Sorry guys, this is the best I could do.
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LETTER OF AGREEMENT
between
AMERICA WEST HOLDINGS CORPORATION, AMERICA WEST AIRLINES, INC.,
US AIRWAYS GROUP, INC., and US AIRWAYS, INC.
and the
PILOTS
in the service of
AMERICA WEST AIRLINES, INC. AND US AIRWAYS, INC.
as represented by
THE AIR LINE PILOTS ASSOCIATION
______________________________________________________________________
__
TRANSITION AGREEMENT
______________________________________________________________________
__
THIS LETTER OF AGREEMENT is made and entered into in accordance with the provisions of
the Railway Labor Act, as amended (the “Actâ€), by and between AMERICA WEST
HOLDINGS CORPORATION (“AWHCâ€), AMERICA WEST AIRLINES, INC. (“AMERICA
WESTâ€), US AIRWAYS GROUP, INC. (“US AIRWAYS GROUPâ€), US AIRWAYS, INC.
(“US AIRWAYSâ€), and the AIR LINE PILOTS in the service of AMERICA WEST and US
AIRWAYS, respectively, as represented by the AIR LINE PILOTS ASSOCIATION (hereinafter
referred to as “the Associationâ€) by and through the Master Executive Councils of the America
West and US Airways pilots (“America West MEC†and “US Airways MEC†respectively)
(collectively referred to as the “Partiesâ€).
WHEREAS, US Airways Group and AWHC have entered into an Agreement and Plan of
Merger dated as of May 19, 2005 (the “Merger Agreementâ€), and
WHEREAS, the Merger Agreement provides that, if it is consummated, US Airways Group will
be reorganized and, as reorganized, will own and control America West and US Airways, and
WHEREAS, US Airways Group, AWHC, US Airways and America West (together, the “Airline
Partiesâ€) intend that, following the consummation of the Merger Agreement, America West and
US Airways will continue to operate with two separate pilot workforces until the two pilot
workforces are integrated under the provisions herein, and
WHEREAS, the parties wish to provide orderly procedures for the merger of America West and
US Airways.
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THEREFORE, the parties agree:
I. Continued Representation of the America West and US Airways Pilots
A. The Airline Parties and the Single Carrier, as defined in Section III. A. below, will
continue to recognize the Association as the collective bargaining representative
of the America West and US Airways pilots under the Act following the
consummation of the Merger Agreement.
B. The Parties will continue to recognize each of the America West and US Airways
MECs as to their authority and responsibility with respect to their respective
collective bargaining agreements until the merger of the two MECs.
II. Period of Separate Operations
A. The pilot workforces of America West and US Airways will remain separate and
covered by their respective collective bargaining agreements (the “Separate
Operationsâ€) until Operational Pilot Integration as provided in Section VI. A.
B. During Separate Operations:
1. US Airways Group will operate both America West and US Airways in
accordance with the terms of this Letter of Agreement and the provisions
of each carrier's respective collective bargaining agreement, as amended.
2. America West may operate under the US Airways designator code and
marketing identity. US Airways may operate under the America West
designator code and marketing identity.
3. The aircraft (including orders and options to purchase or lease aircraft)
and the operations of each of America West and US Airways will remain
separated. A list of all aircraft in the service of each of America West and
US Airways on the effective date of this Letter of Agreement is appended
as Attachment A; and the fleet plan for the merged airline (by airline and
tail number) is appended to this Letter of Agreement as Attachment B.
4. Pilots on the America West Seniority List will operate the aircraft in the
service of America West on the effective date of this Letter of Agreement
and pilots on the US Airways Seniority List will operate the aircraft in the
service of US Airways on the effective date of this Letter of Agreement.
Except as provided in paragraph 6. below, no pilot of either airline will fly
as a crewmember on an aircraft listed in Attachment A in the fleet of the
other airline.
a) The Airline Parties will not transfer aircraft listed in Attachment A
to the fleet of the other airline.
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b) During the first year following the consummation of the Merger
Agreement, America West and US Airways will each maintain not
less than 80% of the number of aircraft (excluding SJs as defined
in the US Airways agreement as amended by this Letter of
Agreement) listed by month for that airline in Attachment B.
c) For US Airways, the number of minimum aircraft will be reestablished
one year after the consummation of the Merger
Agreement at the lesser of 279 total aircraft (excluding SJs), or the
number of total aircraft then operated by US Airways (excluding
SJs) less ten percent (10%), rounded to the nearest aircraft, with
the daily utilization rate measured monthly as the average daily
utilization rate for the prior twelve months less ten percent (10%).
d) For America West, the number of minimum aircraft will be
established one year after the consummation of the Merger
Agreement at the lesser of 140 total aircraft (excluding SJs), or the
number of total aircraft then operated by America West (excluding
SJs) less ten percent (10%), rounded to the nearest aircraft, with
the daily utilization rate measured monthly as the average daily
utilization rate for the prior twelve months less ten percent (10%).
e) The current and announced flying, as of the effective date of this
agreement, between points west of the Mississippi River and the
State of Hawaii will be flown by America West pilots. The current
and announced flying, as of the effective date of this agreement,
between points east of the Mississippi River and Europe or the
Caribbean will be flown by US Airways pilots. Notwithstanding
the above, up to two daily round trips to Europe, up to two daily
round trips to the Caribbean, and one daily round trip to Hawaii
may be flown by pilots of the other airline.
