John Pennekamp
I'd rather be here...
- Joined
- Feb 21, 2006
- Posts
- 3,895
Looks like the TA is going to allow fifteen 71-76 seaters for DCI per year. You said the pilots would vote it down if it had ANY scope relief.
What say you now? Time to put your money where your mouth is.
What say you now? Time to put your money where your mouth is.
April 21, 2006
On April 14, 2006, the Negotiating Committee and management reached a tentative
agreement (T/A) on Letter of Agreement #51 (LOA #51), the Bankruptcy Restructuring
Agreement. We will present below a summary of the agreement...
• Pay cut of 14% from LOA #46 followed by annual pay raises starting January 1,
2007. Additional pay increases tied to Company financial performance
(protection against the Contract ’96 debacle).
• Limited authority to operate 71-76 seat DCI jets, provided that no pilot on the
current seniority list (Troy Kane and above) is placed on furlough. This
protection is not subject to a force majeure clause.
• There are no changes to any of our duty rigs or scheduling (except for Hawaii
reporting); our quality of life items.
• The MPPP will be terminated and the money will be placed in your account that
you control.
• Notes and Equity to return a substantial part of our concessions.
• Duration of 3.5 years (12/31/2009, same as LOA #46).
• The effective date of the agreement will be June 1, 2006 if the T/A is ratified and
is approved by the Bankruptcy Court.
The following is a summary of the T/A:
Scope:
• 76-seaters will be allowed at DCI, with strict limitations on numbers, and with
incentives for mainline growth.
• If the Company furloughs a pilot on the current seniority list (Troy Kane and
above), DCI cannot fly any of the 71-76 seat jets with more than 70 seats. In fact,
they must then physically remove the excess seats from ALL such aircraft for the
balance of this contract.
o Beginning January 1, 2007, DCI is allowed to operate fifteen jets
configured with 71-76 seats. They may operate these aircraft prior to this
date, but with a maximum of 70 seats.
o On January 1, 2008, DCI is allowed to operate an additional fifteen 71-76
seat jets.
o Additional 71-76 seaters can be added, but only on the basis of mainline
aircraft growth (three 71-76 seaters for one growth mainline aircraft).
• Delete minimum block hours and planned percentages.
• Delete designated flying block hours.
• Change in control provisions allow flexibility in Chapter 11, but preserve
essential protections in an airline-to-airline transaction during Chapter 11.
• Delete the required recall of all furloughed pilots by August 1, 2008.
• Delete the requirement to be at a 75 hour ALV in certain categories for 3 months
prior to furloughing. Maintain the three month furlough notice requirement.
Compensation: