JimmyJim

Here's the rub with your assessment.

USAPA will have to present a seniority list if and when an AA merger takes place. If the DJ rules in favor of the companies position then the Nic will be the list that represents the USAirways pilots in any SLI. The company will not be willing to accept the liability in ignoring Judge Silver's ruling.

If the DJ rules in some other direction and USAPA uses a DOH/LOS list for the SLI in a theoretical AA merger, then they (Leonidas) will have a "ripe" DFR ready for the picking. With a likely injunction quickly in place.

The only real question, is how long it takes to reach the same outcome?

newKnow

Yes, I see. But, in a legal sense, just because the pilots aren't flying together doesn't mean they aren't integrated. That "nic" list is an integrated seniority list and from what cacti is saying, it seems like that is the list that would be submitted for any subsequent SLI.

formerdal

The NIC only becomes a valid seniority list with a joint contract in place! If that were not the case they would be abiding by it now. If a merger happens prior to a joint list while the contracts are still seperate then yes, their would need to be a new integration method applied...

cactiboss

Yeah I understand your point. There is one seniority list accepted in writing at usair and that is the nicolau award, it awaits only a single contract to be implemented. Look at it this way, if there is a merger, is it a 3 way aw/u/aa or is it a 2 way lcc/aa?

cactiboss

Yup

So we would have a 3 way list starting from scratch? So the u/awa merger never happen. Our legal counsel believes otherwise, a "unquestionably ripe dfr" would follow.

newKnow

Thanks Dal,

I guess I misunderstood what cacti was saying.....

gloopy

I think they mean the combined company, in the long run, would be better off. I would agree with that for many reasons. Consolidation is good for everyone because it removes one more competitor. It provides the opportunity to dump significant amounts of regional capacity that is still lingering around from the RJ heydays where everyone built up a massive RJ network just to raid everyone's markets with insanely high frequency. The combined network would be better for both airlines as that is one of the biggest structural weaknesses of both airlines right now in the first place.

Put the two route maps together, remove a competitor, reduce capacity further which pushes up pricing power and control more marketshare. What's not to like. If the seniority lists could be integrated somewhat fairly it would be a win for the pilot groups as well. Not only would they be at a healthier company in the long run, the combined retirements would be staggering. Of course if the other group doesn't get stapled than your group got royally screwed, etc.

cactiboss

I believe you are correct. People are getting wrapped up about "synergies" etc. but this merger would only be about reduction, reduction in capacity and eliminating one competitor.

cactiboss

No you didn't misunderstand, the Nic. is "valid" right now, usapa is trying to renegotiate a completed seniority list. Contractually the seniority list is complete, just not implemented.

Carl Spackler

This is correct. There is still an AWA seniority list and a USAir seniority list. Those two lists would be handed to the arbitrator along with the AMR list to integrate the lists in some manner.

Carl