5. The Airline Parties intend to consolidate operations under the US Airways
operating certificate and as such, should the Airline Parties acquire aircraft
in excess of the number identified for that airline in Attachment B, such
aircraft will operate as part of US Airways. However, in the event the
decision is made to consolidate operations under the America West
operating certificate, such additional aircraft will operate as part of
America West.
a) The Airline Parties will make reasonable efforts to provide notice
to ALPA of the intent to acquire such aircraft not less than ninety
(90) days prior to such aircraft entering service. To the extent
known, the notice will state the type and number of such aircraft
along with the Airline Parties’ decision regarding the placement of
such aircraft at US Airways or America West.
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b) The Airline Parties will make every effort to establish a bridge
training program as soon as possible to facilitate the fair and
equitable distribution of flying between the two pilot groups. In
the event that a bridge training program exists and the pilots from
the carrier receiving the bridge training have completed training, or
will complete training prior to the aircraft entering service, then the
Parties will meet prior to the operation of any such aircraft in an
effort to reach agreement as to which pilot group will operate those
aircraft.
c) The America West MEC and the US Airways MEC will agree
internally as to which pilot group shall operate such aircraft or will
implement a process, including binding arbitration if necessary, to
determine the Association’s position regarding the allocation of
such flying. In the event that the Airline Parties do not agree with
the Association position, then the dispute will be resolved in
accordance with Section X. below. The standard to be applied by
the Arbitrator in that proceeding will be the fair and equitable
allocation of flying between the two pilot groups. Nothing in this
paragraph will delay or prevent the Airline Parties from putting
such aircraft into revenue service.
6. America West will not hire new pilots if pilots on the US Airways
seniority list remain on furlough, provided that America West may hire a
new pilot if all pilots on furlough have been offered recall to US Airways
or have been offered positions by America West in the order of seniority.
Available positions at America West will be offered to furloughed US
Airways pilots under the recall provisions contained in Section 23,
paragraph I of the US Airways - ALPA collective bargaining agreement,
except that active MDA pilots with recall rights to US Airways will
continue to be subject to the applicable freeze/hold provisions of LOA 91,
Attachment B "Recall to US Airways". A furloughed US Airways pilot
who declines a position as an America West pilot retains the right to be
offered the next position offered and also retains the right to be recalled to
US Airways in accordance with his US Airways seniority. A US Airways
pilot who accepts a position at America West:
a) will be treated as junior to all pilots who are on the America West
seniority list on the effective date of this Letter of Agreement, but
pilots on the US Airways seniority list employed by America West
under this paragraph 6 will be ranked among themselves in their
order on the US Airways seniority list;
b) will be considered an employee of America West during Separate
Operations and subject to the America West collective bargaining
agreement;
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c) will retain, accrue and be entitled to use his combined longevity at
both carriers for all purposes including but not limited to pay
(excluding furlough pay, which will be calculated based on time at
America West only), benefits, vacation accrual, and eligibility
towards pension contributions and health and welfare participation;
d) may be required to forego recall to US Airways for up to eighteen
(18) months from the date of his employment as a pilot for
America West;
e) will retain his position on the US Airways seniority list and will be
integrated in the combined seniority list based on his position on
the US Airways seniority list;
f) will not be required to serve a probation period as a pilot for
America West;
g) will not receive furlough pay from US Airways with respect to the
period of his service as a pilot for America West;
h) will be subject to any applicable background checks and
employment requirements for pilots returning from furlough.
7. America West may hire new pilots if all pilots on the US Airways
seniority list have been offered recall to US Airways or have been offered
a pilot position at America West. New pilots hired during the Separate
Operations will be placed by their date of hire on a third seniority list
entitled “New Hire Seniority List,†will be junior to all pilots on the pilot
seniority lists of America West and US Airways on the effective date of
this Letter of Agreement, and will continue to be junior to those pilots on
the integrated seniority list of America West and US Airways pilots.
8. In the event that the Airline Parties intend to open or close a domicile or
satellite domicile, the Airline Parties will meet and confer with the
Association and share the analysis upon which the decision is based. The
Airline Parties may close the affected domicile or satellite domicile if the
analysis upon which the decision is based establishes that there is a cost
savings generated by the closing.
9. America West and US Airways will not establish TDY positions at a pilot
domicile of the other airline.
