Originally Posted by
Denny Crane
I'm not adverse to granting the company JV relief for an overall wide body plus 757 international block hour min. I do think that block hour minimum should be closer to what we are actually flying. Sounds like 688,000 is our current block hour amount. I think the min should be 675,000 possibly 680,000. If more flexibility is needed, divide the block hour min into quarters and have min hours per quarter.
Denny
Valid point.
What I am hearing is that the 650k was based on 50/50 when the AF/KLM/AZ agreement was revised. I do not know that I've seen that in print.
The company will not agree to a 0% compliance margin again after having been burned (in their view) on the 48.5%. Last time around they stopped at an ~8 to 11% margin below the actual performance.
As I understand the web board reports (I've no inside data) the margin is right at 4%, which is remarkably tight by today's standards. Given the variables, it is a good downside protection given that AF/KLM/AZ are always slow to adjust capacity and in a global downturn, this floor would likely kick in to protect Pacific and South American flying.
This also communicates to me that Glen Hauenstein is optimistic about the A330's, A350's and global hours generally.