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

Fuel Burn Review Procedures - CRJ. Delta and Pinnacle agree to review the fuel burn performance (defined as gallons per block hour) of the Aircraft for compliance with annual performance measures including, but not limited to: (i) Planned Fuel On Arrival (FOA) (ii) Planned Zero Fuel Weight (ZFW) (iii) Auxiliary Power Unit (APU) Usage Pinnacle and Mesaba will be responsible for the development and setting of the annual performance measure targets for the Aircraft, each as defined in Exhibit H, and an annual budgeted fuel burn rate expressed in gallons per block hour (“All-in Rate”), in a timeframe consistent with the development of the annual operating expense budget of each Party. The All-in Rate shall encompass all scheduled and non-scheduled burned gallons and include the measures defined in (d)(i-iii) above and those measures the Parties may agree to subsequently add. The annual targets for the performance measures and All-in Rate will be subject to Delta’s review and approval. If the Parties are unable to reach agreement, the procedures set forth in Section 5.10(f) will be utilized to establish the annual targets and the All-in Rate. Additional performance measures may be identified and added at a future date by mutual agreement of the Parties for purposes of reviewing the Aircraft’s annual fuel burn. In the event data is not yet available for a given measure, no annual target will be set. The Parties agree to use reasonable best efforts in researching and collecting data for purposes of adding performance measures and cooperation may not be unreasonably withheld by either Party. Not later than sixty (60) days following the end of the year for which the targets applied, Pinnacle shall (i) deliver to Delta the analysis and conclusion of Pinnacle’s performance for the year then ended with respect to each of the performance measures and the All-in Rate, and (ii) provide Delta with the data used by Pinnacle to determine variances to each of the performance measure targets and the All-in Rate in a format specified by Delta. The analysis shall include, but not be limited to, adjustment for changes in the operating schedule from the Annual Operating Plan. For example, adjusting planned taxi time or average length of flight to actual experience for the year completed. Delta shall have thirty (30) days from the receipt of Pinnacle’s analysis to complete its review. If it is determined that Pinnacle exceeded one or more of the targets for the annual performance measures, and the cause of exceeding the targets was within the control of Pinnacle, a fuel penalty shall be assessed per the formulas set forth in Exhibit H. If it is determined that Pinnacle exceeded the budget for the All-in Rate, after adjusting for variances to target for the performance measures, and the cause of exceeding the budget was within the control of Pinnacle or Mesaba, a fuel penalty shall be assessed per the formula set forth in Exhibit H. Such penalty payment(s) shall be made in accordance with Section 5.07. Notwithstanding the foregoing, for purposes of the analysis set forth in this Section 5.05(d), all Aircraft operated by Mesaba shall be excluded for all years prior to 2011.

Fuel Burn Review Procedures - CRJ. Delta Northwest and Pinnacle agree to review the fuel burn performance (defined as gallons per block hour) of the Aircraft for compliance with annual performance measures including, but not limited to: (i) Planned Fuel On Arrival (FOA) (ii) Planned Zero Fuel Weight (ZFW) (iii) Auxiliary Power Unit (APU) Usage Usage (iv) Cruise Speed (v) Cruise Altitude Pinnacle and Mesaba will be responsible for the development and setting of the annual performance measure targets for the Aircraft, each as defined in Exhibit HF, and an annual budgeted fuel burn rate expressed in gallons per block hour (“All-in Rate”), in a timeframe consistent with the development of the annual operating expense budget of each Partyparty. The All-in Rate shall encompass all scheduled and non-scheduled burned gallons and include the measures defined in (d)(i-iiiv) above and those measures the Parties parties may agree to subsequently add. The annual targets for the performance measures and All-in Rate will be subject to DeltaNorthwest’s review and approval. If the Parties parties are unable to reach agreement, the procedures set forth in Section 5.10(f) will be utilized to establish the annual targets and the All-in Rate. Additional performance measures may be identified and added at a future date by mutual agreement of the Parties parties for purposes of reviewing the Aircraft’s annual fuel burn. In the event data is not yet available for a given measure, no annual target will be set. The Parties parties agree to use reasonable best efforts in researching and collecting data for purposes of adding performance measures and cooperation may not be unreasonably withheld by either Partyparty. Not later than sixty (60) days following the end of the year for which the targets applied, Pinnacle shall (i) deliver to Delta Northwest the analysis and conclusion of Pinnacle’s performance for the year then ended with respect to each of the performance measures and the All-in Rate, and (ii) provide Delta Northwest with the data used by Pinnacle to determine variances to each of the performance measure targets and the All-in Rate in a format specified by DeltaNorthwest. The analysis shall include, but not be limited to, adjustment for changes in the operating schedule from the Annual Operating Plan. For example, adjusting planned taxi time or average length of flight to actual experience for the year completed. Delta Northwest shall have thirty (30) days from the receipt of Pinnacle’s analysis to complete its review. If it is determined that Pinnacle exceeded one or more of the targets for the annual performance measures, and the cause of exceeding the targets was within the control of Pinnacle, a fuel penalty shall be assessed per the formulas set forth in Exhibit H. F. If it is determined that Pinnacle exceeded the budget for the All-in Rate, after adjusting for variances to target for the performance measures, and the cause of exceeding the budget was within the control of Pinnacle or MesabaPinnacle, a fuel penalty shall be assessed per the formula set forth in Exhibit H. F. Such penalty payment(s) shall be made in accordance with Section 5.07. Notwithstanding the foregoing, for purposes of the analysis set forth in this Section 5.05(d), all Aircraft operated by Mesaba shall be excluded for all years prior to 2011.

