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Old 06-05-2008 | 08:28 AM
  #42  
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ToiletDuck
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Originally Posted by newarkblows
your forgetting that if CAL pulls one more airframe then we are no longer restricted by the Most Favorable nation clause in our contract. Which limits us to 10 airframes under a CPA, if we go above 10 and we are giving that carrier a better deal then CAL we have to match that deal for all of our flying for CAL. SO we havent been able to get any more then 10 airplanes for another airline and havent been able to bid on any flying larger then 10 airplanes. our 25 now for delta (10 cpa and 15 now under pro-rate agreement). our flying currently for CAL is with a 10% profit margin and contracts with that much room for profit have been disappearing.

If CAL pulls more airplanes it might be bad in the short term for our pilots but in the long term we will actually be able to bid for larger contracts and hopefully diversify into some larger sized airplanes.
That's a very good point. I guess we'll have to see how kneejerk CAL wants to get. If this oil bubble doesn't burst soon there's no telling.