Flight Cancellation Reconciliation. a. If the product of the total number of Scheduled Flights for a particular aircraft type during a calendar month as set forth in the Final Monthly Schedule multiplied by the First Cancellation Rate exceeds the actual number of Uncontrollable Cancellations of such aircraft type in such calendar month (such excess number of flights of such aircraft type being the "First Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Continental to Contractor in an amount equal to the product of (i) the First Incremental Cost Rate, as set forth on Appendix 11 for such aircraft type and such month, multiplied by (ii) the First Cancellation Number for such aircraft type, multiplied by (iii) the actual number of block hours per departure for such aircraft type for such calendar month. b. If the actual number of Uncontrollable Cancellations for a particular aircraft type during a calendar month exceeds the product of the total number of Scheduled Flights for such aircraft type during such calendar month multiplied by the First Cancellation Rate (such excess number of flights of such aircraft type being the "Second Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Contractor to Continental in an amount equal to the product of (i) the Second Incremental Cost Rate, as set forth on Appendix 12 for such aircraft type and such month, multiplied by (ii) the Second Cancellation Number for such aircraft type, multiplied by (iii) the average number of block hours per Scheduled Flight for such aircraft type for such calendar month. c. If the product of the total number of Scheduled Flights for a particular aircraft type during a calendar month multiplied by the Second Cancellation Rate exceeds the actual number of Controllable Cancellations for such aircraft type in such calendar month (such excess number of flights of such aircraft type being the "Third Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Continental to Contractor in an amount equal to the product of (i) the Third Incremental Cost Rate multiplied by (ii) the Third Cancellation Number for such aircraft type, multiplied by (iii) the actual number of block hours per flight for such aircraft type for such calendar month. The "Third Incremental Cost Rate" for a particular aircraft type equals the Fourth Incremental Cost Rate for such aircraft type plus the Fifth Incremental Cost Rate for such aircraft type. Schedule 3-10 The "Fourth Incremental Cost Rate" for a particular aircraft type and for a particular month equals the product of (i) the sum of (a) the applicable Appendix 13 Incremental Cost Rate set forth on Appendix 13 for such aircraft type and month, minus the sum of (1) the Appendix 14 Block Hour Rate set forth on Appendix 00 xxx xxch aircraft type and month plus (2) the Appendix 5 Block Hour Rate set forth on Appendix 5 for such aircraft type and month, plus (b) the Adjusted Appendix 14 Block Hour Rate for such aircraft type and month plus (c) the Third Adjusted Block Hour Rate for such aircraft type and month and (ii) the First Benchmark Factor for such month. The "Adjusted Appendix 14 Block Hour Rate" for a particular aircraft type and a particular month is obtained by multiplying the Appendix 14 Block Hour Rate by the Appendix 0 Xxxxx Xxxxx xet forth on Appendix 7 for such aircraft type and dividing such product by the average scheduled block hours per departure for such aircraft type as set forth on the Final Monthly Schedule. The "Fifth Incremental Cost Rate" is obtained by allocating the Appendix 1 Expenses among the different aircraft types by each type's allocable share of statistics from the Final Monthly Schedule based on the methodology set forth in Appendix 15, and dividing such allocation to a specific aircraft type by the scheduled block hours for such aircraft type set forth in the Final Monthly Schedule, then multiplying such quotient by the First Benchmark Factor. d. If the actual number of Controllable Cancellations for a particular aircraft type in a calendar month exceeds the product of the total number of Scheduled Flights for such aircraft type during such calendar month multiplied by the Second Cancellation Rate (such excess number of flights of such aircraft type being the "Fourth Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Contractor to Continental in an amount equal to the product of (i) the Third Incremental Cost Rate for such aircraft type multiplied by (ii) the Fourth Cancellation Number, multiplied by (iii) the average