.0%;left:72.65%;
 width:18.91%;height:3.0%'><span style=3D'font-size:58%;mso-field-code:meta=
16'>7</span><span
 style=3D'font-size:58%;mso-special-format:lastCR;display:none'>&#13;</span=
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 </div>
 <![endif]><p:shaperange href=3D"master03.xml#_x0000_m1026"/><v:shape id=3D=
"_x0000_s49154"
  type=3D"#_x0000_m1026" style=3D'position:absolute;left:59.5pt;top:37.5pt;=
width:612pt;
  height:102.125pt'>
  <v:fill o:detectmouseclick=3D"f"/>
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  <p:placeholder type=3D"title"/></v:shape><p:shaperange
  href=3D"master03.xml#_x0000_m1027"/><v:shape id=3D"_x0000_s49155" type=3D=
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  style=3D'position:absolute;left:53.875pt;top:3in;width:612pt;height:324pt=
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 <div v:shape=3D"_x0000_s49154" class=3DT style=3D'position:absolute;top:12=
.0%;
 left:9.36%;width:83.14%;height:9.25%'><span lang=3DEN-GB>European Union</s=
pan></div>
 <div v:shape=3D"_x0000_s49155">
 <div class=3DB><span style=3D'position:absolute;top:41.0%;left:12.17%;widt=
h:87.82%;
 height:6.75%'><span class=3DBB style=3D'position:absolute;left:-4.26%'>&#8=
226;</span><span
 lang=3DEN-GB>In the 2000&#8217;s there have been four recent </span></span=
><span
 style=3D'position:absolute;top:48.25%;left:12.17%;width:79.4%;height:6.75%=
'><span
 lang=3DEN-GB>mergers&#13;</span></span></div>
 <div class=3DB1 style=3D'position:absolute;top:56.49%;left:13.48%;width:78=
.08%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.07%;width:96.1=
6%;
 height:100.0%'><span class=3DB1B style=3D'position:absolute;left:-4.23%'>&=
#8211;</span><span
 lang=3DEN-GB>Air France/KLM &amp; Lufthansa/Swiss&#13;</span></span></div>
 <div class=3DB1 style=3D'position:absolute;top:64.0%;left:13.48%;width:78.=
08%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.07%;width:96.1=
6%;
 height:100.0%'><span class=3DB1B style=3D'position:absolute;left:-4.23%'>&=
#8211;</span><span
 lang=3DEN-GB>Austrian/Lauda &amp; SAS/Brathens</span></span></div>
 </div>
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visibility:hidden'><p:slide coordsize=3D"720,540"
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></div>
 </div>
 <![endif]><p:shaperange href=3D"master03.xml#_x0000_m1026"/><v:shape id=3D=
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  type=3D"#_x0000_m1026" style=3D'position:absolute;left:54pt;top:48pt;widt=
h:612pt;
  height:90pt'>
  <v:fill o:detectmouseclick=3D"f"/>
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  href=3D"master03.xml#_x0000_m1027"/><v:shape id=3D"_x0000_s7171" type=3D"=
#_x0000_m1027"
  style=3D'position:absolute;left:54pt;top:156pt;width:612pt;height:324pt'>
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 <div v:shape=3D"_x0000_s7170" class=3DT style=3D'position:absolute;top:13.=
75%;
 left:8.42%;width:83.14%;height:7.5%'><span style=3D'font-size:82%'><b>The =
Labor
 Element</b></span></div>
 <div v:shape=3D"_x0000_s7171">
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:29.5%;left:12.17%;width:95.13%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.93%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Labor is the =
key
 element in determining successful </span></span><span style=3D'position:ab=
solute;
 top:35.0%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'>integration
 of merging companies&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:41.75%;left:16.66%;width:84.83%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.75%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Labor laws ne=
ed to
 be understood and applied across </span></span><span style=3D'position:abs=
olute;
 top:46.5%;left:16.66%;width:75.09%;height:5.25%'><span style=3D'font-size:=
86%'>borders
 for this to happen&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:52.5%;left:12.17%;width:89.32%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.19%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Merging compa=
nies
 have to include labor in the </span></span><span style=3D'position:absolut=
e;
 top:58.25%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:8=
8%'>process&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:64.75%;left:16.66%;width:86.14%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.69%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>As a particip=
ant,
 with input into the process, not as an </span></span><span style=3D'positi=
on:
 absolute;top:69.75%;left:16.66%;width:75.09%;height:5.25%'><span
 style=3D'font-size:86%'>observer&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:75.5%;left:16.66%;width:77.34%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.11%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Without labor=
 as a
 player, consolidation will not </span></span><span style=3D'position:absol=
ute;
 top:80.25%;left:16.66%;width:75.09%;height:5.25%'><span style=3D'font-size=
:86%'>succeed</span></span></div>
 </div>
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visibility:hidden'><p:slide coordsize=3D"720,540"
 colors=3D"#0000ff,#ffffff,#000000,#ffff00,#ff9900,#00ffff,#ff0000,#969696"
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 <div style=3D'text-align:right;position:absolute;top:92.0%;left:72.65%;
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16'>9</span><span
 style=3D'font-size:58%;mso-special-format:lastCR;display:none'>&#13;</span=
></div>
 </div>
 <![endif]><p:shaperange href=3D"master03.xml#_x0000_m1026"/><v:shape id=3D=
"_x0000_s8194"
  type=3D"#_x0000_m1026" style=3D'position:absolute;left:54pt;top:48pt;widt=
h:612pt;
  height:90pt'>
  <v:fill o:detectmouseclick=3D"f"/>
  <v:stroke o:forcedash=3D"f"/>
  <o:lock v:ext=3D"edit" text=3D"f"/>
  <p:placeholder type=3D"title"/></v:shape><p:shaperange
  href=3D"master03.xml#_x0000_m1027"/><v:shape id=3D"_x0000_s8195" type=3D"=
#_x0000_m1027"
  style=3D'position:absolute;left:54pt;top:132pt;width:612pt;height:324pt'>
  <v:fill o:detectmouseclick=3D"f"/>
  <v:stroke o:forcedash=3D"f"/>
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 <div v:shape=3D"_x0000_s8194" class=3DT style=3D'position:absolute;top:13.=
75%;
 left:8.42%;width:83.14%;height:7.5%'><span style=3D'font-size:82%'><b>The =
Labor
 Element</b></span></div>
 <div v:shape=3D"_x0000_s8195">
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:2=
5.0%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
 top:0%;left:4.5%;width:95.49%;height:100.0%'><span style=3D'font-size:88%'=
><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Labor issues =
to
 consider:&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
31.75%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:4.07%;width:96.16%;height:100.0%'><span style=3D'font-size:86%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Pay Scales&#1=
3;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
37.5%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:4.07%;width:96.16%;height:100.0%'><span style=3D'font-size:86%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Work Rules&#1=
3;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
43.5%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:4.07%;width:96.16%;height:100.0%'><span style=3D'font-size:86%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Seniority
 Lists&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
49.25%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:4.07%;width:96.16%;height:100.0%'><span style=3D'font-size:86%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Corporate
 Cultures&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:5=
5.25%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
 top:0%;left:4.5%;width:95.49%;height:100.0%'><span style=3D'font-size:88%'=
><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Consolidating=
 Pay
 Scales and Work Rules&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:62.0%;left:16.66%;width:78.46%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.05%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>In most cases=
 labor
 costs differ between merging </span></span><span style=3D'position:absolut=
e;
 top:66.75%;left:16.66%;width:75.09%;height:5.25%'><span style=3D'font-size=
:86%'>companies&#13;</span></span></div>
 <div class=3DB2 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
72.5%;
 left:18.53%;width:73.59%;height:4.25%'><span style=3D'position:absolute;
 top:0%;left:3.3%;width:96.43%;height:100.0%'><span style=3D'font-size:83%'=
><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.43%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:83%'>Large labor c=
ost
 differences can be significant hurdle&#13;</span></span></div>
 <div class=3DB2 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:77.25%;left:20.97%;width:79.58%;height:4.25%'><span style=3D'font-size=
:83%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.05%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:83%'>Differing work
 rules and productivity levels also need to be </span></span><span
 style=3D'position:absolute;top:81.25%;left:20.97%;width:70.59%;height:4.25=
%'><span
 style=3D'font-size:83%'>addressed&#13;</span></span></div>
 <div class=3DB3 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:86.25%;left:26.02%;width:75.84%;height:4.0%'><span style=3D'font-size:=
90%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.2%;font-famil=
y:
 Wingdings'>&sect;</span></span><span style=3D'font-size:90%'>Companies may
 attempt to keep operations separate or run one </span></span><span
 style=3D'position:absolute;top:89.75%;left:26.02%;width:65.73%;height:4.0%=
'><span
 style=3D'font-size:90%'>company as &#8220;subsidiary&#8221;&#13;</span></s=
pan></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:9=
4.5%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'mso-special-format:nob=
ullet;
 display:none;font-family:Wingdings'>&Oslash;</span><span style=3D'font-siz=
e:
 88%;mso-special-format:lastCR;display:none'>&#13;</span></div>
 </div>
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  <v:fill o:detectmouseclick=3D"f"/>
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.75%;
 left:8.42%;width:83.14%;height:7.5%'><span style=3D'font-size:82%'><b>The =
Labor
 Element</b></span></div>
 <div v:shape=3D"_x0000_s10243">
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:29.5%;left:12.17%;width:93.82%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.99%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Why is Labor
 Integration So Important To Airline </span></span><span style=3D'position:=
absolute;
 top:35.0%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'>Consolidations?&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:41.75%;left:16.66%;width:85.01%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.74%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Airline labor,
 especially pilots, are highly skilled and </span></span><span
 style=3D'position:absolute;top:46.5%;left:16.66%;width:76.59%;height:5.25%=
'><span
 style=3D'font-size:86%'>long training cycles make labor a valuable asset&#=
13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:52.5%;left:16.66%;width:76.4%;height:5.25%'><span style=3D'font-size:8=
6%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.16%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Airline labor
 unions often deal directly with the </span></span><span style=3D'position:=
absolute;
 top:57.25%;left:16.66%;width:75.09%;height:5.25%'><span style=3D'font-size=
:86%'>customer&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:63.0%;left:16.66%;width:85.58%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Labor costs a=
re a
 large enough portion of expenses to </span></span><span style=3D'position:=
