Originally Posted by slowplay

I answered this exact same post from Johnso in a different thread two days ago...maybe you guys should coordinate better!

The ratios ensure that Delta executes at a minimum level on their business plan, and that if it doesn't that Delta mainline isn't the only hydraulic accumulator in the system.

There are no mainline fleet counts in this agreement other than the delivery of small narrow bodies (B717)...there are block hour ratios. There is a DCI fleet count in this agreement. As DCI takes delivery of 76 seaters which is only enabled by mainline receiving SNB's, DCI must shrink according to a table in the PWA.

In order for DCI to access 35 70 seat aircraft Delta must first take delivery of 44 B717/A319. They must also park 97 50 seat jets.

There is no guarantee of growth in this agreement. This agreement protects us if there's not growth and serves as a backstop to business plan failure. If management accepts delivery of all 88 B717's, then they get access to up to 70 76 seat jets AND they must reduce the DCI fleet to 450 by the end of 2015. 125 of those can be 50 seat jets. As described before, Delta currently has obligations to 311 of those aircraft at the end of 2015. They will also be capped at 223 76 seat aircraft and 102 70 seat aircraft. If they shrink mainline block hours below the minimum ratio, then for every hour mainline shrinks DCI will shrink more due to the requirement to maintain a 1.56-1 minimum ratio. If mainline grows, DCI will still be capped by the 450 aircraft limit and their physical ability to utilize the aircraft. Remember that DCI's fleet seating capacity is being reduced by 15-16% over time and they are currently (depending on month) 46-48% of domestic equivalent block hours. While the math isn't pure due to differences in aircraft utilization rates, if Delta stayed static whle DCI shrank there would be a significant capacity reduction going on in our domestic system, and almost all of it would be borne by DCI. That means that something else is going on that is negatively affecting Delta. Compare the contractual result in that case under the TA with our current scope, where management is unfettered except for furlough protections in downsizing mainline in favor of DCI.

Oh, and the planned ratio (not guaranteed) of flying is about 1.76-1. That number and even the backstop number of 1.56 are a far cry from today's 1.19-1.