CHAUTAUQUA AIRLINES REPUBLIC AIRLINE SHUTTLE AMERICA TENTATIVE AGREEMENT FOR A COLLECTIVE BARGAINING AGREEMENT

CHAUTAUQUA AIRLINES REPUBLIC AIRLINE SHUTTLE AMERICA 2014-2018 TENTATIVE AGREEMENT FOR A COLLECTIVE BARGAINING AGREEMENT

ARTICLE 1 RECOGNITION & SCOPE

1 Recognition & Scope Changes from current CBA Article 1: D.2. All flying by or for the Company must be performed by Republic Airways Pilots (effectively replaces Chautauqua Airlines Pilots Seniority List); D.3. Company, Parent or Entity may not establish a new airline or acquire operational control and operate a separate carrier; Control or controlling interest includes Entity over which Company exercises operational control, but owns less than 50% of equity or assets of Entity.

1 Recognition & Scope (cont.) Changes from current CBA Article 1 (cont.): H.3. Improved job protection in the event of a merger; Required employment of RAH Pilots, maintenance of status-quo for Pay Rates, rules and working conditions. Fair and equitable integration of seniority lists, in accordance with Allegheny/Mohawk Sections 3 & 13.

ARTICLE 2 DEFINITIONS

2 Definitions Numerous updates to existing defined terms to bring them into alignment with usage in Tentative Agreement; Significantly reduced misinterpretations by elimination of gray areas; Addition of a large number of new terms resulting from the Tentative Agreement and FAR 117.

ARTICLE 4 EXPENSES

Per Diem: 4 Expenses Paragraph 4.B.1. amended to provide the following Per Diem allowance per hour of TAFB, prorated: DOS $1.80 DOS+2 $1.90 DOS+4 $2.00 (Amendable Date)

ARTICLE 6 SCHEDULING

6 Scheduling Scheduling Committee: Increased Scheduling Committee involvement in Bidding of Schedules, Vacancies, Reserves, Pairing construction, oversight of SAP, Buffers, etc.; 50 hours per month of Company paid FPL for Scheduling Committee; additional FPL reimbursed by Union; Increased Crew Trac access; up to 4 Scheduling Committee members per Certificate; Scheduling Committee and Company meet monthly.

6 Scheduling (cont.) Bidding Timeline (All references are Headquarters Time (HQT) in month prior to Bid Period): 0900 the 2 nd Recurrent Training information posted; 0900 the 7 th Recurrent Training Bids close; 0900 the 12 th Bid Information available to Pilots at each Base; 1200 the 15 th Bids close; 1500 the 17 th Initial Awards posted and SAP-1 begins; 1500 the 19 th SAP-1 ends;

6 Scheduling (cont.) Bidding Timeline (cont.): 1700 the 19 th SAP-2 begins; 2000 the 20 th SAP-2 ends; 1700 the 22 nd Final Awards posted; Build-Up Blackout ends when Crew Trac loaded, but no later than 1700 the 23 rd ; During Build-Up Blackout, no Trip Trades, Trip Drops or Open Time awards for following month processed; Company and Scheduling Committee review Final Awards. FLiCA generates, tracks and provides each Pilot with a unique receipt for his Bid.

Vacation Slide: 6 Scheduling (cont.) Pilot has option to move start of scheduled Vacation by a maximum of 3 Days either direction; Pilot must inform Crew Planning prior to close of Recurrent Training Bids; Consecutive weeks of Vacation are considered as 1 block; Pilot may not Slide Vacation into New Years Day, July 4 th, Thanksgiving or Christmas.

6 Scheduling (cont.) Line Construction PBS: All Known Absences applied to Pilot s schedule; Additions and changes (mostly increases) to list of Virtual Credits; Company constructs all schedules using FLiCA; Schedules will be Regular Lines, SDP Lines, Composite Lines or Reserve Lines.

6 Scheduling (cont.) Line Construction PBS (cont.): Minimum Credit Window initially set at MMG; Maximum Credit Window set to highest value possible, including Buffers; By mutual agreement, Minimum Credit Window may be adjusted Bid-by-Bid at each Base.

6 Scheduling (cont.) Line Construction PBS (cont.) No less than minimum Days Off in accordance with Article 23 (Hours of Service); Regular Lines built to leave 13% to 17% SCH remaining after PBS process; Company may withhold up to 5% of known First Officer flying per Equipment Type for Captain OE; additional OE time obtained pursuant to Displacements.

Regular Lines: 6 Scheduling (cont.) Additional Trips will not be added or removed from Regular Lines after FLiCA completes construction, except as Agreement provides; Regular Lineholder will not be assigned Reserve Days or out-of-base Trips. Composite Lines: Built to a minimum of 57 SCH plus Reserve Day Virtual Credits; Contain Days Off in accordance with Article 23; RAP/RCP Min. Credit Window value of 4.5 hours.

6 Scheduling (cont.) Split Duty Period (SDP) Lines: SDP is FDP with a scheduled break in Duty less than a required Rest Period; SDP Pairings consist of one FDP and may not be constructed back-to-back, except in pure SDP Line; Days Off per Article 23; no more than 3 consecutive SDPs; minimum 3 Days Off following block of 3 SDPs; Minimum of 5:15 Ground Time, Block-to-Block; Pilot not required to participate in training during this time; No more than 4 legs, including Deadheads, with no more than 2 legs returning to Base after minimum Ground Time;

6 Scheduling (cont.) Split Duty Period (SDP) Lines (cont.): Flights may not be added to SDP Trip following FLiCA assigning Lines; SDP Trip terminates upon Pilot s first return to his Base; Pilot not subject to any further Duty; Released to Rest upon completion of SDP Pairing; No non-sdp Assignment prior to 0500 LDT next Day; Pilot can be reassigned to regular Rest to complete Trip interrupted due weather, maintenance, etc. Duty Rig continues during entire SDP; SDP Lineholder will not be assigned Reserve Days or out-of-base Trips.

Reserve Lines: 6 Scheduling (cont.) Reserve Line contains RAPs, RCPs and minimum Days Off, per Article 23 (Hours of Service); Company determines number of RAPs and RCPs; Reserve Lines show type of Reserve, i.e., LCR, SCR, Airport Standby; No mixing Reserve types within a Reserve Line; At least 1 block of 4 consecutive Days Off per month; Pilot may waive this requirement; No single Day Off or single RAP or RCP, except first or last day of Bid Period.

Daily Open Time: 6 Scheduling (cont.) Time that becomes available during Bid Period (Illness, Vacations, Leaves, Training, Charters, Extra Sections, others not awarded or Assigned); Company posts all Open Time after Final Bid Award and updates on real-time basis; Posting and Assignment of Open Time to Pilots, other than Reserves, administered thru FLiCA or over recorded phone line at Pilot request; Crew Scheduling may solicit pick-up of Open Time, except by Pilots on Union s do not call list;

6 Scheduling (cont.) Daily Open Time (cont.): Pilots may Swap, Drop and add with Open Time; Requests processed on first-come, first served basis according to FLiCA server clock: Requests capable of automatic approval by FLiCA conducted in real time; Pilot notified and advised of reason, if request denied. Daily Open Time Assignments may not conflict with FARs, the Agreement or with existing Trips or Assignments;

6 Scheduling (cont.) Daily Open Time (cont.): Pick-up of Open Time on Day(s) Off gets minimum 4 PCH per Day; Open Time not Assigned at Final Bid Award will be picked-up or Assigned in following order: Captain or F/O who has not completed Consolidation; Any Lineholders or Reserves on Day(s) Off; Available for Bid by Reserves, per Article 6A; Assignment to Reserves, per Article 6A; Assigned to Management Pilots.

6 Scheduling (cont.) Pilot Contact and Notification: Pilot shall provide 1 contact phone number; Once Final Award posted, all Company-initiated changes require positive contact with Pilot; Pilot must be contactable only when on Duty, RAP, RCP or Airport Standby; ACARS, message on flight release, etc., constitute positive contact only if acknowledged by Pilot; Signing flight release constitutes acknowledgment; If Company attempts contact through designated contact method, Pilot shall respond in timely manner upon receipt;

6 Scheduling (cont.) Pilot Contact and Notification (cont.): Pilot unable to report for Duty will notify Crew Scheduling as far in advance as practicable; Company may attempt direct contact with Pilot on Layover subject to following: Anytime, in case of personal or family emergency; Within 1 hour after Block-In and prior to 10 hours before Report Time, or within 1 hour before Report Time; By phone or other means during Rest; Pilot is not obligated to accept or return calls during Rest; Pilot whose Sleep Opportunity is interrupted may require additional Rest at his sole discretion; Pilot is not subject to any form of harassment or discipline for his decision.

6 Scheduling (cont.) Pilot Contact and Notification (cont.): If electronic Self-Notification available, Pilot who Self-Notifies is responsible for Assignment; Telephone conversations between Pilots and Crew Scheduling, Dispatch and Maintenance recorded; Recordings kept minimum of 30 days; Grievance Committee Chairman, or designee, may request relevant recordings kept until an ongoing dispute is settled.

6 Scheduling (cont.) Award Displacements (after Bid Awards): Company may Award Displace a Lineholder for: Completing required OE; Minimum Experience between Captain and F/O ( Green on Green ); Age-60 Rule conflicts ( Gray on Gray ). Displaced Lineholder credited with original Trip or Reassignment, whichever greater; Lineholder displaced from multi-day Trip must contact Crew Scheduling for possible Assignment only 1 time each day of original Trip between 1700 and 2000 LDT; Released to next call-in, if not Assigned during call;

6 Scheduling (cont.) Award Displacements (cont.): Crew Scheduling may not Assign Trip with Report Time earlier than original Trip, if 1-Day, or first Day of multi- Day Trip, unless Pilot concurs; On subsequent Days of multi-day Trip, at least 30 hours notice of Assignment, if Trip starts earlier than 1000 LTD, unless Pilot concurs; Reassignment may not be scheduled to end later than originally Assigned Trip, unless Pilot concurs; Company pays lodging for in-base Pilot not residing in- Base, unless he would not otherwise have obtained; Pilot not Assigned to Reserve, unless he concurs.

6 Scheduling (cont.) Reassignment/Reroute: New Assignment scheduled for same Day(s) as originally scheduled; Lineholder may not be reassigned to Reserve, unless he concurs: Released no later than 2 hours after originally scheduled Release Time; If given Assignment during RAP, Released in-base no later than originally scheduled Release Time. Pilot may not be scheduled into Days Off, unless due to weather, mechanical, etc., directly related to last flight, unless he concurs;

6 Scheduling (cont.) Reassignment/Reroute (cont.): Company may not schedule Pilot into Day Off due to insufficient staffing, unless he concurs; Pilot scheduled or rescheduled into Day(s) Off compensated as provided in Article 3 (Compensation), unless Day(s) Off restored; All Reassignments subject to terms of the Agreement, as if originally scheduled; All Reassignments constructed using realistic parameters (e.g., historic Flight, Taxi & Turn Times, known ATC delays, forecast winds & weather).

6 Scheduling (cont.) Reassignment/Reroute (cont.): In-Domicile: Pilot not required to Report for Duty earlier than original Trip; Pilot scheduled to be Released from Duty no later than 2 hours after original Release Time; Company may not add maintenance flight or Aircraft systems check at end of Trip; Company will notify Pilot as soon as it becomes aware that Reassignment/Reroute results in later Report Time (subject to Rest rules).

6 Scheduling (cont.) Reassignment/Reroute (cont.): Out-of-Domicile: Pilot scheduled to return to Base within 2 hours after original Release Time on last Day of Trip. Reserve Pilot (other than a pure Reserve Line): May be Reassigned/Rerouted into next scheduled Trip, but not reassigned to end Duty on Day prior to a Day Off later than original Trip; Does not apply to Pilot who voluntarily trades into a RAP or RCP.

Illness or Injury: 6 Scheduling (cont.) Lineholder who cannot complete Assignment must notify Crew Scheduling immediately; Will be removed from Assignment and considered absent for duration; If called in Sick on a multi-day Trip and is subsequently able to return to flying, he shall notify Crew Scheduling; If Trip available at his Base that begins and ends during original Trip, it shall be Assigned to him;

6 Scheduling (cont.) Illness or Injury (cont.): If no Trip available, Lineholder may: Remain on Sick Leave for duration of original Trip; Be placed on Reserve and credited with each Reserve Day, as provided in Article 3, or value of any Trip Assignment, whichever greater; or, Accept a Trip outside of original Trip period. Reserve who called in Sick and is subsequently able to return to flying prior to completion of RAP or RCP block, shall notify Crew Scheduling and will be placed back on his RAP or RCP block.

6 Scheduling (cont.) Trip Trades and Drops: Trip Drop requests submitted to Crew Scheduling by FLiCA, e-mail or phone at least 48 hours prior to Trip (Crew Scheduling may waive 48 hours); Sufficient Reserves must be Available for Trip Drop; Sufficient means at least 10% of total number of Composite and Regular Lines in Position and Certificate (determined on the 1 st Day of the Bid Period).

6 Scheduling (cont.) Trip Trades and Drops (cont.): Trip Trades submitted to Crew Scheduling by FLiCA or e-mail no less than 24 hours prior to earliest Trip Report Time (Crew Scheduling may waive 24 hours); If less than 24 hours, request must be by phone over recorded line with all parties agreeing. Pilot requesting Trade or Drop remains responsible for original Trip until notified Trade or Drop approved; Trip Trades may not violate FARs or Agreement;

6 Scheduling (cont.) Trip Trades and Drops (cont.): Crew Scheduling may require Buffer when potential for illegality exists; Buffers reviewed with Scheduling Committee during regularly scheduled meetings; MMG adjusted per Article 3 (Compensation) for Pilot who lost time due to Trip Trade or Drop; Company not responsible for additional costs associated with partial Trip Trades, Drops or out-of- Base Trades (e.g., lodging, DHD, additional Duty, Trip Time).

6 Scheduling (cont.) Captains Flying as First Officers: If the number of Captains within a Base, Equipment and Certificate exceeds the number of F/Os by 25%, Company may designate number of Captains to Bid as F/O within that Base, Equipment and Certificate; Such Captains limited to 40% of the overage number of Captains eligible to Bid in that Bid Period, and will be indicated in Bid Information; Captains wanting to Bid as F/Os must indicate preference to do so; Preferences will be awarded in Seniority order up to designated limit of Captain overage;

6 Scheduling (cont.) Captains Flying as First Officers (cont.): If insufficient number of Captains Bid to fly as F/Os for that Bid Period, the remaining F/O Assignments Awarded to Captains in reverse Seniority order; Captains who Bid Trips as F/Os will exercise their relative Seniority amongst F/O at that Base; Captains who Bid as F/Os will receive their Captain Pay Rate and benefits for all such flying; Captains who Bid as F/Os for the Bid Period are eligible to pick-up Captain Open Time on Days Off; Company will meet and confer with Scheduling Committee prior to posting such Bids.

General: 6 Scheduling (cont.) If flight returning Pilot to Base on last Segment of Trip cancels or is delayed due to mechanical, he may be required to remain with Aircraft and operate it back to his Base, a Maintenance Base or a Hub; If such flight cancels or is delayed for other reason(s), Pilot may be required to remain with Aircraft and operate it back to his Base or a Hub;

General (cont.): 6 Scheduling (cont.) In either scenario: Departure no later than noon (Local Time) the following Day, or 18 hours following cancellation or delay, whichever is earlier; If Departure cannot be accomplished, as provided, Pilot may elect to be Released to depart on first available flight to return to his Base; If Pilot operates flight to a Maintenance Base or Hub, he has option of Release from Duty at the Maintenance Base or Hub, or Deadhead to his Base.

