Settlement of MEC Grievance 15-01

On April 1, 2015, MEC Chairman Mike Donatelli filed Grievance 15-01 (see MEC Update 15-03), asserting that the Company was out of compliance with the Bundle 1 flying provision of Section 1 P., Delta/Air France/KLM/Alitalia Joint Venture, of the PWA. The formal filing of the grievance started the process to have the issue heard before the Five Member System Board of Adjustment under an expedited timeline.

The Company approached ALPA after the grievance filing to discuss a mutually agreeable settlement to the grievance. These discussions have led to a settlement. Included in the settlement agreement is a payment of thirty million dollars to the Delta pilots for Delta Air Lines’ share of Bundle 1 flying being less than the minimum required EASKs for the period of April 1, 2011 to March 31, 2015.

This settlement is not part of the Section 6 negotiations currently in progress. The settlement agreement also includes language that dictates the distribution of these monies.

We will provide the details of the actual distribution in a future update.