absolute;
 top:67.75%;left:16.66%;width:75.09%;height:5.25%'><span style=3D'font-size=
:86%'>have
 a major impact on cost structure&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:73.75%;left:16.66%;width:87.45%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.64%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Labor issues =
can
 often lengthen consolidation timeline </span></span><span style=3D'positio=
n:
 absolute;top:78.5%;left:16.66%;width:75.09%;height:5.25%'><span
 style=3D'font-size:86%'>and financially weaken the merged company</span></=
span></div>
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  style=3D'position:absolute;left:54pt;top:156pt;width:612pt;height:324pt'>
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75%;
 left:8.42%;width:83.14%;height:7.5%'><span style=3D'font-size:82%'><b>The =
Labor
 Element</b></span></div>
 <div v:shape=3D"_x0000_s9219">
 <div class=3DB style=3D'position:absolute;top:30.0%;left:8.42%;width:98.12=
%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:3.81%;width:95.9=
9%;
 height:100.0%'><span style=3D'font-size:88%'><span style=3D'mso-special-fo=
rmat:
 bullet;position:absolute;left:-3.97%;font-family:Wingdings'>&sect;</span><=
/span><span
 style=3D'font-size:88%'>Merging Seniority Lists and collective agreements&=
#13;</span></span></div>
 <div class=3DB1 style=3D'position:absolute;top:37.5%;left:13.48%;width:78.=
08%;
 height:6.0%'><span style=3D'position:absolute;top:0%;left:4.07%;width:96.1=
6%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-4.23%;font-family:Wingdings'>&sect;</span>Difficult and sensitive
 process&#13;</span></div>
 <div class=3DB1><span style=3D'position:absolute;top:45.0%;left:16.66%;wid=
th:84.83%;
 height:6.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-3.75%;font-family:Wingdings'>&sect;</span>ALPA has a &#8220;Merger
 Policy&#8221; that is intended </span><span style=3D'position:absolute;
 top:51.24%;left:16.66%;width:75.09%;height:6.0%'>to:&#13;</span></div>
 <div class=3DB2 style=3D'position:absolute;top:58.25%;left:18.53%;width:73=
.22%;
 height:5.25%'><span style=3D'position:absolute;top:0%;left:3.32%;width:96.=
41%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-3.44%;font-family:Wingdings'>&sect;</span>Preserve jobs&#13;</span><=
/div>
 <div class=3DB2 style=3D'position:absolute;top:64.75%;left:18.53%;width:73=
.22%;
 height:5.25%'><span style=3D'position:absolute;top:0%;left:3.32%;width:96.=
41%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-3.44%;font-family:Wingdings'>&sect;</span>Avoid windfalls to either
 group&#13;</span></div>
 <div class=3DB2 style=3D'position:absolute;top:71.25%;left:18.53%;width:86=
.51%;
 height:5.25%'><span style=3D'position:absolute;top:0%;left:2.81%;width:97.=
18%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-2.89%;font-family:Wingdings'>&sect;</span>Maintain or improve pre-me=
rger
 working conditions&#13;</span></div>
 <div class=3DB2 style=3D'position:absolute;top:77.5%;left:18.53%;width:87.=
07%;
 height:5.25%'><span style=3D'position:absolute;top:0%;left:2.79%;width:97.=
2%;
 height:100.0%'><span style=3D'mso-special-format:bullet;position:absolute;
 left:-2.87%;font-family:Wingdings'>&sect;</span>Minimize detrimental chang=
es
 to career expectations&#13;</span></div>
 <div class=3DB1 style=3D'position:absolute;top:84.25%;left:13.48%;width:78=
.08%;
 height:6.0%'><span style=3D'mso-special-format:nobullet;display:none;font-=
family:
 Wingdings'>&sect;</span><span style=3D'mso-special-format:lastCR;display:n=
one'><b>&#13;</b></span></div>
 </div>
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 top:7.0%;left:8.42%;width:83.14%;height:6.75%'><span style=3D'font-size:73=
%'><b>The
 Merger Process<br>
  </b></span></span><span style=3D'position:absolute;top:14.0%;left:1.12%;
 width:97.94%;height:6.75%'><span style=3D'font-size:73%'><b>Phase 1 &#8211;
 Announcement of Transaction to </b></span></span><span style=3D'position:a=
bsolute;
 top:21.25%;left:8.42%;width:83.14%;height:6.75%'><span style=3D'font-size:=
73%'><b>Closing</b></span></span></div>
 <div v:shape=3D"_x0000_s23555" class=3DB><span style=3D'position:absolute;
 top:30.0%;left:12.17%;width:91.01%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.11%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Need to review
 legal framework to protect pilots </span></span><span style=3D'position:ab=
solute;
 top:36.25%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:8=
8%'>interests&#13;</span></span><span
 style=3D'position:absolute;top:43.75%;left:12.17%;width:79.4%;height:6.0%'=
><span
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absolute;
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-size:
 88%'>Engage in bi-lateral negotiations with </span></span><span
 style=3D'position:absolute;top:50.0%;left:12.17%;width:79.4%;height:6.0%'>=
<span
 style=3D'font-size:88%'>management, as necessary&#13;</span></span><span
 style=3D'position:absolute;top:57.25%;left:12.17%;width:80.89%;height:6.0%=
'><span
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absolute;
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-size:
 88%'>Meet and Develop Protocol of Cooperation </span></span><span
 style=3D'position:absolute;top:63.5%;left:12.17%;width:79.4%;height:6.0%'>=
<span
 style=3D'font-size:88%'>between pilot groups&#13;</span></span>
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.0%'><span
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sect;</span><span
 style=3D'font-size:88%;display:none'>&#13;</span></div>
 <div style=3D'position:absolute;top:78.5%;left:8.42%;width:83.14%;height:6=
.0%'><span
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sect;</span><span
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></div>
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 top:13.0%;left:8.42%;width:83.14%;height:9.25%'><span lang=3DEN-GB
 style=3D'mso-special-format:lastCR;display:none'>&#13;</span></span></div>
 <div v:shape=3D"_x0000_s27651">
 <div class=3DB style=3D'text-align:center;mso-line-spacing:"90 20 0";posit=
ion:
 absolute;top:5.0%;left:10.11%;width:83.14%;height:6.0%'><span
 style=3D'mso-special-format:nobullet;display:none;font-family:Wingdings'>&=
sect;</span><span
 style=3D'font-size:88%'><b>Basic Objectives of Protocol&#13;</b></span></d=
iv>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:11.75%;left:13.85%;width:94.75%;height:5.25%'><span style=3D'font-size=
:75%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.95%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:75%'>To establish =
an
 ongoing exchange of information related to </span></span><span
 style=3D'position:absolute;top:16.5%;left:13.85%;width:83.52%;height:5.25%=
'><span
 style=3D'font-size:75%'>the __/__ transaction between the signatory Unions=
;&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:22.25%;left:18.35%;width:85.2%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.73%'>&#8211;<=
/span></span><span
 style=3D'font-size:86%'>To share our knowledge and experience in the airli=
ne </span></span><span
 style=3D'position:absolute;top:27.25%;left:18.35%;width:87.07%;height:5.25=
%'><span
 style=3D'font-size:86%'>industry, including details of our collective barg=
aining
 </span></span><span style=3D'position:absolute;top:32.0%;left:18.35%;width=
:75.09%;
 height:5.25%'><span style=3D'font-size:86%'>agreements, national laws and
 regulations;&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:37.75%;left:18.35%;width:82.58%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.85%'>&#8211;<=
/span></span><span
 style=3D'font-size:86%'>To share other information important to protect an=
d </span></span><span
 style=3D'position:absolute;top:42.5%;left:18.35%;width:75.09%;height:5.25%=
'><span
 style=3D'font-size:86%'>enhance our professional interests;&#13;</span></s=
pan></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:48.5%;left:18.35%;width:80.89%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.93%'>&#8211;<=
/span></span><span
 style=3D'font-size:86%'>To avoid any action that could reduce the leverage=
 </span></span><span
 style=3D'position:absolute;top:53.25%;left:18.35%;width:75.09%;height:5.25=
%'><span
 style=3D'font-size:86%'>available for the __ or __ pilot groups;&#13;</spa=
n></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:59.0%;left:18.35%;width:89.32%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.56%'>&#8211;<=
/span></span><span
 style=3D'font-size:86%'>To develop common bargaining positions to be pursu=
ed </span></span><span
 style=3D'position:absolute;top:63.74%;left:18.35%;width:88.76%;height:5.25=
%'><span
 style=3D'font-size:86%'>with each management concerning a fair distributio=
n of </span></span><span
 style=3D'position:absolute;top:68.75%;left:18.35%;width:75.09%;height:5.25=
%'><span
 style=3D'font-size:86%'>growth/job opportunities;&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:74.5%;left:18.35%;width:88.95%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.57%'>&#8211;<=
/span></span><span
 style=3D'font-size:86%'>To prepare for the further development of the corp=
orate </span></span><span
 style=3D'position:absolute;top:79.25%;left:18.35%;width:75.09%;height:5.25=
%'><span
 style=3D'font-size:86%'>combination of __ and __;&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:85.25%;left:18.35%;width:79.21%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.01%'>&#8211;<=
/span></span><span
 style=3D'font-size:86%'>To work together to ensure that in the event of an=
 </span></span><span
 style=3D'position:absolute;top:90.0%;left:18.35%;width:85.01%;height:5.25%=
'><span
 style=3D'font-size:86%'>operational merger of __ and __, the __ and __ pil=
ots </span></span><span
 style=3D'position:absolute;top:94.75%;left:18.35%;width:75.09%;height:5.25=
%'><span
 style=3D'font-size:86%'>will be treated in a fair and equitable manner.&#1=
3;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
100.49%;
 left:15.16%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:4.07%;width:96.16%;height:100.0%'><span style=3D'font-size:86%;
 visibility:hidden'><span style=3D'mso-special-format:bullet;position:absol=
ute;
 left:-4.23%'>&#8211;</span></span><span style=3D'font-size:86%;mso-special=
-format:
 lastCR;display:none'>&#13;</span></span></div>
 </div>
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 Process<br>
  </b></span></span><span style=3D'position:absolute;top:13.75%;left:3.37%;
 width:93.44%;height:7.5%'><span style=3D'font-size:82%'><b>Phase 2 &#8211;=
 From
 Transaction Closing </b></span></span><span style=3D'position:absolute;
 top:21.75%;left:8.42%;width:83.14%;height:7.5%'><span style=3D'font-size:8=
2%'><b>to
 Integration<br>
  </b></span></span><span style=3D'position:absolute;top:29.75%;left:8.42%;
 width:83.14%;height:7.5%'><span style=3D'font-size:82%;mso-special-format:=
lastCR;
 display:none'><b>&#13;</b></span></span></div>
 <div v:shape=3D"_x0000_s25603">
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:29.5%;left:12.17%;width:82.58%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.53%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Develop Trans=
ition
 Agreement covering the </span></span><span style=3D'position:absolute;
 top:35.0%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'>following
 terms:</span><span style=3D'font-size:88%;display:none'><b>&#13;</b></span=
></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:41.75%;left:16.66%;width:76.02%;height:5.25%'><span style=3D'font-size=
:86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.18%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Status of Pil=
ot
 Signatory Unions and Collective </span></span><span style=3D'position:abso=
lute;
 top:46.5%;left:16.66%;width:89.13%;height:5.25%'><span style=3D'font-size:=
