EX-10.11.19 34 d573709dex101119.htm EX-10.11.19 EX-10.11.19

Exhibit 10.11.19

***Text Omitted and Filed Separately with the Securities and Exchange Commission

Confidential Treatment Requested Under

17 C.F.R. Sections 200.80(b)(4) and 230.406

Execution Version

EIGHTEENTH AMENDMENT TO CODE SHARE AND

REVENUE SHARING AGREEMENT

THIS EIGHTEENTH AMENDMENT TO CODE SHARE AND REVENUE SHARING AGREEMENT (this “Eighteenth Amendment”) is made and entered into to be effective as of March 1, 2017 (the “Effective Date”) by and between AMERICAN AIRLINES, INC., a Delaware corporation, as successor in interest by merger to US Airways, Inc. (“American”), and MESA AIRLINES, INC., a Nevada corporation (“Mesa”).

RECITALS:

A.      American and Mesa are parties to that certain Code Share and Revenue Sharing Agreement, dated as of March 20, 2001, but effective as of February 1, 2001 (as amended, modified and supplemented, the “Code Share Agreement”).

B.      The Code Share Agreement has previously been amended, including by:

 

  i.

the Tenth Amendment to Code Share and Revenue Sharing Agreement, dated November 18, 2010 (the “Tenth Amendment”);

 

  ii.

the Sixteenth Amendment to Code Share and Revenue Sharing Agreement, dated January 26, 2015 (the “Sixteenth Amendment”); and

 

  iii.

the Seventeenth Amendment to Code Share and Revenue Sharing Agreement, dated December 28, 2015 (the “Seventeenth Amendment”).

C.      The Parties desire to further amend the Code Share Agreement as set forth in this Eighteenth Amendment.

D.      All capitalized terms used herein, but not otherwise defined herein, shall have the meanings given to such terms in the Code Share Agreement. It is the intent of the parties that this Eighteenth Amendment and the subject matter addressed herein is integral to the entirety of the Code Share Agreement and is not severable therefrom.

AGREEMENT:

In consideration of the mutual covenants contained herein and of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows:

1.        Pilot Block Hour Rate Increase.

1.1      As of the Effective Date, and subject to Section 1.2 of this Eighteenth Amendment:

[***]


1.2      Notwithstanding anything set forth in Section 1.1 of this Eighteenth Amendment, in the event that Mesa fails to enter into a collective bargaining agreement with its pilot labor organization on or before December 31, 2017: [***]

2.        Performance Threshold Changes. Attachment B to this Eighteenth Amendment lists all cancellation and delay codes used by American at the time of this Eighteenth Amendment and specifically lists all such codes that are classified as Controllable Cancellation Codes and Controllable On-Time Departure Codes. Exhibit D to the Tenth Amendment is hereby superseded and replaced by Attachment B hereto. In the event the codes set forth in American’s Delay Code Handbook and Cancel Code Handbook (or any successor handbooks thereto) are amended, restated or modified in any way, subsequent to the Effective Date, then such amendment, restatement or modification shall automatically be deemed to amend, modify or restate the applicable codes set forth in Attachment B hereto without any action by American or Mesa; provided that, American shall promptly provide notice to Mesa of any such amendment, modification or restatement to the Delay Code Handbook and Cancel Code Handbook.

3.        Initial Crew Max. Mesa acknowledges and reaffirms its obligation pursuant to Section 4.2 of the Seventeenth Amendment to, not later than one hundred sixty (160) calendar days prior to each month during which Mesa is obligated to provide Flight Services, provide AAG Network Planning (as defined therein) with “Initial Crew Max” information, meaning an initial estimate of schedulable hours available during such month for each of Mesa’s captains, first officers and flight attendants.

4.        Replacement of Code Share Agreement. Upon execution of this Eighteenth Amendment by both parties, the parties shall, in good faith promptly negotiate and execute a new Capacity Purchase Agreement to replace the existing Code Share Agreement reflecting the foregoing terms and all applicable terms and conditions set forth in the Code Share Agreement and its various amendments. The purpose of such new Capacity Purchase Agreement is to re-state and organize the previous agreement and clean up dead language for ease of administration. The parties agree to work in good faith to have such new Capacity Purchase Agreement in place by December 31, 2017.

