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General Q & A's Regarding Pinnacle/Colgan/Mesaba Venture Part 2

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Well-known member
Jan 7, 2006

D1. What does this mean for me?
For now, it remains business as usual for employees in all parts of our organization, and
our primary focus remains on safety and customer service. Job responsibilities, policies
and procedures, and wages and benefits are unaffected at this time.

D2. How do wages/benefits compare among the airlines?
While there are differences in the specific provisions, the various rates of pay at all three
airlines – Pinnacle, Colgan and Mesaba – are generally similar and competitive for their
respective niches within the regional airline industry.

D3. Will there be layoffs/furloughs as a result of this acquisition?
Although layoffs/furloughs can never be ruled out in the ordinary course of business, we
do not anticipate any front-line layoffs/furloughs resulting directly from the acquisition of
Mesaba. We will endeavor to secure additional Saab business from our other partners and
make job opportunities available to employees in all three of our airlines.

D4. Will this agreement create opportunities for Mesaba’s furloughed Pilots?
It can. We will immediately engage with our Pilots’ union to find a temporary solution
that would allow furloughed Mesaba pilots to move to Colgan or Pinnacle. Pinnacle will
be hiring this month for an August class and Colgan is hiring now for the Q400 deliveries
that begin this August. We say “temporary” because it normally takes time to work out
the seniority issues created when unionized employees move from one company to

D5. How will my pass benefits be affected? When will the benefits change?
There will be no immediate changes. However, in 2011 Mesaba employees will transition
to the “independent” regional airline pass travel program with Delta. That will mean the
loss of buddy passes, lower priority on some flights, equal privileges on Pinnacle Airlines
flights and some changes in pass-travel costs. We will keep you informed on the timing
and details of the changes.

D6. Will my health/dental/vision/disability benefits change?
There will be no changes during the current plan year.
D7. Will my 401(k) be affected?
There will be no changes during the current plan year.



E1. Will there be any impact on my union representation?
Any representation issues that may need to be resolved will be determined in accordance
with the rules of the National Mediation Board.

E2. What are those rules?
If the National Mediation Board determines that a single carrier exists and that the size of
each carrier’s work group is comparable, it will conduct an election to determine

E3. What if I’m not represented by a union?
Again, the NMB rules will apply. Whether an election to determine union representation
is held or not will depend on the relative size of the work groups.

E4. What will happen to my contract?
We fully intend to comply with the terms of each contract. Issues relating to the
movement of aircraft and employees between airlines will be governed by the applicable

E5. Will my seniority be integrated?
Seniority integration may occur if it is required by Federal law, a collective bargaining
agreement or by mutual agreement.

E6. I understand ALPA and Pinnacle Airlines have tentatively agreed on a
that would require seniority integration. Is that true?
A provision that would require seniority integration of Colgan, Pinnacle and a
subsequently acquired airline was tentatively agreed upon as part of the failed tentative
agreement at Pinnacle. That agreement remains tentative and will not become effective
until a new agreement with ALPA is reached.

E7. If seniority is integrated, how will my seniority be determined?
We will deal with the respective unions in developing a process for fair and equitable
seniority integration if it is required. In some cases, the unions (ALPA, for example)
already have seniority integration policies.

E8. I have heard that a transition or fence agreement is often negotiated in asset
purchase situations. How does that work?
Some of the collective bargaining agreements may require that a transition or fence
agreement be negotiated to provide for an orderly transfer of aircraft and employees from
one airline to the other. If such an agreement is necessary, we fully intend to negotiate the
provisions of such an agreement with the designated union representative.

E9. How does this transaction impact the negotiations on the Pinnacle ALPA contract?
We don’t know at this time. Those negotiations are being conducted under the auspices
of the NMB and will continue under their jurisdiction. The NMB has been notified of the



F1. Will Mesaba’s Profit Sharing program remain intact?
Nothing changes at this time. Profit sharing is for all employees and is defined in the
Collective Bargaining Agreements.

F2. What about the Merit Pay program and AIP program for management?
Nothing changes at this time.

F3. Will Mesaba continue to operate crew bases in MEM, MSP and DTW?
Nothing changes at this time. Any future changes will depend on Delta’s schedule.

F4. Will this announcement affect the Flow Through Agreement with our Pilots?
Mesaba’s contract with Delta stipulated that the Flow Through Agreement is terminated
when Delta sells the airline. It also requires that the parties will meet prior to any
termination for the purpose of discussing whether continuation or modification would be
appropriate. With that in mind, the parties have agreed to honor flow for an interim
period while the parties discuss the possible continuation of flow through.

F5. Will Mesaba continue to provide support services for Regional Elite Airline
We will continue to provide support services for one year.

F6. Will Mesaba facilities (maintenance hangars, airport offices, etc.) be affected by the
Nothing changes at this time.

F7. Will General Office employees be retained? If so, for how long?
Mesaba’s headquarters will remain in Eagan for at least two years, although some
management/administrative functions may be relocated to Memphis over time.
Integration teams with representatives from all four parts of our Company – Corporate,
Pinnacle, Colgan and Mesaba – will establish near-term and long-term action items. It is
too soon to speculate on specific functions or timing.

F8. What’s the implication for the back-office functions at Mesaba?
Again, the integration teams will be working to determine the most appropriate
organizational structure to facilitate growth.


G1. What will this mean for customers?
Nothing will change for customers. All of our aircraft will continue to reflect their current
brands, and no significant schedule changes are anticipated
Seven dust...today is a very sad day for you buddy.. and i told you 3 weeks ago that 9E was gona owned mesaba.

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