Originally Posted by Professor

Those asking for more info on the JV language:

An objective of the Delta pilots was to improve and tighten compliance measurements. Existing language allowed the Company a three (3) year measurement period and a one year cure period. Contract 2015 tightens this language to a one (1) year measurement period. Should the Company be out of compliance, the Company must return to our capacity share within one-year. Compliance metrics have been simplified with the use of “aircraft block hours” instead of the “equivalent available seat kilometers” used in the commercial agreement. The Company will now be in compliance with our agreement, as demanded by the Delta pilots.

History:
The Delta pilots gained significant mid contract scope protection with the Virgin Atlantic Joint Venture agreement. Since this global production balance agreement has been implemented Delta has grown international wide-body flying. The Air France/KLM/Alitalia Joint Venture agreement fits within our global production balance, focused mainly on trans-Atlantic flying. Flying to the UK within “Bundle 1” of the Air France/KLM/Alitalia commercial agreement overlaps under the two agreements. The Company has not been in compliance with our share the Air France / KLM / Alitalia Joint Venture, instead allocating Delta flying to Latin American and Pacific routes.

Flying to Latin American and trans-Pacific has grown and this growth far exceeds the shortfall in the trans-Atlantic agreement. The MEC library has briefings in the Scope Compliance and Analysis folder. This was covered in the May 2015 slide deck and many previous presentations.

Current Performance:
There is no data to support the conclusion that the change to a Block Hour metric has, or will, cost a single job. Delta has fully deployed it’s international wide body fleet into markets it can most profitably serve. Wide-body utilization has increased and is very high.
· Adjusting to exclude US-UK flying, then Delta’s block hour share was about 52.1% for the 3-year period ending March 31, 2014
· If we increase Delta’s block hours by 3.57% (in order to get into EASK compliance), then Delta should have flown 53.0% (by my math there is a 3.98% reduction between “should have” under C2012’s EASK and the minimum under C2015-TA)
· Due to crew augmentation the Delta pilots fly many more Pilot Block Hours than the other side of the trans-Atlantic JV, we are measuring aircraft block hours
· Delta will continue to deploy its fleet most profitably. 50% is not a goal, it is a downside protection. Nothing prevents the Company from flying more than 50%. The reality is that the Company is growing our percentage of flying. The most recent number I have is 52.7%.

Why Aircraft Block Hours & Improvements
· We get our equal share, 50%, which was the goal of the original agreement
· Block hours = pilot jobs
· The use of aircraft block hours provides better downside protection since the reduction of a single Air France A380 is roughly the available seat kilometer equivalent parking of two Delta A330s.
· When Delta upgrades capacity an aircraft block hour ratio avoids any penalties from replacing B767-300ERs or 757s with A330s and A350s.
· The previously allowed 1.5% variance has been tightened to 1%
· The three year measurement period has been tightened to 1 year, with a one year cure
· Yearly measurements are needed for seasonal market adjustments
· Bundle 1 is transparently defined in the contract 2015
· UK overlap with the Virgin Atlantic JV has been removed

Nothing in these agreements prevents the Company from exceeding our minimum share. In fact, we are currently slightly more than 5% above the minimum requirement of our global production balance in the Virgin Atlantic Joint Venture Agreement, and growing. Further, this growth is measured against a much higher metric; the Virgin Atlantic JV is 87% of our International wide-Body Block Hours, the trans-Atlantic JV is 52%. The net twin aisle wide-Body fleet in Delta service is expected to grow by 9% during the period covered in this TA.

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Please also check out the materials in the DALPA library.