5.        Miscellaneous.

5.1      Except as set forth in this Eighteenth Amendment, all of the terms and conditions of the Code Share Agreement shall remain in full force and effect and be applicable to this Eighteenth Amendment.

5.2      This Eighteenth Amendment may be executed in counterparts, all of which when taken together shall be one and the same document.

5.3      This Eighteenth Amendment, including the Attachments attached hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto.

5.4      The definitions contained in this Eighteenth Amendment are applicable to the other grammatical forms of such terms.


5.5      Notwithstanding anything herein to the contrary, Sections 1.2 and 5 of this Eighteenth Amendment shall survive the expiration or termination of the Code Share Agreement.

[Signatures Follow]


Execution Version

IN WITNESS WHEREOF, the parties have duly executed this Eighteenth Amendment as of the date first above written.

 

AMERICAN AIRLINES, INC.

 

By:                                                                         

Name: Kenji Hashimoto

Title: Senior Vice President — Regional Carriers

 

MESA AIRLINES, INC.

 

By:                                                                         

Name:                                                                   

Title:                                                                      


Attachment A

Contract Rates

Mesa Contract Rates (Effective as of the Effective date of the Eighteenth Amendment)

(See Note 2)

Guaranteed Non-Maintenance Cost

 

      Original 38    +9 (Amd. 12)   

+4/6

(Amd. 13/14)

   +7 (Amd. 16)
COST CATEGORY    UNIT    CRJ 900    CRJ 900    CRJ 900    CRJ 900

Aircraft Lease & Overhead

   A/C MONTH            
Ownership       [***]    [***]    [***]    [***]
Overhead       [***]    [***]    [***]    [***]
Crew RON       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]
Flight Crew & Maintenance (Rates applicable during initial Rate Increase Period1)    BLOCK HOUR            
(Note 1)Pilot       [***]    [***]    [***]    [***]
Flight Attendant       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]
Flight Crew & Maintenance (Rates applicable during Secondary Rate Increase Period2)    BLOCK HOUR            
(Note 1)Pilot       [***]    [***]    [***]    [***]
Flight Attendant       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]
      [***]    [***]    [***]    [***]

Dispatchers

   DEPARTURE    [***]    [***]    [***]    [***]
Guaranteed Non-Maintenance Cost Reduction    A/C MONTH    [***]    [***]    [***]    [***]

Aircraft Margin

   A/C MONTH    [***]    [***]    [***]    [***]

 

1 

As such term is defined in Section 1.1(a) of the Eighteenth Amendment

2 

As such term is defined in Section 1.1(b) of the Eighteenth Amendment


Guaranteed Maintenance Costs

           
      Original 38    +9 (Amd. 12)   

+4/6

(Amd. 13/14)

   +7 (Amd. 16)
COST CATEGORY    UNIT    CRJ 900    CRJ 900    CRJ 900    CRJ 900

Maintenance Cost Per A/C

   A/C MONTH            
MX Employees       [***]    [***]    [***]    [***]
Engine & APU Depreciation       [***]    [***]    [***]    [***]
Outstation Base       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]
      [***]    [***]    [***]    [***]

Maintenance Base Cost

   BASE/MONTH            
Rent & Utilities       [***]    [***]    [***]    [***]
Personnel       [***]    [***]    [***]    [***]
Parts Depreciation       [***]    [***]    [***]    [***]
Equipment Depreciation       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]

Maintenance Cost Per Block Hour

   BLOCK HOUR            
Engine MX – Contractual       [***]    [***]    [***]    [***]
Engine MX – Other       [***]    [***]    [***]    [***]
Airframe MX       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]

* these amounts will not be subject to escalation over the Term

Note 1 – The pilot rates set for the above in this Attachment A reflect the rate increases provided for in Section 1.1 of the Eighteenth Amendment. In the event of any expiration or termination of the Rate Increase Period (as defined in Section 1.1(b) of the Eighteenth Amendment), the pilot rates and total flight crew rates shall be as follows:

 

      Original 38    +9 (Amd. 12)   

+4/6

(Amd. 13/14)