6 Scheduling (cont.) Restoration of Lost Days Off: Pilot who loses any part of block of only 2 Days Off, may choose to have them restored at end of the block; Pilot may add the Day(s) to another block of Days Off of his choosing, if lost Day(s) was in last 7 Days of the Month; or, Attach the Day(s) to any block of Days Off of his choosing in following Month (may not touch a Holiday or first 2 Days of Month). Pilot who has Trip modified due to Restoration of Day(s) Off may be Reassigned/Rerouted to rejoin original Trip; He shall be so notified when he chooses Restoration option.

6 Scheduling (cont.) Schedule Adjustment Period (SAP): SAP is the period during which a Pilot may modify his schedule prior to Final Bid Award; Implementation approximately 6 months post-dos due to vendor availability, software procurement, testing and training; SAP Consists of 2 phases: SAP-1 and SAP-2; All SAP requests made on SAP Bid Form in FLiCA; Pilot awarded Regular Line may participate in SAP; Pilot whose Line built Post-SAP may not participate;

SAP Restrictions: 6 Scheduling (cont.) May not Drop Line value below MMG; May not Drop Trip touching first 2 days of Bid Period; May not create conflict with another Trip or Assignment; May not Pick-up or Trade Trip(s) occurring in Vacation; May not Adjust schedule in current Bid Period; May not drop Trip on SAP Blackout Dates (New Years Day, July 4 th, Thanksgiving and Christmas); No Day(s) may have open Trips exceeding 75% of available Composite and Reserve Lineholders.

6 Scheduling (cont.) SAP Phase 1 (SAP-1): SAP-1 Awards in Seniority Order; Pilots awarded Swaps, Drops or additional Trips up to maximum Calendar Days designated in SAP Bid. SAP Phase 2 (SAP-2): SAP-2 Awards on first-come, first-served basis, according to FLiCA server clock; Out-of-Base Trips may be added. Union and Company may modify SAP, as mutually agreed; May also agree to eliminate SAP, but not until 1 year after implementation.

ARTICLE 6A RESERVES

6A Reserves New Article 6A (Reserves) carved out of Article 6 (Scheduling). Long Call Reserve (LCR): Reserve Contact Period (RCP) from 0600 to 2359 Local Domicile Time (LDT); Unless authorized, LCR must Report for Duty within 12 hours after initial call to his contact number; He may Report earlier, but is not required to do so; LCR must respond within 1 hour of initial contact; Such time included in 12-hour call-out time;

6A Reserves (cont.) Long Call Reserve (LCR) (cont.): LCR may be changed to Short Call Reserve (SCR) for following Day; Once LCR given an Assignment or moved to SCR, he is on Rest until start of Assignment or SCR Reserve Availability Period (RAP), i.e., no earlier than 12 hours following notification. LCR may inform Crew Scheduling he will be away from contact number not to exceed 2 hours; If given Assignment, time away from contact number does not affect expected Report Time.

6A Reserves (cont.) Long Call Reserve (LCR) (cont.): On last day of Reserve Days block, LCR released from Reserve without penalty, if not given Assignment that can be completed within that Calendar Day.

6A Reserves (cont.) Short Call Reserve (SCR): RAPs identified in Initial Bid Award and will be continuous 12-hour blocks; SCR not required to be Available for more than one 12-hour RAP in any one Day; SCR must be at his contact number during entire 12-hour RAP, unless released for specific time; SCR must respond within 20 minutes of first contact from Crew Scheduling; Such time included in call-out time;

6A Reserves (cont.) Short Call Reserve (SCR) (cont.): SCR subject to 2-hour call-out, unless assigned to a Base where Company and Union have mutually agreed to other call-out times; SCR will make every reasonable effort to Report earlier; SCR may be rescheduled from awarded RAP to a later RAP with at least 22 hours notice; Last RAP in a block will not be moved to a later time, unless moved with other RAPs in block or part of an Assignment;

6A Reserves (cont.) Short Call Reserve (SCR) (cont.): SCR may be rescheduled from an awarded RAP to an earlier RAP with at least 24 hours notice prior to the start; On Day Off prior to a RAP, an SCR may Self-Notify or contact Crew Scheduling of an Assignment placed on his schedule that starts within his RAP. Once notified, SCR is not required to be contactable until start of Assignment; On last day of a block of RAPs, SCR released from Reserve without penalty, if not given Assignment that can be completed within that Calendar Day.

Airport Standby: 6A Reserves (cont.) Maximum 10 hours of Airport Standby for SCR; If Assignment concludes prior to end of his onpremises Duty, SCR may be placed back on Airport Standby for remaining on-premises Duty; Pilot on Airport Standby may be Assigned Trips that RON; He should be prepared to work as many RAPs as are left in his current block of RAPs; No Airport Standby at airport that is not a Base without mutual agreement between Company and Union, on a case-by-case basis;

6A Reserves (cont.) Airport Standby (cont.): Airport Standby only at airports with Companydesignated Lounge Area that have comfortable seating, no public access, and noise and lighting can be limited; Airport Standby equitably allocated among available SCRs in reverse Seniority order; Airport Standby may not continue past 2359 LDT, regardless of how much of Reserve s FDP remains.

