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Negotiations Update:
Negotiations continue next week, July 12–14 and again July 19–21. Our Negotiating Committee completed the language writing for the Global Scope JV AIP and sent it to the Company last week. We expect a few more exchanges between the Company and our Negotiating Committee before final language is agreed to by both sides. From there the Negotiating Committee will present the final language in the form of a TA to the MEC for review and if it meets our direction then the MEC will send the TA to you for membership ratification (MEMRAT).

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• Ensures Delta grows our operation organically with Delta metal and is not incentivized to shed top-end flying to partners.
  • Since Delta pulled down its flying more dramatically than our partners during COVID-19, Delta will be obligated to grow faster than its partners to re-establish its pre-pandemic share of flying by a codified date.
  • Delta will then be required to grow widebody flying on a minimum 1:1 basis with its partners
  • 1:1 growth is on an absolute basis
    • There are no buffers like in the Trans-Atlantic JV production balance
    • If a Delta partner adds flying, Delta must add flying at the same rate of 1:1 or better
    • If flying declines, Delta cannot decrease our flying at a rate greater than our partners
• Establishes hard theater floor restrictions
  • Delta flying will not left out of the Atlantic, Pacific or South American theaters
• Creates a durable agreement that will now account for the entry and exit of partners
  • Unlike previous agreements that mirrored commercial agreements with foreign partners, this AIP stands alone and isn’t put at risk when Delta makes changes to its commercial agreements
  • Negates the need of having to renegotiate new JV production balances individually
  • Accounts for partner growth in the time leading up to the official start of a JV
• Captures more partner flying than previous agreements and Section 1 provisions, including:
  • All widebody partner flying to and from the United States, not just JV flying
  • Partners in which Delta has a defined ownership stake, improved over current PWA language
  • Any partner that carries more than a defined % of passengers, improved over current PWA limits
• Ensure metrics are easily monitored and enforced
  • PWA Section 1 E. protections remain in place for all flying that is and is not part of Global Scope
  • Compliance measurements on a quarterly basis with no buffers or cure periods
  • 1:1 growth ratio, at a minimum, must be maintained
  • Establishes collars that limit force majeure from affecting entire agreements
• Establishes a contractually guaranteed, widebody staffing-related remedy
  • The remedy is punitive in nature in the event 1:1 growth is not maintained
  • Results in additional, accretive, widebody jobs with strict staffing formula-based requirements
  • Ensures the remediated jobs are not manipulated by our cumbersome AE process
  • Removes uncertainty from the arbitration process by codifying consequences in the contract
  • The Company is incentivized to ensure scope compliance due to staffing implications
    • Delta can’t just perform a preemptive cost-benefit analysis and “cut us a check”

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