Fuel Burn Review Procedures - CRJ. Delta and Pinnacle agree to review the fuel burn performance (defined as gallons per block hour) of the Aircraft for compliance with annual performance measures including, but not limited to: (i) Planned Fuel On Arrival (FOA) (ii) Planned Zero Fuel Weight (ZFW) (iii) Auxiliary Power Unit (APU) Usage Pinnacle and Mesaba will be responsible for the development and setting of the annual performance measure targets for the Aircraft, each as defined in Exhibit H, and an annual budgeted fuel burn rate expressed in gallons per block hour (“All-in Rate”), in a timeframe consistent with the development of the annual operating expense budget of each Party. The All-in Rate shall encompass all scheduled and non-scheduled burned gallons and include the measures defined in (d)(i-iii) above and those measures the Parties may agree to subsequently add. The annual targets for the performance measures and All-in Rate will be subject to Delta’s review and approval. If the Parties are unable to reach agreement, the procedures set forth in Section 5.10(f) will be utilized to establish the annual targets and the All-in Rate. Additional performance measures may be identified and added at a future date by mutual agreement of the Parties for purposes of reviewing the Aircraft’s annual fuel burn. In the event data is not yet available for a given measure, no annual target will be set. The Parties agree to use reasonable best efforts in researching and collecting data for purposes of adding performance measures and cooperation may not be unreasonably withheld by either Party. Not later than sixty (60) days following the end of the year for which the targets applied, Pinnacle shall (i) deliver to Delta the analysis and conclusion of Pinnacle’s performance for the year then ended with respect to each of the performance measures and the All-in Rate, and (ii) provide Delta with the data used by Pinnacle to determine variances to each of the performance measure targets and the All-in Rate in a format specified by Delta. The analysis shall include, but not be limited to, adjustment for changes in the operating schedule from the Annual Operating Plan. For example, adjusting planned taxi time or average length of flight to actual experience for the year completed. Delta shall have thirty (30) days from the receipt of Pinnacle’s analysis to complete its review. If it is determined that Pinnacle exceeded one or more of the targets for the annual performance measures, and the cause of exceeding the targets was within the control of Pinnacle, a fuel penalty shall be assessed per the formulas set forth in Exhibit H. If it is determined that Pinnacle exceeded the budget for the All-in Rate, after adjusting for variances to target for the performance measures, and the cause of exceeding the budget was within the control of Pinnacle or MesabaPinnacle, a fuel penalty shall be assessed per the formula set forth in Exhibit H. Such penalty payment(s) shall be made in accordance with Section 5.07. Notwithstanding the foregoing, for purposes of the analysis set forth in this Section 5.05(d), all Aircraft operated by Mesaba shall be excluded for all years prior to 2011.