Common use of OPERATIONAL PERFORMANCE Clause in Contracts

OPERATIONAL PERFORMANCE. (a) Effective at 12:01 a.m. on the date that Mesa’s ground handling services in PHX Hub are fully transitioned to US Airways in accordance with Section 6 (the “Transition Date”) and US Airways has made available to Mesa, on a daily basis (subject to immaterial delays), not less than two (2) months of operational performance data in accordance with Section 9(b)(i), Sections 5.3 and 5.4 of the Agreement dealing with On Time Performance and Flight Completion Factor are deleted and replaced in their entirety with the following Service Level Performance provisions: (i) Mesa shall perform in accordance with the service levels set forth on Exhibit C hereto (the “Service Levels”). Mesa’s operational performance will be measured using the following two measurements: Controllable Completion Factor (“CCF”) and Controllable Departures within Zero Minutes of Scheduled (“CD0”), as such terms are defined below. Mesa will be subject to Service ▇▇▇▇▇ ▇ and Service Level 2 credit amounts for all flights that fall below the established thresholds and will receive incentives for all flights that rise above the incentive levels (“Incentive Levels”), in accordance with the thresholds and credit amounts set forth in Exhibit C. (ii) CD0: Mesa shall not allow its CD0 Rate to fall below the CDO Service Level 1 threshold percentage set out in Exhibit C. The “CD0 Rate” is defined as a fraction in which the numerator is the Actual Departures less departures which were delayed due to reasons controllable by Mesa and all downline departures which remain late departing due predominantly to reasons controllable by Mesa (“Controllable Delayed Departures”) and the denominator is Controllable Scheduled Departures. “Controllable Scheduled Departures” shall mean all Scheduled Departures less those scheduled departures cancelled for reasons beyond Mesa’s control, such as weather and ATC. Exhibit D lists all cancellation and delay codes used by US Airways at the time of this Tenth Amendment and specifically lists all such delay codes US Airways Confidential 6 that are classified as Controllable Delay Codes used in calculating CD0 Rate and Controllable Scheduled Departures. US Airways may update Exhibit D and will make corresponding changes to the applicable Service Level and Incentive Level thresholds in Exhibit C and to the applicable early termination thresholds in Section 9(e) provided that: