Section 1
1. Expanded Definitions (Affiliate, Control, Entity, and “Not Operationally Feasible”)
2. Additional Part 121 Certificate Coverage
3. Scope Penalty Rate (SPR) Definition 4. Progressive Wet-Lease Penalty Schedule
5. Annual Wet-Lease Hours Notice and Calculation
6. 30-Day Wet-Lease Notice Requirement
7. Penalty Framework for Wet Leases Exceeding Two Bid Periods
8. Additional Penalty for Wet Leases Exceeding 26 Weeks
9. Quarterly Scope Reporting, Information Requests, and Meetings
10. No Involuntary Furlough During Section 1.B.6 Wet Leasing
11. Furlough-Related Wet-Lease Penalties and Recall Requirement
12. Parent, Affiliate, Alter-Ego, and Successorship Language
My biggest complaint is in Section 1.B.6. The old language was this:“b. Except for the minimum two aircraft wet leasing referred to above, during the bid periods described in this paragraph, the
Company shall not wet lease more than the net gain of trunk aircraft scheduled to be added and brought into service in any calendar year. Should the Company violate the four bid period restriction, the Company shall pay to the Association the following for each wet lease conducted the greater of the number of block hours scheduled or flown, times 2.0, times the highest hourly rate for a three (3) man crew with fifteen (15) years of pay longevity, in addition to the international override, if any.”
The new language no longer uses that direct net gain of trunk aircraft cap. Instead, it allows wet leasing subject to a progressive penalty schedule based on:
- wet-lease block hours
- as a percentage of prior-year FedEx trunk revenue block hours
- with different thresholds depending on whether the Prior Calendar Year Net Aircraft Difference is negative or non-negative.
Basically, if the trunk fleet shrinks, they are now allowed to wet lease with a financial penalty.
Probably the biggest concession of the TA IMO.