Originally Posted by
Coto Pilot
Another restraint mgmt has is the ratio of express to mainline.
We are close to the domestic cap, if that drops they have to start paring RJ's.
Originally Posted by
Andy
Are you sure about being close to the cap on outsourced flying? I was jumping up and down a few years ago, giving the ALPO reps an earful because block hour numbers/ratios on C2003 were blank for several years. And when the ratios finally got filled, I looked at the numbers and got even more angry - it allowed for sharp mainline block hour reductions coupled with additional outsourcing.
I made the mistake of taking a look at C2003 rewrite ... where's my blood pressure medicine?
1-C-1-d Number of Block Hours of Feeder Flying: In each calendar year, the number of scheduled block hours of Feeder Flying may not exceed the number of scheduled block hours of Company Flying.
I can't find regional block hours but I looked at July's ASMs for CAL/UAL. Regional flying is only ~10% of total ASMs. I don't think we're anywhere close to maximum regional block hours.
United Continental Holdings, Inc. - Investor Relations - News
Section 1-F-1. Block Hours Guarantee: 1.689 million hours.
1-F-2-a. Substantial economic change. Allows company to reduce block hours if our Operating Margin is below 8.1%. 1% reduction in block hours for each 1% decrease in Operating Margin.
July 2011 SSC report. May block hours flown: 120,919:11. Multiply by 12: 1,451,030:12.
I seriously doubt that we're running a negative Operating Margin. I'd say that we're already well below mainline block hour guarantees.