86%'>Agreements
 at _____ and _____ during this Agreement&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positi=
on:absolute;
 top:52.5%;left:16.66%;width:76.96%;height:5.25%'><span style=3D'font-size:=
86%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.13%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Separation of
 Aircraft and Personnel during this </span></span><span style=3D'position:a=
bsolute;
 top:57.25%;left:16.66%;width:75.09%;height:5.25%'><span style=3D'font-size=
:86%'>Agreement&#13;</span></span></div>
 <div class=3DB2 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
62.74%;
 left:18.53%;width:73.22%;height:4.25%'><span style=3D'position:absolute;
 top:0%;left:3.32%;width:96.41%;height:100.0%'><span style=3D'font-size:83%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.44%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:83%'>See Attachment
 A&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
68.0%;
 left:13.48%;width:85.39%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:3.72%;width:96.49%;height:100.0%'><span style=3D'font-size:86%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-3.86%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>No Layoff of =
Pilots
 during Term of this Agreement&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
73.75%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
 top:0%;left:4.07%;width:96.16%;height:100.0%'><span style=3D'font-size:86%=
'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>New Hires dur=
ing
 Term of this Agreement&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
79.75%;
 left:13.48%;width:81.27%;height:5.25%'><span style=3D'position:absolute;
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'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.06%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>New Aircraft =
during
 the Term of this Agreement&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:8=
5.25%;
 left:8.42%;width:83.14%;height:4.25%'><span style=3D'position:absolute;
 top:0%;left:4.5%;width:95.49%;height:100.0%'><span style=3D'font-size:63%;
 visibility:hidden'><span style=3D'mso-special-format:bullet;position:absol=
ute;
 left:-4.71%'>&#8226;</span></span><span style=3D'font-size:63%;mso-special=
-format:
 lastCR;display:none'><b>&#13;</b></span></span></div>
 </div>
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sect;</span><span
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26.5%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
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 visibility:hidden'><span style=3D'mso-special-format:bullet;position:absol=
ute;
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soku-overflow:
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span
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absolute;
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 88%'>Seniority Integration Process and Procedure &#13;</span></span></div>
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nsoku-overflow:
 0;position:absolute;top:39.25%;left:13.48%;width:78.08%;height:5.25%'><span
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span
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absolute;
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-size:
 86%'>Designation of Merger Representatives&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
45.25%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
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'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Preparation of
 Employment Data&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
51.0%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
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'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Exchange of
 Employment Data&#13;</span></span></div>
 <div class=3DB1 style=3D'mso-line-spacing:"90 20 0";position:absolute;top:=
56.99%;
 left:13.48%;width:78.08%;height:5.25%'><span style=3D'position:absolute;
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'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.23%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:86%'>Negotiations/=
Mediation/Arbitration&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:6=
3.0%;
 left:8.42%;width:97.0%;height:6.0%'><span style=3D'position:absolute;top:0=
%;
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 style=3D'mso-special-format:bullet;position:absolute;left:-4.01%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Relative Posi=
tion
 on Pre-Merger Lists Maintained&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:6=
9.75%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
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><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Preservation =
of
 Rights&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0";position:absolute;top:7=
6.5%;
 left:8.42%;width:88.01%;height:6.0%'><span style=3D'position:absolute;
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'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.44%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Reimbursement=
 of
 Merger-Related Expenses</span></span></div>
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n:absolute;
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8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.08%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Company Accep=
tance
 and Implementation of the </span></span><span style=3D'position:absolute;
 top:35.0%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'>Seniority
 List&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:42.0%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Process to
 Negotiate Combined Collective </span></span><span style=3D'position:absolu=
te;
 top:47.5%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'>Agreement
 for the Combined Companies&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:54.25%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:8=
8%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Resolution of
 Disputes arising under this </span></span><span style=3D'position:absolute;
 top:60.0%;left:12.17%;width:79.4%;height:6.0%'><span style=3D'font-size:88=
%'>Agreement&#13;</span></span></div>
 <div class=3DB style=3D'mso-line-spacing:"90 20 0"'><span style=3D'positio=
n:absolute;
 top:66.75%;left:12.17%;width:90.44%;height:6.0%'><span style=3D'font-size:=
88%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.14%;font-fami=
ly:
 Wingdings'>&sect;</span></span><span style=3D'font-size:88%'>Enforcement of
 Arbitration Decisions under this </span></span><span style=3D'position:abs=
olute;
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%'>Agreement&#13;</span></span></div>
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9.25%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
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><span
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ance
 during this Agreement&#13;</span></span></div>
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6.0%;
 left:8.42%;width:83.14%;height:6.0%'><span style=3D'position:absolute;
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><span
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his
 Agreement&#13;</span></span></div>
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86%;
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visibility:hidden'><p:slide coordsize=3D"720,540"
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%'><b>Transition
 Agreement</b></span><span style=3D'font-size:82%'><br>
  </span></span><span style=3D'position:absolute;top:17.25%;left:8.42%;
 width:83.14%;height:8.5%'><span style=3D'font-size:73%'><b>ATTACHMENT A</b=
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span></b></span></span></div>
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ute;
 left:-4.71%'>&#8226;</span></span><span style=3D'font-size:75%;display:non=
e'>&#13;</span></span></div>
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75%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.71%'>&#8226;<=
/span></span><span
 style=3D'font-size:75%'>List of Aircraft Operated by ____ on Date of this =
</span></span><span
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'><span
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il </span></span><span
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75%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.07%'>&#8226;<=
/span></span><span
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 of
 this </span></span><span style=3D'position:absolute;top:49.0%;left:12.17%;
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ing
 manufacturer, type, anticipated </span></span><span style=3D'position:abso=
lute;
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 date)&#13;</span></span></div>
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75%'><span
 style=3D'mso-special-format:bullet;position:absolute;left:-4.05%'>&#8226;<=
/span></span><span
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 of
 this </span></span><span style=3D'position:absolute;top:64.25%;left:12.17%;
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fied
 by manufacturer, type and tail </span></span><span style=3D'position:absol=
ute;
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5%'>designation)&#13;</span></span></div>
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75%'><span
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span></span><span
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of
 this </span></span><span style=3D'position:absolute;top:79.75%;left:12.17%;
 width:85.95%;height:5.25%'><span style=3D'font-size:75%'>Agreement (includ=
ing
 manufacturer, type, anticipated </span></span><span style=3D'position:abso=
lute;
 top:84.5%;left:12.17%;width:79.4%;height:5.25%'><span style=3D'font-size:7=
5%'>delivery
 date)&#13;</span></span></div>
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t:
 lastCR;display:none'>&#13;</span></div>
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 3:<span style=3D'mso-spacerun:yes'>&nbsp; </span>Post Integration</b></spa=
n></div>
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 <div style=3D'position:absolute;top:30.0%;left:8.42%;width:92.32%;height:6=
.0%'><span
 style=3D'position:absolute;top:0%;left:4.05%;width:95.94%;height:100.0%'><=
span
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absolute;
 left:-4.22%;font-family:Wingdings'>&sect;</span></span><span style=3D'font=
-size:
 88%'>Implementation of final integrated seniority list&#13;</span></span><=
/div>
 <div style=3D'position:absolute;top:37.5%;left:8.42%;width:95.31%;height:6=
.0%'><span
 style=3D'position:absolute;top:0%;left:3.92%;width:96.07%;height:100.0%'><=
span
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absolute;
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 88%'>Implementation of combined working agreement&#13;</span></span></div>
 <div style=3D'position:absolute;top:45.0%;left:8.42%;width:93.63%;height:6=
.0%'><span
 style=3D'position:absolute;top:0%;left:4.0%;width:96.0%;height:100.0%'><sp=
an
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absolute;
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-size:
 88%'>Establishment of an appropriate Union structure</span></span></div>
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ome
 Labor Relations Considerations to </b></span></span><span style=3D'positio=
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------=_NextPart_01C57B59.77EF3B80
Content-Location: file:///C:/71131A35/RosenReportAirlineMergersJune05_files/script.js
Content-Transfer-Encoding: quoted-printable
Content-Type: application/javascript; charset="us-ascii"

