Common use of Fuel Burn Review Procedures - CRJ Clause in Contracts

Fuel Burn Review Procedures - CRJ. Northwest and Pinnacle agree to review the fuel burn performance of the CRJ Aircraft for compliance with the performance measure (burn rate ceiling) set below. Either party may initiate the audit of the actual fuel burn against the set measure. The performance measure includes both scheduled and non-scheduled fuel usage/expense. The ceiling is the Northwest budgeted scheduled fuel burn per scheduled Block Hour [***] for non-scheduled usage. For example, the 2002 performance measure (ceiling) was equal to the Northwest scheduled fuel burn rate of [***] gallons per scheduled Block Hour [***] which sets the ceiling at [***]. In the event that the CRJ Aircraft’s actual fuel burn for the period of review is above the ceiling the parties will work together in good faith to explain the variance relative to the ceiling and to resolve the cause of the variance. If it is determined that actual fuel burn was above the ceiling for reasons within the control of Pinnacle, Pinnacle will pay a Fuel Burn Penalty Payment to Northwest and such payment shall be made in accordance with Section 5.07. The Fuel Burn Penalty Payment shall be calculated as follows: Fuel Burn Penalty Payment = [(total fuel expense/actual fuel price) / scheduled Block Hours - performance ceiling] * completed scheduled Block Hours * actual fuel price (not to exceed $.78 per gallon) + Margin applicable to the fuel expense reimbursement pursuant to Section 5.08 or 5.11.

Fuel Burn Review Procedures - CRJ. Northwest and Pinnacle agree to review the fuel burn performance of the CRJ Aircraft for compliance with the performance measure (burn rate ceiling) set below. Either party may initiate the audit of the actual fuel burn against the set measure. The performance measure includes both scheduled and non-scheduled fuel usage/expense. The ceiling is the Northwest budgeted scheduled fuel burn per scheduled Block Hour [***] plus 3% for non-scheduled usage. For example, the 2002 performance measure (ceiling) was equal to the Northwest scheduled fuel burn rate of [***] 308.6 gallons per scheduled Block Hour [***] plus 3%, which sets the ceiling at [***]317.9. In the event that the CRJ Aircraft’s 's actual fuel burn for the period of review is above the ceiling the parties will work together in good faith to explain the variance relative to the ceiling and to resolve the cause of the variance. If it is determined that actual fuel burn was above the ceiling for reasons within the control of Pinnacle, Pinnacle will pay a Fuel Burn Penalty Payment to Northwest and such payment shall be made in accordance with Section 5.07. The Fuel Burn Penalty Payment shall be calculated as follows: Fuel Burn Penalty Payment = [(total fuel expense/actual fuel price) / scheduled Block Hours - performance ceiling] * completed scheduled Block Hours * actual fuel price (not to exceed $.78 per gallon) + Margin applicable to the fuel expense reimbursement pursuant to Section 5.08 or 5.11.

Fuel Burn Review Procedures - CRJ. Northwest and Pinnacle agree to review the fuel burn performance of the CRJ Aircraft for compliance with the performance measure (burn rate ceiling) set below. Either party may initiate the audit of the actual fuel burn against the set measure. The performance measure includes both scheduled and non-scheduled fuel usage/expense. The ceiling is the Northwest budgeted scheduled fuel burn per scheduled Block Hour [***] ]for non-scheduled usage. For example, the 2002 performance measure (ceiling) was equal to the Northwest scheduled fuel burn rate of [***] gallons per scheduled Block Hour [***] ], which sets the ceiling at [***]. In the event that the CRJ Aircraft’s actual fuel burn for the period of review is above the ceiling the parties will work together in good faith to explain the variance relative to the ceiling and to resolve the cause of the variance. If it is determined that actual fuel burn was above the ceiling for reasons within the control of Pinnacle, Pinnacle will pay a Fuel Burn Penalty Payment to Northwest and such payment shall be made in accordance with Section 5.07. The Fuel Burn Penalty Payment shall be calculated as follows: Fuel Burn Penalty Payment = [(total fuel expense/actual fuel price) / scheduled Block Hours - performance ceiling] * completed scheduled Block Hours * actual fuel price (not to exceed $.78 per gallon) + Margin applicable to the fuel expense reimbursement pursuant to Section 5.08 or 5.11.

Fuel Burn Review Procedures - CRJ. Northwest and Pinnacle agree to review the fuel burn performance of the CRJ Aircraft for compliance with the performance measure (burn rate ceiling) set below. Either party may initiate the audit of the actual fuel burn against the set measure. The performance measure includes both scheduled and non-scheduled fuel usage/expense. The ceiling is the Northwest budgeted scheduled fuel burn per scheduled Block Hour [****] for non-scheduled usage. For example, the 2002 performance measure (ceiling) was is equal to the Northwest scheduled fuel burn rate of [****] gallons per scheduled Block Hour block hour [***] *], which sets the ceiling at [****]. In the event that the CRJ Aircraft’s 's actual fuel burn for the period of review is above the ceiling the parties will work together in good faith to explain the variance relative to the ceiling and to resolve the cause of the variance. If it is determined that actual fuel burn was above the ceiling for reasons within the control of Pinnacle, Pinnacle will pay a Fuel Burn Penalty Payment to Northwest and such payment shall be made in accordance with Section 5.07SECTION 5.08. The Fuel Burn Penalty Payment shall be calculated as follows: Fuel Burn Penalty Payment = [(total fuel expense/actual fuel price) / scheduled Block Hours - performance ceiling] * completed scheduled Block Hours * actual fuel price (not to exceed $.78 per gallon) + Margin applicable to the fuel expense reimbursement pursuant to Section 5.08 SECTION 5.09 or 5.115.12.

Fuel Burn Review Procedures - CRJ. Northwest and Pinnacle agree to review the fuel burn performance of the CRJ Aircraft for compliance with the performance measure (burn rate ceiling) set below. Either party may initiate the audit of the actual fuel burn against the set measure. The performance measure includes both scheduled and non-scheduled fuel usage/expense. The ceiling is the Northwest budgeted scheduled fuel burn per scheduled Block Hour [***] for non-scheduled usage. For example, the 2002 performance measure (ceiling) was is equal to the Northwest scheduled fuel burn rate of [***] gallons per scheduled Block Hour [***] ], which sets the ceiling at [***]. In the event that the CRJ Aircraft’s actual fuel burn for the period of review is above the ceiling the parties will work together in good faith to explain the variance relative to the ceiling and to resolve the cause of the variance. If it is determined that actual fuel burn was above the ceiling for reasons within the control of Pinnacle, Pinnacle will pay a Fuel Burn Penalty Payment to Northwest and such payment shall be made in accordance with Section 5.07. The Fuel Burn Penalty Payment shall be calculated as follows: Fuel Burn Penalty Payment = [(total fuel expense/actual fuel price) / scheduled Block Hours - performance ceiling] * completed scheduled Block Hours * actual fuel price (not to exceed $.78 per gallon) + Margin applicable to the fuel expense reimbursement pursuant to Section 5.08 or 5.11.