10. In the event of America West furloughs, furlough references in this Letter
of Agreement will be modified to apply to both pilot groups.
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III. Single Carrier
A. No later than the Operational Pilot Integration, as defined in Section VI.A. below,
America West and US Airways will operate as a single carrier with a single FAA
air carrier operating certificate employing pilots of America West and US
Airways (the “Single Carrierâ€). The carrier holding such operating certificate will
be one corporation.
B. The Airline Parties will support the Association’s application to the National
Mediation Board for recognition of a single transportation system and single pilot
craft or class of the Single Carrier.
C. The combining of the America West and US Airways MECs will be governed by
the Association’s Constitution and By-Laws and its Merger and Fragmentation
Policy (“ALPA Merger Policyâ€).
IV. Seniority List Integration
A. The seniority lists of America West pilots and US Airways pilots will be
integrated in accordance with ALPA Merger Policy and submitted to the Airline
Parties for acceptance. The Airline Parties will accept such integrated seniority
list, including conditions and restrictions, if such list and the conditions and
restrictions comply with the following criteria:
1. no "system flush" whereby an active pilot may displace any other active
pilot from the latter’s Position; and
2. furloughed pilots may not bump/displace active pilots; and
3. no requirement for pilots to be compensated for flying not performed (e.g.,
differential pay for a position not actually flown); and
4. allows pilots who, at the time of implementation of an integrated seniority
list, are in the process of completing or who have completed initial
qualification training for a new category (e.g., A320 Captain or 757 First
Officer) to be assigned to the position for which they have been trained,
regardless of their relative standing on the integrated seniority list; and
5. does not contain conditions and restrictions that materially increase costs
associated with training or company paid moves.
B. The Airline Parties will cooperate and respond to reasonable requests for pilot
employment data necessary for the seniority integration representatives to
implement ALPA Merger Policy subject to agreed terms for confidentiality.
C. US Airways, America West and the Single Carrier may not use an integrated pilot
seniority list prior to Operational Pilot Integration as defined in Section VI.A.
below.
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D. The Association, the America West MEC and the US Airways MEC agree that
this Letter of Agreement is not a waiver of any argument which either the
America West or US Airways MECs or their seniority integration representatives
may make in the seniority integration process nor will this Letter of Agreement be
offered or admitted into evidence in a seniority integration arbitration or shown to
a mediator except as specified in this paragraph D. The seniority integration
representatives of either MEC may offer this Letter of Agreement into evidence or
show it to a mediator as background information and to describe the actual
operations of the separate carriers during the Separate Operations. The provisions
for the hiring of pilots and the allocation of flying and equipment contained in this
Letter of Agreement do not constitute an admission in the seniority integration
process as to the appropriate allocation of flying following the term of this Letter
of Agreement, or the manner in which the Airline Parties would have operated in
the absence of a merger, or the job entitlements, or equities that arguably underlie
the construction of an integrated seniority list, or for any other purpose.
V. Negotiation of a Collective Bargaining Agreement
The Association and the Airline Parties will negotiate a single collective bargaining
agreement applicable to the merged operations of America West and US Airways (the
“Single Agreementâ€) as follows:
A. The Airline Parties will meet with the Association within thirty (30) days
following the effective date of this Letter of Agreement, as defined in Section XII.
below, for the purpose of responding to reasonable requests for merger-related
operational and financial information, subject to agreed terms for confidentiality.
B. The Association and the Airline Parties will commence negotiations no later than
sixty (60) days following the consummation of the Merger Agreement.
C. The parties will meet at mutually agreed facilities in the vicinity of Phoenix,
Washington, D.C., Las Vegas, and/or Pittsburgh.
D. At the request of either the Association or the Airline Parties, made not sooner
than sixty (60) days following the start of negotiations, the parties will appoint a
mediator to facilitate negotiations.
1. The mediator, if any, will be one of the following five (5) members of the
National Academy of Arbitrators, each having mediation experience in the
airline industry, if willing and able to serve:
a) Robert Harris
b) Richard Bloch
c) Fred Horowitz
d) Ira Jaffe
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e) Carol Wittenberg
2. The parties (unless they otherwise agree) will select a mediator from the
above list by strikes alternating between the Association and the Airline
Parties collectively with the first strike determined by coin toss.
3. If the parties select a mediator who is unwilling or unable to serve, as
required, they will choose by coin toss one of the last two struck names. If
none of the five mediators is willing and able to serve, the parties will
request that the last two names on the list of strikes confer and select as
mediator another member of the National Academy of Arbitrators with
mediation experience in the airline industry.
E. A mediator, if selected, will assist the parties through facilitation of the process
and mediation of differences, including at his or her discretion meetings in joint
and separate sessions with the parties and making nonbinding suggestions and
recommendations to resolve issues.
F. A mediator, if selected, will attend all negotiations except as the parties otherwise
agree, and the schedule and location of negotiations will not change except as the
mediator may determine with agreement of the parties.
