United pilots contract, LOA 12-03 — Trip Trading

1. The trip-trade system shall include the following functionality:

a. Multiple Pilot branching logic.

b. The graphical display of a Pilot’s current schedule in a calendar and list view.

c. The ability for a Pilot to search all Trips including open, “potential open” and assigned Trips.

d. The ability to enter trade requests based on set criteria.

e. The ability to have trades checked for contractual and FAR compliance before submitting them.

f. Trading directly with other Pilots as well as trading with open, “potential open” and assigned Trips.

g. The ability to request Trip drops, either paid drops using next year’s vacation or unpaid drops.

h. Electronic alerting.

i. A bulletin board system with the following functionality:

(1) The ability to view other Pilots’ requests in their entirety.

(2) The ability to display all requests from other Pilots that match a Pilot’s requests.

(3) The ability to communicate with other Pilots via the bulletin board interface.

j. Electronic alerts for Open Trips.

k. Criteria options and graphical interface that include at a minimum:

(1) Criteria options for notice to depart, premium pay level, multiple desire/avoid station transited and layover stations, and any other criteria options necessary for premium pay criteria pickup.

(2) A graphical interface that allows a Pilot to express a desire to work (rather than depart) only on certain days and the number of desired work days in that period. For example: The Pilot would like to work any four days between the fifth (5th) and the tenth (10th), but one (1) day Trips are not acceptable. The system could award a single four-day Trip or two (2) two-day Trips.

If the parties cannot agree on the specific details of the functionality of items a-h, the specific functionality of the “s-UA” system as of May 2012 shall be required.

Note: If the Company provides the eTripTrader interface, items i and j shall be satisfied.

2. The parties agree to explore the following means of improving the trip-trade system. Improvements may require considerable technical support in order to be implemented. The parties shall prioritize the list based on both the importance of the improvement and the required technical support to achieve the improvement. The parties recognize that some of the improvements may not be implemented due to for example, excessive required technical support, significant degradation of run times or quality, etc. Further, the parties agree that this list of improvements is, by necessity, of lower importance than the automation changes necessary to implement the primary portions of the Agreement.

a. Frequency - Categories run independently. Reduce time between runs. Customizable notification via text and/or email, e.g. when Category finishes, when next run scheduled to begin, etc. It is understood that Categories may be queued for processing.

b. Trade requests - Increase number above current limit of eighteen (18), unless SSC agrees otherwise on Category basis.

c. Electronic alerting - Allow Pilot to be alerted to premium pay Trips, open time, awarded trades, run times, and changes to Trips in stored requests. Allow for company communication (regarding system outages, etc.) as well as direct communication between system users. Generate message when coverage parameters are updated in a Category.

d. Reporting – provide detailed report explaining why trade is denied.

e. Improve criteria screen to be more intuitive.

f. Improve the contractual and FAR compliance checking function to be more comprehensive.

Note: If the Company provides the eTripTrader interface, item f shall be satisfied.

3. The parties shall develop a reasonable approach of preventing the “batch” trip-trading system and the instantaneous trading system from assigning conflicting awards. This approach may include halting the batch process from 1100 – 1300 Base time or halting/queuing the instantaneous trading system when the batch system is running.

4. In lieu of “enhanced pool” functionality, the Company will develop the following “bad day worse day” trip-trading functionality:

a. “Reserves Needed” means the minimum number of Reserves needed, as determined by the Company. (Min Lvl)

b. “Net Reserves Available” means actual Reserves available for duty after accounting for open duty periods. (Net Resv)

c. To calculate Reserve Coverage for a particular day, subtract Reserves Needed from Net Reserves Available.

d. To determine Reserve Coverage for a Trip, add the cumulative sum of Reserve Coverage for each day of the Trip. Example: Three-Day Trip on 7th through 9th

Reserve Coverage for this three-day Trip is –7 (-6+2-3).

e. A trip-trade involving two (2) Trips each of which contains one (1) or more days that are blocked due to minimum staffing coverage restrictions will be awarded if the Trip being dropped has a greater Reserve Coverage than the Trip being picked up, and:

1. If the Trip being dropped occurs later in the Bid Period, its lowest Reserve Coverage day can be no more than five (5) lower than the lowest Reserve Coverage day on the Trip being picked up, or

2. If the Trip being dropped occurs earlier in the Bid Period, its lowest Reserve Coverage day can be no lower than the lowest Reserve Coverage day on the Trip being picked up. In addition, this trade must be executed at least seven (7) days prior to the first day of the Trip being dropped.

