Hollis Harris,

chairman and chief executive officer of World Airways, explained, "The

agreement includes $6.3 million for pay increases and benefits and $2

million of additional costs to the company. It is the culmination of 2-1/2

years of negotiations with the flight attendants and reflects an active

and committed effort on our part to reach an agreement that addresses

many of their concerns, while keeping World on a stable financial footing

as we continue our recovery and make plans in an uncertain economic environment."

The proposed

work rule changes were targeted to make this a cost-neutral contract.

In a hotline message to the company, Harris strongly urged the flight

attendants to vote yes on this contract, which benefits the flight attendants

and the company. The company will also be mailing information packages

to all attendants.

According to

the company, the negotiating team representing the flight attendants has

recommended that its constituents reject the contract. The flight attendants

will be voting on the contract over the next several weeks, and the votes

will be counted on December 27 at the Airline Division of the International

Brotherhood of Teamsters (Local 210).

World Airways

has been working with the National Mediation Board to advance negotiations

with the flight attendants since January 2002, when the company requested

mediation assistance. The collective bargaining agreement with the flight

at tendants became amendable on July 1, 2000. "Following our successful

negotiations with World's pilots and dispatchers in 1999 who gave up 10%

of their salary for 18 months in 2000 and 2001 to pay for the changes

they wanted, we were hopeful that we could reach an agreement with the

flight attendants," noted Harris.

"The contract

proposal that's on the table represents our best effort in reaching an

agreement that addresses key requirements of the flight attendants. If

the flight attendants vote in favor of this proposal, they will be assured

of three annual pay increases. At the end of the three-year period, I

believe that World Airways will be much stronger. At that time, we would

certainly be willing to consider some of their additional demands."

If the contract

proposal is rejected by the flight attendants, the National Mediation

Board could recommend a "cooling off" period of up to 30 days.

At that time, the alternatives include a final agreement approved by World

and the flight attendants; a strike; or an imposed contract.

Another option

being considered by World Airways is a "deep freeze," in which

it would ask the National Mediation Board to freeze the current contract

for an additional period of time.

Harris concluded,

"We have come as far as we can in putting forward our best and most

reasonable offer. We have worked very hard to develop an agreement that

is positive for the flight attendants and allows us to build upon our

recent profitable performance and create a company we can all be proud

of for years to come."

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