Originally Posted by
Bill Lumberg
I am looking for improvements in many areas, and this TA does that. There's a short duration with a good pay raise for only 3 years. Scope is debatable, but I want those 218 50 seaters gone, sooner. That is key. Total numbers are most important to me. I think the larger RJs will just fill in for the larger amount leaving. Then throw in a favorable ratio, and it works. The international scope is also an improvement. I don't see the 717s coming if the 50s stay longer. Too much capacity (717s+ all of the 50s staying) That makes sense.
Throw in the fact that no other legacy is helping our cause at all, and things are ripe for other interesting "plays" in this industry now, I think this TA is a good deal for us right now. That's why I went from a NO on any deal a month ago to a YES today.
Bill, future 717A avatar guy
, would you sign off on this in 2015?
1.B.43.b. “New large widebody aircraft” means a B-777-300 or an A350 added to the Company’s fleet as of [DOS].
1.B.46. “Permitted aircraft type” means:
1.B.46.e. one of up to 102 aircraft configured with 51-70 passenger seats and certificated in the United States with a maximum gross takeoff weight of 86,000 pounds or less (“70-seat aircraft”), and
1.B.46.f. one of up to 223 aircraft configured with 71-76 passenger seats and certificated in the United States with a maximum gross takeoff weight of 86,000 pounds or less (“76-seat jets”).
Exception one: If the Company establishes a fleet of new large widebody aircraft, the number of permitted 76-seat aircraft may increase four 76-seat aircraft for each one new large widebody aircraft (4:1.0) ratio (rounded to the next highest integer) up to a total of 287 76-seat aircraft. In the event more than 223 76-seat aircraft are in category A or C operations, then on January 1, 2016, and each succeeding January 1 thereafter, the Company will implement its plan to reduce the number of 50-seat aircraft in category A or C operations below Y (the number of 50-seat aircraft in category A or C operations as of [DOS]) rounded to the closest integer, as follows:
1) 0.9 50-seat aircraft for each of the first additional ten 76-seat aircraft (above 223),
2) 0.9 50-seat aircraft for each of the first additional ten 76-seat aircraft (above 233),
3) 1.0 50-seat aircraft for each of the first additional ten 76-seat aircraft (above 243),
4) 1.1 50-seat aircraft for each of the first additional ten 76-seat aircraft (above 253),
5) 1.1 50-seat aircraft for each of the first additional ten 76-seat aircraft (above 263).
6) 2.4 50-seat aircraft for each of the first additional ten 76-seat aircraft (above 273), and
7) 5.3 50-seat aircraft for each of the next additional ten 76-seat aircraft (above 283).
Note one: Upon the delivery of a 284th76-seat aircraft, the number of permitted 50-seat aircraft will be 0 regardless of the number otherwise provided in Exception one.
Note two: If on January 1, 2017, or any succeeding January 1 thereafter, the number of 50-seat aircraft in category A or C operations exceeds the maximum permitted number, the Company will require carriers that engage in category A or C operations to suspend or cease operations on a sufficient number of 50-seat aircraft or 76-seat aircraft to comply with these requirements within 60 days and to remain in compliance thereafter. The Company will be excused from compliance with the provisions of this Note in the event a circumstance over which the Company does not have control is the cause of such non-compliance.
So there you get 16 new B773s and we reduce 50 seaters down to 0 but we raise 76 seaters by 64 aircraft which is less than the increase in TA 2012.
The total DCI fleet would be 389 jets, all 51+ seats, but down from DCI 450.
Sound good?