Republic Airways Flight Attendant 2019 Tentative Agreement Review of Compensation and Benefits

1 Teamsters Local 135 Airline Division Major Contract Improvements Summary

1. Overall economic improvements 2. Wage rates o Wage scale increases of 5%, 1%, 1%, 2% and 2% in Years 1 through 5 of the agreement (these amounts do not in longevity increases). o Premium pay for credit hours above 87 per month. o Regional comparisons 3. Signing bonus o Total signing bonus of $3.0 million 4. Pay credit guarantee o Minimum daily credit of 3.5 hours 5. Per diem improvements 6. 401(k) employer contribution improvements 7. Guarantee Low Time (GLT) flight attendants employer premium contributions 8. Paid Days Off (PDO)

2 Teamsters Local 135 Airline Division 1. Overall economic improvements

• The tentative agreement includes $35.7 million in economic improvements over the five years. o This amounts to an average improvement of $18,100 per flight attendant over five years. o Additionally, the 2019 Tentative Agreement represents $10.2 million in improvements above the rejected 2018 Tentative Agreement.

3 Teamsters Local 135 Airline Division 2. Wage rates

YOS Current DOS DOS+1 DOS+2 DOS+3 DOS+4 $18.20 1* $19.70 $19.90 $20.10 $20.50 $20.91 $19.33 Annual Contract Increases: 2 $21.32 $22.39 $22.61 $22.84 $23.29 $23.76 • DOS: 5%* 3 $22.85 $23.99 $24.23 $24.47 $24.96 $25.46 • DOS+1: 1% 4 $24.24 $25.45 $25.71 $25.96 $26.48 $27.01 • DOS+2: 1% 5 $25.66 $26.94 $27.21 $27.48 $28.03 $28.59 • DOS+3: 2% 6 $27.03 $28.38 $28.67 $28.95 $29.53 $30.12 • DOS+4: 2% 7 $28.45 $29.87 $30.17 $30.47 $31.08 $31.70 8 $28.87 $30.31 $30.62 $30.92 $31.54 $32.17 9 $29.72 $31.21 $31.52 $31.83 $32.47 $33.12 10 $30.58 $32.11 $32.43 $32.75 $33.41 $34.08 11 $31.64 $33.22 $33.55 $33.89 $34.57 $35.26 12 $32.77 $34.41 $34.75 $35.10 $35.80 $36.52 13 $33.27 $34.93 $35.28 $35.64 $36.35 $37.08 14* $33.73 $36.05 $36.41 $36.77 $37.51 $38.26 15 $35.79 $37.58 $37.96 $38.33 $39.10 $39.88 16† $36.29 $38.08 $38.46 $38.83 $39.60 $40.38 17† $36.79 $38.58 $38.96 $39.33 $40.10 $40.88 18† $37.29 $39.08 $39.46 $39.83 $40.60 $41.38 19† $37.79 $39.58 $39.96 $40.33 $41.10 $41.88 20† $38.29 $40.08 $40.46 $40.83 $41.60 $42.38

DOS = Date of Signing * The New hire rates (0-12 months of service) have been merged into one rate. Therefore, at DOS the 0-6 month rate increased by 8.2%, and the 6- 12 month rate increased by 1.9%. Additionally, the Step 14 rate increase at DOS is 6.9% to be an increase above the 2019 TA. 4 † These are not technically wage steps, but the wage increases are do to longevity premium of $0.50/hr. up to a maximum of $2.50/hr. Teamsters Local 135 Airline Division 2. Wage rates

How to read a wage scale:

• An employee going through progression (between 1 and 19 years of service) receive TWO (2) wage increases: 1. An increase of between 1% and 5%*, depending on the contract year, on the contract anniversary date. o This is a move to the RIGHT on the wage scale to the next column. 2. A step increase when the employee reaches the year of service (YOS) in the first column on the left. o This is a move DOWN on the wage scale in the same column.