number of block hours per Scheduled Flight for such aircraft type for such calendar month. e. For purposes of this Paragraph B(6), for any month during which a Labor Strike occurs, the Second Cancellation Rate for such month shall be adjusted to equal the difference between (a) the Second Cancellation Rate for such month (before any such adjustment) Schedule 3-11 and (b) the product of (1) the quotient of (i) the Second Cancellation Rate for such month (before any such adjustment) divided by (ii) the number of days in the particular month, multiplied by (2) the number of days in such month (not to exceed the number of days in the particular month) during which such Labor Strike was occurring. For purposes of this Paragraph B(6), for any month during which a Labor Strike occurs, the First Cancellation Rate for such month shall be adjusted to equal the difference between (a) the First Cancellation Rate for such month (before any such adjustment) and (b) the product of (1) the quotient of (i) the First Cancellation Rate for such month (before any such adjustment) divided by (ii) 30, multiplied by (2) the number of days in such month (not to exceed 30 days) during which such Labor Strike was occurring. f. For all purposes of this Agreement, the term Uncontrollable Cancellations shall include the following: I. After presentation of the Final Monthly Schedule pursuant to Section 2.01(b) of the Agreement, if Continental makes any changes to such schedule that result in a cancellation of a Scheduled Flight, then such cancellation shall constitute an Uncontrollable Cancellation. II. If any proposed Scheduled Flight on a planned flight schedule involves a flight to a new airport which will be a Contractor Airport, and Contractor experiences a delay in preparing the required facilities and making all necessary arrangements to complete a flight to such airport, which delay either (i) is caused by the Environmental Protection Agency, airport or any other governmental authority, or (ii) occurs after Contractor received less than 90 days' advance notice of such Scheduled Flight to a new airport and used its commercially reasonable efforts to prepare the required facilities and make all necessary arrangements (all in accordance with the Master Facility and Ground Handling Agreement), and in either case such Scheduled Flight is cancelled, then such cancellation shall constitute an Uncontrollable Cancellation. g. Subject to the provisions of Paragraph B(6)(f), Contractor hereby agrees that each cancellation of a Scheduled Flight shall be designated as either a Controllable Cancellation or an Uncontrollable Cancellation on a basis consistent with Contractor's historical experience, including specifically the methodology used to create the data set forth in Appendix 2. Schedule 3-12
Appears in 2 contracts
Samples: Capacity Purchase Agreement (Expressjet Holdings Inc), Capacity Purchase Agreement (Expressjet Holdings Inc)
Flight Cancellation Reconciliation. a. If the product of the total number of Scheduled Flights for a particular aircraft type during a calendar month as set forth in the Final Monthly Schedule multiplied by the First Cancellation Rate exceeds the actual number of Uncontrollable Cancellations of such aircraft type in such calendar month (such excess number of flights of such aircraft type being the "First Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Continental to Contractor in an amount equal to the product of (i) the First Incremental Cost Rate, as set forth on Appendix 11 for such aircraft type and such month, multiplied by (ii) the First Cancellation Number for such aircraft type, multiplied by (iii) the actual number of block hours per departure for such aircraft type for such calendar month.
b. If the actual number of Uncontrollable Cancellations for a particular aircraft type during a calendar month exceeds the product of the total number of Scheduled Flights for such aircraft type during such calendar month multiplied by the First Cancellation Rate (such excess number of flights of such aircraft type being the "Second Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Contractor to Continental in an amount equal to the product of (i) the Second Incremental Cost Rate, as set forth on Appendix 12 for such aircraft type and such month, multiplied by (ii) the Second Cancellation Number for such aircraft type, multiplied by (iii) the average number of block hours per Scheduled Flight for such aircraft type for such calendar month.
