Clean calamari and cut tubes crosswise into 1/2" rings. Dry calamari on paper towels and reserve. In a medium frying pan, heat 1 Tbs. oil over medium-high heat. Add the calamari and saute until the rings turn opaque white, about 30 seconds to one minute. Transfer calamari to a bowl and set aside. Wipe pan dry, add remaining oil and heat. Add chili pepper and heat until it turns dark. Remove chili with a slotted spoon and discard. Add the onions to the hot chili oil and cook, stirring, until onions are wilted, about 5 minutes. Reduce heat to medium, partially cover pan and cook, stirring occasionally, until onions are caramelized (golden brown), 30-40 minutes. (Add more oil if onions are dry or stick to the pan). Season with salt/pepper. Add calamari and stir until heated throughout. Serve with slices of hot or toasted French bread.