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Tue, May 16, 2006

North American Airlines Settles California Pilot Lawsuit

North American Airlines has confirmed that a full and complete settlement has been reached, totaling $2.3 million, to resolve a California lawsuit filed by former pilot Randall Otto.

Otto had previously won a jury verdict for actual and punitive damages of $12.6 million in December 2005, which was reduced after post-trial motions to $3.1 million in a ruling by the Alameda County judge in March 2006. Otto originally filed his lawsuit in 2003, alleging wrongful termination.

World Air Holdings recorded a $12.5 million accrual in the third quarter of 2005 for the full amount of the pending court judgment. That amount will be adjusted in the company's fourth quarter 2005 filing to reflect the actual expense.

North American is a US-certificated air carrier offering air transportation services throughout the world for the U.S. military and commercial customers. Founded in 1989, North American operates a fleet of nine passenger aircraft in charter and scheduled service.

FMI: www.northamericanair.com

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