G. The duration clause of the Single Agreement negotiated under this Section V. will
replace the respective duration clauses of the America West and US Airways
ALPA collective bargaining agreements. In the event such Single Agreement is
not reached on or before June 30, 2006, then on June 30, 2006 either the
Association or the Airline Parties may decide to suspend negotiations for such
Single Agreement depending on the progress at that time, provided, however, that
the Airline Parties will continue to be obligated to complete the Operational Pilot
Integration within the specified timeframe outlined in Section VI. below. Nothing
contained herein shall alter, change, or constitute a waiver of the rights of any
party under the Railway Labor Act.
VI. Operational Pilot Integration
A. Except as provided in paragraph B. below, the airline operations of America West
and US Airways, with respect to pilots, shall be merged no later than twelve (12)
months following the later of (i) completion of the integrated pilot seniority list
and (ii) negotiation of the Single Agreement provided that if by that date a single
FAA operating certificate has not been issued, the airline operations, with respect
to pilots, will be merged effective with the first bid period following thirty (30)
days after the issuance of such certificate. The Airline Parties will make every
reasonable effort in good faith to secure a single FAA operating certificate for
America West and US Airways as promptly as practicable. The merger of the
airline operations, with respect to pilots, under this paragraph A. is defined as the
“Operational Pilot Integration.â€
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B. The Airline Parties then in existence and the America West and US Airways
MECs may jointly agree to implement one or more selected provisions of the
Single Agreement prior to Operational Pilot Integration as defined in paragraph
A. and apply such provision or provisions to America West, US Airways, or the
Single Carrier as the Airline Parties collectively and both MECs may agree.
VII. Plan of Reorganization
A. ALPA, on behalf of US Airways and America West pilots, will not object to the
Plan of Reorganization but will reserve its rights to object to the Plan in regard to
executive contracts. This provision is contingent on full approval of the Plan of
Reorganization as modified by this Letter of Agreement and by Letter of
Agreement #94 (US Airways Group Equity) between ALPA, US Airways Group
and US Airways.
B. The Board of Directors of US Airways Group, Inc. (“Board") will establish a
standing committee of the Board called the Labor Committee ("Committee") to
meet with representatives of the labor organizations as described in Attachment C
of this Letter of Agreement.
C. The Plan of Reorganization of US Airways Group will provide for profit sharing
for pilots employed by US Airways and America West and then by the Single
Carrier as follows.
1. A profit sharing pool, based on the consolidated profits of US Airways
Group, to be established at 10% of the pre-tax profit excluding unusual
items (as reported, according to GAAP accounting practices) for pre-tax
margins ranging from 0.1% to 10%. In addition to the above, 15% of the
pre-tax profit excluding unusual items (as reported, according to GAAP
accounting practices) for pre-tax margins in excess of 10%.
2. The portion of the profit sharing pool allocated to pilots of US Airways
and America West will be no less than 36%.
3. Profit sharing will be paid to each pilot who was employed by US
Airways or America West during the year in which the profit was earned
based on a formula for distribution to be determined by the Association.
D. The Plan of Reorganization of US Airways and to the extent applicable, US
Airways Group will provide that US Airways and US Airways Group assume the
ALPA collective bargaining agreement as modified by this Letter of Agreement
in accordance with the following terms. US Airways Group and US Airways will
amend the Second Amended Joint Plan of Reorganization, including but not
limited to Section 8.1(b), consistent with this provision:
"All collective bargaining agreements between US Airways and ALPA, as
modified and/or amended from time to time (the "CBAs"), shall be
deemed automatically assumed in accordance with the provisions and
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requirements of sections 365 and 1123 of the Bankruptcy Code as of the
Effective Date of the Second Amended Joint Plan of Reorganization. The
assumption of the CBAs and the cure of all amounts owed under such
CBAs, including but not limited to amounts owed as a result of arbitration
awards, indemnification obligations, and the resolution of grievances,
which shall all be paid when they become due in the ordinary course by
the Reorganized Debtors, shall be in full satisfaction of all Claims and
Interests arising under all CBAs between the parties thereto and their
predecessors-in-interest. Upon assumption of the ALPA CBAs, all proofs
of claim and requests for payment of administrative expenses filed by
ALPA in the Debtors' Chapter 11 cases including but not limited to the
claims and requests for payments of administrative expenses identified on
exhibit -- hereto, shall be deemed withdrawn, without prejudice to the
pursuit of grievances, arbitration awards, indemnifications, and related
litigation in the ordinary course by ALPA and/or individuals.â€
VIII. Other Terms
A. The following terms apply to operation of the EMB 190 aircraft:
1. EMB 190 aircraft will be operated only by US Airways, America West,
both carriers, or the Single Carrier.
2. EMB 190 aircraft will be operated under the respective operating air
carrier’s collective bargaining agreement as modified by this Letter of
Agreement.
