The first real test of the recently added PWA language efficacy will be when it comes to how PWA 1.E.8 applies to the VA JV....
I will be the first to admit that I was underwhelmed that all we managed to secure is 75% of Delta's share of the revenue to be flown by Delta pilots.
After all the Transatlantic JV secures nearly 100% of Delta's revenue share to be flown by Delta pilots.
Yet Delta purchasing a 49% financial stake in Virgin Atlantic is something completely different from any JV agreement we've had in the past. Here's what it says in the PWA when it comes to Delta's revenue share of JV and how that relates to what percentage of flying will be performed by Delta pilots:
PWA 1.E.8
...in each trailing twelve-month period measured...each calendar quarter, the Company’s share of revenue block hours flown under the profit/loss sharing agreement will be at least 75% of the Company’s share of revenue...
- Delta has a 49% share in Virgin Atlantic Revenue.
- Delta has a 100% share in Delta Revenue.
- Delta has a 74.5% share of the total DAL VA JV revenue.
Delta pilots should fly 55.8% of all DAL/VA JV flying
(per PWA 1.E.8 75% share of Delta's 74.5% JV revenue share)
If our NC can use 1.E.8 to secure 55.8% of the Delta Virgin JV flying for Delta pilots it will be a huge win and a big increase in WB Europe flying.
Cheers
George