All Reserve Pilots: 6A Reserves (cont.) Reserve may use pager or cell phone at his expense; He is responsible for quality of service, malfunctions and remaining within calling area; Reserve not required to be Available for Duty on a Day Off or during Rest Period, but must be Available during RAPs or RCPs; Reserve not required to start RAP or RCP with less than the minimum Rest required by Article 23 (Hours of Service).

6A Reserves (cont.) Simulator Event Fill-in Pilot: Reserve who completed Consolidation for his Position may be assigned to Simulator Event as Fill-in Pilot in his Position (Capt. in left or right seat, F/O in right seat); Reserve not required to act as Fill-in more than 3 times in any rolling 12-calendar month period; Fill-in will participate in any brief and required de-brief, but shall not be subject to oral as Fill-in, nor subject to checking beyond requirements of Company approved training program; Fill-in, including Probationary Pilot, not subject to discipline solely as result of his performance as Fill-in; If required, he shall receive additional training, per Art. 10.

In-Base Reserves: 6A Reserves (cont.) In-Base Reserve may Bid for available Trip between 7 Calendar Days and 1000 LDT the 4 th Calendar Day before start of Trip; If still available, Trip awarded on firstcome, first-served basis among all in-base Reserves Bidding for Trip; After 1000 LDT, if no in-base Reserve Assigned Trip, Crew Scheduling will Assign a Reserve to open Trip Pairing on a first-in, first-out (FIFO) basis; All relevant factors must be equal (e.g., same number of available Days and Bid consistent with Reserve coverage requirements, Position).

6A Reserves (cont.) Out-of-Base Reserves: Reserve may be moved to a RAP or Airport Standby at a Base other than his own if Reserves in his Position available on that Day at that Base are less than 10% of the Regular Lines in Position at that Base, as calculated on 1 st day of Bid Period; Out-of-Base Reserve Captain can augment either Captains or F/Os on his Equipment; Out-of-Base F/O augments only F/Os on his Equipment; Reserve moved to out-of-base RAP or Airport Standby paid Per Diem and provided hotel accommodations during multi-day Assignments; Subject to same contractual and contact requirements as in-base SCR.

6A Reserves (cont.) Single or Multi-Day Trip Pairings: If Trip ends on last Day of RAP or RCP block, Reserve will not be reassigned or rerouted to Trip ending more than 2 hours beyond originally scheduled Trip; If Trip ends other than on last Day of RAP or RCP block: Reserve must call Crew Scheduling only 1 time within 1 hour prior to his originally scheduled Block-Out Time (not while on Rest) on last Segment of Trip; During that call, he may be Reassigned, Rerouted or placed on Airport Standby; If not, he is not subject to any further Assignment during that Duty Period; If Reserve on Single-Day Trip placed on Airport Standby, his remaining FDP reduced by 2 hours, which he may waive.

General: 6A Reserves (cont.) Reserve who has flown into Day(s) Off will receive compensation/day(s) Off Restoration options previously discussed in Article 6 (Scheduling); Reserves may Trade like RAPs (e.g., LCR, SCR, Airport Standby) among same Position and Base; Company will assign Reserves as far in advance as practical; Assignment must be scheduled to commence within Reserve s RAP; Reserve may not be reassigned to Rest during a RAP; On any RON departure, hotel reservation information (e.g., name, phone number, confirmation #) shall be made known to Reserve prior to Block-Out;

General (cont.): 6A Reserves (cont.) Reserve who is given Assignment, either during or in advance of RAP or RCP, is not required to be Available for that portion of RAP or RCP prior to Report Time of the Assignment; Reserve may not be given Assignment scheduled to exceed 14 hours of Duty from Report Time; If Reserve notified of Assignment prior to his RAP or RCP, Duty Time for pay and Rest commences at scheduled Report Time; If SCR notified of Assignment during his RAP, Duty Time for Rest calculation commences at beginning of RAP and time for pay purposes commences at beginning of Assignment.

ARTICLE 7 VACANCIES

System Staffing: 7 Vacancies Company posts project staffing for each Bid Period at least 60 days in advance; Vacancy defined as unfilled Position at a Base; Notice of Vacancy posted no later than 10 days after it exists and will specify number of primary Vacancies, Position, Certificate, Base and effective date; Bidding for Vacancy closes no earlier than 1700 HQT, 7 days after posting; Captain Vacancies awarded prior to or simultaneously with F/O Vacancies; Awards posted by 1700 HQT, 4 business days after Bid closes; Effective date not more than 6-months out.

7 Vacancies (cont.) Awarding/Assignment of Vacancies: Pilot who does not require training will fill Vacancy within 30 days after effective date. Pilot requiring training will be Assigned training no later than 60 days after effective date; Vacancy Award containing multiple effective dates assigned in Seniority order (subject to Locks, etc.); Senior Pilot pay protected on one-for-one basis, if Junior Pilot assigned an earlier effective date (subject to Locks, etc.); Pilots commence training according to types of training required;

7 Vacancies (cont.) Awarding/Assignment of Vacancies (cont.): Senior Pilot pay protected on one-for-one basis, if Junior Pilot assigned an earlier training date (subject to Locks, etc.); Senior Pilot who chooses later effective date or later training date is not pay protected; If Pilot withdraws from or fails training for Position, including OE, pay protection ceases; If Pilot unavailable for training (except scheduled Vacation, Bereavement, etc.), pay protection not applicable;

7 Vacancies (cont.) Awarding/Assignment of Vacancies (cont.): Pilot who completes training fills Vacancy no later 30 days after effective date of Award; Prior to filling Vacancy, Pilot may be assigned to new Position or to Duties in former Position, if in same Equipment Type; At completion of OE, Pilot pay protected when assigned to fly in new Position or effective date of Award, whichever is earlier.

