Common use of Flight Hour to Cycle Ratio; Severe Environmental Conditions Clause in Contracts

Flight Hour to Cycle Ratio; Severe Environmental Conditions. The Variable Block Hour Rate specified in Section 2(a) of this Exhibit is based on a flight hour to cycle ratio of 1.90:1.00 with respect to the engines installed on the Boeing 767-200 series freighter aircraft and 2.60:1:00 with respect to the engines installed on the Boeing 767-300 series freighter aircraft and, in addition to the annual escalation described in Section 2(a) of this Exhibit, will also be adjusted every six (6) months based on the flight hour to cycle ratio during the prior six month period, utilizing the pertinent severity table contained in Appendix I-2 of this Exhibit, with the first such adjustment to be effective on October 1, 2015. Additionally, in the event that one or more Aircraft are routinely operated into or based in areas constituting severe environmental conditions (“SEC”) with respect to the engines, according to objective criteria set by the engine manufacturer or engine maintenance provider, then an additional equitable adjustment of [*] ([*]%) shall apply to the Variable Block Hour Rate to account for the impact of the operation of the engines under such SEC.