Summary of ALPA Proposal 20 July 2004

Compensation and Value:
Reduce May 2004 pay table by 23%
Reduce night pay
Reserve guarantee to be prorated on a daily basis as 1/18th per on-call day (as opposed to the current 1/30th or 1/31st per day for the total number of days in the bid period).
International category pay changes (some reductions in when it applies)

Annual Average Savings:  $655-$705M

Duration:
Amendable Date:  31 December 2008

Work Rules:
Develop and implement a Preferential Bidding System (PBS)
Match reserve availability to need.
- Goal is to double reserve utilization
- Utilize a reserve assignment system that helps level reserve hours
Allow LOT value to vary over a wider range.
Increase monthly pay cap.
Reserve guarantee at 70 hours until CAP exceeds 80 hours, then it will trail 10:00 behind CAP.
Pilot removed for another pilot’s OE is subject to 23 K recovery flying
Company has more freedom to  reroute before triggering reroute premium pay
Reduce Vacation Bank value to 3:15 per day and eliminate 48 hours
Allow expanded use of Non-Seniority List Instructor (NSLI)
Replace VM with Duty Period Average (DPA)
Expand Distributed Training
Allow Bank deposits as long as current Furlough Recall agreement is complied with
Category freeze increased to two years from date of award

Benefits:
Adopt the 2004 Standard & Enhanced non contract medical plans (pilot and retiree premium to be negotiated) and add a third high deductible no premium plan

Other R&I items:
- Require lump sum transfer within 45 days of retirement
- Allow diversification of Delta stock held in the 401K at age 50

Safety and Oversight:
- Require the Central Air Safety Committee (CASC) be notified in the event of accident or incident
- Grant CASC access to the safety database

Scope:
Extend 1 E. and 1 F. numbers to match duration
Improvements in scope:
- Fragmentation protections
- Merger protections
- Improvemeement of Profit Loss agreements protections
- Information sharing
-&nb Labor disputes
- Brand scope

Returns:
Profit sharing based on pre-tax earnings
Equity in the form of stock options
Annual Performance Incentive Program

Bankruptcy Protection LOA to buffer against further concessions in the event of bankruptcy

ALPA elected full member of Delta Air Lines BOD

Jumpseat (J/S) Improvements
- Flight Attendant J/S access
- Flow back
- International partner Jr J/S access

PS(Y) transportation on DCI for travel to/from training and ALPA business

Company to pay the cost of these negotiations

Other:

Agreement effective upon ALPA's acceptance of a comprehensive restructuring of Delta Air Lines that involves all stakeholders