Saturn,

The Delta PWA already has scope limits on codeshares new Joint Ventures. It is these provisions Delta has been violating and these provisions Delta would like to have removed from our PWA.

For brevity, I will just hit the high points.

1 E. 2. a. through c. limits how many seats Delta can sell on a partner's jet. The goal is to force Delta to fly a Delta jet when there is sufficient passenger demand to support our mainline equipment. By limiting sales to 40% of the partner's jet we deprive them revenue UNLESS that flying is done by our own jets with a Delta crew. Using an AM E190 as an example: Delta could sell 39 seats to Delta passengers on an E190. At 40 seats the flight would have to operated by Delta.

1 E. 8. Year to Year our block hours must be the same from nation to nation (Mexico to US and back) measured over a three month period AND Delta must fly 75% of the revenue share of our growth. This is what is currently short on the US-Mexico flying referenced by Capt. Graham. Mexico was a very seasonal market for us with a lot of winter and spring break flying. We under-flew the block hours compared to last year.

An argument can be made that our scope is working when it catches management not doing enough Delta flying. I do not know why we would be in any hurry to remove these requirements.

If management wants to remove 1 E. 2. a. to c. and 1 E. 8. the best way to do that is simply to negotiate the Aeromexico JV that John Malone had tee'd up in 2016. The current ALPA position is reasonable (matching what the company told the US DOJ; a flying split of 60/40 and an equal split of the growth)