Originally Posted by
D Mantooth
True.
Although, to be fair, they weren't even at 50% when they signed the agreement (if my memory serves). They agreed to that level based on overly-optimistic predictions. It cost them $30,000,000.
I don't know the costing numbers, so I won't comment yet on whether that penalty was appropriate.
That's too bad for them. They also gambled on fuel hedging and lost much more than that. Did they get to go back to the hedge fund and tell them they are not going to pay up? The bottom line is they AGREED to a contract and then failed to honor that. Now we need language in this contract that does not allow them to continue to do that.