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{
	var sld=3DGetObj("SlideObj")
	if( !g_supportsPPTHTML ) {	=09
		sld.style.visibility=3D"visible"
		return
	}

	if( MakeNotesVis() ) return

	runAnimations =3D _InitAnimations();
=09
	if( IsWin("PPTSld") )
		parent.SldUpdated(GetSldId())
	g_origSz=3DparseInt(SlideObj.style.fontSize)
	g_origH=3Dsld.style.posHeight
	g_origW=3Dsld.style.posWidth
	g_scaleHyperlinks=3D(document.all.tags("AREA").length>0)
	if( g_scaleHyperlinks )
		InitHLinkArray()
	if( g_scaleInFrame||(IsWin("PPTSld") && parent.IsFullScrMode() ) )
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	_RSW()
	if( IsWin("PPTSld") && parent.IsFullScrMode() )
		FullScrInit();
=09
	MakeSldVis();
	ChkAutoAdv()

	if( runAnimations )
	{
		if( document.all("NSPlay") )
			document.all("NSPlay").autoStart =3D false;

		if( sld.filters && sld.filters.revealtrans )
			setTimeout( "document.body.start()", sld.filters.revealtrans.duration * =
1000 );
		else
			document.body.start();
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}

function MakeSldVis()=20
{
	var fTrans=3Dg_showAnimation && SldHasTrans()
	if( fTrans )=09
	{
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	SlideObj.style.visibility=3D"visible"
	if( fTrans )
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}
function MakeNotesVis()=20
{
	if( !IsNts() ) return false=20
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	if( nObj ) {=20
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	}
	return 1
}
function ChkAutoAdv()
{
	if(SldHasTrans())
		SlideObj.onfilterchange=3DAutoAdv
	else
		AutoAdv()
}
function AutoAdv()
{
	if(!IsWin("PPTSld") || !gUseSldTimings )return
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	if( (sld.mAdvDelay>0) && !parent.IsFramesMode() )
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}
function GetObj(id)
{
	if(g_supportsPPTHTML) return document.all(id);
	else return document.getElementById(id);
}
function SldHasTrans() { return SlideObj.style.filter !=3D ""; }
function GetSldId() { return sId=3Dlocation.href.substring(location.href.la=
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function HideMenu() { if( frames["PPTSld"] && PPTSld.document.all.item("ctx=
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function IsWin( name ) { return window.name =3D=3D name }
function IsNts() { return IsWin("PPTNts") }
function IsSldOrNts() { return( IsWin("PPTSld")||IsWin("PPTNts") ) }
function SupportsPPTAnimation() { return( navigator.platform =3D=3D "Win32"=
 && navigator.appVersion.indexOf("Windows")>0 ) }
function SupportsPPTHTML()
{
	var appVer=3Dnavigator.appVersion, msie=3DappVer.indexOf("MSIE "), ver=3D0
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	else
		ver=3DparseInt(appVer)

	return( ver >=3D 4 && msie >=3D 0 )
}
function _RSW()
{
	if( !g_supportsPPTHTML || IsNts() ||
	  ( !g_scaleInFrame && (!IsWin("PPTSld") || !parent.IsFullScrMode()) ) )
		return

        var padding=3D0;
        if( IsWin("PPTSld") && parent.IsFramesMode() ) padding=3D6

	cltWidth=3Ddocument.body.clientWidth-padding
	cltHeight=3Ddocument.body.clientHeight-padding
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	if( cltHeight < g_origH*factor )
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	newSize =3D g_origSz * factor
	if( newSize < 1 ) newSize=3D1

	s=3DSlideObj.style
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	s.posWidth=3Dg_origW*factor
	s.posHeight=3Dg_origH*factor
	s.posLeft=3D(cltWidth-s.posWidth+padding)/2
	s.posTop=3D(cltHeight-s.posHeight+padding)/2

	if( g_scaleHyperlinks )
		ScaleHyperlinks( factor )
}
function _InitAnimations()
{
	animRuntimeInstalled =3D ''+document.body.localTime !=3D 'undefined';
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	g_animUseRuntime =3D g_showAnimation && animRuntimeInstalled && !(isFullSc=
reen && parent.IsSldVisited());
	if( g_animUseRuntime ) {
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		if( collSeq !=3D null ) {
			for(ii=3D0;ii<collSeq.length;ii++) {
				if( collSeq[ii].getAttribute( "p:nodeType" ) =3D=3D "mainSeq" ) {
					g_animMainSequence =3D collSeq[ii];
					break;
				}
			}
		}
=09
		if( g_animItemsToHide && document.body.playAnimations !=3D false ) {
			for(jj =3D 0; jj < g_animItemsToHide.length; jj++) {
				if( hideObj =3D GetObj(g_animItemsToHide[jj]) )
					hideObj.runtimeStyle.visibility=3D"hidden";
			}
		}

		if( g_animInteractiveItems ){
			for(jj =3D 0; jj < g_animInteractiveItems.length; jj++) {
				if( triggerObj =3D GetObj(g_animInteractiveItems[jj]) )
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			}
		}
	=09
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}

gSldJump =3D 0, gSldJumpTrack =3D 0, gSldJumpIdx =3D "";

function _KPH()
{=20
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	if( !parent.IsFramesMode() && event.keyCode =3D=3D 27 && !HideMenu() )
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			parent.GoToNextSld();
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	CatchNumKeys( parent, event );
}

function CatchNumKeys( win, event ) {
	if( win.IsFullScrMode() && (48<=3Devent.keyCode) && (event.keyCode<=3D57) =
) {
		gSldJump =3D 1;
		gSldJumpIdx +=3D (event.keyCode-48).toString();
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	if( win.IsFullScrMode() && gSldJump && event.keyCode =3D=3D 13 ) {
		var numSlds =3D parent.GetSldList().mList.length
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		if ( gSldJumpIdx >=3D 0 ) {
			if ( gSldJumpIdx =3D=3D 0 )
				gSldJumpIdx =3D 1;
			var jumpTo =3D parseInt(gSldJumpIdx);
			gSldJump =3D 0; gSldJumpIdx =3D "";
			win.GoToSld( parent.GetSldList().mList[jumpTo-1].mSldHref )
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}

function _KDH()
{
	if( event.keyCode =3D=3D 8 ) {
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	}
}
function DocumentOnClick()
{
	if( IsNts() || parent.HideMenu() ) return;
	if( ( g_allowAdvOnClick && !parent.IsFramesMode() ) ||
	    (event && (event.keyCode=3D=3D32) ) )
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}



var g_supportsPPTHTML =3D SupportsPPTHTML(), g_scaleInFrame =3D 1, gId=3D""=
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var g_showAnimation =3D g_supportsPPTHTML && SupportsPPTAnimation() && ( (w=
indow.name=3D=3D"PPTSld" && !parent.IsFramesMode()) || g_showInBrowser );va=
r g_animManager =3D null;
var g_animUseRuntime =3D false;
var g_animItemsToHide, g_animInteractiveItems, g_animSlideTime;
var g_animMainSequence =3D null;

var ENDSHOW_MESG=3D"End of slide show, click to exit.", SCREEN_MODE=3D"Fram=
es", gIsEndShow=3D0, NUM_VIS_SLDS=3D20, SCRIPT_HREF=3D"script.js", FULLSCR_=
HREF=3D"fullscreen.htm";
var gCurSld =3D gPrevSld =3D 1, g_offset =3D 0, gNtsOpen =3D gHasNts =3D gO=
tlTxtExp =3D 0, gHasNarration =3D 0, gOtlOpen =3D true
window.gPPTHTML=3DSupportsPPTHTML()
var gMainDoc=3Dnew Array(new hrefList("slide0001.htm",1,-1,1),new hrefList(=
"slide0003.htm",1,-1,1),new hrefList("slide0004.htm",1,-1,1),new hrefList("=
slide0005.htm",1,-1,1),new hrefList("slide0035.htm",1,-1,1),new hrefList("s=
lide0036.htm",1,-1,1),new hrefList("slide0037.htm",1,-1,1),new hrefList("sl=
ide0006.htm",1,-1,1),new hrefList("slide0007.htm",1,-1,1),new hrefList("sli=
de0009.htm",1,-1,1),new hrefList("slide0008.htm",1,-1,1),new hrefList("slid=
e0019.htm",1,-1,1),new hrefList("slide0023.htm",1,-1,1),new hrefList("slide=
0021.htm",1,-1,1),new hrefList("slide0032.htm",1,-1,1),new hrefList("slide0=
031.htm",1,-1,1),new hrefList("slide0014.htm",1,-1,1),new hrefList("slide00=
16.htm",1,-1,1),new hrefList("slide0039.htm",1,-1,1),new hrefList("slide003=
3.htm",1,-1,1));

/*********************************************
 Frameset functions

 These functions control slide navigation
 and state of the frameset.
**********************************************/

function FullScrInit()
{
	g_allowAdvOnClick =3D GetCurSld().mAdvOnClk
	document.body.style.backgroundColor=3D"black"
	document.oncontextmenu=3Dparent._CM;
	document.onkeydown =3D _KDH;
	document.ondragstart=3DCancel
	document.onselectstart=3DCancel
	self.focus()
}

function Redirect( frmId )
{=09
	var str=3Ddocument.location.hash,idx=3Dstr.indexOf('#'), sId=3DGetSldId()
	if(idx>=3D0) str=3Dstr.substr(1);
	if( window.name !=3D frmId && ( sId !=3D str) ) {
		obj =3D GetObj("Main-File")
		window.location.href=3Dobj.href+"#"+sId
		return 1
	}
	return 0
}

var MHTMLPrefix =3D CalculateMHTMLPrefix();=20
function CalculateMHTMLPrefix()
{
	if ( document.location.protocol =3D=3D 'mhtml:') {=20
		href=3Dnew String(document.location.href)=20
		Start=3Dhref.indexOf('!')+1=20
		End=3Dhref.lastIndexOf('/')+1=20
		if (End < Start)=20
			return href.substring(0, Start)=20
		else=20
		return href.substring(0, End)=20
	}
	return '';
}

function GetTags(base,tag)
{
	if(g_supportsPPTHTML) return base.all.tags(tag);
	else return base.getElementsByTagName(tag);
}


function UpdNtsPane(){ if(frames["PPTNts"]) PPTNts.location.replace( MHTMLP=
refix+GetHrefObj( gCurSld ).mNtsHref ) }

function UpdNavPane( sldIndex ){ if(gNavLoaded) PPTNav.UpdNav() }

function UpdOtNavPane(){ if(gOtlNavLoaded) PPTOtlNav.UpdOtlNav() }

function UpdOtlPane(){ if(gOtlLoaded) PPTOtl.UpdOtl() }

function SetHasNts( fVal )
{
	if( gHasNts !=3D fVal ) {
		gHasNts=3DfVal
		UpdNavPane()
	}
}

function ToggleOtlText()
{
	gOtlTxtExp=3D!gOtlTxtExp
	UpdOtlPane()
}

function ClearMedia()
{
	// Clear any sounds playing before launching another browser window. Other=
wise,
	// in fullscreen mode, you'll continue to hear the sound in the frames mod=
e.
	if (PPTSld.pptSound) PPTSld.pptSound.loop =3D 0;
}

function FullScreen()
{=20
	if ( PPTSld.g_animUseRuntime )
		PPTSld.document.body.pause();
	ClearMedia();
	var href =3D ( document.location.protocol =3D=3D 'mhtml:') ? FULLSCR_HREF =
: FULLSCR_HREF+"#"+GetHrefObj(gCurSld).mSldHref;
	if(PPTNav.event.ctrlKey) {
		var w =3D (window.screen.availWidth * 1.0) / 2.0
		var h =3D w * (PPTSld.g_origH * 1.0) / PPTSld.g_origW
		win =3D window.open( MHTMLPrefix+href,null,"toolbar=3D0,resizable=3D1,top=
=3D0,left=3D0," + "width=3D"+ w + ",height=3D" + h );
		if( win.document.body && PPTSld.g_animUseRuntime )
			win.document.body.PPTSldFrameset=3Dwindow;
	}
	else
	{
		win =3D window.open( MHTMLPrefix+href,null,"fullscreen=3Dyes" );
		if( win.document.body && PPTSld.g_animUseRuntime )
			win.document.body.PPTSldFrameset=3Dwindow;
	}
}