f. Example 1:

The Reserve Coverage for Trip 1 is (-5+2-3) = -6. The Reserve Coverage for Trip 2 is (+4-1- 6) = -3. A Pilot wants to drop Trip 2 and pick up Trip 1. Since Trip 2 (the trip being dropped) has better Reserve Coverage, the trip trade is acceptable under Paragraph e above. Trip 2 is later in the Bid Period, so Paragraph e.(1) applies. The lowest Reserve Coverage day in Trip 2 is –6, and the lowest Reserve Coverage day in Trip 1 is –5. Since the lowest Reserve Coverage day in Trip 2 is only one (1) lower than the lowest Reserve Coverage day in Trip 1, the trade is allowed under Paragraph e.(1).

Example 2:

The Reserve Coverage for Trip 3 is (+5-2-8) = -5. The Reserve Coverage for Trip 4 is (-6+0- 1) = -7. On the third day of the calendar month, a Pilot wants to drop Trip 3 and pick up Trip 4. Since Trip 3 (the trip being dropped) has higher Reserve Coverage, the trade is acceptable under Paragraph e. Trip 3 is earlier in the Bid Period, so Paragraph e.(2) applies. Since the lowest Reserve Coverage day in Trip 3 (-8) is lower than the lowest Reserve Coverage day in Trip 4 (-6), the trade will be denied. In addition, the trip trade does not occur at least seven (7) days prior to the first day of Trip 3, so the trade will be denied for this reason also.

g. A trip-trade involving a carryover Trip (i.e., a Trip scheduled to operate from one Bid Period ("Bid Period A") into the next Bid Period ("Bid Period B")) that does not have any days blocked in Bid Period “A” due to minimum staffing coverage restrictions will not be subject to this Paragraph 4. However, such a Trip will be included in the calculations given in Paragraph h below.

h. Until reserve schedules are loaded for Bid Period “B”, trip-trades involving carryover Trips that do have days blocked in Bid Period “A” due to minimum staffing coverage restrictions will be handled as follows:

1. When trip-trading first opens for Bid Period “A”, the beginning Reserve Coverage for days in Bid Period “B” will be considered to be zero (0).

2. When a Pilot trades off of a day in Bid Period “B”, the Reserve Coverage for that day will be reduced by one (1).

3. When a Pilot picks up a day in Bid Period “B”, the Reserve Coverage for that day will be increased by one (1).

i. Example

A Pilot wants to drop Trip 2 and pick up Trip 1. Since Trip 2 (the trip being dropped) does not have any days blocked in Bid Period “A” due to minimum staffing coverage restrictions, this Paragraph 4 does not apply and the trade is allowed (assuming all other trade criteria are met). Now assume another Pilot wants to execute a similar trade. Since Trip 4 now does have days blocked in Bid Period “A” due to minimum staffing coverage restrictions, this Paragraph 4 does apply. The updated table is as follows:

The Reserve Coverage for Trip 3 is (-1-1-1) = -3. The Reserve Coverage for Trip 4 is (0-1-1) = -2. Since Trip 4 (the trip being dropped) has better Reserve Coverage, the trip trade is acceptable under Paragraph e above. Trip 4 is later in the Bid Period, so Paragraph e.(1) applies. The lowest Reserve Coverage day in Trip 4 is –1, and the lowest Reserve Coverage day in Trip 3 is also –1, so the trade is acceptable under Paragraph e.(1). Now assume a third Pilot wants to execute a similar trade. Since Trip 6 also has days blocked in Bid Period “A” due to minimum staffing coverage restrictions, this Paragraph 4 does apply. The updated table is as follows:

The Reserve Coverage for Trip 5 is 0. The Reserve Coverage for Trip 6 is (-1-2-2) = -5. Since Trip 6 (the trip being dropped) has worse Reserve Coverage, the trip trade is not allowed under Paragraph e.

5. The Company agrees to provide Pilots the ability to view the COSMOS CMPOOL (or its successor) display.

6. The Company and the SSC shall continue efforts to develop and improve the trip-trading system.

AGREED, this 18th day of December, 2012.

For United Airlines, Inc.: For the Air Line Pilots Association, International:

Captain Fred Abbott Senior Vice President Flight Operations Captain Donald L. Moak President Air Line Pilots Association, International

P. Douglas McKeen Senior Vice President Labor Relations

Captain Jay Heppner Chairman UAL MEC

Captain Jay Pierce Chairman CAL MEC