Thread: JetBlue Latest and Greatest

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Boomer , 01-31-2021 12:24 PM
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Quote: Related to revenue shared...the escape clause for JetBlue to get out of this already signed deal, is page 6 here: (https://www.sec.gov/Archives/edgar/d...astallianc.htm)...
Interesting reading. 5.1 says that the NEA initial term will be for five years and will automatically renew every five years. If either party wishes to exit the deal when the five year term expires, the other party must be agreeable and that negotiations must take place to address the reasons for exiting the deal. Only by mutual agreement can one party exit the agreement. Failing that, the next five year term begins automatically.

Odd...No mention of a two-year wind-down.

So... in case of a conflict, which Jetblue contract takes precedence? The NEA with American, or LOA 13 with ALPA?

If I read this correctly, since Jetblue ALPA is not party to the NEA, then the MEC has no say in Jetblue exiting the deal in five years. Extrapolating this situation, if AA refuses to let Jetblue out of the deal, then I don’t see how ALPA can force the issue.

If JetBlue’s “escape clause” is, say, $50 million, then where does that money come from? Is there a judge out there that will force Jetblue to eat that cost because the MEC says “we haven’t hired enough pilots!” No, we’ll be stuck in the deal for another five years, and ALPA and management will be left figuring out how to smooth things over with the pilot group.
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