function ToggleVNarration()
{
	rObj=3DPPTSld.document.all("NSPlay")
	if( rObj && !PPTSld.g_animUseRuntime ) {
		if( (rObj.playState =3D=3D 1)||(rObj.playState =3D=3D 0) )
			rObj.Play()
		else if( rObj.playState =3D=3D 2 )
			rObj.Pause()
		else
			return;
	}
	else if( PPTSld.g_animUseRuntime )
	{
		narObj =3D PPTSld.document.all("narrationID")
		if( narObj )
			narObj.togglePause()
	}
}

function GetCurSldNum()
{  =20
	obj=3DGetHrefObj(gCurSld)
	if( obj.mOrigVis =3D=3D 1 )
		return obj.mSldIdx
	else  =20
		return gCurSld
}

function GetNumSlds()
{  =20
	if( GetHrefObj(gCurSld).mOrigVis =3D=3D 1 )
		return GetSldList().mNumVisSlds;
	else
		return GetSldList().mList.length
}

function GetSldNum( href )
{
	for(ii=3D0; ii<GetSldList().mList.length; ii++) {
		if ( GetSldList().mList[ii].mSldHref =3D=3D href )
			return ii+1
	}
	return 1
}

function GetHrefObj( sldIdx ){ return GetSldList().mList[sldIdx-1] }

function IsFramesMode(){ return ( SCREEN_MODE =3D=3D "Frames" ) }

function IsFullScrMode(){ return ( SCREEN_MODE =3D=3D "FullScreen" ) }

function GoToNextSld()
{
	ii=3DgCurSld + 1
	if( GetHrefObj( ii-1 ).mOrigVis =3D=3D 0 ) {
		if( ii<=3DGetSldList().mList.length ) {
			obj=3DGetHrefObj(ii)
			obj.mVis=3D1
			GoToSldNum(ii)
			return
		}
	}
	else {
		obj=3DGetHrefObj( ii )
		while ( obj && ( obj.mOrigVis =3D=3D 0 ) )
			obj=3DGetHrefObj(++ii)
		if( obj && obj.mOrigVis ) {
			GoToSldNum(ii)
			return
		}
	}
	if( gSldStack.length > 1 )
		PopSldList();
	else if( !IsFramesMode() ) {
                if( gLoopCont )
			GoToFirst()
                else
			EndShow()
	}
}

function GoToPrevSld()
{
	ii=3DgCurSld-1
	if( ii > 0 ) {
		obj=3DGetHrefObj(ii)
		while ( obj && ( obj.mVis =3D=3D 0 ) && ( ii>0 ) )
			obj=3DGetHrefObj(--ii)
        if( ii =3D=3D 0 ) ii=3D1
		GoToSldNum(ii)
	}
}

function GoToFirst(){ GoToSld( GetHrefObj(1).mSldHref ) }

function GoToLast()
{
	ii=3DGetSldList().mList.length
	if( ii !=3D gCurSld )
		GoToSld( GetHrefObj(ii).mSldHref )
}

function GoToSldNum( num )
{
	if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
	obj =3D GetHrefObj( num )
	obj.mVis=3D1
	gPrevSld=3DgCurSld
	gCurSld =3D num;
	PPTSld.location.replace(MHTMLPrefix+obj.mSldHref)
	if( IsFramesMode() ) {
		UpdNavPane(); UpdOtlPane(); UpdNtsPane()
	}
}

function GoToSld( href )
{
	if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
	GetHrefObj( GetSldNum(href) ).mVis=3D1
	PPTSld.location.replace(MHTMLPrefix+href)
}

function SldUpdated( id )
{
	if( id =3D=3D GetHrefObj(gCurSld).mSldHref ) return
	gPrevSld=3DgCurSld
	gCurSld=3DGetSldNum(id)
	if( IsFramesMode() ) {
		UpdNavPane(); UpdOtlPane(); UpdNtsPane()
	}
}

function PrevSldViewed(){ GoToSld( GetHrefObj(gPrevSld).mSldHref ) }
function HasPrevSld() { return ( gIsEndShow || ( gCurSld !=3D 1 && GetHrefO=
bj( gCurSld-1 ).mVis =3D=3D 1 )||( GetCurSldNum() > 1 ) ) }
function HasNextSld() { return (GetCurSldNum() !=3D GetNumSlds()) }

function CloseWindow() {
	if( HideMenu() ) return;
=09
	var event =3D PPTSld.event;
	if( !IsFramesMode() && event && (event.keyCode=3D=3D27 || event.keyCode=3D=
=3D32 || event.type=3D=3D"click" ) )
		window.close( self );
	CatchNumKeys( self, event );
}

function Unload() { gIsEndShow=3D0; }

function SetupEndShow() {
	gIsEndShow=3D1;
	PPTSld.document.body.scroll=3D"no";
	PPTSld.document.onkeypress=3DCloseWindow;
	PPTSld.document.onclick=3DCloseWindow;
	PPTSld.document.oncontextmenu=3D_CM;
}

function EndShow()
{
	if( IsFramesMode() ) return
	if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue

	doc=3DPPTSld.document
	var dir =3D doc.body.dir
	if( dir !=3D "rtl" ) dir =3D "ltr";
	doc.open()
	doc.writeln('<html><body dir=3D' + dir + ' bgcolor=3Dblack onload=3Dparent=
.SetupEndShow() onunload=3Dparent.Unload()><center><p><font face=3DTahoma c=
olor=3Dwhite size=3D2><br><b>' + ENDSHOW_MESG + '</b></font></p></center></=
body></html>')
	doc.close()
}

function SetSldVisited(){ GetSldList().mList[gCurSld-1].mVisited=3Dtrue }

function IsSldVisited(){ return GetSldList().mList[gCurSld-1].mVisited }

function hrefList( sldHref, visible, advDelay, advClk )
{
	this.mSldHref=3D this.mNtsHref =3D sldHref
	this.mOrigVis=3D this.mVis =3D visible
	this.mVisited=3D false
	this.mAdvDelay=3D advDelay
	this.mAdvOnClk=3D advClk
}

function SldList(arr,curSld,fEnd)
{
	this.mCurSld =3D curSld;
	this.mList =3D new Array();

	var idx =3D 1;
	for(ii=3D0;ii<arr.length;ii++) {
		this.mList[ii] =3D new hrefList( arr[ii].mSldHref, arr[ii].mOrigVis, arr[=
ii].mAdvDelay, arr[ii].mAdvOnClk );
		if( arr[ii].mOrigVis )
			this.mList[ii].mSldIdx =3D idx++;
	}
	this.mNumVisSlds =3D idx-1;
	this.fEndShow =3D fEnd;
}

function GetSldList() {	return gSldStack[gSldStack.length-1] }
function GetCurSld() { return parent.GetSldList().mList[parent.gCurSld - 1]=
 }

gSldStack =3D new Array();
gSldStack[0] =3D new SldList(gMainDoc,gCurSld,1)
function ToggleOtlPane()
{
	frmset=3Ddocument.all("PPTHorizAdjust")
	frm=3Ddocument.all("PPTOtl")

	if( gOtlOpen )
		frmset.cols=3D"*,100%"
	else
		frmset.cols=3D"25%,*"

	gOtlOpen=3D!gOtlOpen
	frm.noResize=3D!frm.noResize
	UpdOtNavPane()
}

function ToggleNtsPane()
{
	frmset=3Ddocument.all("PPTVertAdjust")
	frm=3Ddocument.all("PPTNts")

	if( gNtsOpen )
		frmset.rows=3D"100%,*"
	else
		frmset.rows=3D"*,20%"

	gNtsOpen=3D!gNtsOpen
	UpdNtsPane()
}

/*********************************************
Custom Shows implementation

When ViewCustomShow() is called, we create
a new array that is a subset of the slides in=20
the main doc. This list pushed on a stack so
we can return after the end of the custom
show.
*********************************************/
function ViewCustomShow(idx,fEnd)
{
	if( !IsFullScrMode() ) return;
	var sldList =3D new Array();
	var custShow =3D custShowList[idx-1];
	var jj =3D 0;
	for( ii=3D0;ii<custShow.length;ii++ ) {
		if( custShow[ii] <=3D gMainDoc.length )
			sldList[jj++] =3D gMainDoc[custShow[ii]-1];
	}
	if (sldList.length > 0) {
	PushSldList(sldList,fEnd);
	gCurSld =3D 1;
	}
	else
		if( PPTSld.event ) PPTSld.event.cancelBubble=3Dtrue
}

function PushSldList(arr,fEnd) {
	var ii =3D gSldStack.length;
	gSldStack[ii] =3D new SldList(arr,gCurSld,fEnd);
	GoToSld( gSldStack[ii].mList[0].mSldHref );
}

function PopSldList() {
	if (gSldStack[gSldStack.length-1].fEndShow)
		EndShow()
	else {
	gCurSld =3D gSldStack[gSldStack.length-1].mCurSld;
	gSldStack[gSldStack.length-1] =3D null;
	gSldStack.length--;
	var sldList =3D gSldStack[gSldStack.length-1];
	GoToSld( sldList.mList[gCurSld - 1].mSldHref );
	}
}
var custShowList=3Dnew Array();

/*********************************************
 Navigation button implementation

 There are 2 types of buttons: ImgBtn, TxtBtn
 implemented as function objects. They share
 a similiar interface so the event handlers
 can call SetActive, for example, on a button=20
 object without needing to know exactly=20
 what type of button it is.
**********************************************/

//----------------------------------
function ImgBtn( oId,bId,w,action )
//----------------------------------
{
	var t=3Dthis
	t.Perform    =3D _IBP
	t.SetActive  =3D _IBSetA
	t.SetInactive=3D _IBSetI
	t.SetPressed =3D _IBSetP
	t.SetDisabled=3D _IBSetD
	t.Enabled    =3D _IBSetE
	t.ChangeIcon =3D null
	t.UserAction =3D action
	t.ChgState   =3D _IBUI
	t.mObjId   =3D oId
	t.mBorderId=3D bId
	t.mWidth   =3D w
	t.mIsOn    =3D t.mCurState =3D 0
}

function _IBSetA()
{
	if( this.mIsOn ) {
		obj=3Dthis.ChgState( gHiliteClr,gShadowClr,2 )
		obj.style.posTop=3D0
	}
}

function _IBSetI()
{
	if( this.mIsOn ) {
		obj=3Dthis.ChgState( gFaceClr,gFaceClr,1 )
		obj.style.posTop=3D0=20
	}
}

function _IBSetP()
{
	if( this.mIsOn ) {
		obj=3Dthis.ChgState( gShadowClr,gHiliteClr,2 )
		obj.style.posLeft+=3D1; obj.style.posTop+=3D1
	}
}

function _IBSetD()
{ =20
	obj=3Dthis.ChgState( gFaceClr,gFaceClr,0 )
	obj.style.posTop=3D0=20
}

function _IBSetE( state )
{
	var t=3Dthis
	GetObj( t.mBorderId ).style.visibility=3D"visible"
	if( state !=3D t.mIsOn ) {
		t.mIsOn=3Dstate
		if( state )
			t.SetInactive()
		else
			t.SetDisabled()
	}
}

function _IBP()
{
	var t=3Dthis
	if( t.mIsOn ) {
		if( t.UserAction !=3D null )
			t.UserAction()
		if( t.ChangeIcon ) {
			obj=3DGetObj(t.mObjId)
			if( t.ChangeIcon() )
				obj.style.posLeft=3Dobj.style.posLeft+(t.mCurState-4)*t.mWidth
			else
				obj.style.posLeft=3Dobj.style.posLeft+(t.mCurState-0)*t.mWidth
		}
		t.SetActive()
	} =20
}

function _IBUI( clr1,clr2,nextState )
{
	var t=3Dthis
	SetBorder( GetObj( t.mBorderId ),clr1,clr2 )
	obj=3DGetObj( t.mObjId )
	obj.style.posLeft=3Dobj.style.posLeft+(t.mCurState-nextState)*t.mWidth-obj=
.style.posTop
	t.mCurState=3DnextState
	return obj
}

