Originally Posted by
Waves
George, this is taken from the TA Agreement Summary: “Today, Delta mainline flies 54% of domestic block hours while DCI flies the remaining 46%. With this TA, the share will shift to a minimum of 61% mainline to a DCI share of 39%.” Secondly, adding 88 717’s requires another 1,100 pilots to fly them. No airline on the planet can make guarantees as to how many aircraft and pilots it will need in the distant future. To expect them to do so is unrealistic. Having a two year no furlough clause is about as good as it gets. And yes, 777’s would have probably cinched the deal for many doubters.
But 61% of $10 is $6.10. 61% of $100M is $61M. So it's only a % of the consolidated block hour pie.
Currently we fly 3.6M consolidated block hours and we have a 54% share of it or 1.94M MBH. If we could jump from 54% to 61%, we'd have 2.20M MBH, a win worth about 75ish airplanes or what you get when you add 88 B717s and park 17 DC9s.
Great!
However, there is no requirement to maintain a certain number of block hours like 3.6M. Just a requirement that at a given point (DCI 450/325) we get 61% of whatever flying there is to be had per the 1.56 ratio.
So the problem is that DCI 600 going to DCI 450 would result in a drop from nearly 1.7M DBH to 1.245M DBH.
All that has to be met is that MBH >= 1.56 x 1.245M DBH, or MBH >= 1.94M MBH. Which is where we are today.
So the language makes it possible to shrink DCI without transferring any of the block hours to us and they meet the ratio requirement and ASMs get to keep their current trajectory and drop about 1% YOY.