• An employee who has reached the top of the pay scale (greater than 20 years of service) receive ONE (1) wage increase: 1. An increase of between 1% and 5%*, depending on the contract year, on the contract anniversary date. o This is a move to the RIGHT of the wage scale to the next column.

5 * Contract increases are as follow: DOS = 5% (except steps 1 and 14); DOS+1 = 1%; DOS+2 = 1%; DOS+3 = 2%; DOS+4 = 2% Teamsters Local 135 Airline Division 2. Wage rates

Example: How to read a wage table for a flight attendant at 3 credit years of service at DOS

YOS Current DOS DOS+1 DOS+2 DOS+3 DOS+4 $18.20 1 $19.70 $19.90 $20.10 $20.50 $20.91 $19.33 Black = Current rate 2 $21.32 $22.39 $22.61 $22.84 $23.29 $23.76 This individual 3 $22.85 $23.99 $24.23 $24.47 $24.96 $25.46 will see her Red = Contract inc. 4 $24.24 $25.45 $25.71 $25.96 $26.48 $27.01 hourly rate 5 $25.66 $26.94 $27.21 $27.48 $28.03 $28.59 increase by Blue = Step inc. 6 $27.03 $28.38 $28.67 $28.95 $29.53 $30.12 $9.32 (41%) 7 $28.45 $29.87 $30.17 $30.47 $31.08 $31.70 8 $28.87 $30.31 $30.62 $30.92 $31.54 $32.17 over the five 9 $29.72 $31.21 $31.52 $31.83 $32.47 $33.12 years of the 10 $30.58 $32.11 $32.43 $32.75 $33.41 $34.08 agreement. 11 $31.64 $33.22 $33.55 $33.89 $34.57 $35.26 12 $32.77 $34.41 $34.75 $35.10 $35.80 $36.52 13 $33.27 $34.93 $35.28 $35.64 $36.35 $37.08 14 $33.73 $36.05 $36.41 $36.77 $37.51 $38.26 15 $35.79 $37.58 $37.96 $38.33 $39.10 $39.88 16 $36.29 $38.08 $38.46 $38.83 $39.60 $40.38 17 $36.79 $38.58 $38.96 $39.33 $40.10 $40.88 18 $37.29 $39.08 $39.46 $39.83 $40.60 $41.38 19 $37.79 $39.58 $39.96 $40.33 $41.10 $41.88 20 $38.29 $40.08 $40.46 $40.83 $41.60 $42.38 6 Teamsters Local 135 Airline Division 2. Wage rates

Headcount by Years of Service

6-12 MOS, 13% 2nd Yr, 4% 20+ Yrs, 1%

0-6 MOS, 8% 19th Yr, 1% 3rd Yr, 12% 18th Yr, 1% 17th Yr, 1% 94% of flight attendants 16th Yr, 2% will receive two wage 4th Yr, 6% increases each of the five 15th Yr, 3% years of the agreement. 14th Yr, 5% 5th Yr, 6%