//-----------------------------------------
function TxtBtn( oId,oeId,action,chkState )
//-----------------------------------------
{
	var t=3Dthis
	t.Perform    =3D _TBP
	t.SetActive  =3D _TBSetA
	t.SetInactive=3D _TBSetI
	t.SetPressed =3D _TBSetP
	t.SetDisabled=3D _TBSetD
	t.SetEnabled =3D _TBSetE
	t.GetState   =3D chkState
	t.UserAction =3D action
	t.ChgState   =3D _TBUI
	t.mObjId      =3D oId
	t.m_elementsId=3D oeId
	t.mIsOn       =3D 1
}

function _TBSetA()
{
	var t=3Dthis
	if( t.mIsOn && !t.GetState() )
		t.ChgState( gHiliteClr,gShadowClr,0,0 )
}

function _TBSetI()
{
	var t=3Dthis
	if( t.mIsOn && !t.GetState() )
		t.ChgState( gFaceClr,gFaceClr,0,0 )
}

function _TBSetP()
{
	if( this.mIsOn )
		this.ChgState( gShadowClr,gHiliteClr,1,1 )
}

function _TBSetD()
{  =20
	this.ChgState( gFaceClr,gFaceClr,0,0 )
	this.mIsOn =3D 0
}

function _TBSetE()
{
	var t=3Dthis
	if( !t.GetState() )
		t.ChgState( gFaceClr,gFaceClr,0,0 )
	else
		t.ChgState( gShadowClr,gHiliteClr,1,1 )
	t.mIsOn =3D 1
}

function _TBP()
{
	var t=3Dthis
	if( t.mIsOn ) {=20
		if( t.UserAction !=3D null )
			t.UserAction()
        if( !t.GetState )
            return
		if( t.GetState() )
			t.SetPressed()
		else
			t.SetActive()
	} =20
}

function _TBUI( clr1,clr2,lOffset,tOffset )
{
	SetBorder( GetObj( this.mObjId ),clr1,clr2 )
	Offset( GetObj( this.m_elementsId ),lOffset,tOffset )
}

function Offset( obj, top, left ){ obj.style.top=3Dtop; obj.style.left=3Dle=
ft }

function SetBorder( obj, upperLeft, lowerRight )
{
	s=3Dobj.style;
	s.borderStyle      =3D "solid"
	s.borderWidth      =3D 1=20
	s.borderLeftColor  =3D s.borderTopColor =3D upperLeft
	s.borderBottomColor=3D s.borderRightColor =3D lowerRight
}

function GetBtnObj(){ return gBtnArr[window.event.srcElement.id] }

function BtnOnOver(){ b=3DGetBtnObj(); if( b !=3D null ) b.SetActive() }

function BtnOnDown(){ b=3DGetBtnObj(); if( b !=3D null ) b.SetPressed() }

function BtnOnOut(){ b=3DGetBtnObj(); if( b !=3D null ) b.SetInactive() }

function BtnOnUp()
{
	b=3DGetBtnObj()
	if( b !=3D null )
		b.Perform()
	else
		Upd()
}
function GetNtsState(){ return parent.gNtsOpen }

function GetOtlState(){ return parent.gOtlOpen }

function GetOtlTxtState(){ return parent.gOtlTxtExp }

function NtsBtnSetFlag( fVal )
{
	s=3Ddocument.all.item( this.m_flagId ).style
	s.display=3D"none"
	if( fVal )
		s.display=3D""
	else
		s.display=3D"none"
}

function _BSetA_Border(){ b =3D gBtnArr[this.mObjId]; if( b !=3D null ) b.S=
etActive() }

function _BSetI_Border(){ b =3D gBtnArr[this.mObjId]; if( b !=3D null ) b.S=
etInactive() }

function _BSetP_Border(){ b =3D gBtnArr[this.mObjId]; if( b !=3D null ) b.S=
etPressed() }

function _BSetA_BorderImg()
{=20
	b =3D gBtnArr[this.mBorderId]=20
	if( b !=3D null && this.mIsOn && !b.GetState() ) {
		obj=3Dthis.ChgState( gHiliteClr,gShadowClr,2 )
		obj.style.posTop=3D0
	}
}

function _BSetI_BorderImg()
{=20
	b =3D gBtnArr[this.mBorderId]
	if( b !=3D null && this.mIsOn && !b.GetState() ) {
		obj=3Dthis.ChgState( gFaceClr,gFaceClr,1 )
		obj.style.posTop=3D0
	}
}


var gHiliteClr=3D"THREEDHIGHLIGHT",gShadowClr=3D"THREEDSHADOW",gFaceClr=3D"=
THREEDFACE"
var gBtnArr =3D new Array()
gBtnArr["nb_otl"] =3D new TxtBtn( "nb_otl","nb_otlElem",parent.ToggleOtlPan=
e,GetOtlState )
gBtnArr["nb_otlElem"] =3D new TxtBtn( "nb_otl","nb_otlElem",parent.ToggleOt=
lPane,GetOtlState )
gBtnArr["nb_nts"] =3D new ImgBtn( "nb_nts","nb_ntsBorder",10,parent.ToggleN=
tsPane )
gBtnArr["nb_nts"].SetActive =3D _BSetA_BorderImg;
gBtnArr["nb_nts"].SetInactive =3D _BSetI_BorderImg;
gBtnArr["nb_ntsBorder"] =3D new TxtBtn( "nb_ntsBorder","nb_ntsElem",parent.=
ToggleNtsPane,GetNtsState )
gBtnArr["nb_ntsElem"] =3D new TxtBtn( "nb_ntsBorder","nb_ntsElem",parent.To=
ggleNtsPane,GetNtsState )
gBtnArr["nb_prevBorder"] =3D gBtnArr["nb_prev"]=3D new ImgBtn( "nb_prev","n=
b_prevBorder",30,parent.GoToPrevSld )
gBtnArr["nb_nextBorder"] =3D gBtnArr["nb_next"]=3D new ImgBtn( "nb_next","n=
b_nextBorder",30,parent.GoToNextSld )
gBtnArr["nb_sldshw"]=3D new ImgBtn( "nb_sldshw","nb_sldshwBorder",18,parent=
.FullScreen )
gBtnArr["nb_sldshwBorder"] =3D new TxtBtn( "nb_sldshw","nb_sldshwBorder",pa=
rent.FullScreen,null )
gBtnArr["nb_sldshwBorder"].SetActive =3D _BSetA_Border;
gBtnArr["nb_sldshwBorder"].SetInactive =3D _BSetI_Border;
gBtnArr["nb_sldshwText"] =3D new TxtBtn( "nb_sldshw","nb_sldshwText",parent=
.FullScreen,null )
gBtnArr["nb_sldshwText"].SetActive =3D _BSetA_Border;
gBtnArr["nb_sldshwText"].SetInactive =3D _BSetI_Border;
gBtnArr["nb_voice"] =3D gBtnArr["nb_voiceBorder"] =3D new ImgBtn( "nb_voice=
","nb_voiceBorder",18,parent.ToggleVNarration )
gBtnArr["nb_otlTxtBorder"] =3D gBtnArr["nb_otlTxt"]=3D new ImgBtn( "nb_otlT=
xt","nb_otlTxtBorder",23,parent.ToggleOtlText )
gBtnArr["nb_ntsBorder"].m_flagId=3D "nb_nts"
gBtnArr["nb_ntsBorder"].SetFlag =3D NtsBtnSetFlag
gBtnArr["nb_otlTxt"].ChangeIcon=3D GetOtlTxtState

/*********************************************
 Context menu implementation

 _CM() is the function that's hooked up to
 the oncontextmenu event. Once we're asked to
 show the menu, we first build it by creating
 DIVs on-the-fly. Then we position it=20
 within the screen area so it doesn't get
 clipped.

