Common use of Flight Cycle Utilization and Derate Clause in Contracts

Flight Cycle Utilization and Derate. The parties agree that the Aircraft Commitment, as set forth in Paragraph 1 above, is based upon the following assumptions: [*] In the event Customer employs a Covered Aircraft during the Performance Retention Term of this Letter Agreement within the Customer’s system such that the operation is greater than the maximum assumed values or lower than the minimum assumed values then the parties agree to make adjustments to the Basic Data, defined in Paragraph 4 below, solely with respect to such Covered Aircraft, as a consequence of such usage.