Fleet Size Adjustments Sample Clauses
The Fleet Size Adjustments clause defines the terms under which the number of vehicles or assets in a managed fleet can be increased or decreased during the contract period. Typically, this clause outlines the process for requesting changes, any notice requirements, and how pricing or service levels may be affected by such adjustments. For example, a client may be allowed to add more vehicles to their fleet with advance notice, or reduce the fleet size if business needs change. The core function of this clause is to provide flexibility for both parties, ensuring the contract can adapt to changing operational requirements while maintaining clear procedures and expectations.
Fleet Size Adjustments. Upon the withdrawal of one or more Covered Aircraft (excluding Turboprop Aircraft) from the capacity purchase provisions of this Agreement, the Appendix 1 Expenses shall be adjusted as follows:
a. Expenses set forth in column 2 of Appendix 1 (after giving effect to any adjustments thereto pursuant to this Paragraph A(3)(a)) for each applicable month shall decrease by the quotient of (i) the actual expenses of the type reflected in column 2 relating to the specific aircraft (identified by tail number) withdrawn from the Agreement, divided by (ii) the Cost Difference set forth on Appendix 23.
b. Expenses set forth in columns 4, 6, 9, 11, 12 and 13 of Appendix 1 for each applicable month will be reduced by an amount equal to the product of (i) the amount of each of such expenses included in Appendix 1 Expenses (after giving effect to any previous adjustments thereto pursuant to this Paragraph A(3)(b)) and (ii) the quotient of (1) the number of aircraft so withdrawn from the Agreement (after giving effect to any previous adjustments pursuant to this Paragraph A(3)(b)) and (2) the number of aircraft constituting Covered Aircraft immediately prior to such withdrawal.
c. The remainder of the Appendix 1 Expenses will decrease as follows:
I. For the first {CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT} aircraft (other than Turboprop Aircraft) to be withdrawn from the Agreement (taking into account all withdrawals under the Agreement), the remainder of the Appendix 1 Expenses after giving effect to any other adjustments provided in this Paragraph A(3) will be reduced by the product of (a) such remainder of the Appendix 1 Expenses, Schedule 3-4 multiplied by (b) {CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT} multiplied by (c) the quotient of (1) the number of aircraft so withdrawn and (2) the number of aircraft constituting Covered Aircraft immediately prior to such withdrawal.
II. For the next {CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT} aircraft (other than Turboprop Aircraft) to be withdrawn from the Agreement (taking into account all withdrawals from the Agreement), the remainder of the Appendix 1 Expenses after giving effect to any other adjustments provided in this Par...
Fleet Size Adjustments. Operator must initiate service with a minimum of eighty-five (85) vans; however the Aviation Director, at his sole discretion, reserves the right to increase or decrease the fleet, including the wheelchair accessible vans, as may be necessary to meet passenger demands. Fleet size adjustments will be accomplished by controlling the issuance of vehicle authorization decals.
Fleet Size Adjustments. 6 Article 11
Fleet Size Adjustments. The number of Units comprising the Pacer Fleet will be increased or decreased (a “Fleet Size Adjustment”) pursuant to the procedures set forth in the Equipment Agreement, as amended.