# UNITED

Nene Foxhall Executive Vice President Communications and Government Affairs
September 10, 2013 Bill Baroni Deputy Executive Director PortAuthority of NewYork and New Jersey 225 Park Avenue South 151 h Floor New York, NY 10003 Dear Bill, Thanks for your time on Thursday. I look forward to following up on ourdiscussion aboutthe significant cost impactto United and the other airlines ofthe Port Authority's plans to implementthe revised Airport Rescue and Firefightingoperation (ARFF). As I said, United, ofcourse, supports safe and compliant operations at Port Authority airports, butthe cost estimate for the ARFF is, in a word, stunning. So, we appreciate the stafftaking time to meetwith us Thursday to help us better understand the components ofthat increase. As you heard from him, Jeff is looking for detail behind those increased cost estimates. We would, therefore, like to take you up on your offer to provide us the written summaries from which the staff briefed us on the new headcount and processes that drive the estimated $63 million annual cost increase, of which we estimate $25 million annuallywould be charged to United. While understanding yourview that this cost increase could have been even greater, I hopethatyou appreciate that is still an enormous increase with unreasonable and disproportionate impacton United. That disproportionate impact is due primarily to the substantial competitive disadvantage in which the Newark Airport rate methodology places the carriers serving Newarkversus those serving New York airports. As we showed you, we estimate that Newarkwould be burdened with 43 percent ofthe costs ofthe ARFF, and JFK29 percent, even though Newark had the fewest claimed instances oftraining violations and JFKthe most of any ofthe Port Authority airports. While we don't have all ofthe detail concerning the costs thatyourteam does, we estimate Delta's share ofthe cost increase related to the ARFF to be $8 million; American's $6 million and JetBiue's $4 million, in sharp contrast to the $25 million for United. It would be helpful to further explore the actions we understand thatthe PortAuthority is taking as part of its plans to implementthe ARFF, including:

233 South Wacker Drive, HDQPO, Chicago, ll60606 A STAR ALLIANCE MEMBER

**·~.**• Hiring 280 dedicated firefighters for duties now undertaken by PortAuthority police; • Maintaining the same number ofpolice officers who are providing those services; and • Providing recurrenttraining to all ofthe above for both firefighting and police duties regardless of whetheran officerwill be "dedicated" to eitherfirefighting or police duties to enable cross-utilization ofall police officers. As we stated when wewere discussing industry best practices on Thursday, none of our other major hub airports provide cross training ofpolice and firefighting personnel in this manner. Absent a clear understanding ofthe PortAuthority's obligation to so respond, this appears to be unreasonable and far beyond industry best practice and whatthe ARFF Settlementwith the FAA calls for. So, we would appreciate a better understanding ofany such obligations. Again, thank you for entertaining our questions andworking to help us address our concerns. We lookforward to reviewing the written cost summaries, headcount, processes and other factors driving the cost increase, which we hope you will provide at your earliest convenience. Iwill be in touch soon. Sincerely,

Cc: David Samson, Chairman, Board ofCommissioners Pat Foye, Executive Director

233 South Wacker Drive,HDQPO, Chicago, IL 60606