   +7 (Amd. 16)
COST CATEGORY    UNIT    CRJ 900    CRJ 900    CRJ 900    CRJ 900

Flight Crew & Maintenance

  

BLOCK HOUR

           
Pilot       [***]    [***]    [***]    [***]
Flight Attendant       [***]    [***]    [***]    [***]
Total       [***]    [***]    [***]    [***]


Following any such expiration or termination of the Rate Increase Period, rates for Mesa’s pilots may be adjusted once during the remainder of the term of the Code Share Agreement to reflect an increase to the pay scale for the pilots of not more than [***] to account for any new or renegotiated collective bargaining agreement, provided that such adjusted rate shall not be billed to American until after such adjusted rate is effective and paid to Mesa’s pilots.

Note 2 – In addition to the Aircraft (as defined below), Mesa may, subject to the terms and conditions of this Note 2, in its discretion and at its sole expense, arrange for and utilize substitute CRJ-900 aircraft or CRJ-200 aircraft in American Eagle/US Airways Express livery (as applicable based on the terms of the Code Share Agreement) or neutral livery to provide the Flight Services under this Code Share Agreement during those periods, but only during those periods, when any of the Original Aircraft, the Twelfth Amendment New Aircraft, the Thirteenth Amendment New Aircraft, the Fourteenth Amendment New Aircraft or the Sixteenth Amendment New Aircraft (collectively, “Aircraft”) may be out of service due to unforeseen and irregular maintenance requirements; provided that (i) each substitute CRJ-200 aircraft shall be subject to compliance with flight interior and exterior standards and shall be approved by American in writing before being used as a substitute aircraft pursuant to this Note 2, and (ii) Mesa may only utilize regional jet aircraft other than CRJ-900 or CRJ-200 aircraft to the extent that American has permitted such use in advance in writing. For clarification purposes only, Mesa may operate such a substitute aircraft in US Airways Express or neutral livery in lieu of an Aircraft in US Airways Express livery and Mesa may operate such a substitute aircraft in American Eagle or neutral livery in lieu of an Aircraft in American Eagle livery, but may not operate a substitute aircraft in US Airways Express livery in lieu of an Aircraft in American Eagle livery or a substitute aircraft in American Eagle livery in lieu of an Aircraft in US Airways Express livery, without the prior written consent of American.

 

  a)

Notwithstanding anything in the Code Share Agreement to the contrary, and assuming approval is granted, usage of substitute CRJ-200 aircraft shall be paid as follows:

 

  1.

Rates paid for operation of this aircraft will be $[***] per block hour and $[***] per departure plus any fuel costs associated with these substitute operations. Such rate shall be reduced by [***] after the [***] Flight of such aircraft in a calendar month, reduced by [***] after the [***] Flight of the calendar month, and [***] after the [***] Flight of the calendar month. Any CRJ-200 Flights operated as a result of Aircraft Damage cause by American shall be excluded from the calculation and not subject to reductions pursuant to this paragraph.

 

  2.

In addition, the amount paid to Mesa will be further adjusted by any interrupted trip or passenger inconvenience costs to include, without limitation, such things as meals and hotels for displaced passengers, as well as an amount of $[***] per passenger downgraded from first class to coach class (excluding CRJ-200 flights operated because of Aircraft Damage caused by American).

 

  b)

If a substitute aircraft shall be utilized for more than two (2) consecutive days, Mesa and American shall mutually agree upon the route that shall be covered by the substitute aircraft.


  c)

For clarification purposes only, is a substitute aircraft is used in accordance with the terms hereof, the applicable provisions of the Code Share Agreement shall also apply to the Flight Services operated by such substitute aircraft, including, without limitation, if the respective Flight is not operated for any reason.

 

  d)

The provisions of this Note 2 replace Section 9(d)(ii) of the Tenth Amendment in its entirety.


Attachment B

American Cancellation and Delay Codes

 

1.

