"Fellow Spirit Pilots,

The MEC joined the parties for the first two days of this week’s bargaining sessions in Fort Worth assisted by Mediators Patricia Sims and Cathy McCann. On Tuesday, the Company made the following presentations:

Ted Christie—Spirit EVP and CFO presented earnings and business model information.
Matt Klein—SVP and CCO discussed current revenue performance and the competitive outlook.
DeAnne Gabel—Sr. Director Investor Relations offered an explanation of Wall Street consensus and financial modeling.
Scott Haralson—VP FP&A provided a macroeconomic overview and Spirit’s relative industry position.
Costin Corneanu—Director FP&A detailed the effect of ALPA’s proposal on the Company’s five-year financial outlook.

While we drew different conclusions from the data presented, it was valuable for the MEC to receive this information firsthand and to hear directly some of the concerns that have informed the Company’s approach to negotiations. By the same token, it was equally valuable for Company officials to hear our perspective, which, as discussed below, focused on the Company’s inability to recruit and retain pilots in the present market without offering competitive total compensation.

ALPA’s presentation on Wednesday, led by ALPA Director of Economic & Financial Analysis, Ana McAhron-Schulz, included an overview of macroeconomics, US airline industry performance, Spirit’s financial performance, and a discussion of pilot supply issues. Our message was clear—for the planned growth to continue, Spirit must become a career destination carrier by delivering an industry-standard contract.
On Thursday, we received a comprehensive proposal from the Company that represented some improvement. However, a significant divide still separates the parties and the Company has yet to address certain issues critical to ratification. Substantial additional negotiations will be required along with the continued assistance of the NMB in order to reach our objectives. At this session, out of concern that publicizing table positions would be harmful to the process, the mediators instructed the parties to keep current and future proposal details confidential."