13th Yr, 5% 6th Yr, 7%

7th Yr, 6% 12th Yr, 4% 11th Yr, 3% 10th Yr, 3% 9th Yr, 3% 8th Yr, 4%

7 Teamsters Local 135 Airline Division 2. Wage rates Total hourly wage improvements over the life of the contract:

Current Current DOS+4 Five-Year Five-Year YOS Rate Rate $ Increase % Increase 0-6 MOS $18.20 $30.12 $11.92 66% 6-12 MOS $19.33 $30.12 $10.79 56% How to read the table: 2 $21.32 $31.70 $10.38 49% 3 $22.85 $32.17 $9.32 41% • Locate your Current YOS (years of 4 $24.24 $33.12 $8.88 37% service), or your Current Rate, in the 5 $25.66 $34.08 $8.42 33% left two columns. 6 $27.03 $35.26 $8.23 30% • Across, the DOS+4 Rate column will 7 $28.45 $36.52 $8.07 28% be your pay rate at the end of the 8 $28.87 $37.08 $8.21 28% 9 $29.72 $38.26 $8.54 29% agreement, which includes all 10 $30.58 $39.88 $9.30 30% contract and step increases. 11 $31.64 $40.38 $8.74 28% • The right two columns, Five-Year $/% 12 $32.77 $40.88 $8.11 25% Increase, is the increase in your 13 $33.27 $41.38 $8.11 24% hourly rate over the five-year 14 $33.73 $41.88 $8.15 24% agreement. 15 $35.79 $42.38 $6.59 18% 16 $36.29 $42.38 $6.09 17% 17 $36.79 $42.38 $5.59 15% 18 $37.29 $42.38 $5.09 14% 19 $37.79 $42.38 $4.59 12% 20+ $38.29 $42.38 $4.09 11% 8 Teamsters Local 135 Airline Division 2. Wage rates

Premium Pay: • Flight attendants who work more than 87 block hours in a month will be paid 125% of her regular hourly rate for each additional block hour worked. • Using historic data from the company, our analysis shows that in a given month, more than 20% of flight attendants would’ve been affected by this new provision.

9 Teamsters Local 135 Airline Division 2. Wage rates

Regional Flight Attendants Monthly Guarantee Comparison

Republic (Current) Republic (2019 TA DOS) Republic (2019 TA DOS+4) Industry Average*

$3,500

$3,000

$2,500

$2,000 Monthly Compensation

$1,500

$1,000 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Mos Years of Service

* Carriers included in Industry Average: Air Wisconsin, CommutAir, Compass, Endeavor, Envoy, Horizon, Mesa, PSA, Silver, 10 SkyWest, and Trans States. Teamsters Local 135 Airline Division 2. Wage rates

Regional Flight Attendants Monthly Guarantee Comparison

Republic (Current) Republic (2019 TA DOS) Industry Average Air Wisconsin CommutAir Compass Endeavor Envoy Horizon Mesa PSA Silver SkyWest Trans States

$3,500

$3,000

$2,500

$2,000

Monthly Monthly Compensation $1,500

$1,000 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Mos Years of Service

* Carriers included in Industry Average: Air Wisconsin, CommutAir, Compass, Endeavor, Envoy, Horizon, Mesa, PSA, Silver, 11 SkyWest, and Trans States. Teamsters Local 135 Airline Division 2. Wage rates Regional Flight Attendants Monthly Pay for 100 Block Hours Worked Comparison (Regular Line FA)

Republic (Current) Republic (2019 TA DOS) Republic (2019 TA DOS+4) Industry Average $4,500

$4,000

$3,500

$3,000

$2,500 Monthly Monthly Compensation

$2,000

$1,500 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Mos Years of Service

Carriers included in Industry Average: Air Wisconsin, CommutAir, Compass, Endeavor, Envoy, Horizon, Mesa, PSA, Silver, 12 SkyWest, and Trans States. Teamsters Local 135 Airline Division 2. Wage rates Regional Flight Attendants Monthly Pay for 100 Block Hours Worked Comparison (Regular Line FA) Republic (Current) Republic (2019 TA DOS) Industry Average Air Wisconsin CommutAir Compass Endeavor Envoy Horizon Mesa PSA Silver SkyWest Trans States $4,500

$4,000

$3,500

$3,000

$2,500 Monthly Monthly Compensation $2,000

$1,500 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Mos Years of Service

Carriers included in Industry Average: Air Wisconsin, CommutAir, Compass, Endeavor, Envoy, Horizon, Mesa, PSA, Silver, 13 SkyWest, and Trans States. Teamsters Local 135 Airline Division 3. Signing bonus

• The total signing bonus amounts to $3.0 million. • Each eligible flight attendant will receive a minimum of $1,000, plus an additional $58 for each year of service with Republic. • Republic will pay out the signing bonuses by the end of 2019. • Formula for signing bonus: o $1,000 + [$58 * (Years of service – 1)]

14 Teamsters Local 135 Airline Division 3. Signing bonus

Signing Bonus per Years of Service $3,000

$2,500

$2,000

$1,500

$1,000

$500

$0 1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627 Years of Service

15 Teamsters Local 135 Airline Division 4. Pay Credit guarantee

• A lineholder is guaranteed a minimum daily pay credit of 3.5 hours.