Controllable Cancellation Codes

 

CODE        GROUP    DESCRIPTION

XCC

   CREWS    FLIGHT CREW UNAVAILABLE
YCC    CREWS    BALANCE OF FLIGHT CREW UNAVAILABLE
XCL    CREWS    PILOT LEGALITY
YCL    CREWS    BALANCE OF PILOT LEGALITY
XRC    CREWS    FLIGHT CREW REFUSED AIRCRAFT
YRC    CREWS    BALANCE OF FLIGHT CREW REFUSED AIRCRAFT
XFA    CREWS    FLIGHT ATTENDANT CAUSED
YFA    CREWS    BALANCE OF FLIGHT ATTENDANT CAUSED
XFL    CREWS    FLIGHT ATTENDANT LEGALITY
YFL    CREWS    BALANCE OF FLIGHT ATTENDANT LEGALITY
XOP    OPERATIONAL    OPERATIONAL DECISION
YOP    OPERATIONAL    BALANCE OF OPERATIONAL DECISION
XZP    OPERATIONAL    PRE-EMPTIVE OPERATIONAL DECISION
YZP    OPERATIONAL    BALANCE OF PRE-EMPTIVE OPERATIONAL
XM0    MAINTENANCE/DAMAGE    MAINTENANCE MECHANICAL INBOUND
YM0    MAINTENANCE/DAMAGE    BALANCE OF MAINTENANCE MECHANICAL
XMl    MAINTENANCE/DAMAGE    MAINTENANCE MECHANICAL OUTBOUND
YMl    MAINTENANCE/DAMAGE    BALANCE OF MAINTENANCE MECHANICAL OUTBOUND
XM2    MAINTENANCE/DAMAGE    MATERIAL SERVICEABILITY
YM2    MAINTENANCE/DAMAGE    BALANCE OF MATERIAL SERVICEABILITY
XM3    MAINTENANCE/DAMAGE    PARTS & MATERIALS/TOOLING/TEST EQUIPMENT SHORTAGE
YM3    MAINTENANCE/DAMAGE    BALANCE OF PARTS & MATERIALS/TOOLING/TEST EQUIPMENT SHORTAGE
XM4    MAINTENANCE/DAMAGE    MAINTENANCE SERVICING
YM4    MAINTENANCE/DAMAGE    BALANCE OF MAINTENANCE SERVICING
XM5    MAINTENANCE/DAMAGE    TECHNICAL DATA
YM5    MAINTENANCE/DAMAGE    BALANCE OF TECHNICAL DATA
XM6    MAINTENANCE/DAMAGE    PRECAUTIONARY INSPECTION
YM6    MAINTENANCE/DAMAGE    BALANCE OF PRECAUTIONARY lNSPECTION
XM7    MAINTENANCE/DAMAGE    SCHEDULED MAINTENANCE
YM7    MAINTENANCE/DAMAGE    BALANCE OF SCHEDULED MAINTENANCE
XM8    MAINTENANCE/DAMAGE    ONBOARD COMPUTER/COMPONENT RESET
YM8    MAINTENANCE/DAMAGE    BALANCE OF ONBOARD COMPUTER/COMPONENT
XM9    MAINTENANCE/DAMAGE    MAINTENANCE/ENGINEERING DEPARTMENT
YM9    MAINTENANCE/DAMAGE    BALANCE OF MAINTENANCE/ENGINEERING
XD3    MAINTENANCE/DAMAGE    FLIGHT DECK/CABIN CREW DAMAGE
YD3    MAINTENANCE/DAMAGE    BALANCE OF FLIGHT DECK/CABIN CREW DAMAGE
XD4    MAINTENANCE/DAMAGE    PASSENGER DAMAGE
YD4    MAINTENANCE/DAMAGE    BALANCE OF PASSENGER DAMAGE
XD9    MAINTENANCE/DAMAGE    MAINTENANCE DAMAGE
YD9    MAINTENANCE/DAMAGE    BALANCE OF MAINTENANCE DAMAGE

Attachment B to Eighteenth Amendment to Code Share Agreement


2.

