One Company One Team Delta and Northwest Total Recognition Integration Plan. August 27, 2008

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1 One Company One Team Delta and Northwest Total Recognition Integration Plan August 27, 2008

2 Contents Delta and Northwest Total Recognition Integration Plan Guiding Principles Assumptions Service Awards Retirement SPOT MDR Chairman s Club/President s Club Timeline Next Steps 2 DELTA AIR LINES, INC.

3 Guiding Principles The Recognition Experience! 1. A spirit of One Company One Team means an integrated total recognition solution. 2. Although the mid and long term focus is on One Company One Team, the short term focus on solutions will be on cultural sensitivities [e.g. near term retirements, 2008 President s Club, etc] 3. The scope of the integration encompasses service awards, retirement, SPOT recognition, MyDeltaRewards, and Chairman s Club/President s Club. 4. The integration plan will be phased over a period of months 3 DELTA AIR LINES, INC.

4 Assumptions 1. Merger sign off on or about Day One anticipated to be on or about Employee groups will transition from the NW payroll system to Delta s Teseract and be issued Delta EID s over time TBD. 4. Employee data - and the timing of the integrated data - will drive a phased integration plan for total recognition. 4 DELTA AIR LINES, INC.

5 Solution Overview Length of Service Retirement SPOT Recognition MDR Chairman s Club President s Club Current processes as is through Data files sent to DH separately from NW and Delta for processing as of Data files sent to DH separately from NW and Delta for processing Ultimately single file processed by Delta by Transition to Current Delta Process Ultimately single file processed by Current processes as is through end of Q Data files sent to DH separately from NW and Delta for processing as of Data files sent to DH separately from NW and Delta for processing Ultimately single file processed by Delta by Transition to Improved Delta Process by Q Ultimately single file processed by Short Term Phase 1 Replace NW current process with modified Delta SPOT Recognition solution Current Delta solution will include additional award levels and ensure tracking for tax compliance Mid & Long Term Phase 2 Mgrs access SPOT through NW/Delta Intranet site (based on employee data) Ultimately single access point off Delta ERC Timing New Solution Effective Day One Integrated single access point off ERC by Former NW employees will become eligible to participate in MDR programs as they appear on the Delta data file NW employees participate as they become eligible Evaluate NW programs for best practices and migrate if appropriate All employees on MDR by NW programs evaluated and migrated if appropriate Evaluate options for CC and PC for 2009 Integration and/or relaunch for 2010 All employees participate in Chairman s Club by DELTA AIR LINES, INC.

Length of Service 1. As is through 1-31-2009 2. Delta and NW then send separate data files to DH but both receive same offering 3.

Online award selection at years 20 & 40 Decision Points Confirm plan and timeline Confirm length of service award site look and feel [current site has a

6 Length of Service 1. As is through Delta and NW then send separate data files to DH but both receive same offering 3. Recognition at 1, 5 and every 5 years thereafter 4. Online award selection at years 20 & 40 Decision Points Confirm plan and timeline Confirm length of service award site look and feel [current site has a historical Delta timeline] NW at 40+ still offers 2 Positive Space tickets at 40 and every year thereafter should this be continued or sundowned? Issues Need sample data file, as well as list of NW locations, addresses and contact information sent to vendor 6 DELTA AIR LINES, INC.

Retirement 1. As is through 8-1-2009 Signature & Title for NW Award 2. NW transitions to Delta Retirement process and award around 7-1-09 3.

7 Retirement 1. As is through Signature & Title for NW Award 2. NW transitions to Delta Retirement process and award around Newly redesigned and updated retirement recognition award 4. Online order processing Decision Points Confirm plan and timeline Confirm redesign in Marketing now Issues Early out calculations Need sample data file to vendor Retirement link needs to be added to RADAR on or around DELTA AIR LINES, INC.

SPOT Recognition 1. Align Delta NW SPOT recognition.

2. 1-5-09 (or earlier) offer aligned SPOT recognition offering on Delta ERC and NW

participant info for tax reporting on lower award levels Add lower level cards to

Determine billing process Issues Allow enough time to process IT changes to the

8 SPOT Recognition 1. Align Delta NW SPOT recognition. Update current Delta SPOT selection to incorporate additional NW levels [$5- $250] (or earlier) offer aligned SPOT recognition offering on Delta ERC and NW Radar Intranet sites Short Term Decision Points Confirm requirement to capture participant info for tax reporting on lower award levels Add lower level cards to current Delta program ( $5-$25) Determine branding for fulfillment materials Determine billing process Issues Allow enough time to process IT changes to the current SPOT ordering site Create link on NW Radar Intranet site for new SPOT Recognition offering 8 DELTA AIR LINES, INC.

MyDeltaRewards 1. Re-launch of MDR re-scheduled for January 12, 2009 2. First Day 3-30-09 MDR processes both Delta and NW files, NW employees become eligible to participate in MDR programs 3.

