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The following procedure and sequence is suggested to be followed when a reduction in schedule or number of crews required is anticipated.

1. The number of crews required to operate the schedule shall be determined by using a 30 day month as a basis for the number of crews. It is assumed that 85 hours are available per crew.

2. Sufficient reserve crews should be set up to cover regular assigned crews because of sickness, vacation, etc.

3. In case of reduction of force pilots affected will be allowed to exercise the following prerogatives.

A. First pilots.

A. Bid on any vacancy open for system wide bidding.

B. Displace the lowst [[lowest]] ranking pilot in your status at the domicile to which you were assigned immediately prior to being assigned to the domicile at which you were displaced provided you have sufficient seniority.

C. Displace the most junior pilot on the system providing you have sufficient seniority,

D. Displace the reserve pilot at your present domicile and fly as a reserve pilot at your domicile provided you have sufficient seniority to do so and in accordance with the number of reserve pilots required as of blank dates.

E. Remain at the domicile from which you were displaced to act as a copilot until such time as you are able to successfully bid a vacancy on the system.

F. When a first pilot or reserve pilot is reduced to a copilot he can displace the most junior copilot holding a bid run provided he has sufficient seniority to do so.

4. A reduction in schedule does not create a vacancy.

5. When a pilot has displaced a junior pilot at a base he should assume his position of seniority at the next regular time that tours are bid.

6. Mutual exchange of bases between pilots of like status may be made providing it is mutually agreeable and approved by both the company and the pilots as covered by this agreement. The notice of this change must be posted at least 15 days prior to the effective date of this exchange on all pilot bulleting boards.