Have you fully read the TA?
Originally Posted by
SnoJet440
It's worse on a number of levels. First of all the March agreement guaranteed a minimum fleet of 170 aircraft. This TA does not.
That is true.
Originally Posted by
SnoJet440
Also the "enhanced flow" in the March agreement was 360 a year minimum with a true up provision, the current agreement is for 220 with no true up.
TA says:
The provisions of Letter 12-05 (“The 824 Agreement”) shall remain in full force and effect and will be enhanced by the language below:
Upon delivery of the first EMB-175 as set forth in Appendix D and assuming 824 Envoy pilots have not flowed through to AA at that time, 50% of all AA new hire training slots, no fewer than 30 per month (subject to the 50%), shall go to Envoy pilots until a total of 824 Envoy pilots have flowed through to AA.
Letter 12-05, paragraph 1d contains the true up.
Originally Posted by
SnoJet440
PBS was tied to the delivery of the first option in the March agreement, now it's tied to the delivery of the last order. This created a financial incentive to place the options here, the incentive no longer exists. This is a brief summary, but there is more.
TA Says:
The provisions of Letter 13-04 (“Preferential Bidding System”) will be deemed suspended until delivery of the 41st EMB-175 as set forth in Appendix D. The suspension of Letter 13-04 will end on the date that the 41st EMB-175 is delivered and within 30 days after such delivery the PBS Working Group will re-commence the process of negotiating and finalizing a PBS LOA pursuant to the requirements of Letter 13-04. It is the parties' intent to complete PBS implementation as outlined in Letter 13-04 no later than 120 days after delivery of the 41st EMB-175.
The 41st EMB-175 is the 1st option.