Capacity Purchase Agreement
Ten-year agreement with Continental Airlines – extends through 2010
- Four five-year extensions through 2030 at Continental’s option
- Annual rate resetting process
-
Covers 274 regional jet aircraft
- Continental has right to add 100 option aircraft
-
Exclusive provider of regional jets in Continental’s hubs through 2006
Completed 2005 rate resetting process
- Fixed fee agreement with fuel price cap
- Operating margin cap of 10%
- Labor cost included in margin cap
- Controllable completion factor benchmark for 2005 and beyond – 99.5%