After the rumor that B-717's may be delayed there was a lot of confusion over the metrics in our contract. There are three and they are all different.

1. Addition of SNB aircraft with additional 76 seaters. They have to add 717's at a rate of 5 to 4 (1.25 to 1). There is no cure period and they have no slack on that. This is because it is quite easy to cure. If they have purchased new 76 seaters they can park them in the desert or they can park an older one. So if the 717's are delayed (and we don't really know they are) then the company can purchase new 76 seaters and take delivery of them but they have to park one for one.

2. Block hour ratio. There is a variable block hour ratio depending upon how many 76 seaters they add into the fleet. Currently there is no ratio because they have not added any additional aircraft. When they add the first new 76 seater, the ratio goes to 1.10 for the first 10. That measurement period begins in January 2014 and they have a 6 month cure if they are out of compliance. That is because block hours are harder to add/subtract than airframes and events like the MD-88 fleet being grounded for 3 days for some inspection could affect the ratio. In June 2013, the block hour ratio was 1.17 and is scheduled to hit 1.20 by January 2014, so the company is way above compliance already. This is because we knew that the company wanted to accelerate the shift from DCI to mainline but we were conservative with what we told the pilots would happen.

3. Removal of 50 seaters. For the first 10 76 seaters, for each aircraft they add they have to remove 2.7 50 seaters below 339 (the number in service on July 1, 2012). There are varying ratios with each next set of 10 76 seaters that come into service. So when they get to 10 new 76 seaters they have to remove at least 27 50 seat RJ's from service or be down below 312. They have a 60 day cure for this breach, again because it's easier to take aircraft out of the fleet than it is to fix block hours. As of July 1, 2013 there were only 304 50 seaters in service so the company is already well below the compliance number (lower is better in this case) and they still haven't added one 76 seater yet.

The MEC Update from August 1st goes through the transition from DCI to mainline and shows how the company is already ahead of its plan to add more mainline flying.