3. EMB 190 aircraft will be operated under the rates of pay and longevity
scale set forth in Attachment D to this Letter of Agreement.
4. EMB 190 aircraft do not count toward the minimum aircraft numbers in
the US Airways ALPA collective bargaining agreement or in Section
II.B., paragraphs 4.b), 4.c) or 4.d) above.
5. A US Airways furloughed pilot offered recall to a position as an EMB 190
first officer at US Airways or offered a position as an EMB 190 first
officer at America West pursuant to Section II., paragraph 6 of this Letter
of Agreement, will be entitled to bypass the offer. In other words, he will
not be subject to Section 23(I)4. of the US Airways collective bargaining
agreement, without prejudice to his right to be offered recall in seniority
order to any further US Airways pilot position (including but not limited
to an EMB 190 first officer position) or to be hired for any position by
America West under this Letter of Agreement.
B. Section 1.D.2 of the America West collective bargaining agreement will be
modified to increase the maximum seating capacity of jet aircraft flown by
Express carriers to a maximum seating capacity of 88 seats (or up to 90 seats if
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there are no first class seats) and/or certificated maximum take off weight of up
to 90,000 pounds.
C. The US Airways and America West collective bargaining agreements will be
modified to allow for a combined maximum of ninety-three (93) CRJ-900, or
other aircraft within the seating and maximum take-off weight limits specified in
Paragraph B above, to be operated in revenue service at any given time at Express
Carriers except that for every two (2) aircraft in excess of the combined 360
aircraft (excluding EMB 190 aircraft) operated at both US Airways and America
West, that are added to revenue service in the mainline fleet, the Company may
allow three (3) additional CRJ-900, or other aircraft within the seating and
maximum take-off weight limits specified in paragraph B above, to be operated in
revenue service at Express Carriers.
D. Subject to any applicable statutory limits, employer contributions to the
Association’s applicable 401(k), or Defined Contribution Plan, will be ten percent
(10%) of the pilot’s eligible earnings as defined in the applicable plan without an
employee or employer matching contribution. Note: For America West pilots,
contributions will be effective January 1, 2006.
E. Check Airmen from both America West and US Airways will be utilized to
perform their customary duties and responsibilities for bridge training to a single
FAA operating certificate in numbers that are proportional and a manner that is
equitable to both groups of pilots. Pilots transitioning to the surviving FAA
certificate will be trained to proficiency in accordance with Section 11.A. of the
America West - ALPA collective bargaining agreement.
F. The parties acknowledge that grievances and disputes remain open and
unresolved at both US Airways and America West. The parties further
acknowledge that resolution of these and any new grievances and disputes would
be in the best interests of all parties and would facilitate the smooth transition to a
single airline. The parties therefore agree to utilize, to the maximum extent
possible, expedited dispute resolution processes at each carrier in order to
promptly resolve all open grievances and disputes.
IX. Administration and Expenses
A. Reasonable requests submitted for the release of pilots of each airline as
designated by the respective MECs for participation in merger duties will be
granted unless the release is not feasible due to operational considerations.
B. Airline Parties will establish a Merger Fund to help defray Association costs
associated with merger activities as follows:
1. A Merger Fund in the amount of $300,000 will be established for each
respective MEC.
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2. Each MEC may distribute their portion of the Merger Fund to their
membership as they see fit or may use the funds to help defray expenses,
which would otherwise not be covered by the Airline Parties.
3. The Merger Fund is payable to the Association following the submission
and the Airline Parties' acceptance of a merged seniority list.
C. America West will provide flight pay loss of up to eighty-four (84) hours per
month to the America West MEC beginning the month following the effective
date of this Letter of Agreement. Additionally, America West will provide flight
pay loss for three (3) America West Negotiating Committee members beginning
thirty (30) days following the consummation of the Merger Agreement and
continuing during the period that contract negotiations continue or through June
30, 2006, whichever is later.
D. Except as otherwise provided in this Section IX, or in the applicable collective
bargaining agreement, each party will be responsible for the compensation, travel
and other expenses of its representatives, witnesses, and other participants
required to complete merger duties. The Airline Parties will provide Positive
Space travel on the respective airlines for members of the Association's
negotiating committees in connection with merger duties. Space positive travel
will only be provided if there is an available seat at the time of booking and
revenue passengers will not be bumped to accommodate Positive Space travel.
X. Disputes as to Interpretation or Application of this Letter of Agreement
The Airline Parties collectively and the Association, except as they otherwise agree, will
resolve as follows a dispute between them in the interpretation or application of this
Letter of Agreement or pursuant to Section II.B.5.c. above:
A. The Airline Parties collectively and the Association will each designate a
representative for receipt of issues under this Section.
B. A party will raise an issue for resolution under this Section X by submitting it to
the representative of the other side, identifying it as an issue under this Letter of
Agreement.