7 Vacancies (cont.) Awarding/Assignment of Vacancies (cont.): Company may cancel or change Award at any time before effective date as follows: Company posts notice of cancellation or change on Company intranet and e-mails affected Pilots; If less than 30 days notice, Pilot who has moved his residence in reliance upon Award will be considered on Temporary Vacancy Assignment with Per Diem, transportation and lodging until Assigned his Base; If Senior Pilot who elected a later effective date has Award cancelled, he may opt to take an earlier Award, if training for that Award has not commenced.

7 Vacancies (cont.) Multiple Operations Training Compliance Program (MOTCP): MOTCP will allow Pilots to fly the same Equipment on multiple Certificates without a training event (e.g., all E190/175/170 Pilots could fly E190/175/170 aircraft on both Republic and Shuttle America Certificates); Company will diligently seek FAA approval of MOTCP; Company and Union will form joint committee to obtain MOTCP approval; Company will create and staff a dedicated position to secure MOTCP approval and chair joint committee;

MOTCP (cont.): 7 Vacancies (cont.) Upon implementation of MOTCP, relevant Certificate restrictions in Article 7 no longer applicable for Bidding between Positions; If MOTCP is not implemented within 30 months after DOS, Company and Union shall meet and confer regarding implementation status; If they conclude implementation is caused by circumstances beyond Company s control, they may agree to extend implementation 6 months.

Captain Locks : 7 Vacancies (cont.) Pilot who completes training for a Captain, as a result of a Vacancy Award, may not fill Position on higher paying Equipment requiring training for 24 months (36 months if Bidding to Q400), commencing with effective date of Award or completion of training, including OE, whichever earlier; Prior to MOTCP, or expiration of 30 (36) months from DOS, whichever earlier, Captain Locked for 24 months from Position on equal or lower paying Equipment requiring training;

Captain Locks (cont.): 7 Vacancies (cont.) Captain who has satisfied his Lock allowed to Downbid to equal or lower paying Equipment or change Certificates (subject to Training Equivalents Limits.); Captain may not voluntarily Downgrade to F/O unless Vacancy has higher Pay Rate; Locks do not apply to requalification training due to return from Leave of Absence.

First Officer Locks: 7 Vacancies (cont.) Prior to MOTCP, or expiration of 30 (36) months from DOS, whichever earlier, F/O Locked for 24 months from F/O Position on other Equipment requiring Bridge or Transition training; Subsequent to MOTCP, or expiration of 30 (36) months, whichever earlier, F/O Locked for 36 months; F/O who has satisfied his Lock allowed to change Equipment or Certificates (subject to Training Equivalents Limits.);

7 Vacancies (cont.) First Officer Locks (cont.): F/O not eligible to Upgrade until at least 12 months of Lock resulting from previous training is satisfied (not including New Hire training); If at least 12 months of Lock satisfied, F/O may be Awarded Upgrade and his remaining Lock shall be added to the new 24-month Lock; Locks do not apply to requalification training due to return from Leave of Absence.

Management Pilots: 7 Vacancies (cont.) Except as agreed between Union and Company, a Management Pilot must be Senior to the most Junior Captain on specific Equipment and Certificate to fly as Captain on that Equipment (See MOU 07-01); Restriction does not apply to: DO, Chief Pilot, Mgr. of Flight Standards, Program Managers and Mgr. of AQP; Above job opportunities, when vacant, shall be posted; Qualified Pilots shall be give preferential consideration prior to Company hiring off the street; In exceptional circumstances (e.g., rapid fleet growth, new Equipment Type), parties may waive limitations.

Displacements: 7 Vacancies (cont.) Displacement Events are Base closures, elimination of Equipment Type or removal of Aircraft from a Base; Pilot Displaced (surplused) when Seniority no longer allows him to hold his Position at his Base; Company will give at least 14 days notice of any reduction in force in a particular Position or Base; Notice to include number of Positions Displaced, reason(s), effective dates and closing date for Bidding Displacement Positions;

7 Vacancies (cont.) Displacements (cont.): Pilots holding Award in surplus Position or Base Displaced in reverse Seniority order; Base Realignment: The movement of flying in a particular Position from an Existing Base to another Existing Base(s) without any net change in Positions; Union and Company shall meet and confer on the reasons for a planned or anticipated Base Realignment; Company concurrently posts notice of Vacancies and Displacements;

7 Vacancies (cont.) Displacements (cont.): Base Realignment (cont.): Pilots in the Position and Certificate being Realigned eligible to Bid on these Vacancies; Unfilled Vacancies filled by Displacements. Displacement Process (done in sequence): 1) Pilot will Displace a more Junior Pilot in his Position and Certificate; if Seniority insufficient, 2) Pilot will Displace a more Junior Pilot in his Position system-wide; if Seniority insufficient,

7 Vacancies (cont.) Displacements (cont.): Displacement Process (cont.): 3) Captain will Displace to the Equipment Type and Certificate with the most Junior Captain, systemwide, at any Base within that Certificate; F/O will Displace to the Equipment Type and Certificate with the most Junior F/O, system-wide, at any Base within that Certificate; if Seniority insufficient, 4) Captain shall Downgrade to F/O with Displacement rights; F/O shall be subject to Furlough, as proved in Article 11 (Furlough and Recall).

