1-C-2 Domestic Code Share Agreements
The Company or a Company Affiliate may enter into or maintain a Code Sharing Agreement with Domestic Code Share Carriers that permit such carriers to apply the Company’s Designator Code to their operations only in accordance with this Section 1-C-2. For purposes of this Section 1-C-2, Flights conducted by Affiliates of the Domestic Code Share Carrier or United Express Carriers under agreement with and under the Designator Code of the Domestic Air Carrier shall be considered Flights conducted by that Domestic Air Carrier to the extent they are conducted pursuant to the applicable Domestic Code Sharing Agreement.
1-C-2-a The Company may maintain the existing Domestic Code Sharing Agreements with i) US Airways (in accordance with Letter of Agreement LOA 17), and ii) Great Lakes, Gulfstream/Silver Airways, and Cape Air, provided the Domestic Air Carriers listed in ii) of this Section 1-C-2-a only operate Regional Aircraft.
1-C-2-b The Company may enter into or maintain Domestic Code Sharing Agreements for flight operations between airports within Alaska and Hawaii.
1-C-2-c The Company may maintain and enter into additional Domestic Code Sharing Agreements with Domestic Code Share Carriers subject to the following restrictions:
1-C-2-c-(1) Hub to Hub Flights
The Company shall not permit Domestic Code Share Flying between Company Hubs or to or from a Company Hub unless such Flying is between a Company Hub and the applicable Domestic Code Share Carrier’s Hub. The number of ASMs of code sharing flying conducted by the Domestic Code Share Carrier from the Company’s Hubs to the Domestic Code Share Carrier’s Hubs cannot exceed the Domestic Code Share Carrier Hub ASM Ratio (as defined below):
For each Domestic Code Share Carrier, a ratio (the “Domestic Code Share Carrier Hub ASM Ratio”) will be determined by dividing the number of ASMs of all Hub to Hub Flights (i.e., between the applicable Domestic Code Share Carrier’s Hubs and Company Hubs) scheduled to be operated by such Domestic Code Share Carrier on aircraft other than Regional Aircraft by the number of domestic ASMs of all Hub to Hub Flights scheduled to be operated by the Company during the twelve (12) full calendar months immediately prior to the effective date of the Domestic Code Sharing Agreement with the Domestic Code Share Carrier. The last day of the twelve-month period shall be the “Ratio Date” with respect to such Domestic Code Share Carrier.
For each Rolling Twelve-Month Period measured each calendar month (with the first measurement occurring the twelfth (12th) calendar month after the Ratio Date), the ratio between the number of domestic ASMs of Hub to Hub Flights scheduled by the Domestic Code Share Carrier bearing the Company’s Designator Code and the number of ASMs of Hub to Hub Flights scheduled by the Company bearing the Domestic Code Share Carrier’s designator code (the “Schedule Ratio”) shall not exceed 120% of the Domestic Code Share Carrier Hub ASM Ratio.
1-C-2-c-(2) System Flights
The number of ASMs in flights conducted by the Domestic Code Share Carrier carrying the Company’s code may not exceed the Domestic Code Share Carrier ASM Ratio (as defined below):
For each Domestic Code Share Carrier, a ratio (the “Domestic Code Share Carrier ASM Ratio”) will be determined by dividing the number of ASMs scheduled to be operated by the Domestic Code Share Carrier in aircraft other than Regional Aircraft by the number of ASMs of all flights scheduled to be operated by the Company during the twelve (12) full calendar months immediately prior to the effective date of the Code Share Agreement with the Domestic Code Share Carrier. The last day of the applicable twelve (12) month period shall be the “Ratio Date” with respect to such Domestic Code Share Carrier.
For each Rolling Twelve-Month Period measured each calendar month (with the first (1st) measurement occurring the twelfth (12th) calendar month after the Ratio Date), the ratio between the number of ASMs of Domestic Code Sharing Agreement Flights scheduled by the Domestic Code Share Carrier bearing the Company’s designator code in aircraft other than Regional Aircraft and the number of ASMs of Domestic Code Sharing Agreement Flights scheduled by the Company bearing the Domestic Code Share Carrier’s designator code (the “Domestic Code Share Carrier Schedule Ratio”) shall not exceed 115% of the Domestic Code Share Carrier ASM Ratio. For example, if the Domestic Code Share Carrier ASM Ratio is 1.5 (i.e., the Domestic Code Share Carrier had fifty percent (50%) more scheduled ASMs in aircraft other than Regional Aircraft than the Company in the measurement period), then the number of ASMs scheduled to be operated by the Domestic Code Share Carrier bearing the Company’s Designator Code in aircraft other than Regional Aircraft may not be more than 1.725 times the number of ASMs scheduled to be operated by the Company bearing the Domestic Code Share Carrier’s Designator Code. As a further example, if the Domestic Code Share Carrier ASM Ratio is 0.5 (i.e., the Domestic Code Share Carrier has one-half (1/2) of the scheduled ASMs of the Company in the measurement period in aircraft other than Regional Aircraft), then the number of ASMs scheduled to be operated by the Domestic Code Share Carrier bearing the Company’s Designator Code in such aircraft may not be more than 0.575 times the number of ASMs scheduled to be operated by the Company bearing the Domestic Code Share Carrier’s Designator Code.
The provisions of this Section 1-C-2-c-(2) shall have been satisfied in connection with a Domestic Code Sharing Agreement with a Domestic Code Share Carrier that at the time operates fewer than one-half (1/2) of the number of ASMs operated by the Company, if the number of ASMs of Domestic Code Sharing Agreement Flights scheduled by the Domestic Code Share Carrier bearing the Company’s Designator Code equals no more than 125% of the number of ASMs of Domestic Code Share Flights scheduled by the Company bearing the Domestic Code Share Carrier’s Designator Code.