 Creating the DIVs using createElement() means
 we don't have to write out any extra HTML
 into the slide HTML files.
**********************************************/
var sNext=3D"Next",sPrev=3D"Previous",sEnd=3D"End Show",sFont=3D"Arial",sAr=
row=3D"Arrow",sFreeform=3D"Freeform",sRect=3D"Rectangle",sOval=3D"Oval"

function ShowMenu()
{
	BuildMenu();
	var doc=3DPPTSld.document.body,x=3DPPTSld.event.clientX+doc.scrollLeft,y=
=3DPPTSld.event.clientY+doc.scrollTop
	m =3D PPTSld.document.all.item("ctxtmenu")
	m.style.pixelLeft=3Dx
	if( (x+m.scrollWidth > doc.clientWidth)&&(x-m.scrollWidth > 0) )
		m.style.pixelLeft=3Dx-m.scrollWidth

	m.style.pixelTop=3Dy
	if( (y+m.scrollHeight > doc.clientHeight)&&(y-m.scrollHeight > 0) )
		m.style.pixelTop=3Dy-m.scrollHeight

	m.style.display=3D""
}

function _CM()
{
	if( !parent.IsFullScrMode() ) return;
	if(!PPTSld.event.ctrlKey) {
		ShowMenu()
		return false
	} else
		HideMenu()
}

function BuildMenu()
{
	if( PPTSld.document.all.item("ctxtmenu") ) return

	var mObj=3DCreateItem( PPTSld.document.body )
	mObj.id=3D"ctxtmenu"
	mObj.style.visibility=3D"hidden"
	var s=3DmObj.style
	s.position=3D"absolute"
	s.cursor=3D"default"
	s.width=3D"120px"
	SetCMBorder(mObj,"menu","black")

	var iObj=3DCreateItem( mObj )
	SetCMBorder( iObj, "threedhighlight","threedshadow" )
	iObj.style.padding=3D2
	CreateMenuItem( iObj,sNext,M_GoNextSld,M_True )
	CreateMenuItem( iObj,sPrev,M_GoPrevSld,M_HasPrevSld )
=09
	CreateSeparator( iObj )
	CreateMenuItem( iObj,sEnd,M_End,M_True )
	mObj.style.visibility=3D"visible"
}

function Cancel() { window.event.cancelBubble=3Dtrue; window.event.returnVa=
lue=3Dfalse }

function Highlight() { ChangeClr("activecaption","threedhighlight") }

function Deselect() { ChangeClr("threedface","menutext") }

function Perform()
{
	e=3DPPTSld.event.srcElement
	if( e.type=3D=3D"menuitem" && e.IsActive() )
		e.Action()
	else
		PPTSld.event.cancelBubble=3Dtrue
}
function ChangeClr( bg,clr )
{
	e=3DPPTSld.event.srcElement
	if( e.type=3D=3D"menuitem" && e.IsActive() ) {
		e.style.backgroundColor=3Dbg
		e.style.color=3Dclr
	}
}

function M_HasPrevSld() { return( parent.HasPrevSld() ) }

function M_GoNextSld() { if( gIsEndShow ) M_End(); else GoToNextSld() }

function M_GoPrevSld() { if( gIsEndShow ) { gIsEndShow=3D0; history.back();=
 PPTSld.event.cancelBubble=3Dtrue; } else GoToPrevSld() }

function M_True() { return true }

function M_End() { window.close( self ) }

function CreateMenuItem( node,text,action,eval )
{
	var e=3DCreateItem( node )
	e.type=3D"menuitem"
	e.Action=3Daction
	e.IsActive=3Deval
	e.innerHTML=3Dtext

	if( !e.IsActive() )
		e.style.color=3D"threedshadow"

	e.onclick=3DPerform
	e.onmouseover=3DHighlight
	e.onmouseout=3DDeselect
	s=3De.style;
	s.fontFamily=3DsFont
	s.fontSize=3D"9pt"
	s.paddingLeft=3D2
}

function CreateSeparator( node )
{
	var sObj=3DCreateItem( node )
	SetCMBorder(sObj,"menu","menu")
	var s=3DsObj.style
	s.borderTopColor=3D"threedshadow"
	s.borderBottomColor=3D"threedhighlight"
	s.height=3D1
	s.fontSize=3D"0px"
}

function CreateItem( node )
{
	var elem=3DPPTSld.document.createElement("DIV")
	node.insertBefore( elem )
	return elem
}

function SetCMBorder( o,ltClr,rbClr )
{
	var s=3Do.style
	s.backgroundColor=3D"menu"
	s.borderStyle=3D"solid"
	s.borderWidth=3D1
	s.borderColor=3DltClr+" "+rbClr+" "+rbClr+" "+ltClr
}
------=_NextPart_01C57B59.77EF3B80
Content-Location: file:///C:/71131A35/RosenReportAirlineMergersJune05_files/fullscreen.htm
Content-Transfer-Encoding: quoted-printable
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Content-Type: text/html; charset="us-ascii"

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<head>
<meta http-equiv=3DContent-Type content=3D"text/html; charset=3Dus-ascii">
<meta name=3DProgId content=3DPowerPoint.Slide>
<meta name=3DGenerator content=3D"Microsoft PowerPoint 11">
<link id=3DMain-File rel=3DMain-File href=3D"../RosenReportAirlineMergersJu=
ne05.htm">
<link rel=3DPreview href=3Dpreview.wmf>
<title>Airline Industry Council Meeting</title>
<![if IE]>
<base href=3D"file:///C:\71131A35\RosenReportAirlineMergersJune05_files\fra=
me.htm"
id=3D"webarch_temp_base_tag">
<![endif]><![if !ppt]><script src=3Dscript.js></script><script>
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var gNavLoaded =3D gOtlNavLoaded =3D gOtlLoaded =3D false;
function Load()
{
	str=3Dunescape(document.location.hash),idx=3Dstr.indexOf('#')
	if(idx>=3D0) str=3Dstr.substr(1);
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<frameset rows=3D"*,25" border=3D0>
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------=_NextPart_01C57B59.77EF3B80
Content-Location: file:///C:/71131A35/RosenReportAirlineMergersJune05_files/outline.htm
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Content-Type: text/html; charset="us-ascii"

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<head>
<meta http-equiv=3DContent-Type content=3D"text/html; charset=3Dus-ascii">
<meta name=3DProgId content=3DPowerPoint.Slide>
<meta name=3DGenerator content=3D"Microsoft PowerPoint 11">
<link id=3DMain-File rel=3DMain-File href=3D"../RosenReportAirlineMergersJu=
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if( !(IsWin("PPTOtl")||IsWin("PPTNav")||IsWin("PPTOtlNav")) )
{
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	parent.location.href=3Dobj.href
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var gOtlHiliteClr=3D"#ffffff",gOtlNormalClr=3D"#000000",gOtlActiveClr=3D"#f=
fff00",gSelected=3D"",gTxtState=3Dfalse,gChildEntryTable=3Dnew Array()

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function Upd(){ if( IsWin("PPTNav") ) LoadNav("NavObj",UpdNav) }
function LoadNav( oId,UpdFunc )
{
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	document.body.style.margin=3D2
	UpdFunc()
	obj=3Ddocument.all.item(oId)
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	if( parent.frames["PPTNts"] )
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	InitArray()

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	UpdOtl()
}
function UpdOtl(){ UpdIdx(parent.gCurSld) }
function UpdIdx( idx )
{
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}
function InitArray()
{
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			gChildEntryTable[count++]=3Dobj
	}
}
function ChangeState( idx,fgColor,bgColor )
{
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	obj.style.color=3DfgColor

	obj=3DGetObj("PPTP"+idx)
	obj.style.backgroundColor=3DbgColor
}
function ChgClr( o,clr ){ if( o.id !=3D "PPTL"+gSelected ) o.style.color=3D=
clr }
function Over( src ){ ChgClr(GetLink(src),gOtlActiveClr) }
function Out( src ){ ChgClr(GetLink(src),gOtlHiliteClr) }
function Follow(src){ window.location.href =3D GetLink(src).href; }
function ObjExists( ii ) { obj=3DGetObj("PPTP"+ii ); return( obj ) }
function GoToSld( href ){ UpdIdx(parent.GetSldNum(href)); parent.GoToSld( h=
ref ) }
function CancelDrag(){ window.event.cancelBubble=3Dtrue;window.event.return=
Value=3Dfalse}
function GetLink(src)
{
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}

function UpdNav()
{
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		txt +=3D "Slide " + parent.GetCurSldNum() + " of " + parent.GetNumSlds()
	else
		txt +=3D "Hidden Slide"
	txt +=3D "</center>";
	nav_text.innerHTML =3D txt;

	if( !parent.HasPrevSld() )
		gBtnArr["nb_prev"].Enabled(0)
	else
		gBtnArr["nb_prev"].Enabled(1)

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		gBtnArr["nb_next"].Enabled(1)
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}

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{
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	{
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}
function UpdOtlNav()
{
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}




//--></script>
<style>
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	margin-top:5px;}
a
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ul
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	margin-left:20px;}
.sldNum
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	color:white;}
.button
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</head>

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onkeypress=3D"ExecBtn()" style=3D'display:none;visibility:hidden'>
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Notes" onfocus=3D"BtnOnOver()" onblur=3D"BtnOnOut()" TABINDEX=3D1 style=3D'=
position:absolute;top:0%;left:0%;width:100%;height:20px'>

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</table>


<table style=3D'position:relative;width:70px' align=3Dright cellpadding=3D0=
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style=3D'position:relative;margin-left:20px;padding:3px;
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Show</div>
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=3D'position:
 relative;left:-290px'></div>
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 </td>
</table>

