Originally Posted by
clancy
76drvr wrote:
After the first rolling three year average, how often do they look back, every three years, or do they look back three years every year?
I'm in over my head trying to respond to this. From what I understand, we are in a measurement period that started April 2011, and runs to March 2014. If during this measurement period, we are not in compliance, there is a one year period where Delta can "fix" the problem. The important thing to remember here is that because of the profit/loss arrangement of the JV, the company does not want to be out of compliance. They may have pulled down Transatlantic flying earlier than AF/KLM/AZ but AF/KLM/AZ will not want to keep their flying up, bear the costs of those flights, and then give away half the profit to Delta. The old AF/KLM JV required us to share growth proportionally. It did not address what happened if there was shrinkage. LOA 16 and MOU 14 did that, and also returned the proportion to 50/50 approximately.
Beyond this, you need to talk to someone at ALPA that can give you a full explanation.
That sums it up.
When AZ was added our percentage of the EASK's was 47.2%. We got a 50-50 between DAL and those three carriers. We originally had a 50-50 with AF and because of this DAL pushed for this. Because we will ultimately fly more on a percentage basis than we would have if we would have just added AZ and leaved the eask's alone, a new three year measurement window was started in April of 2011. As soon as DAL comes to 50-50(49-75%) a new measurement period starts, and there is no look back.
The projection is to be at or near 50-50 in 2013 after the lie flat mods are completed. Remember that when AZ was added we were at 47.2% of the total EASKs There are no floors in total eask's and the balance is only measure in a percentage of the total.