• Over a one year period, our analysis shows this provision would’ve affected 10,392 pairings, and on average would’ve added over an hour of additional compensation.

16 Teamsters Local 135 Airline Division 5. Per diem improvements

Current Industry Average†: • Domestic - $1.75 Per Diem • International‡ - $2.13 Domestic International* $3.00 $2.80 $2.70 $2.70 $2.60 $2.60 $2.50 $2.25 $2.15 $2.15 $2.00 $2.05 $2.05 $2.00

$1.50

$1.00

$0.50

$0.00 Current DOS DOS+1 DOS+2 DOS+3 DOS+4

* Flight Attendants shall be paid and International Per Diem for ground time in a location outside the United States grater than 90 minutes. † Carriers included in Industry Average: Air Wisconsin, CommutAir, Compass, Endeavor, Envoy, Horizon, Mesa, PSA, Silver, SkyWest, and Trans States. 17 ‡ If a contract spulates a ﬂat dollar amount per day (or night), the amount used in average is the domesc rate plus the dollar amount divided by 24 (or 10). Teamsters Local 135 Airline Division 6. Employer 401(k) contribution

Employer 401(k) Maximum Contribution TA Current Industry Average* 9% TA’d Max Employer Match: 8% • 0-6 YOS: 3% • 7% 7-12 YOS: 4% • 13-19 YOS: 6% 6% • 20+ YOS: 8%

Employer Match 3%

0% 0 1 2 3 4 5 6 7 8 9 10111213141516171819202122232425 Years of Service

* Carriers included in Industry Average: Air Wisconsin†, Compass†, Endeavor†, Envoy†, Horizon, PSA, and SkyWest. Other regional carriers did not have employer matches in contract. † These employers do not match employee contribuons dollar-for-dollar. (ie., for every dollar an employee contributes to their 401(k), the employer 18 contributes something less than a dollar up to the max percentage.) Teamsters Local 135 Airline Division 7. GLT health insurance

• Guarantee Low Time (GLT) flight attendants will receive employer premium contributions at the same rate as regular lineholders. • This new provision will affect roughly 10% of the group, allowing them access to more affordable health insurance.

19 Teamsters Local 135 Airline Division 8. Paid Days Off (PDO)

PDO monthly accrual rates vs. current monthly sick and vacation accrual rates:

CURRENT BOOK TA'd YOS SICK VACATION TOTAL PDO's 1 2.0 1.5 3.5 3.5 2 2.5 3.0 5.5 5.5 3 2.5 3.0 5.5 5.5 4 2.5 3.0 5.5 5.5 5 2.5 3.0 5.5 5.5 6 2.5 3.0 5.5 5.5 7 2.5 3.0 5.5 5.5 8 3.0 3.0 6.0 7.0 9 3.0 4.5 7.5 7.5 10 3.0 4.5 7.5 7.5 11 3.0 4.5 7.5 7.5 12 3.0 4.5 7.5 7.5 13 3.0 4.5 7.5 8.0 14 3.0 4.5 7.5 8.0 15+ 3.0 4.5 7.5 8.0

20 Teamsters Local 135 Airline Division Summary of TA Gains

• Total package improvements of $35.7 million, $10.2 million more than the 2018 TA • Significant wage increases of 5% at DOS, and out year increase of 1%, 1%, 2% and 2% • Premium pay of 125% for block hours above 87 • Signing bonus of $3.0 million • Pay Credit guarantee of 3.5 hours per day • Per diem increases • Employer 401(k) contribution increases • GLT health insurance premium subsidies from company • Paid Day Off