c. If the product of the total number of Scheduled Flights for a particular aircraft type during a calendar month multiplied by the Second Cancellation Rate exceeds the actual number of Controllable Cancellations for such aircraft type in such calendar month (such excess number of flights of such aircraft type being the "Third Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Continental to Contractor in an amount equal to the product of (i) the Third Incremental Cost Rate multiplied by (ii) the Third Cancellation Number for such aircraft type, multiplied by (iii) the actual number of block hours per flight for such aircraft type for such calendar month. The "Third Incremental Cost Rate" for a particular aircraft type equals the Fourth Incremental Cost Rate for such aircraft type plus the Fifth Incremental Cost Rate for such aircraft type. Schedule 3-10 The "Fourth Incremental Cost Rate" for a particular aircraft type and for a particular month equals the product of (i) the sum of (a) the applicable Appendix 13 Incremental Cost Rate set forth on Appendix 13 for such aircraft type and month, minus the sum of (1) the Appendix 14 Block Hour Rate set forth on Appendix 00 xxx xxch aircraft type and month plus (2) the Appendix 5 Block Hour Rate set forth on Appendix 5 for such aircraft type and month, plus (b) the Adjusted Appendix 14 Block Hour Rate for such aircraft type and month plus (c) the Third Adjusted Block Hour Rate for such aircraft type and month and (ii) the First Benchmark Factor for such month. The "Adjusted Appendix 14 Block Hour Rate" for a particular aircraft type and a particular month is obtained by multiplying the Appendix 14 Block Hour Rate by the Appendix 0 Xxxxx Xxxxx xet forth on Appendix 7 for such aircraft type and dividing such product by the average scheduled block hours per departure for such aircraft type as set forth on the Final Monthly Schedule. The "Fifth Incremental Cost Rate" is obtained by allocating the Appendix 1 Expenses among the different aircraft types by each type's allocable share of statistics from the Final Monthly Schedule based on the methodology set forth in Appendix 15, and dividing such allocation to a specific aircraft type by the scheduled block hours for such aircraft type set forth in the Final Monthly Schedule, then multiplying such quotient by the First Benchmark Factor.
d. If the actual number of Controllable Cancellations for a particular aircraft type in a calendar month exceeds the product of the total number of Scheduled Flights for such aircraft type during such calendar month multiplied by the Second Cancellation Rate (such excess number of flights of such aircraft type being the "Fourth Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Contractor to Continental in an amount equal to the product of (i) the Third Incremental Cost Rate for such aircraft type multiplied by (ii) the Fourth Cancellation Number, multiplied by (iii) the average number of block hours per Scheduled Flight for such aircraft type for such calendar month.
e. For purposes of this Paragraph B(6), for any month during which a Labor Strike occurs, the Second Cancellation Rate for such month shall be adjusted to equal the difference between (a) the Second Cancellation Rate for such month (before any such adjustment) Schedule 3-11 and (b) the product of (1) the quotient of (i) the Second Cancellation Rate for such month (before any such adjustment) divided by (ii) the number of days in the particular month, multiplied by (2) the number of days in such month (not to exceed the number of days in the particular month) during which such Labor Strike was occurring. For purposes of this Paragraph B(6), for any month during which a Labor Strike occurs, the First Cancellation Rate for such month shall be adjusted to equal the difference between (a) the First Cancellation Rate for such month (before any such adjustment) and (b) the product of (1) the quotient of (i) the First Cancellation Rate for such month (before any such adjustment) divided by (ii) 30, multiplied by (2) the number of days in such month (not to exceed 30 days) during which such Labor Strike was occurring.
f. For all purposes of this Agreement, the term Uncontrollable Cancellations shall include the following:
I. After presentation of the Final Monthly Schedule pursuant to Section 2.01(b) of the Agreement, if Continental makes any changes to such schedule that result in a cancellation of a Scheduled Flight, then such cancellation shall constitute an Uncontrollable Cancellation.
