Pilot Negotiation Update

Our business has grown substantially over the past several years, during which we have created hundreds of new jobs. We offer competitive compensation when compared to our peers. At the end of 2016, we employed over 1700 pilots, an increase of almost 600 since the end of 2014.

We value the professionalism and contributions of our pilots and their commitment to our customers. We are meeting all of our customer commitments and fully expect to do so in the future as we continue to grow and merge with Southern Air, which we acquired in 2016.

The pilot comments on shortages, among others, have been part of an overall campaign from the pilots and their union to put public pressure on the company with respect to its next labor contract. In that regard, we remain committed to negotiating a competitive, single-collective-bargaining agreement in accordance with the terms of our existing labor agreements, which recognizes our pilots' valued contributions.

In addition, we have mutually agreed with the pilots' union on a process to proceed with negotiations for an updated labor contract and those negotiations have commenced.