-1Robert J. Cortelyou Senior Vice President Network Planning Delta Air Lines, Inc. P. O.

Box 20706 Atlanta, GA 30320-6001 T. +1 404 715 2158 F. +1 404 715 4048 Robert.J.Cortelyou@delta.com

October 17, 2012

City Mayor Bob McDavid City of Columbia 701 E Broadway P.O. Box 6015 Columbia, Missouri 65205 Honorable Mayor McDavid, Late last week I was made aware of a tentative financial transaction that was reached between the city of Columbia, MO, and American Airlines for air service between Columbia and Dallas/Ft. Worth and Chicago. To say the least this came as quite a surprise. Delta has been serving the Columbia market continuously since August 2008 and has made significant investments in equipment upgrades and service quality. In April 2010, we upgraded service from 34 seat turbo-prop aircraft to 50-seat regional jets. In addition, service was expanded to Atlanta in summer 2012, providing one-stop service to more than 200 worldwide destinations. On October 12th, Joe Esposito, Delta’s Managing Director-Domestic Network and Schedule Planning, and Columbia City Manager Mike Matthes had a discussion regarding the above mentioned financial transaction. Based on the council bill (B 296-12) that was made public, our understanding is that this is a two-year revenue guarantee valued at $3 million funded from counties, the airport and the University of Missouri. While we welcome competition in the marketplace, this revenue guarantee puts Delta at a severe disadvantage by subsidizing American Airlines at Delta’s expense. This is unacceptable. While we have been proud to support Columbia and the mid-Missouri region with daily airline service, the reality is that Delta cannot continue serving a market in which we are economically disadvantaged. Our hope is that along with the Columbia City Council and the Columbia Airport Authority, you will recognize the investment that Delta has made in the Columbia community and strongly consider a similar package of compensation and incentives for Delta. This will restore economic balance to the marketplace and allow for good, fair competition. Otherwise, unfortunately, Delta will be forced to exit the Columbia market. Sincerely,

Robert J. Cortelyou Senior Vice President–Network and Schedule Planning RJC/lak Cc: Mike Matthes, City Manager

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