Originally Posted by
Carebear
No. The average snap up is for carriers who have new contracts. Alaska comes out the gate with $306. DL comes out at $315, UA comes out with $320? You get $317.50. Wasn’t the company offering $280 TOS less than a year ago? Alaska coming out of the gate first as the 6th biggest airline with these rates creates the BASE of where the big 5 are going to start negotiating, because even the big 3 demand a premium which is subsided by widebody flying. The snap up does not include carriers in negotiations. Did you read the TA at all? Are you willing to blow up your entire TA to go back to the table to make an extra $160/mo? I have a feeling your $318 at year 2 will be $330 and year 3 will be around $345.
I did read the TA summary, and listened to the podcasts. As you explain it, is not the way its written. It's the average of 5 airlines. UA, DL, WN, AA. JB (IF they have an agreement) By Sept. 1, '23. 3 of those airlines are closer to a TA than 2 of them. 3 of them would have to exceed $350 in the next 11 months for us to see a bump above our 4% increase for Sept, '23. You're trying to tell me that if DL gets a big rate increase within 11 mos. we get a rate increase, even if the other 4 are still negotiating? Nope. It'll be an average of 4 airlines (JB excluded) in which case we get our sub inflationary 4%. If I'm wrong in understanding this, please show me.