Originally Posted by
Sink r8
It appears to me you're systematically exaggerating the negatives. I think it's hard for anyone to label the Scope section as either a huge win or loss. It's sort of neutral.
One of the reasons Scope is sort of neutral (and I imagine we'll come at this from a very different perspective), is that we got really myopic on the RJ's. According to a JS rider on the MEC, the only thing that separated the "7" and the "12" were RJ's. The 7 saw value, the 12 a threat. Since this was said to be an absolute must for the company (oops), and worth hundreds of millions to them (oops again), we were said to cave (oops a third time). So we "won" on RJ's.
I actually view the RJ status quo as a loss for us. We didn't shrink DCI and we're operating above NB ratios that we're not codifying into the contract. Meanwhile the zombie 50-seaters linger on, at company discretion. And I haven't seen the 76-seat order for mainline yet.
So we learned vastly different lessons in the previous decade, I suppose. But in either case, it seems like our Scope battle was fought on the small-gauge end, and it seems like the MEC got a little distracted. What would the deal have looked like if we traded on 76-seaters? I have no idea. Were there better protections available on the WB end? No idea. If the DPA salesman is right, and negotiators told him that there were "hundreds of millions" available to the company, then perhaps some of that saving should have been shifted over to the WB column?
So the Scope section, in my mind, is a bit dull. I think we failed to capture an opportunity on RJ's. OTOH, looking around the world I don't envision us breaking through any unexplored frontiers and capturing a ton of flying. Considering the alliances we have or might have, I figured we'd try to protect what we have. I figured we also need as much downside protection as we can get. I don't like the EASK metric on the downside, but it's great on the upside. I had heard we were going to shift to BH only, but I'm very pleasantly surprised that we're getting a hybrid. So the whole thing is boring, for sure. A surprise? Hardly. A complete fail? Nope.
I think we got exactly the Scope deal the internet was asking for.
Sink,
Good post. I highlighted the areas where you are spot on.
Everyone seems to be overlooking the new
Virgin language which captures their new off-the -main certificate operator(s) heading to leisure markets and being set up to compete with Norwegian. Our team tightened that language up so it is all counted. Then there is the 1 E. 9.
protection for our brand which is absolutely
critical. Also, the
affiliate and control language that ensures our scope will not suffer an end run by creative managers using certificates of convenience.
These provisions are the most evolved scope language in the world right now, making our scope clearly industry leading. The "internet" does not understand or appreciate what was done here IMO.