"First, under the current agreement the company has the authority to grow the 76 fleet to 256 hulls, under this one they are capped at 223 (153+70)
Second, The company has a financing problem with the 50 seat leases and can park them to lose 100% of potential or keep them and lose less than 100%. There are options where the lessors could take the 50 (losing some income) and replace them with 76's (and insure a longer revenue stream). IOW, the 50 IS going away, we can create an environment to accelerate that fact to our benefit our not. This agreement does...
Third, they can only take advantage of this exchange under 2 simultaneous events. They must FIRST place 1.25 NEW narrow bodies into action for each new swapped 76 AND they must remove 2-3 50's. At that point a snap shot is taken to establish a hard block hour ratio which can not be reduced. As they add more NB, they get more 76 (1.25 to 1) and they remove more 50's, a new more favorable mainline ratio is established. In the end of the day, should they chose to shrink ML for any reason, they will be required to shrink RJ by a greater degree (simple math).
Fourth, should they entertain a furlough, before the first pilot hits the street, they would have to pull 6 seats out or EVERY 76 plane being flown (not one, but ALL)
Fifth, they have finally achieved access to the JV/CS world and are in position to place defined limits."