Negotiating Committee Update 13Nov2020

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Negotiating Committee Update

November 13, 2020

Due to the increasing concerns regarding COVID-19, once again our committees met remotely during this week’s negotiation session. Overall, this week resulted in no direct negotiations with management.

During this session we have spent a tremendous amount of time refining our costing models, which show that not only is their supposal a step backwards, but also that their $1.4 billion-dollar price tag that they placed on our supposal is nothing more than a made-up number, intended to make us lower our offer and negotiate against ourselves.

The cliche ‘garbage in, garbage out’ comes to mind as we are finding a lot of garbage thrown into the company model for the purpose of inflating the purported cost. So far, numerous errors and erroneous assumptions have been found in the model. When these errors are added together, the aggregate compounding of them is how the company is able to achieve a cost number that is higher than what any other airline spends per pilot on a contract.

In a recent employee town hall meeting, our CEO stated that it is critical that we agree on their costing model. We feel that it is not important that we agree on their costing model, but it is important that we agree on a correct costing model. Our costing experts have been working non-stop over the past few weeks gathering information in what has amounted to over 1.7 million lines of data in order to build an accurate model. The process of running the data for each metric that is changed and tested through our internally developed tools and sophisticated models takes a significant amount of time.

We therefore spent this week both waiting on the company to come back to us with a real, and meaningful offer, while we narrowed our focus on meaningful costing. Our next negotiation session is scheduled for December 14 – 18.

Your Atlas Air Negotiating Committee