WLDAE World Air Holdings (MM)

Union Committee Rejected Company Request to Let Pilots Vote on Final Proposal PEACHTREE CITY, Ga., Jan. 30 /PRNewswire-FirstCall/ -- World Airways, a wholly owned subsidiary of World Air Holdings Inc. (NASDAQ:WLDAE), today disclosed the terms of a proposed three-year pilot contract that was rejected Saturday morning by an International Brotherhood of Teamsters (IBT) negotiating committee. Week-long talks between the company and the pilots' negotiating team ended after a 30-day cooling-off period set by the National Mediation Board (NMB) expired at midnight Friday, Jan. 27, 2006. "The company offered our pilots two compensation options," said Charlie McDonald, World Airways chief operating officer. "The first provided a 10 percent signing bonus and a pay increase of 3 percent in the first year and 4 percent annually for each of the next two years. The other option offered a 7 percent signing bonus and a 5 percent pay increase in the first year, followed by 3 percent annual increases for each of the next two years. Given the circumstances in the airline industry today, we believe we provided an attractive, comprehensive offer that addressed the major concerns expressed by the pilots during negotiations." Other provisions in the contract offer included: - A commitment to add Boeing 747s to the World Airways fleet - Qualified furlough protection for 90 percent of current pilots for the duration of the contract - Preferential hiring at other World Air Holdings subsidiaries - The addition of training pay - Doubling guaranteed days off to 12 per month, coupled with a new volunteer system for additional flying - Doubling basic life insurance - Continued profit sharing - Increasing the company contribution to retirement plans The company did ask for increased contributions to its medical plan based on dramatic cost increases in recent years. "We felt so strongly about the quality of this package that we asked the negotiating committee to put the contract out to all 430 World pilots for a vote, even without a committee recommendation, but they would not agree," McDonald said. "We appreciate the efforts of the NMB mediators, who worked with us and were there to the very end to try to reach a tentative agreement." "I know the World Airways team did everything possible to reach a fair and equitable agreement," said Randy Martinez, World Air Holdings chief executive officer. "Responsible labor agreements are of paramount importance in this very uncertain industry, especially for small charter carriers. We regret the disruption this is causing to our valued commercial customers." Pilots initiated a strike against commercial World Airways passenger and cargo flights over the weekend, which could result in a loss of customers if the strike is prolonged. Some of the commercial flights have been protected through sub-service with other carriers. The contract does not allow World pilots to interrupt U.S. military flying, which is the largest part of World's business. World Airways, a wholly owned subsidiary of World Air Holdings, Inc., is a U.S.-certificated air carrier providing customized transportation services for major international passenger and cargo carriers, the United States military, major freight forwarders and international leisure tour operators. Founded in 1948, World operates a fleet of 17 wide-body aircraft to meet the specialized needs of its customers. For information, visit http://www.worldairways.com/. World Air Holdings has three wholly owned subsidiaries, World Airways, Inc., North American Airlines, Inc. and World Risk Solutions, Ltd. World Airways is a charter passenger and cargo airline founded in 1948, North American is a charter passenger airline founded in 1989, and World Risk Solutions is an insurance subsidiary established in 2004. For additional information, visit http://www.worldairholdings.com/. ["Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties including, but not limited to, the impact of competition in the market for air transportation services, the cyclical nature of the air carrier business, reliance on key marketing relationships, fluctuations in operating results and other risks detailed from time to time in the company's periodic reports filed with the SEC (reports are available from the company upon request). These various risks and uncertainties may cause the company's actual results to differ materially from those expressed in any of the forward looking statements made by, or on behalf of the company in this release.] First Call Analyst: FCMN Contact: DATASOURCE: World Air Holdings, Inc. CONTACT: MEDIA, Steve Forsyth, +1-770-632-8322, or INVESTORS, Janice Kuntz, +1-404-352-2841, both of World Air Holdings, Inc. Web site: http://www.worldairways.com/ http://www.worldairholdings.com/

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