C. The parties will discuss the issue but, if they do not resolve it within one (1) week
of its submission under paragraph B, the submitting party may refer it to a Board
of Adjustment (under Section 204 of the Act) of two (2) persons appointed by the
Association, two (2) by the Airline Parties collectively, and a neutral arbitrator
either agreed or selected from the following list using the alternate strike method
(with first strike determined by coin toss), provided that a mediator under Section
V. above may not serve as an arbitrator under this Section X.
1. Richard Bloch
2. Carol Wittenberg
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3. Lawrence Holden
4. Edward Krinsky
5. Ira Jaffe
D. Once appointed, an arbitrator will continue to serve for all disputes under this
Letter of Agreement, until unwilling or unable to serve or removed by agreement
of the Airline Parties collectively and the Association.
E. Except as the parties otherwise agree, a Board of Adjustment will hear a dispute
commencing not later than thirty (30) days after referral and ending not later than
thirty (30) days after the first hearing day and will decide a dispute not later than
thirty (30) days after the final hearing day.
F. A Board of Adjustment under this Letter of Agreement has jurisdiction only to
hear and determine an issue of interpretation or application of this Letter of
Agreement or an unresolved dispute under Section II.B.5.c above, properly
submitted under this Section X and has no jurisdiction to modify or supplement
any term of this Letter of Agreement or any other agreement between any of the
parties to this Letter of Agreement.
G. A decision of a Board of Adjustment on an issue within its jurisdiction and
rendered in accordance with the requirements of this Letter of Agreement is final
and binding on the parties to the extent provided under Section 204 of the Act.
H. The following procedures apply to the Board of Adjustment under this Section X:
1. Either Party will have the right to call witnesses at a hearing. The
Company will release witnesses and representatives requested by the
Association, provided that such request is reasonable and will not cause a
disruption in service.
2. Each Party will assume the compensation, travel expenses, and other
expenses of the witnesses it calls or summons.
3. The Parties will bear equally the expenses and reasonable compensation of
the arbitrator. The Parties also will share equally other expenses necessary
for the proper conduct of the business of the Board, such as fees for
conference room facilities and transcription of the proceedings.
4. The Board will make every effort to agree on a location for the hearings
and if they cannot agree hearings will be held in either Phoenix or
Pittsburgh, as determined by coin toss.
5. So far as space is available, an employee of any of the Airline Parties who
is a grievant, witness, pilot representative, or Board Member shall receive
“Company Business – Space Available†transportation over the lines of an
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Airline Party or the lines of other companies with which the an Airline
Party has exchange or reciprocal transportation agreements from any online
station to the point of hearing and return, to the extent permitted by
law.
XI. Duration of Terms of Section VIII, Paragraph A and Attachment D
Neither party may serve a notice of intended change under Section 6 of the Railway
Labor Act that covers or applies to Section VIII., paragraph A and Attachment D of this
Letter of Agreement except in accordance with the following:
The parties will commence bargaining for new rates associated with EMB 190 aircraft no
earlier than June 1, 2015 and no later than July 1, 2015. If the parties have not reached a
tentative agreement for such rates by January 1, 2016, and the basic agreement in place
on January 1, 2016 is:
A. amendable within twelve (12) months, ALPA may service notice of intended
change covering such rates under the next Section 6 negotiation period; or
B. not amendable within twelve (12) months, either party may initiate an interest
arbitration process in which the issue will be: what should be the rates of pay for
the EMB 190 aircraft? The interest arbitration hearing will be held no later than
ninety (90) days following the written request of either party pursuant to this
provision.
C. Notwithstanding paragraph B above, if, at any time after January 1, 2013 and
prior to June 1, 2015, at least four (4) other U.S. certificated air carriers have
placed at least twenty-five (25) EMB 190 in service and if the average of either
the captain or first officer top of scale rates of such other air carriers exceeds
the top of scale pay rates for such aircraft specified in Attachment D, then either
party may serve a Section 6 notice with respect to EMB 190 rates of pay. For
purposes of this paragraph, the top of scale rate of such other air carriers will
be determined where appropriate by calculating a 90-hour blended rate in the
same manner as used to determine the rates in Attachment D.
XII. Effective Date, Modification, Status of Letter of Agreement, and Duration
This Letter of Agreement:
A. Will take effect on the date of execution set forth below;
B. May be modified by written agreement of the Association and the Airline Parties
collectively;
C. Does not alter or modify any term of any agreement between the Association and
an Airline Party, which remain in full force and effect in accordance with their
terms, except as set forth herein.
9-20-05
15
D. Governs in case of conflict between one of its terms and a provision of a
collective bargaining agreement between the Association and an Airline Party;
E. Will remain in effect in accordance with its terms until each of the provisions
herein has been fulfilled, unless sooner terminated by
1. Written agreement of the Association and the Airline Parties collectively;
or
2. Termination of the Merger Agreement;
3. At the discretion of the Association, failure of consummation of the
Merger Agreement prior to October 31, 2005.
