American Airlines answers Post-merger developments 1. In advocating for the merger in 2013, the airlines argued that it would benefit consumers. Three years after the merger, how does American believe that things have worked out for consumers? Please provide any data on fares or other aspects of American's business that you see as relevant. Since the merger closed in December 2013, we have delivered significant benefits to customers, employees and communities. Customers Customers have benefitted from a highly competitive industry with more capacity and lower fares than before the merger. Specifically, Airlines for America studies show U.S. carrier airfares were down 5.2 percent in 2015 and are down 6.3 percent so far in 2016. We’ve significantly upgraded our fleet, with 220 new aircraft delivered since 2014. American’s fleet is the youngest of the major network carriers, and by the end of 2017, the average age of our fleet will be only 9.6 years. We’re investing $3 billion to improve our customers’ experience in the air and on the ground. o In the air, we’ve added Wi-Fi, fully lie flat seats, and more in-flight entertainment and power outlets. o We’re also upgrading our lounges and dining options for our customers before they fly. We’re enhancing the regional travel experience by adding Wi-Fi to all two-class regional jets and introducing more large regional jets to provide our customers more options. We’re also flying to more destinations than ever before, including new service to small cities across the U.S. o We’ve added 74 new domestic nonstop routes and 10 new international nonstop routes to destinations in Latin America, Europe and Asia. o We’re providing new and improved service to small communities across the U.S., including Akron, OH; Bismarck, ND; Boise, ID; Bozeman, MT; Hattiesburg, MS; Lansing, MI; Louisville, KY; Madison, WI; Providence, RI; and Stillwater, OK. And in June, we launched 20 new routes out of LAX. Employees: Because of the merger, our employees have greater job security and more opportunities, and we’ve created thousands of new jobs. Our customer-facing team members now have industry-leading pay. o Pilots – 53% increase compared to pre-merger wages o Flight attendants – 25% increase o Passenger service agents – 34% increase o Dispatchers – 51% increase o And we expect our mechanics and related employees will also see significant increases when we reach a joint collective bargaining agreement. The company also implemented a profit sharing program in March 2016 – so when our airline succeeds our employees benefit. American’s total workforce today is 107,000 people, including 22,500 people who have been hired since December 2013. And our total headcount has increased by 11,500 people since the close of the merger. In total, our employees have received more than $5 billion in increased wages since the merger closed. By the end of 2017, the annual increase of this incremental pay will be in excess of $2 billion. These increases will have a real impact on not only the livelihood of our employees, but on the U.S. economy and communities for years to come. Communities: We’re providing communities – both large and small – with greater access to the world through expanded service. Some people said we would close hubs and cut service and routes to small cities after the merger. To the contrary, we’ve introduced new nonstop service from our hubs to dozens of smaller cities. We are improving the infrastructure at the airports we serve. For example, American and other carriers are investing more than $5 billion at LaGuardia for a new Central Terminal Building and more than $2 billion in Dallas Fort Worth to refresh all of the airport’s terminals. We’re also making big investments at BOS, CLT, DCA, MIA and ORD. We’re an active partner in the communities we serve. Our company, our customers and our employees have invested more than $35 million in cash and in-kind support to organizations such as UNICEF, Air Compassion for Veterans, Susan G. Komen and Stand Up 2 Cancer,