National Mediation Board Releases World Airways, IBT Pilots From Mediation; Cooling-Off Period Begins

PEACHTREE CITY, Ga., Dec. 29  /PRNewswire-FirstCall/ -- World Airways, a wholly owned subsidiary of World Air Holdings, Inc. (NASDAQ:WLDAE), announced today that the National Mediation Board (NMB) has released the company and its pilots, represented by the International Brotherhood of Teamsters (IBT), from the mediation process that began in January 2004.

The NMB issued notice of the release Dec. 28, 2005, initiating a 30-day cooling-off period before either party can engage in self-help. Both the company and the pilots' union negotiating team had requested to be released from mediation after the negotiating team rejected the company's final offer. The company has 430 pilots operating wide-body passenger and cargo aircraft for its U.S. military and commercial customers. The pilots' contract has a provision that military flying would continue uninterrupted if a union work stoppage were to occur at the end of the cooling-off period, which expires at midnight, Jan. 27, 2006.

Negotiations have been proceeding for more than two years, since the contract became amendable in June 2003. The pilots rejected an earlier tentative agreement in March 2004. The recent rejected proposal included a one-time signing bonus, annual pay increases over three years, profit sharing, major improvements in working conditions and further improvements in most of the sections of the contract under negotiation, including job security concerns.

"We believe we made a fair and equitable offer to bring the negotiation process to a successful conclusion, especially in an airline industry environment that is experiencing massive concessionary agreements," said Charlie McDonald, World Airways chief operating officer. "Over the next 30 days, we remain committed to continuing to work with the IBT."

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/.

"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. 

DATASOURCE: World Air Holdings, Inc.



CONTACT:  Media, Steve Forsyth, [phone], or Investors, Janice

Kuntz, [phone], both of World Air Holdings, Inc.



Web site:  http://www.worldairways.com/

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