9-20-05
16
IN WITNESS WHEREOF, the parties hereto have executed this Letter of Agreement effective this ____
day of _____________, 2005.
AIR LINE PILOTS ASSOCIATION: AMERICA WEST HOLDINGS CORPORATION:
By:________________________________ By:________________________________
Duane E. Woerth, President W. Douglas Parker
Chairman, President, and Chief Executive
Officer
AMERICA WEST AIRLINES, INC.:
By:________________________________ By:__________________________________
JR Baker, Chairman Jeffrey D. McClelland
America West Airlines MEC Executive Vice President, Operations and Chief
Operating Officer
US AIRWAYS GROUP, INC.:
By:______________________________ By:________________________________
William D. Pollock, Chairman Bruce R. Lakefield
US Airways MEC President and Chief Executive Officer
US AIRWAYS, INC.:
By:________________________________
Jerrold A. Glass
Executive Vice President and Chief Human
Resources Officer
Witnesses:
By:______________________________ By:______________________________
Kim Allen Snider, Vice Chairman David G. Seymour
US Airways MEC America West Airlines, Inc.
Vice President Operations Control and Planning
By:______________________________ By:______________________________
John McIlvenna, Vice Chairman E. Allen Hemenway
9-20-05
17
America West Airlines MEC US Airways, Inc.
Vice President Labor Relations
By:______________________________ By:______________________________
Douglas L. Mowery, Chairman Beth Holdren
US Airways Negotiating Committee US Airways, Inc.
Managing Director Labor Relations
By:______________________________ By:______________________________
Mark Burdick, Chairman Todd F. Jewett
America West Airlines Negotiating Committee US Airways, Inc.
Manager Labor Relations
By:______________________________
Dan Scola
US Airways Negotiating Committee
By:______________________________
Tony Lozano
America West Airlines Negotiating Committee
9-20-05
18
Attachment A: Current Fleet Count, US
Date: August 31, 2005
A319, Count = 49 A319, Count = 10 A320, Count = 24 A321, Count = 28
Aircraft Return Date Aircraft Return Date Aircraft Return Date Aircraft Return Date
N700UW N760US N101UW 10/1/2005 N161UW
N701UW N762US N102UW N162UW
N702UW N763US N103US N163US
N703UW N764US N104UW N164UW
N704US N765US N105UW N165US
N705UW N766US N106US N166US
N706US 9/30/2005 N767UW N107US N167US
N707US 11/1/2005 N768US N108UW N168US
N708UW N769US N109UW N169UW
N709UW N770UW N110UW N170US
N710UW N111US N171US
N711UW N112US N172US
N712US N113UW N173US
N713UW N114UW N174US
N714US N115US 10/1/2005 N175US
N715UW N116US 11/1/2005 N176UW
N716UW N117UW N177US
N717UW N118US N178US
N719US 9/2/2005 N119US N179UW
N720US 9/20/2005 N120US 11/1/2005 N180US
N721UW N121UW N181UW
N722US N122US N182UW
N723UW N123UW N183UW
N724UW N124US N184US
N725UW N185UW
N730US N186US
N732US N187US
N733UW N188US
N737US
N738US
N739US 9/14/2005
N740UW
N741UW A330, Count = 9
N742US Aircraft Return Date
N744US N670UW
N745UW N671UW
N746UW N672UW
N747UW N673UW
N748UW N674UW
N749US N675US
N750UW N676UW
N751UW N677UW
N752US N678US
N753US
N754UW
N755US
N756US
N757UW
N758US
9-20-05
19
Attachment A: Current Fleet Count, US (Continued)
Date: August 31, 2005
B737-300, Count = 47 B737-300, Count = 12 B737-400, Count = 43 B757, Count = 31
Aircraft Return Date Aircraft Return Date Aircraft Return Date Aircraft Return Date
N300AU 1/31/2006 N558AU 9/15/05-9/30/05 N404US N600AU
N334US N560AU 9/15/05-9/30/05 N405US N601AU
N335US N563AU 12/1/2005 N406US N602AU
N340US N573US 9/15/05-9/30/05 N409US N603AU
N350US 9/15/05-9/30/05 N574US N417US N604AU
N352US 2/1/2006 N575US 1/15/2006 N418US N605AU
