Originally Posted by
Bucking Bar
Just to add to your point ... the beauty of a Global Production Balance is that it codifies a minimum we must GROW with growth within the JV and in a worst case scenario it forces them to pull down the JV flying.
If (HUGE IF) section 2.a of this new TA really means what we think it means and really is a global production balance, then it is indeed something we don't have now. But we are paying a price for that. The price we are paying is agreeing to a
new floor of international block hours that appears to be about 100,000 hours per year less than what we currently fly. We won't know this number for certain until after the MEC passes the TA because the MEC administration is refusing to release that data until after it passes.
So yes we APPEAR to be gaining something we didn't have before, but we're paying for that by reducing our minimum floor significantly BELOW what we're flying now. That's a pattern. We did the exact same thing when we gave up our minimum required departures in NRT. We agree to lowering our minimums, in exchange for new minimums we didn't have before...that represent a lower minimum than what we have now.
In reality, the company is extracting concessions from us. And our union is trying to spin it as win-win.
Originally Posted by
Bucking Bar
Further, if someone really wants to do a deep dive they will learn that in a downturn the ratio ratchets up forcing them to pull down the JV faster.
Don't see where you're getting that...no matter how deep you dive.
Originally Posted by
Bucking Bar
I really like that we must be participants when the Company grows (even if it is some opportunity management has not dreamed up yet ... growth is ours at a roughly 3 to 1 ratio).
That appears to be correct, but we paid the price of agreeing to a lower guaranteed floor...if growth doesn't happen.
Carl