December 18, 2020

To: Atlas Air and Southern Air Pilots

From: Jeff Carlson, Senior Vice President, Flight Operations

With the operation immersed in Peak, I want to thank you for your hard work and continued commitment to safety as we deliver for our customers.

In addition to ensuring safe and efficient operations, we remain focused on the ongoing negotiations for your new Joint Collective Bargaining Agreement (JCBA).

We just completed another negotiating session, and I want to share an update with you.

Our goal in every session is to move issues forward and toward a new agreement. On Monday, December 14, the IBT negotiating committee provided a comprehensive supposal to address and clarify certain issues previously discussed across the table. When we asked for the IBT’s valuation of its supposal, and the relative changes from the previous positions, it became clear from their response that no substantive changes or valuation of this supposal had been made.

We nonetheless continued our discussions about the valuation and modeling in an effort to better define the differences between our current positions. On Thursday, December 17, the Company responded to the IBT’s supposal with one that seeks common ground on the type of language issues detailed in the IBT supposal. This was intended to make progress but the gap between our positions remains significant.

On Friday, December 18, the IBT made what was characterized as a closeout supposal on three sections. The Company responded, noting that we are at the stage which requires comprehensive economics in order to make progress, rather than isolated proposed increased costs in individual sections.

While it is not uncommon for negotiations to progress more rapidly as we get closer to our deadline to conclude an agreement, it is important to seek common ground and to identify the key issues union negotiators believe must be addressed for a satisfactory agreement for our crewmembers. We all know compensation must be addressed, but many other important issues remain open and forging an agreement necessitates prioritization.

The limited progress made this week makes our remaining negotiations even more important as we seek to close issues ahead of the arbitration deadline of February 15, 2021. We remain committed to the work required to complete bargaining by this key date. We are next scheduled to negotiate January 11 through 15, 2021.

If an agreement is not reached by February 15, an arbitrated solution will ensure that we deliver the updated contract that our pilots deserve.

Thank you for your patience during these prolonged negotiations. We want to complete a contract that reflects the hard work and dedication our crewmembers demonstrate every day, and we will continue to make our team available to address issues most important to you.