7 Vacancies (cont.) Displacements (cont.): Displacement Process (cont.): Company may interrupt Displacement Process, in Seniority order, to prevent one or more Displaced Pilots from moving to next step; Such interruption shall not constitute a Vacancy; Displaced Pilot may not Displace into higher paying Position, unless there is not a more Senior Pilot with Standing Bid for the Position; Displaced Pilot entitled to Article 5 (Moving Exp.); Displacement shall not restart a Lock.

7 Vacancies (cont.) Displacements (cont.): Seniority Displacement: More Senior Pilot, in Position and Certificate, may elect to be Displaced instead of a more Junior Pilot being involuntarily Displaced; Senior Pilot shall exercise the Displacement rights of the Junior Pilot he replaces; Pilot who elects Seniority Displacement entitled to Article 5 (Moving Expenses) benefits; Seniority Displacement allowed only in Bases where actual reductions occur and may not exceed number of such reductions.

New Bases: 7 Vacancies (cont.) New Base is any Base initially established after DOS; Designation begins on effective date of first Captain Vacancy Award in that Base and ceases 12 months, thereafter; Vacancies at New Base filled in same manner as any Vacancy, subject to Training Equivalent Limits; Unfilled Vacancies at a New Base filled by Displacements.

7 Vacancies (cont.) Temporary Vacancies (TV): Any known Vacancy anticipated to exist for 90 days or less; Pilot may Bid for TV by submitting Bid, which is valid only for specific Vacancy; TV filled by qualified Pilots in Seniority, system-wide; Company not required to Award TV to Pilot who would create Secondary Vacancy; If openings remain after TV Awards, Company may assign most Junior Pilot in selected Position to TV for a period not to exceed 1 Month;

7 Vacancies (cont.) Temporary Vacancies (TV) (cont.): At the end of that Month, if TV remains, the next most senior qualified Pilot in the selected Position will be assigned to the TV for 1 month; No Pilot may be involuntarily assigned a TV more than once every 12 months; Pilot filling a TV will have Line adjusted to preserve minimum Days Off, per Article 23 (Hours of Service); Pilot filling TV away from his Base provided transportation to and from TV Base, Per Diem and Expenses, in accordance with Article 4 (Expenses); Pilot returns to permanent Base upon completion of a TV.

7 Vacancies (cont.) Training Equivalents (TE): TE available for Pilots changing Certificates for equal or lower pay or Downbids, shall be as follows: Prior to MOTCP, or expiration of 30 (36) months, whichever earlier, 25 TE per year, beginning DOS; Subsequent to MOTCP, or 30 (36) months from DOS, whichever earlier, 6 TE per year; If less than 25 or 6 TE, as applicable, used in a given year, a maximum of 5 unused TE shall rollover into next year;

7 Vacancies (cont.) Training Equivalents (TE) (cont.): The following TE shall apply to specified training: Full Captain Course 1.0 Transition Captain Course 1.0 Bridge Captain Course 0.5 Full F/O Course 0.7 Transition F/O Course 0.7 Bridge F/O Course 0.4 Company shall provide Scheduling Committee each month with the number of TE used and balance remaining available for the year.

7 Vacancies (cont.) Training Equivalents (TE) (cont.): Full Course is training for Pilot moving from one Certificate to another in addition to Transition Training; Transition Course is training for Pilot moving from one Equipment Type to another on same Certificate; Bridge Course is training for Pilot moving from one Certificate to another in same Position.

Hardship Transfers: 7 Vacancies (cont.) Company and Union shall jointly consider Pilot s request to vacate present or future Position and/or Base; Pilot may be permitted to vacate Position and/or Base to take up a different Position at his Base, take up a Position at a different Base, or revert to his former Position or Base; Hardship Transfer may be approved only to a Position Pilot s Seniority can hold at time of transfer;

7 Vacancies (cont.) Hardship Transfers (cont.): If Pilot s Hardship Transfer results in any Full, Transition or Bridge Training, applicable Locks shall apply; Pilot changing Bases, as a result of a Hardship Transfer, shall not be entitled to Article 5 (Moving Expenses) benefits.