<table style=3D'position:relative' align=3Dcenter cellpadding=3D0 cellspaci=
ng=3D0>
 <td nowrap>
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BINDEX=3D2 class=3Dbutton style=3D'left:-30px'>
 <div style=3D'position:absolute;clip:rect(0px, 30px, 18px, 0px)'><img
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this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>1</font></div>
  </td>
  <td width=3D"100%">
  <div id=3DPPTP1 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0001.htm');" id=3DPPTL1><br>
    <br>
    Consolidation<br>
    Mergers and the Merger Process<br>
    <br>
    Airline Industry Council Meeting</a></font></div>
  <div id=3DPPTC1 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Washington, DC<span style=3D'mso-spacerun:yes'>&nbsp; </span>June 16=
, 2005</li>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>2</font></div>
  </td>
  <td>
  <div id=3DPPTP2 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0003.htm');" id=3DPPTL2>Why Do Airlines
  Merge?<br>
    Three Major Reasons:</a></font></div>
  <div id=3DPPTC2 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Additional revenue/assets</li>
   <ul>
    <li>Increased connectivity and presence (size) lead to additional reven=
ue
        &#8211; additional value from:</li>
    <ul>
     <li>Larger carriers achieve a disproportionate share of revenue (S-Cur=
ve)</li>
     <li>Better schedule optimization</li>
     <li>Less pricing competition</li>
    </ul>
    <li>Improved operating efficiencies</li>
    <li>Strategic Acquisition</li>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>3</font></div>
  </td>
  <td>
  <div id=3DPPTP3 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0004.htm');" id=3DPPTL3>Examples of Area=
s of
  Potential Cost Synergies From a Merger</a></font></div>
  <div id=3DPPTC3 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Rental Expense (other than aircraft)</li>
   <ul>
    <li>Combining space, ground equipment, etc.</li>
   </ul>
   <li>General and Administrative Expenses</li>
   <ul>
    <li>Combining office space, joint purchasing of supplies, etc.</li>
   </ul>
   <li>Labor costs for aircraft &amp; traffic handling</li>
   <ul>
    <li>Combining of redundant staff</li>
   </ul>
   <br>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>4</font></div>
  </td>
  <td>
  <div id=3DPPTP4 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0005.htm');" id=3DPPTL4>Key Merger
  Considerations</a></font></div>
  <div id=3DPPTC4 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Mergers involve four fundamental challenges</li>
   <li>Different systems</li>
   <li>Different fleet types</li>
   <li>Workforce integration issues</li>
   <li>Cultural differences</li>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>5</font></div>
  </td>
  <td>
  <div id=3DPPTP5 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0035.htm');" id=3DPPTL5>Merger/Fragmenta=
tion
  Models</a></font></div>
  <div id=3DPPTC5 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Two Structural Merger Models</li>
   <ul>
    <li>The full operational integration model with employees merged</li>
    <li>No operational integration. A holding company with operational enti=
ties
        (the double breasting model)</li>
   </ul>
   <li>Fragmentation Models involving the sale of part of an airline</li>
   <ul>
    <li>A transaction between two carriers involving assets only</li>
    <li>A transaction between carriers involving assets and people</li>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>6</font></div>
  </td>
  <td>
  <div id=3DPPTP6 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0036.htm');" id=3DPPTL6>US Consolidation=
 Since
  Deregulation</a></font></div>
  <div id=3DPPTC6 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>In the 1980&#8217;s numerous mergers and at least two examples of
       fragmentation transactions</li>
   <li>In the 1990&#8217;s no mergers - numerous fragmentation transactions=
</li>
   <li>In 2000&#8217;s one earlier merger (TWA/American) and one recent
       fragmentation transaction</li>
   <li>Pending US Airways/America West merger may be the tip of the iceberg=
</li>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>7</font></div>
  </td>
  <td>
  <div id=3DPPTP7 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0037.htm');" id=3DPPTL7>European Union</=
a></font></div>
  <div id=3DPPTC7 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>In the 2000&#8217;s there have been four recent mergers</li>
   <ul>
    <li>Air France/KLM &amp; Lufthansa/Swiss</li>
    <li>Austrian/Lauda &amp; SAS/Brathens</li>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>8</font></div>
  </td>
  <td>
  <div id=3DPPTP8 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0006.htm');" id=3DPPTL8>The Labor Elemen=
t</a></font></div>
  <div id=3DPPTC8 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Labor is the key element in determining successful integration of
       merging companies</li>
   <ul>
    <li>Labor laws need to be understood and applied across borders for thi=
s to
        happen</li>
   </ul>
   <li>Merging companies have to include labor in the process</li>
   <ul>
    <li>As a participant, with input into the process, not as an observer</=
li>
    <li>Without labor as a player, consolidation will not succeed</li>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>9</font></div>
  </td>
  <td>
  <div id=3DPPTP9 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0007.htm');" id=3DPPTL9>The Labor Elemen=
t</a></font></div>
  <div id=3DPPTC9 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Labor issues to consider:</li>
   <ul>
    <li>Pay Scales</li>
    <li>Work Rules</li>
    <li>Seniority Lists</li>
    <li>Corporate Cultures</li>
   </ul>
   <li>Consolidating Pay Scales and Work Rules</li>
   <ul>
    <li>In most cases labor costs differ between merging companies</li>
    <ul>
     <li>Large labor cost differences can be significant hurdle</li>
     <li>Differing work rules and productivity levels also need to be addre=
ssed</li>
     <ul>
      <li>Companies may attempt to keep operations separate or run one comp=
any
          as &#8220;subsidiary&#8221;</li>
     </ul>
    </ul>
   </ul>
   <br>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>10</font></div>
  </td>
  <td>
  <div id=3DPPTP10 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0009.htm');" id=3DPPTL10>The Labor Eleme=
nt</a></font></div>
  <div id=3DPPTC10 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Why is Labor Integration So Important To Airline Consolidations?</li>
   <ul>
    <li>Airline labor, especially pilots, are highly skilled and long train=
ing
        cycles make labor a valuable asset</li>
    <li>Airline labor unions often deal directly with the customer</li>
    <li>Labor costs are a large enough portion of expenses to have a major
        impact on cost structure</li>
    <li>Labor issues can often lengthen consolidation timeline and financia=
lly
        weaken the merged company</li>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>11</font></div>
  </td>
  <td>
  <div id=3DPPTP11 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0008.htm');" id=3DPPTL11>The Labor Eleme=
nt</a></font></div>
  <div id=3DPPTC11 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Merging Seniority Lists and collective agreements</li>
   <ul>
    <li>Difficult and sensitive process</li>
    <li>ALPA has a &#8220;Merger Policy&#8221; that is intended to:</li>
    <ul>
     <li>Preserve jobs</li>
     <li>Avoid windfalls to either group</li>
     <li>Maintain or improve pre-merger working conditions</li>
     <li>Minimize detrimental changes to career expectations</li>
    </ul>
    <br>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>12</font></div>
  </td>
  <td>
  <div id=3DPPTP12 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0019.htm');" id=3DPPTL12>The Merger
  Process<br>
    Phase 1 &#8211; Announcement of Transaction to Closing</a></font></div>
  <div id=3DPPTC12 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Need to review legal framework to protect pilots interests</li>
   <li>Engage in bi-lateral negotiations with management, as necessary</li>
   <li>Meet and Develop Protocol of Cooperation between pilot groups</li>
   <br>
   <br>
   <br>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>13</font></div>
  </td>
  <td>
  <div id=3DPPTP13 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0023.htm');" id=3DPPTL13>&quot;Basic Obj=
ectives
  of Protocol&quot;</a></font></div>
  <div id=3DPPTC13 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Basic Objectives of Protocol</li>
   <li>To establish an ongoing exchange of information related to the __/__
       transaction between the signatory Unions;</li>
   <ul>
    <li>To share our knowledge and experience in the airline industry,
        including details of our collective bargaining agreements, national
        laws and regulations;</li>
    <li>To share other information important to protect and enhance our
        professional interests;</li>
    <li>To avoid any action that could reduce the leverage available for th=
e __
        or __ pilot groups;</li>
    <li>To develop common bargaining positions to be pursued with each
        management concerning a fair distribution of growth/job opportuniti=
es;</li>
    <li>To prepare for the further development of the corporate combination=
 of
        __ and __;</li>
    <li>To work together to ensure that in the event of an operational merg=
er
        of __ and __, the __ and __ pilots will be treated in a fair and
        equitable manner.</li>
    <br>
    <br>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>14</font></div>
  </td>
  <td>
  <div id=3DPPTP14 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0021.htm');" id=3DPPTL14><br>
    The Merger Process<br>
    Phase 2 &#8211; From Transaction Closing to Integration</a></font></div>
  <div id=3DPPTC14 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Develop Transition Agreement covering the following terms:</li>
   <ul>
    <li>Status of Pilot Signatory Unions and Collective Agreements at _____=
 and
        _____ during this Agreement</li>
    <li>Separation of Aircraft and Personnel during this Agreement</li>
    <ul>
     <li>See Attachment A</li>
    </ul>
    <li>No Layoff of Pilots during Term of this Agreement</li>
    <li>New Hires during Term of this Agreement</li>
    <li>New Aircraft during the Term of this Agreement</li>
   </ul>
   <br>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>15</font></div>
  </td>
  <td>
  <div id=3DPPTP15 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0032.htm');" id=3DPPTL15>&quot;Transition
  Agreement&quot;</a></font></div>
  <div id=3DPPTC15 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <ul>
    <li>Transition Agreement</li>
    <br>
    <br>
   </ul>
   <li>Seniority Integration Process and Procedure</li>
   <ul>
    <li>Designation of Merger Representatives</li>
    <li>Preparation of Employment Data</li>
    <li>Exchange of Employment Data</li>
    <li>Negotiations/Mediation/Arbitration</li>
   </ul>
   <li>Relative Position on Pre-Merger Lists Maintained</li>
   <li>Preservation of Rights</li>
   <li>Reimbursement of Merger-Related Expenses</li>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>16</font></div>
  </td>
  <td>
  <div id=3DPPTP16 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0031.htm');" id=3DPPTL16>Transition Agre=
ement</a></font></div>
  <div id=3DPPTC16 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Company Acceptance and Implementation of the Seniority List</li>
   <li>Process to Negotiate Combined Collective Agreement for the Combined
       Companies</li>
   <li>Resolution of Disputes arising under this Agreement</li>
   <li>Enforcement of Arbitration Decisions under this Agreement</li>
   <li>Mutual assistance during this Agreement</li>
   <li>Duration of this Agreement</li>
   <ul>
    <br>
    <br>
   </ul>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>17</font></div>
  </td>
  <td>
  <div id=3DPPTP17 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0014.htm');" id=3DPPTL17>Transition Agre=
ement<br>
    ATTACHMENT A</a></font></div>
  <div id=3DPPTC17 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <br>
   <li>List of Aircraft Operated by ____ on Date of this Agreement (identif=
ied
       by manufacturer, type and tail designation)</li>
   <li>List of Aircraft on Order by ___ on Effective Date of this Agreement
       (including manufacturer, type, anticipated delivery date)</li>
   <li>List of Aircraft Operated by ___ on Effective Date of this Agreement
       (identified by manufacturer, type and tail designation)</li>
   <li>List of Aircraft on order by __ on Effective Date of this Agreement
       (including manufacturer, type, anticipated delivery date)</li>
   <br>
   <br>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>18</font></div>
  </td>
  <td>
  <div id=3DPPTP18 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0016.htm');" id=3DPPTL18>Phase 3:<span
  style=3D'mso-spacerun:yes'>&nbsp; </span>Post Integration</a></font></div>
  <div id=3DPPTC18 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>Implementation of final integrated seniority list</li>
   <li>Implementation of combined working agreement</li>
   <li>Establishment of an appropriate Union structure</li>
  </ul>
  </font></div>
  </td>
 </tr>
 <tr onmouseover=3D"Over(this)" onmouseout=3D"Out(this)" onclick=3D"Follow(=
this)"
  style=3D'cursor:hand'>
  <td align=3Dright valign=3Dtop>
  <div class=3DsldNum><font size=3D2>19</font></div>
  </td>
  <td>
  <div id=3DPPTP19 class=3DPTxt><font size=3D2><a
  href=3D"javascript:GoToSld('slide0039.htm');" id=3DPPTL19><span
  style=3D'mso-spacerun:yes'>&nbsp;</span>Some Labor Relations Consideratio=
ns to
  Address in Mergers and Fragmentations of Airlines</a></font></div>
  <div id=3DPPTC19 class=3DCTxt style=3D'display:none'><font size=3D2>
  <ul>
   <li>A process to maintain proportionality during the transition period</=
li>
   <li>A seniority integration process with real timeline</li>
   <li>A timely contract amalgamation process</li>
   <li>Addressing Union representation issues</li>
   <li>The adverse impact of job abolishment or dislocation of employees</l=
i>
   <li>Different corporate cultures adversely affecting labor relations and=
 the
       handling of human resource issues</li>
   <li>Consult on process</li>
   <li>Communicate with rank and file</li>
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font></div>
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