Originally Posted by
georgetg
Now that's an understatement!
The saddest part is the company was given "wiggle" room.
+/- 1.5% from the target of 50% and thats on a rolling 3-year average.
Then in addition, they were given 1.P.4. Note two, essentially a one time "get out of jail" card.
All the company had to do is meet 49.75% for a 12-moth period and all previous "underages" would be wiped clean.
Even with this extra bit of flexibility Delta still will fail to meet the target on March 30, 2014.
Multiple opportunities gave the company lots of flexibility to execute the business plan.
The PWA gave Delta enough flexibility that the company could have ceased flying any Transatlantic JV flying for two years, then brought our percentage to 49.75% for the current 12-month period ending March 30th, 2014 and Delta would have been deemed in compliance.
All of this won't matter and I'll be happy as a clam if we actually make the new JV language 1.E.8, just added in the last contract, stick when it comes to the Virgin JV:
the Company’s share block hours flown under the JV will be at least 75% of the Company’s share of revenue in that twelve-month period.
Since Delta owns half of Virgin, Delta's share of the revenue of the Virgin/DAL JV is 75%. If we really get to fly 75% of Delta's portion of the Revenue as is stipulated in PWA 1.E.8, we would get a 56% share of all Virgin/DAL JV flying. That would be a lot of flying added. If we really see a 56% share of flying for Delta pilots in the Virgin/DAL JV, this thread will be a very happy place.
Cheers
George
75% of DAL's revenue block hours should come in to play in a big way, but I find it very unlikely that the company on the VS or DAL side of the fence or the VS Pilots Represented by BALPA would every agree to anything that would take that much flying away from VS. If they did, I bet the British government would step in and stop the slot transfer from a British company to a company run by Yanks.
Might get that flying with all growth to the point going to the DAL side and then future growth on a size and scale weight to our side (70%), but an immediate shift of flying and loss of British jobs would result in UK Government intervention.
If you say pound sand unless, then the other option is no JV and a CS agreement only that protects current block hrs on a 12 month pre announcement look-back but offers no metric or negotiated share of the possible growth. Not that there will be much in a ultra-mature market and the tightest slot controlled airport.
Our bigger concern should be beyond flying that has no CS rights for DAL that will allow DAL to flow customers away from current DAL metal to VS metal with 49% of the profits still going to DAL, and with absolutely no current protections to stop it.