ARTICLE 23 HOURS OF SERVICE

23 Hours of Service Changes due to FAR 117 specified in LOA 23-01: Paragraph 23.B. Duty Time Limitations: Time spent on Reserve prior to Reporting for an Assignment does not count as Duty; In no case will a Reserve Pilot s Duty Period exceed 16 hours from the beginning of his RAP. Paragraph 23.C.1. Flight Time Limitations: Time of Report 0000 0459 8 hours 0500 1959 9 hours 2000 2359 8 hours Max Block Time

23 Hours of Service (cont.) Paragraph 23.C.2. Flight Time Limitations (cont.) 100 hours Flight Time in rolling 672 consecutive hours; 1000 hours Flight Time in any 365 Calendar Days. Paragraphs 23.E.2. thru 23.E.4. removed and replaced by newly negotiated Article 6, Paragraphs H. thru J.: (23.E.2.) 6.H Pilot Contact and Notification (23.E.3.) 6.I. Telephone Recordings (23.E.4.) 6.J. Self-Notification

ARTICLE 3 COMPENSATION

3 Compensation COMPLETED YEARS OF SERVICE DOS 500 (Based on Dec. 2013 Seniority List) 503 408 Number of Pilots 400 300 251 285 242 200 100 0 123 109 88 78 63 51 39 39 42 15 16 0 7 9 19 NH 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19+ Completed YIS

3 Compensation $8,000,000 Signing Bonus to be distributed in accordance with LOA 03-01; Apportioned based on completed Active Years in Service (YIS) with the Company on DOS; Approximately $592.55 for each completed YIS, up to $7000 maximum per Pilot (@12+ YIS); Example: Pilot with 6 completed YIS receives $3555.30. Management Pilots ineligible; 15-day Period for Pilots to protest their individual Signing Bonus after notification of amount; Payout 15 days after end of Protest Period.

3 Compensation (cont.) Regional Industry defined by following competitive airlines flying similar Equipment: Compass Endeavor (Pinnacle) Envoy (American Eagle) ExpressJet GoJet Mesa PSA Skywest Transtates

3 Compensation (cont.) New Captain Pay Rates for all Aircraft equal or exceed Regional Industry Rates: E190 Rates highest in Regional Industry; E175>76 Seats Rates highest in Regional Industry; Composite E175/170 Rates highest in Regional Industry; Q400 Rates separated from and set 3.33% above E145 Rates; LOA 03-02 sets parity with Horizon if RAH flies for Alaska; E135/140/145 Rates just shy of Industry highs, but well above Industry averages; Longevity Years 17-20 Rates highest in Regional Industry.

3 Compensation (cont.) New First Officer Rates remain common for all Aircraft; New First Officer Rates are well above Regional Industry averages and just below Industry highs; Highest New Hire First Officer Rate in Regional Industry; Longevity scale increased from 4 to 9 Years; Matches longest in Regional Industry.

3 Compensation (cont.) Pay Rate increase per year of Longevity = 3.102% All Pay Rates increase annually as follows: DOS+1 1.0% DOS+2 1.0% DOS+3 1.0% DOS+4 1.5% (Amendable Date) 1 st Year avg. raise due to Pay Rates = 7.3%, All-In = 12.0%. 1 st Year avg. All-In increase = Capt. 8.8%, F/O 20.7% Post-DOS+4 compounded Pay Rate increase due only to Longevity and annual increases = 18.2% Post-DOS+4 avg. All-In increase = Capt. 23.6%, F/O 37.2%.

3 Compensation (cont.) Pay Rate Charts:

3 Compensation CAPTAIN RATES CURRENT

3 Compensation CAPTAIN RATES DOS

3 Compensation CAPTAIN RATES DOS+1

3 Compensation CAPTAIN RATES DOS+2

3 Compensation CAPTAIN RATES DOS+3

3 Compensation CAPTAIN RATES DOS+4

3 Compensation E190 CAPTAIN DOS

3 Compensation E190 CAPTAIN DOS 10-YEARS & MAX $126.96 $130.00 $119.32 $125.00 $120.00 $115.00 $110.00 $105.00 $100.00 $95.00 $90.00 $85.00 $80.00 $90.13 $93.54 CURRENT E190 (20) TA E190 (20)

3 Compensation E175>76 CAPTAIN DOS

3 Compensation E175>76 CAPTAIN DOS 10-YEARS & MAX $125.00 $120.00 $115.00 $110.00 $105.00 $100.00 $95.00 $90.00 $107.83 $108.24 $108.47 $109.86 $113.50 $118.39 $119.32 $122.34 $85.00 $80.00 $84.74 $86.84 EXPRESS JET (18) $81.94 $86.13 $86.82 COMPASS (18) CURRENT E175/170 (20) AVERAGE (20) SKYWEST (20) $87.23 $90.13 $90.13 TA E175/170 (20) CURRENT E175>76 (20) TA E175>76 (20)

3 Compensation E175/170 CAPTAIN DOS

3 Compensation E175/170 CAPTAIN DOS 10-YEARS & MAX $120.00 $115.00 $110.00 $105.00 $107.83 $108.24 $108.47 $113.65 $117.13 $118.39 $100.00 $95.00 $90.00 $87.31 $90.16 $93.76 $96.13 $96.96 $99.26 $85.00 $80.00 $75.00 $70.00 $74.64 $84.99 $74.64 $84.00 $82.69 $82.43 $84.74 $86.84 $81.94 $86.94 $86.29 $87.23

3 Compensation Q400 CAPTAIN DOS

3 Compensation Q400 CAPTAIN DOS 10-YEARS & MAX $113.60 $113.98 $115.00 $103.30 $110.00 $105.00 $100.00 $95.00 $90.00 $85.00 $78.03 $83.69 $89.59 $80.00 $75.00 $70.00 CURRENT Q400 (20) TA Q400 (20) HORIZON (18)

3 Compensation E135/140/145 CAPTAIN DOS