II. If any proposed Scheduled Flight on a planned flight schedule involves a flight to a new airport which will be a Contractor Airport, and Contractor experiences a delay in preparing the required facilities and making all necessary arrangements to complete a flight to such airport, which delay either (i) is caused by the Environmental Protection Agency, airport or any other governmental authority, or (ii) occurs after Contractor received less than 90 days' advance notice of such Scheduled Flight to a new airport and used its commercially reasonable efforts to prepare the required facilities and make all necessary arrangements (all in accordance with the Master Facility and Ground Handling Agreement), and in either case such Scheduled Flight is cancelled, then such cancellation shall constitute an Uncontrollable Cancellation.
g. Subject to the provisions of Paragraph B(6)(f), Contractor hereby agrees that each cancellation of a Scheduled Flight shall be designated as either a Controllable Cancellation or an Uncontrollable Cancellation on a basis consistent with Contractor's historical experience, including specifically the methodology used to create the data set forth in Appendix 2. Schedule 3-12
Appears in 1 contract
Samples: Capacity Purchase Agreement (Continental Airlines Inc /De/)
Flight Cancellation Reconciliation. a. If With the exception of the first three months of operations, with respect to Scheduled Flights, for any calendar month in which (x) the actual number of Controllable Cancellations exceeds (y) the product of [*] multiplied by the total number of actual Scheduled Flights for a particular aircraft type during a calendar month as set forth in the Final Monthly Schedule multiplied by the First Cancellation Rate exceeds the actual number of Uncontrollable Cancellations of such aircraft type Flight departures in such calendar month (such excess number of flights of such aircraft type being the "First “Benchmark Controllable Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Continental to Contractor in an amount equal to the product of (i) the First Incremental Cost Rate, as set forth on Appendix 11 for such aircraft type and such month, multiplied by (ii) the First Cancellation Number for such aircraft type, multiplied by (iii) the actual number of block hours per departure for such aircraft type ” for such calendar month.
b. If the actual number of Uncontrollable Cancellations for a particular aircraft type during a calendar month exceeds the product of the total number of Scheduled Flights for such aircraft type during such calendar month multiplied by the First Cancellation Rate (such excess number of flights of such aircraft type being the "Second Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Contractor to Continental in an amount equal to the product of (i) the Second Incremental Cost Rate, as Controllable Completion Factor Incentive Rate set forth on Appendix 12 for such aircraft type and such month, 2 multiplied by (ii) the Second number of such excess actual Controllable Cancellations over the Benchmark Controllable Cancellation Number.
b. With the exception of the first three months of operations, with respect to Scheduled Flights, for any calendar month in which (x) the Benchmark Controllable Cancellation Number for such aircraft type, multiplied by (iii) the average number of block hours per Scheduled Flight for such aircraft type for such calendar month.
c. If the product of the total number of Scheduled Flights for a particular aircraft type during a calendar month multiplied by the Second Cancellation Rate exceeds (y) the actual number of Controllable Cancellations for such aircraft type in such calendar month (such excess number of flights of such aircraft type being the "Third Cancellation Number" for such aircraft type)month, then the reconciliation for such period shall include a payment by Continental to Contractor in an amount equal to the product of (i) the Third Incremental Cost Controllable Completion Factor Incentive Rate as set forth in Appendix 2 multiplied by (ii) the Third excess of such Benchmark Controllable Cancellation Number for such aircraft type, multiplied by (iii) the actual number of block hours per flight for such aircraft type for such calendar month. The "Third Incremental Cost Rate" for a particular aircraft type equals the Fourth Incremental Cost Rate for such aircraft type plus the Fifth Incremental Cost Rate for such aircraft type. Schedule 3-10 The "Fourth Incremental Cost Rate" for a particular aircraft type and for a particular month equals the product of (i) the sum of (a) the applicable Appendix 13 Incremental Cost Rate set forth on Appendix 13 for such aircraft type and month, minus the sum of (1) the Appendix 14 Block Hour Rate set forth on Appendix 00 xxx xxch aircraft type and month plus (2) the Appendix 5 Block Hour Rate set forth on Appendix 5 for such aircraft type and month, plus (b) the Adjusted Appendix 14 Block Hour Rate for such aircraft type and month plus (c) the Third Adjusted Block Hour Rate for such aircraft type and month and (ii) the First Benchmark Factor for such month. The "Adjusted Appendix 14 Block Hour Rate" for a particular aircraft type and a particular month is obtained by multiplying the Appendix 14 Block Hour Rate by the Appendix 0 Xxxxx Xxxxx xet forth on Appendix 7 for such aircraft type and dividing such product by the average scheduled block hours per departure for such aircraft type as set forth on the Final Monthly Schedule. The "Fifth Incremental Cost Rate" is obtained by allocating the Appendix 1 Expenses among the different aircraft types by each type's allocable share of statistics from the Final Monthly Schedule based on the methodology set forth in Appendix 15, and dividing such allocation to a specific aircraft type by the scheduled block hours for such aircraft type set forth in the Final Monthly Schedule, then multiplying such quotient by the First Benchmark Factor.
