Originally Posted by
tim123
So Delta can't yank the flying because it would be a violation of the CPA?Since you are using the CPA to justify you statement,why can't Delta use your dismal performance against listed targets that are in the CPA to justify their position if they wanted to yank flying?
First off, I don't work at glow jets. Never would i.
Second, your misunderstanding of contract law is astounding. You can't just break the contract because of some subjective level of performance. I'm sure there is a level at which Delta could terminate the agreement but you can bet there would be a hefty fee for ending the CPA early. Those agreements have language that protect both the mainline buyer and the FFD supplier. You can't just say, "you're not doing great, I'm taking the airplanes back and not paying you." That's a breach of contract. Mainline reserves the right to not renew the CPA, but they literally just have Gojet ANOTHER cpa. That tells me they must not be that unhappy with the product. Not enough to pay GOJET x million dollars to buy out the existing contract.
Against listed targets? On the UA side at TSA, those listed targets give the airlines performance bonuses. We get a bonus when we surpass those targets. At some level, TSA has to pay penalties but we haven't been threatened with that in a few years. So, Delta could just pay G7 less if they don't meet targets. These CPAs are very complex documents. Not just, hey, you didn't have a 98% completion factor. I'm not going to pay you anymore.