AA, I don't think you understand how the arbitration that produced the Nic list was structured and why it is no longer valid. Let me try to explain it in another way. Follow me for a minute and tell me what you think in a hypothetical scenario.
I'm with you so far.
Lets take the combination of AA and TWA. I'm gonna make-up a scenario that has similar circumstances. While this is not the way it went down, let's assume for this scenario that it did happen this way. Although the TWA pilots were not COMPLETELY stapled, I think it's close enough for everyone to realize they lost a LOT in the SLI with AA.
Well, the wheels are already coming off here because you are believing what someone has told you. The TWA deal was an asset purchase. TWA filed for bankruptcy and AA provided Debtor in possession financing. Also referred to DIP financing. TWA then went through the BK process and was essentially broken up into pieces. AA purchased enough pieces in the auction to maintain the SLT hub. TWA pilots had no airline to fly for at this point and a conditional job offer that was offered required them to waive their LPP's. A significant portion of their fleet was disposed of, they got a huge raise, and then 9-11 hit. Timing wasn't on their side.. Today, nothing resembling TWA is part of the AA network, to include the jets. TWA pilots sued everyone they could and the SLI has stood the test of time and the courts. The fact that you think they got a raw deal doesn't contribute to the premise or the argument you're about to present, different animal completely, but, I'm still with you.
Let's say the AA-TWA SLI went to an arbitrator. The arbitrator ruled that the TWA pilots would get one of two things. 1. They would get straight DOH in the SLI provided TWA, within one year, could emerge from BK and show a profit, proving they were a viable business. If after that one year, they could NOT meet that requirement, they would 2, be stapled to the AA list.
You're really reaching here.. Has an arbitrator ever offered up a list that is a sliding scale? I can't imagine that would ever happen due to the cost of administering that ruling. The costs to the company would be enormous.
So after one year goes by, TWA could NOT meet that requirement as set forth in the arbitration decision by exiting BK and showing a profit. Thus they would get the staple job (option 2) under the arbitration.
How does TWA fit into this again? They had no cash left and their costs spiked when they came over to green book.
Would you argue that they should get straight DOH anyway, even though they did NOT meet the conditions of the arbitration that would allow them to have option 1? I mean if the arbitration decision had a specific condition that must be met in order to be implemented, but it wasn't met, do you think the APA would just give it to them anyway just to be nice? I'd be interested in your thoughts on this...
Not by a long shot. I'll reserve further comment until you can produce an arbitration that has any type of sunshine/sunset methodology. If I'm correct, you'll want to say, "hey, we're making money so just give us DOH?"
