7. A summary of the terms we have negotiated with respect to the 50 seat RJs, the 51-76 seat SJs and the 77-100 seat jets is provided below for your review:
a. RJs certificated for 50 seats or less: There are no limits on the number of such aircraft or on their ownership or on where they fly (except for a hub bypass restriction and a total block hour limit, both of which apply to all Feeder Carrier flying).
b. NWA may have SJs configured for 51-76 seats operated at a Feeder Carrier as defined in Section 1 provided:
(1) the maximum certificated seating is 86 seats or less (90 seats for the LR CRJ 900 series);
(2) the number of 51-76 SJs is capped at 55 (the “lower cap”) if they are flown exclusively at a Feeder Carrier that is not an affiliate of NWA. This cap may increase to 90 only if NWA creates an Affiliate (the “upper cap”) and if at least 35 of the 51-76 seat SJs are flown at the NWA Affiliate Feeder Carrier (we have been calling it SJet). Both of these caps include the 35 AVRO-85 aircraft flown at Mesaba with a maximum of 69 seats.
(3) In order for the lower cap of 55 (51-76 seat SJs) to be exceeded, the company must create an Affiliate (SJet) to fly these aircraft. (All 90 could be at SJet)
(4) After the amendable date, the upper cap increases by 3 aircraft per year during the status quo period, provided there are at least 10 of the 77-110 seat aircraft in active service at the mainline (5 per year during status quo period if at least 15 of the 77-110 seat aircraft).
(5) There are generally no ownership or use restrictions, except for the hub bypass and total block hour limitations referenced in Section 1 of the work rule summary above.
(6) For each new 77-110 seat aircraft placed into active service at NWA mainline, 1 additional 51-76 seat aircraft can be added to the lower and upper cap, provided that the NWA NB threshold has been met. The NB threshold is the total number of 77-110 seat aircraft and other NWA NB aircraft (DC-9, A-319, 320, B757) in active service as of the date 1 year after NW emerges from C11, minus 10. Given our expectation of growth after emergence the 1 year date seemed to pose little threat.
(7) There is a 1-for-1 peel back penalty provision for 51-76 seat aircraft in the event 77-110 seat aircraft are later removed from service and an automatic return to the cap of 55 if the NB threshold is not maintained. If either of these events occurs NWA must reduce the number of 51-76 seat SJs in service with the NW designator code.
(8) In order to operate more than 55 of the 51-76 seat SJ aircraft the Company must create a new Feeder Carrier Affiliate (SJet) operating under the following provisions:
(a) The Feeder may operate only 50 seat RJ and/or 51-76 seat SJ aircraft for so long as it is an Affiliate of NWA.
(b) All pilot positions on 51-76 seat aircraft shall be made available to laid off
Northwest pilots who would like the positions. No NWA pilot will be forced to
fly at SJet.
(c) ALPA is recognized as the representative of SJet.
(d) The Feeder enters into an industry standard contract with ALPA (see item 12 below for the major provisions of the CBA).
(e) NWA must own more than 50% of the Feeder Carrier Affiliate when it starts operating.
(f) NWA must control the Feeder Carrier and retain more than 50% of the
ownership, except that if at least 10 of the 77-110 seat jet aircraft are in active service at NWA mainline, NWA may sell the Feeder Carrier as long as:
1’ all pilot positions continue to be available to laid off Northwest pilots
and the Flow Agreement is maintained.
2’ all pilots of the Feeder Carrier (SJet) have the right to transfer to the
successor and the Feeder Carrier successor is in compliance with the
terms of the successorship provisions of the Feeder Carrier contract.
3’ In the event these provisions are not complied with or the flow rights
are modified or terminated, then the maximum number of permitted 51-
76 seat jets reverts to the lower cap of 55 SJs and any 51-76 seat SJs in
excess of 55 may no longer carry the NW code designator.
(9) 51-76 seat jets may also be operated at NWA mainline at the pay rates established for the Feeder Carrier and the work rules for the 77-110 seat mainline jet aircraft should NWA wish to do so for crew and fleet utilization purposes.
(10) With respect to 51-76 seat aircraft owned, leased or financed by Northwest and placed at another Feeder Carrier, other than SJet (e.g. Mesaba or Pinnacle), laid off Northwest pilots shall have access to _ of the Captain and _ of the F/O jobs associated with those aircraft.
(11) With respect to 51-76 seat aircraft which are not owned, lease or financed by NWA and are operated by another Feeder Carrier with the NW code (MESA, for ex.), laid off Northwest pilots will have preferential hiring rights at those carriers as the Airline Services Agreements covering those carriers are entered into or amended.
