Local Lodge 1632 and lAM members of an impending permanent mass layoff of

                employees at the Dothan Alabama facility. Since that time, a number of employees have

                already been laid off and further layoffs are expected.

                On March 5, 2012, Pemco filed for bankruptcy in the United States Bankruptcy

                Court in Delaware under Chapter II of the US Bankruptcy Code. Pemco and the other

                related entities (WAS Aviation Services Holding Corp., and WAS Aviation Services,

                Inc.) claim debts of approximately $31.8 million, and have sought to borrow an

                additional $5 million to fund their operations during the Chapter II case.

                Sun Aviation, the holding company that owns Pemco, has announced its intention

                to close the Dothan facility and sell virtually all ofPemco's assets in a bankruptcy

                auction. As a part of this process, Sun, through another one of its subsidiaries, Avion

                Services, is the "stalking horse" bidder in the bankruptcy auction. Bidding on the asset

                sale will be overseen by the Bankruptcy Court and is expected to take place on May 14,

                2012. It is expected that other entities will bid for all or some of Pemco's assets, but the

                outcome of the bidding and the effect ofthe auction on the future of the Dothan facility is

                uncertain at the present time.

                The lAM will be doing all that it can for our members throughout this process.

                The lAM will provide detailed information about how and when to file claims in the case

                at the appropriate time. In the meantime, lAM representatives will start negotiations next

                week over the effects of the planned closing of the Dothan facility.

                Because our members are owed monies in the form of unpaid wages, accrued

                vacation and sick leave, grievance claims, health benefits, and pension liabilities, the

                lAM has secured a seat on the Unsecured Creditors Committee in Pemco's bankruptcy

                case. In this capacity, the lAM is working to obtain the best possible result for creditors,

                including lAM-represented employees of Pemco, in the bankruptcy. At this point in time,

                it is too early to know what the outcome will be, but we will keep you updated.