Controllable On-Time Departure Codes

 

CODE        GROUP    DESCRIPTION
FA0    FLIGHT CREW/CREW SCHEDULING    FLIGHT ATTENDANT COMPLETION OF DUTIES/OTHER
FAl    FLIGHT CREW/CREW SCHEDULING    FLIGHT ATTENDANT REST/LEGALITY
FA2    FLIGHT CREW/CREW SCHEDULING    FLIGHT ATTENDANT CONNECTION
FA3    FLIGHT CREW/CREW SCHEDULING    FLIGHT ATTENDANT BROKEN THRU FLIGHT
FA4    FLIGHT CREW/CREW SCHEDULING    FLIGHT ATTENDANT LATE
FA5    FLIGHT CREW/ CREW SCHEDULING    FLIGHT ATTENDANT SICK OR NO SHOW
FA6    FLIGHT CREW/CREW SCHEDULING    BOARDING HELD/INTERRUPTED
FA7    FLIGHT CREW/CREW SCHEDULING    FLIGHT ATTENDANT GATE CHECKED BAGS
FA8    FLIGHT CREW/CREW SCHEDULING    RE SEATING PASSENGERS
FP0    FLIGHT CREW/CREW SCHEDULING    PILOT COMPLETION OF DUTIES/OTHER
FPl    FLIGHT CREW/CREW SCHEDULING    PILOT REST/LEGALITY
FP2    FLIGHT CREW/CREW SCHEDULING    PILOT CONNECTION
FP3    FLIGHT CREW/CREW SCHEDULING    PILOT BROKEN THRU FLIGHT
FP4    FLIGHT CREW/CREW SCHEDULING    PILOT LATE
FP5    FLIGHT CREW/CREW SCHEDULING    PILOT SICK OR NO SHOW
FC0    FLIGHT CREW/CREW SCHEDULING    CREW SCHEDULING OTHER
FCl    FLIGHT CREW/CREW SCHEDULING    PILOT AND FLIGHT ATTENDANT REST
FC2    FLIGHT CREW/CREW SCHEDULING    PILOT AND FLIGHT ATTENDANT CONNECTION
FC3    FLIGHT CREW/CREW SCHEDULING    PILOT AND FLIGHT ATTENDANT BROKEN
FC4    FLIGHT CREW/CREW SCHEDULING    PILOT AND FLIGHT ATTENDANT LATE TO
FC5    FLIGHT CREW/CREW SCHEDULING    CREW SWAP/CREW RECOVERY
FC6    FLIGHT CREW/CREW SCHEDULING    IN TERMINATE/OUT ORIGINATE
FC7    FLIGHT CREW/CREW SCHEDULING    UNSCHEDULED CREW REST
MT    MAINTENANCE/DAMAGE    MAINTENANCE
MTl    MAINTENANCE/DAMAGE    MAINTENANCE MECHANICAL DELAY
MT2    MAINTENANCE/DAMAGE    PARTS DEFECTIVE FROM STOCK

Attachment B to Eighteenth Amendment to Code Share Agreement


CODE        GROUP    DESCRIPTION
MT3    MAINTENANCE/DAMAGE    PARTS & MATERIALS/TOOLING/TEST
MT4    MAINTENANCE/DAMAGE    DELAY FROM SCHEDULED MAINTENANCE TASK
MT5    MAINTENANCE/DAMAGE    DEFERRAL MANAGEMENT/TECHNICAL
MT6    MAINTENANCE/DAMAGE    PRECAUTIONARY INSPECTION
MT7    MAINTENANCE/DAMAGE    LATE DELTVERY OF AIRCRAFT
MT8    MAINTENANCE/DAMAGE    ONBOARD COMPUTER/COMPONENT RESET
MT9    MAINTENANCE/DAMAGE    MAINTENANCE/ENGINEERING PERSONNEL
DA3    MAINTENANCE/DAMAGE    LIGHT DECK/CABIN CREW DAMAGE
DA4    MAINTENANCE/DAMAGE    PASSENGER DAMAGE
DA9    MAINTENANCE/DAMAGE    MAINTENANCE DAMAGE
OL2    OPERATIONS/LOAD PLANNING    ADJUSTING PASSENGER/BINS AFTER INITIAL LOAD
OL4    OPERATIONS/LOAD PLANNING    MOVING PASSENGERS/BAGS FOR WEIGHT
OP3    OPERATIONS/LOAD PLANNING    LATE FLIGHT RELEASE
IT8    INFORMATION TECHNOLOGY    REGIONAL CARRIERS IT ENVIRONMENT

Attachment B to Eighteenth Amendment to Code Share Agreement