d. If the actual number of Controllable Cancellations for a particular aircraft type in a calendar month exceeds the product of the total number of Scheduled Flights for such aircraft type during such calendar month multiplied by the Second Cancellation Rate (such excess number of flights of such aircraft type being the "Fourth Cancellation Number" for such aircraft type), then the reconciliation for such period shall include a payment by Contractor to Continental in an amount equal to the product of (i) the Third Incremental Cost Rate for such aircraft type multiplied by (ii) the Fourth Cancellation Number, multiplied by (iii) the average number of block hours per Scheduled Flight for such aircraft type for such calendar month.
e. For purposes of this Paragraph B(6), for any month during which a Labor Strike occurs, the Second Cancellation Rate for such month shall be adjusted to equal the difference between (a) the Second Cancellation Rate for such month (before any such adjustment) Schedule 3-11 and (b) the product of (1) the quotient of (i) the Second Cancellation Rate for such month (before any such adjustment) divided by (ii) over the number of days in the particular month, multiplied by (2) the number of days in such month (not to exceed the number of days in the particular month) during which such Labor Strike was occurringactual Controllable Cancellations. For purposes of this Paragraph B(6), for any month during which a Labor Strike occurs, the First Cancellation Rate for such month shall be adjusted to equal the difference between (a) the First Cancellation Rate for such month (before any such adjustment) and (b) the product of (1) the quotient of (i) the First Cancellation Rate for such month (before any such adjustment) divided by (ii) 30, multiplied by (2) the number of days in such month (not to exceed 30 days) during which such Labor Strike was occurring___________ *Confidential
c. [Intentionally omitted.]
f. d. For all purposes of this Agreement, the term Uncontrollable Cancellations shall include the following:
I. After presentation of the Final Monthly Schedule pursuant to Section 2.01(b) of the Agreement, if Continental makes any changes to such schedule that result in a cancellation of a Scheduled Flight, then such cancellation shall constitute an Uncontrollable Cancellation.
II. If any proposed Scheduled Flight flight on a planned flight schedule involves a flight to a new airport which will be a Contractor Airport, and Contractor experiences a delay in preparing the required facilities and making all necessary arrangements to complete a flight to such airport, which delay either (i) is in caused by the Environmental Protection Agency, airport or any other governmental authority, or (ii) occurs after Contractor received less than 90 days' advance notice of such Scheduled Flight to a new airport and used its commercially reasonable efforts to prepare the required facilities and make all necessary arrangements (all in accordance with the Master Facility and Ground Handling Agreement), and in either case such Scheduled Flight flight is cancelled, then such cancellation shall shell constitute an Uncontrollable Cancellation.
g. Subject to e. For purposes of this Schedule 3, in the provisions event of Paragraph B(6)(f)a Labor Strike, labor slowdown or other similar action, all calculations of the actual number of Controllable Cancellations and the Benchmark Controllable Cancellation Number shall not include any Scheduled Flight cancelled as a result of such Labor Strike, labor slowdown or other similar action.
f. Contractor hereby agrees that each cancellation of a Scheduled Flight shall be designated as either a Controllable Cancellation or an Uncontrollable Cancellation on a basis consistent with Contractor's Continental’s historical experience, including specifically the methodology used to create the data set forth in Appendix 2. Schedule 3-12experience and practice with operators of its regional jets.
Appears in 1 contract
Samples: Capacity Purchase Agreement (Republic Airways Holdings Inc)
