Common use of Contractor Expenses Clause in Contracts

Contractor Expenses. Except as provided in Section 3.4(a), Contractor shall pay in accordance with commercially reasonable practices all expenses or costs incurred in connection with Contractor’s provision of Contractor Services. Without limiting the foregoing, for the avoidance of doubt, Contractor shall be responsible for the payment of (x) all costs necessary to comply with airworthiness directives relating to the CRJ Covered Aircraft (including without limitation those pertaining to pressure floors), and shall perform any and all repairs as may be necessary in connection therewith in accordance with (i) its maintenance program and/or (ii) any applicable airworthiness directives or other regulatory requirements, and (y) all costs for which Contractor is responsible pursuant to Section 10.8. Contractor agrees that, in connection with its provision of Contractor Services to United hereunder and the provision of the other services contemplated to be performed by Contractor under the Ancillary Agreements, it shall use commercially reasonable efforts to minimize costs incurred by it if such costs would be reimbursable by United to Contractor in accordance with the terms of this Agreement or any Ancillary Agreement (it being understood that the payment of any amount owed pursuant to Schedule 2A or 2B, as the case may be, shall not constitute “costs that would be reimbursable by United” for purposes of this sentence). Further, with respect to any service or item the cost of which United is required to reimburse Contractor hereunder or under any Ancillary Agreement, if United can provide or arrange to provide such service or item at a lower cost than the reimbursement cost that United would otherwise be charged and at substantially similar quality or service level, then Contractor shall allow United to provide or arrange to provide such service or item in order to permit United to lower its costs, and the cost of providing such service or item shall be treated as a United directly-incurred cost pursuant to Section 3.4(a).

Appears in 2 contracts

Samples: Capacity Purchase Agreement (Mesa Air Group Inc), Capacity Purchase Agreement (Mesa Air Group Inc)

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Contractor Expenses. Except as provided in Section 3.4(a), Contractor shall pay in accordance with commercially reasonable practices all expenses or costs incurred in connection with Contractor’s provision of Contractor Services. Without limiting the foregoing, for the avoidance of doubt, Contractor shall be responsible for the payment of (x) all costs necessary to comply with airworthiness directives relating to the CRJ Covered Aircraft and E175LL Covered Aircraft (including without limitation those pertaining to pressure floors), and shall perform any and all repairs as may be necessary in connection therewith in accordance with (i) its maintenance program and/or (ii) any applicable airworthiness directives or other regulatory requirements, and (y) all costs for which Contractor is responsible pursuant to Section 10.8. Contractor agrees that, in connection with its provision of Contractor Services to United hereunder and the provision of the other services contemplated to be performed by Contractor under the Ancillary Agreements, it shall use commercially reasonable efforts to minimize costs incurred by it if such costs would be reimbursable by United to Contractor in accordance with the terms of this Agreement or any Ancillary Agreement (it being understood that the payment of any amount owed pursuant to Schedule 2A or 2B, as the case may be, shall not constitute “costs that would be reimbursable by United” for purposes of this sentence); provided that the parties acknowledge and agree that (x) for the avoidance of doubt, the costs described in this sentence include, without limitation, maintenance costs with respect to airframes and engines, and (y) Contractor’s obligations pursuant to this sentence shall include, without limitation, the obligation to cooperate with United to identify opportunities to manage maintenance expenses relating to airframes and engines. Further, with respect to any service or item the cost of which United is required to reimburse Contractor hereunder or under any Ancillary Agreement, if United can provide or arrange to provide such service or item at a lower cost than the reimbursement cost that United would otherwise be charged and at substantially similar quality or service level, then Contractor shall allow United to provide or arrange to provide such service or item in order to permit United to lower its costs, and the cost of providing such service or item shall be treated as a United directly-incurred cost pursuant to Section 3.4(a).

Appears in 1 contract

Samples: Capacity Purchase Agreement (Mesa Air Group Inc)

Contractor Expenses. Except as provided otherwise in Section 3.4(a)3.04, Contractor shall pay in accordance with commercially reasonable practices all expenses or costs incurred in connection with Contractor’s provision of Contractor Regional Airline Services. Without limiting the foregoing, for For the avoidance of doubt, Contractor shall be responsible for the payment of (x) all costs necessary to comply with airworthiness directives relating to the CRJ Covered Aircraft (including without limitation those pertaining to pressure floors), and shall perform any and all repairs as may be necessary in connection therewith in accordance with (i) its maintenance program and/or (ii) any applicable airworthiness directives or other regulatory requirements, and (y) all costs for which Contractor is responsible pursuant to Section 10.8. Contractor agrees that, in connection with its provision of Contractor Regional Airline Services to United Continental hereunder and the provision of the other services contemplated to be performed by Contractor under the Ancillary Agreements, it shall use commercially reasonable efforts to minimize costs incurred by it if such costs would be reimbursable by United Continental to Contractor in accordance with the terms of this Agreement or any Ancillary Agreement (it being understood that the payment of any amount owed pursuant to Appendix 1 to Schedule 2A or 2B, as the case may be, 3 shall not constitute “costs that would be reimbursable are reimburseable by UnitedContinental” for purposes of this the foregoing sentence). Further, with respect to any service or item at substantially similar quality or service level and the cost of which United Continental is required to reimburse Contractor hereunder or under any Ancillary Agreement, if United (x) Continental can provide or arrange to provide such service or item at a lower cost than the reimbursement cost that United Continental would otherwise be charged charged, and at substantially similar quality (y) the provision of or arrangement to provide such service levelor item by Contractor would not materially adversely affect Contractor under any contracts or agreements, then Contractor shall allow United Continental to provide or arrange to provide such service or item in order to permit United Continental to lower its costs; provided, however, that Continental shall bear the costs of any termination, cancellation or similar fee payable by Contractor in connection therewith. Subject to the foregoing, including the conditions set forth in clauses (x) and (y), Continental may elect to contract directly with third parties for the replacement of Engine LLP associated only with Engines, the cost of providing such service or item which Continental shall be treated as a United directly-incurred cost pursuant to Section 3.4(a)responsible for in accordance with Schedule 3.

