Transatlantic JV

Q: How many jobs are we losing in the drop of compliance?



A: Zero jobs will be lost.



Old (current PWA): 48.5% share has no lower floor of flying. Ratio could be satisfied with Delta flying 1 flight, Air France flying the other (50/50). This is measured over a 3-year window with a 4th cure year.



New TA: 46.5% only allowed if Delta separately flies at least 650,000 widebody international and 757 transatlantic hours. This is measured every year, with no cure year. This new protection serves as a floor on global widebody hours, particularly in light of the increase in airline partnerships Delta chooses to engage.



The Company’s transatlantic minimum compliance level will remain 48.5%. At the Company’s option, it may be reduced to 46.5% EASKs as long as the Company maintains separately a minimum 650,000 international widebody and 757 transatlantic hours. Over the last 12 months, Delta has maintained 47.7% EASKs. In the event they drop to 46.5%, it is a 1.2 percentage point drop from TAJV current levels. To quantify, worst case scenario, the Company could decrease about 1 transatlantic roundtrip/day from current levels.



In exchange for being below 48.5% EASKs (and measured now every year), 650,000 international widebody and 757 transatlantic hours will be protected, representing roughly 95% of the international widebody and 757 transatlantic hours. This worldwide protection of block hours is new.