Let's Clarify Some Speculation at UAL
08-25-2011, 10:55 AM
#21
Gets Weekends Off
Joined APC: Mar 2006
Position: guppy CA
Posts: 5,171
Are you sure about being close to the cap on outsourced flying? I was jumping up and down a few years ago, giving the ALPO reps an earful because block hour numbers/ratios on C2003 were blank for several years. And when the ratios finally got filled, I looked at the numbers and got even more angry - it allowed for sharp mainline block hour reductions coupled with additional outsourcing.
1-C-1-d Number of Block Hours of Feeder Flying: In each calendar year, the number of scheduled block hours of Feeder Flying may not exceed the number of scheduled block hours of Company Flying.
I can't find regional block hours but I looked at July's ASMs for CAL/UAL. Regional flying is only ~10% of total ASMs. I don't think we're anywhere close to maximum regional block hours. United Continental Holdings, Inc. - Investor Relations - News
Section 1-F-1. Block Hours Guarantee: 1.689 million hours.
1-F-2-a. Substantial economic change. Allows company to reduce block hours if our Operating Margin is below 8.1%. 1% reduction in block hours for each 1% decrease in Operating Margin.
July 2011 SSC report. May block hours flown: 120,919:11. Multiply by 12: 1,451,030:12.
I seriously doubt that we're running a negative Operating Margin. I'd say that we're already well below mainline block hour guarantees.
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