Appears in 1 contract

Samples: Capacity Purchase Agreement (Skywest Inc)

Contractor Expenses. Except as provided otherwise in Section 3.4(a)3.04, Contractor shall pay in accordance with commercially reasonable practices all expenses or costs incurred in connection with Contractor’s provision of Contractor Regional Airline Services. Without limiting the foregoing, for For the avoidance of doubt, Contractor shall be responsible for the payment of (x) all costs necessary to comply with airworthiness directives relating to the CRJ Covered Aircraft (including without limitation those pertaining to pressure floors), and shall perform any and all repairs as may be necessary in connection therewith in accordance with (i) its maintenance program and/or (ii) any applicable airworthiness directives or other regulatory requirements, and (y) all costs for which Contractor is responsible pursuant to Section 10.8. Contractor agrees that, in connection with its provision of Contractor Regional Airline Services to United hereunder and the provision of the other services contemplated to be performed by Contractor under the Ancillary Agreements, it shall use commercially reasonable efforts to minimize costs incurred by it if such costs would be reimbursable by United to Contractor in accordance with the terms of this Agreement or any Ancillary Agreement (it being understood that the payment of any amount owed pursuant to Appendix 1 to Schedule 2A or 2B, as the case may be, 3 shall not constitute “costs that would be are reimbursable by United” for purposes of this the foregoing sentence). Further, with respect to any service or item at substantially similar quality or service level and the cost of which United is required to reimburse Contractor hereunder or under any Ancillary Agreement, if (x) United can provide or arrange to provide such service or item at a lower cost than the reimbursement cost that United would otherwise be charged charged, and at substantially similar quality (y) the provision of or arrangement to provide such service levelor item by Contractor would not materially adversely affect Contractor under any contracts or agreements, then Contractor shall allow United to provide or arrange to provide such service or item in order to permit United to lower its costs; provided, however, that United shall bear the costs of any termination, cancellation or similar fee payable by Contractor in connection therewith. Subject to the foregoing, including the conditions set forth in clauses (x) and (y), United may elect to contract directly with third parties for the replacement of Engine LLP associated only with Engines, the cost of providing such service or item which United shall be treated as a United directly-incurred cost pursuant to Section 3.4(a)responsible for in accordance with Schedule 3.

Appears in 1 contract

Samples: Capacity Purchase Agreement (Skywest Inc)

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Contractor Expenses. Except as provided in Section 3.4(a), Contractor shall pay in accordance with commercially reasonable practices all expenses or costs incurred in connection with Contractor’s provision of Contractor Services. Without limiting the foregoing, for the avoidance of doubt, Contractor shall be responsible for the payment of (x) all costs necessary to comply with airworthiness directives relating to the CRJ CRJ900 Covered Aircraft and E175LL Covered Aircraft (including without limitation those pertaining to pressure floors), and shall perform any and all repairs as may be necessary in connection therewith in accordance with (i) its maintenance program and/or (ii) any applicable airworthiness directives or other regulatory requirements, and (y) all costs for which Contractor is responsible pursuant to Section 10.8. Contractor agrees that, in connection with its provision of Contractor Services to United hereunder and the provision of the other services contemplated to be performed by Contractor under the Ancillary Agreements, it shall use commercially reasonable efforts to minimize costs incurred by it if such costs would be reimbursable by United to Contractor in accordance with the terms of this Agreement or any Ancillary Agreement (it being understood that the payment of any amount owed pursuant to Schedule 2A or 2B, as the case may be, shall not constitute “costs that would be reimbursable by United” for purposes of this sentence); provided that the parties acknowledge and agree that (x) for the avoidance of doubt, the costs described in this sentence include, without limitation, maintenance costs with respect to airframes and engines, and (y) Contractor’s obligations pursuant to this sentence shall include, without limitation, the obligation to cooperate with United to identify opportunities to manage maintenance expenses relating to airframes and engines. Further, with respect to any service or item the cost of which United is required to reimburse Contractor hereunder or under any Ancillary Agreement, if United can provide or arrange to provide such service or item at a lower cost than the reimbursement cost that United would otherwise be charged and at substantially similar quality or service level, then Contractor shall allow United to provide or arrange to provide such service or item in order to permit United to lower its costs, and the cost of providing such service or item shall be treated as a United directly-incurred cost pursuant to Section 3.4(a).. Exhibit 10.2

Appears in 1 contract

Samples: Capacity Purchase Agreement (Mesa Air Group Inc)

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