Rumor Control Update

March 21, 2000

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Delta takes on US Airways in LGA

Here is part of an article which appeared in many newspapers yesterday:

ATLANTA, March 21 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) announced today that it will expand Delta Connection service at New York's LaGuardia Airport and offer regional jet service to 31 nonstop destinations. The Delta Connection carriers will file an application this week with the U.S. Department of Transportation for authority to add 21 new nonstop destinations, for a total of 31 nonstop cities served.
"Delta is building on its leadership position in New York-LaGuardia by expanding Delta Connection flights into 21 new cities. This will further enhance Delta's total New York City market coverage, which includes service at all six New York City airports -- LaGuardia, New York-JFK, Newark, Islip, White Plains and Newburgh," said Frederick W. Reid, Delta's executive vice president and chief marketing officer. "Delta Connection carriers operate 138 regional jets today -- more than double the RJ fleet of the next largest domestic carrier," Reid said. "That fleet will grow by 35 percent, to more than 180 regional jets by the end of the year, enabling us to significantly expand service to New York City."
Delta Connection carriers inaugurated service to five southeastern cities March 16, including Charleston and Columbia, S.C.; Greensboro, N.C., Jacksonville, Fla.; and Richmond, Va. Additional nonstop service to Savannah, Ga. is scheduled to begin April 2. The expanded nonstop LaGuardia service will begin in July 2000, pending government approval. By the end of the year, Delta Connection carriers will operate regional jet service to Buffalo and Rochester, N.Y.; Portland, Maine; Providence, R.I.; Burlington, Vt.; Manchester, N.H.; Knoxville, Tenn.; Birmingham, Ala.; and Greenville/Spartanburg, S.C. Delta Connection carriers also will apply for new regional jet service to Bangor, Maine; Syracuse and Albany, N.Y.; Hartford, Conn.; Hyannisport, Nantucket and Martha's Vineyard, Mass.; Greenbriar, W. Va.; Norfolk, Va.; Grand Rapids, Mich.; Des Moines, Iowa; and Lexington, Ky. The regional jet expansion is one of the many steps Delta has taken to strengthen its leadership position in New York.

As demonstrated by this announcement, the regional jet is being used to offer new, non-stop jet service in city pairs which have previously required a hub connection. These city pairs sometimes cannot support the use of traditional narrow body jets. For example, both Delta and US Airways currently require a connection (ATL or CLT) to reach SAV from LGA if jet service is desired.

Although hub "feed" issues are frequently discussed, pulling revenue from a competitor by offering non-stop jet service has become a competitive strategy of the regional jet operators.

Flight Attendants Lack Progress

Reports as of late today indicate that there has been no progress at the bargaining table. MEC Chairman Chris Beebe reports that Mr. Gangwal has departed Crystal City this evening to join the talks.

A letter to all pilots will be distributed by Captain Gibson on Wednesday, March 22 in the domicile mailboxes. This letter will address questions related to crew movement on Saturday, March 25 and beyond in the event of a Company shut-down.

Despite Management's announcement that operations will cease if no agreement is reached by midnight Friday, there seem to be plans to operate some flights back to hub locations on Saturday. No detailed plans have yet been communicated.