Originally Posted by acl65pilot

Bar I agree. I have been doing a ton of research on the AF JV and here is what I found.

We initially started out at 51.7% of the EASK's. The compliance band was 1.5% points in either side. When Alitalia was added, we went to 50-50. Not that big of a deal, and even with adding Alitalia we were in compliance. From what I can gather, we did not go out of compliance until March/April this year.

This is the language change.

We went from this language:
PWA 1P.4
4. The amount of flying subject to the AF JV flown by each partner will be determined from
a summer season baseline period commencing in the summer season immediately
preceding the full implementation date. All growth ASMs flown above the baseline
figure by the partners will be aggregated and shared between the partners on a 50/50
basis, subject to Section 1 P. 5.
5. Compliance will be measured for each summer season period, commencing at the end of
the first summer season following full implementation. If the Company’s share of the AF
JV growth ASMs above the baseline is at least 47% for the applicable summer season
period, the Company will be deemed in compliance with the growth ASM measurement

If the Company is not in compliance with the growth ASM measurement for any summer
season measurement period, the Company may cure any such breach by (within 90 days
after the date of written notification from the MEC Chairman to the Company of such
breach) increasing the number of Delta growth ASMs or decreasing the number of AF
growth ASMs at the beginning of the next summer season

to:
MOU 14
The baseline EASK allocations in the AF/KL/AZ JV agreement are 50% for DL and 50%
for AF/KL/AZ of the total EASK capacity. Section 1 P. 4. is updated to reflect such
adjustment. Effective with the three year measurement period ending on March 31, 2011
(including applicable AZ flying during the 12 month measurement period of April 1,
2010 to March 31, 2011 only), the Company shall maintain no less than 48.50% of the
EASK capacity share in this measurement period (Company’s baseline EASK allocation
minus 1.50%). A new three year rolling measurement period will begin April 1, 2011
and the actual capacity share percentages for all previous years will be disregarded for
capacity share measurement purposes. In the case of the rolling three year measurement
periods ending March 31, 2014, and thereafter, the Company shall be required to
maintain no less than 48.50% (Company’s baseline EASK allocation minus 1.50%) of the
total EASK capacity subject to the provisions of Section 1 P. 6.

In the first 12 month measurement period following March 31, 2010 (i.e., from each
April 1 to March 31 of the following calendar year), during which the Company’s EASK
capacity share is greater than or equal to 49.75%, a new three year rolling measurement
period will begin and the capacity share percentages for all previous years will be
disregarded for capacity share measurement purposes.

We went from a 12 month window to a rolling three year window. There was also a 90 day compliance period after the 12 month look back. Now, when they hit compliance within the band, a new three year period starts. There is no look back. As I read this, they need to only be in compliance for one reporting period every three years.

This was done by MOU number 14 in June of 2010.