GE agreement to force DL to acquire aircraft in DL ALPA contract

[vc10]

In the new DL ALPA agreement there's reference to GE's right to force DL to acquire aircraft (Section 1.E.4.b)

What's that all about? GE has the right to force DL to take delivery of aircraft?

 

[General Lee]

Thanks GE. Those might be the 737-700s?



Bye Bye--General Lee

 

[michael707767]

In the new DL ALPA agreement there's reference to GE's right to force DL to acquire aircraft (Section 1.E.4.b)

What's that all about? GE has the right to force DL to take delivery of aircraft?

GE is a leasing company also. Probably has to do with forcing Delta to take delivery of aircraft for which GE was going to be the lessor.

 

[FDJ2]

In the new DL ALPA agreement there's reference to GE's right to force DL to acquire aircraft (Section 1.E.4.b)

What's that all about? GE has the right to force DL to take delivery of aircraft?

"4. Planned Percentages​

a. The Company planned percentage will be no less than 50% in any year in which the Company’s pre-tax margin is greater than 0%.​

b. The affiliate planned percentage will be no less than 25% in any year in which the Company’s pre-tax margin is greater than 0%.​

Exception: Any regional jets the Company is required to acquire as a result of the Company’s October/November 2004 out-of-court financing transaction with GE, that are not operated by ASA or CMR, will not be included in the calculation of this percentage​

c. For purposes of calculating the foregoing planned percentages, the Company may exclude block hours of flying by or on behalf of Delta Air Elite to the extent that such block hours do not exceed 20,000 in a rolling twelve-month period."​

It appears that Delta has an obligation it signed with GE in order to finance some RJs, which apparently are not for ASA/CMR. Delta is appartently obiligated to take delivery of these RJs and this might impact the planned percentages in the PWA under certain circumstances. DALPA has given the company an exception to the PWA which would allow Delta to comply with its obligation to GE.​