9 MyDeltaRewards 1. Re-launch of MDR re-scheduled for January 12, First Day MDR processes both Delta and NW files, NW employees become eligible to participate in MDR programs 3. Evaluate NW programs for best practices and either sundown or incorporate into MDR as appropriate [outside of SPOT] Decision Points Determine any unique reporting requirements [based on NW EID identifier] Two data files will be processed Delta and NW NW Data file needs to be configured and scheduled to send to vendor. Evaluate and review sundown plan for redundant or low value NW programs Incorporate NW best practices Issues Develop options for onboarding Schedule review of all NW business unit recognition programs outside of SPOT Prepare recommendations for programs sundown vs. best practice 9 DELTA AIR LINES, INC.

10 Chairman s Club/President s Club 1. Two programs have fundamental differences in eligibility, qualifications, rewards and celebration events Decision Points Evaluate options and determine approach for Timing makes 2009 a transition year Option 1: Temporary Suspension Option 2: Exception Event Option 3: Status Quo 3. All employees eligible for Chairman s Club 2010 Options for Chairman s Club & President s Club Temporarily suspend both Chairman s Club and President s Club for 2009 re-launch in 2010 Run an interim program that recognizes merger integration activities. Run CC and PC as an exception event. Chairman s Club and President s Club run as two separate programs with their own existing processes but celebrate at a single event with common awards. Run CC and PC as-is for DELTA AIR LINES, INC.

11 Timeline Nov Dec Q Q Q Q Length of Service Retirement Separate employee files processed common solution Separate employee files processed common solution Single EID file common length of service solution Single EID file common retirement solution Day 1 - Aligned Solution SPOT Recognition Day 1 Employees Addition of Northwest employee groups Sundown BU programs or incorporate best practices into MDR Common SPOT solution accessed from ERC MDR All employees eligible for MDR and supported programs Chairman s Club President s Club All employees eligible for Chairman s Club 11 DELTA AIR LINES, INC.

12 Next Steps Confirm overall integration plan and approach Resolve key decision points for each solution element Confirm timeline 12 DELTA AIR LINES, INC.

13 13 DELTA AIR LINES, INC.

14 Other Considerations Shared Rewards Integrating the Shared Rewards program with the broader recognition and reward experience at Delta Option 1 Option 2 Option 3 Shared Rewards Program Integrate into MDR and process monthly with reward points Integrate into MDR and process monthly with a Cash Payout sent to Delta payroll Integrate into MDR and process monthly with a transfer to a reloadable, branded Mastercard. Points can be redeemed for American Express Checks, Gift Cards, Merchandise, Event Tickets, Travel Activities and Adventure. 1. Supports single platform for total recognition and reward experience at Delta Air Lines 2. Expanded MyDeltaRewards communications can more effectively socialize Shared Rewards performance progress 3. Leverage current brand awareness of MDR 4. Reduce payroll processing costs [Option 3] with monthly payouts but quarterly/semi annual gross ups 14 DELTA AIR LINES, INC.

15 Other Considerations - Onboarding There is a critical window of opportunity to use recognition and rewards to drive and enhance the integration and engage employees at all levels. Onboarding Component Option 1 Option Two Option Three Notification notification sent to employee when appearing on the Delta data file for the first time with link to Welcome Message, login instructions to MDR and the Employee Recognition Center notification sent to all NW employees on finalized merger with link to Welcome Message and Employee Recognition Center. Oversized post-card notification sent to all NW employees delivered via company mail that drives traffic to welcome message, MDR and Employee Recognition Center Welcome Message Notifications contains link to Flash intro message from Richard Anderson and/or ET/Delta Board Council about recognition experience. same same Gift Employee badge holder branded MDR -in gift box with introduction to employee recognition experience at Delta. Creative widget packaging with commemorative pin symbolizing one company one team with introduction to the recognition experience at Delta. Creative packaging concept with small commemorative acrylic piece with introduction to the recognition experience at Delta. MDR Account Communications include login instructions to MyDeltaRewards. Communications include login instructions to MyDeltaRewards. Communications include login instructions to MyDeltaRewards. Create User Action Bonus for first time registrants of 2500 points. Create User Action Bonus for first time registrants of 5000 points. Create User Action Bonus for first time registrants of points. First 100 Days Message Follow up communications. Set corporate 100 Day Merger Objectives and reward employees with points for achieving them. Follow up communications. Set business unit specific 100 Day Objectives and reward business unit employees with points for achievements Hybrid of option 1 and 2 Other Include recognition experience printed brochure in other HR related materials Posters in break rooms detailing the recognition experience at Delta Road show to key stations that emphasizes the recognition experience at Delta. 15 DELTA AIR LINES, INC.

16 Thank you for your time! We appreciate your feedback and input Stephanie Merchiore Manager, Employee Recognition 1030 Delta Blvd. 1st Floor, Department 901 Atlanta, GA DELTA AIR LINES, INC.

Delta file supports hierarchy and manager information can be loaded

17 Delta-Northwest MDR Data Solution 1. Delta and Northwest files loaded into MDR 2. Delta file supports hierarchy and manager information can be loaded normally into MDR 3. Northwest employees login and search/select manager from list of managers 17 DELTA AIR LINES, INC.

Best Overall Delta Air Lines, Inc.

2009 RPI BEST PRACTICE STANDARDS AWARD Winner Best Overall Delta Air Lines, Inc. A stellar recognition program that hits all the bases and leads corporate change. A Recognition Professionals International