Kudos to CMR

Derg

New Arizona, Il Duce/Warlord
Staff member
October 24, 2003
TO: All Comair People
FROM: Randy Rademacher
SUBJECT: Update On Growth Opportunities

For several months, we have been talking with you about how the market is forcing
changes within our industry. As part of those changes, smaller regional airlines with
lower costs and expanding regional jet capabilities are now emerging as competitive
threats. We have been working very hard to improve our operational reliability and
remove costs from every area of the company to better position us to compete with these
carriers. As part of this effort, we approached our pilot and flight attendant unions about
helping us address areas in our working agreements where market-based analysis shows
we have a competitive disadvantage.

We have been informed by Comair representatives of the Air Line Pilots Association
(ALPA) that they are not prepared to open discussions at this time regarding possible
market-based adjustments to their working agreement. Today’s decision by ALPA means
that at this point we also will not pursue further discussions with Comair representatives
of the International Brotherhood of Teamsters (IBT).

We are obviously disappointed that we were unable to move forward on discussions with
our pilots at this crucial time and concerned that we could not seize the growth
opportunity that was immediately before us. It is important to know that without marketbased
contract adjustments, we are severely hindered in our efforts to compete
successfully for future growth aircraft. Industry conditions obligate Delta Connection and
all other airline programs to seek carriers for growth aircraft that can offer operational
reliability at competitive costs.
I am confident we will continue to pull together as a team to move our airline forward.
Thank you for all you do every day for our customers and each other.
 
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