N353US 2/1/2006 N577US N419US N606AU
N354US 1/15/2006 N588US N420US N607AU
N355US 1/15/2006 N589US N421US N608AU
N356US 1/15/2006 N590US N422US N609AU
N373US 12/10/2005 N591US N423US N610AU
N374US 10/28/2005 N592US N424US N611AU
N375US 2/10/2006 N425US N612AU
N376US 10/15/2005 N426US N613AU
N383US 2/7/2006 N427US N614AU
N384US 11/14/2005 N430US N617AU
N385US 9/15/05-9/30/05 N432US N619AU
N387US 9/15/05-9/30/05 N433US N620AU
N389US 9/15/05-9/30/05 N434US N621AU
N391US 12/10/2005 N435US N622AU
N392US 10/17/2005 N438US N623AU
N393US 1/30/2006 N439US N624AU
N394US 1/7/2006 N440US N625VJ
N395US 12/9/2005 N441US 6/1/2009 N626AU
N396US 11/14/2005 N442US 12/1/2009 N627AU
N397US 12/10/2005 N443US 9/1/2009 N628AU
N504AU N444US N629AU
N505AU N445US 6/1/2009 N630AU
N506AU N446US 9/15/05-9/30/05 N631AU
N511AU N447US 9/15/05-9/30/05 N632AU
N512AU N448US 9/15/05-9/30/05 N633AU
N514AU N449US 7/1/2009
N515AU N775AU 9/1/2009
N516AU N776AU 8/1/2009
N517AU N777AU 9/1/2009
N518AU N778AU 10/1/2009 B767, Count = 10
N519AU 9/10/2005 N779AU 10/1/2009 Aircraft Return Date
N520AU 9/2/2005 N780AU 10/1/2009 N645US
N522AU N781AU N646US
N525AU N782AU N648US
N526AU N783AU N649US
N527AU N784AU N650US
N529AU N785AU N651US
N530AU N652US
N531AU N653US
N532AU N655US
N533AU N656US
9-20-05
20
Attachment A: Current Fleet Count, AWA
Date: August 31, 2005
B737-300, Count = 37 A319, Count = 34 A320, Count = 47 A320, Count = 12
Aircraft Return Date Aircraft Return Date Aircraft Return Date Aircraft Return Date
N154AW N801AW N601AW N667AW
N155AW N802AW N602AW N668AW
N156AW N803AW N603AW N669AW
N157AW N804AW N604AW N670AW 11/1/2005
N158AW N805AW N605AW N671AW 10/1/2005
N160AW N806AW N619AW N672AW
N164AW N807AW N620AW N673AW
N166AW N808AW N621AW N674AW
N168AW N809AW N622AW N675AW
N173AW N810AW N624AW N676AW
N174AW N812AW N625AW N677AW
N175AW N813AW N626AW N678AW
N302AW N814AW N627AW
N303AW N815AW N628AW
N305AW N816AW N629AW
N306AW N817AW N631AW
N307AW N818AW N632AW
N308AW N819AW N633AW
N309AW N820AW N634AW
N311AW N821AW N636AW
N312AW N822AW N637AW
N313AW N823AW N638AW 9/15/2005
N314AW N824AW N639AW 12/1/2005
N315AW N825AW N640AW
N316AW N826AW N642AW
N322AW N827AW N644AW
N323AW N828AW N645AW
N324AW 9/15/2005 N829AW N646AW
N325AW 2/1/2006 N830AW N647AW
N326AW 5/1/2006 N831AW N648AW
N327AW 9/15/2005 N832AW N649AW
N328AW N833AW N650AW
N331AW 8/1/2006 N834AW N651AW B757, Count = 13
N332AW N835AW N652AW Aircraft Return Date
N334AW N653AW N901AW
N335AW N654AW N902AW
N336AW 4/1/2006 N655AW N903AW
N656AW N904AW
N657AW N905AW
N658AW N906AW
N659AW N907AW 3/1/2006
N660AW N908AW
N661AW N909AW
N662AW N910AW
N663AW N913AW
N664AW N914AW
N665AW N915AW
9-20-05
21
Attachment B: Fleet Plan, US
Date: August 31, 2005
A319 A319 (cont) A321
Aircraft Return Date Add Date Aircraft Return Date Add Date Aircraft Return Date Add Date
N700UW N757UW N161UW
N701UW N758US N162UW
N702UW N760US N163US
N703UW N762US N164UW
N704US N763US N165US
N705UW N764US N166US
N706US 9/30/2005 N765US N167US
N707US 11/1/2005 N766US N168US
N708UW N767UW N169UW
N709UW N768US N170US
N710UW N769US N171US
N711UW N770UW N172US
N712US N173US
N713UW N174US
N714US N175US
N715UW A320 N176UW
N716UW Aircraft Return Date Add Date N177US
N717UW N101UW 10/1/2005 N178US
N719US 9/2/2005 N102UW N179UW
N720US 9/20/2005 N103US N180US
N721UW N104UW N181UW
N722US N105UW N182UW
N723UW N106US N183UW
N724UW N107US N184US
N725UW N108UW N185UW
N730US N109UW N186US
N732US N110UW N187US
N733UW N111US N188US
N737US N112US TBD 2009
N738US N113UW TBD 2009
N739US 9/14/2005 N114UW TBD 2009
N740UW N115US 10/1/2005 TBD 2009
N741UW N116US 11/1/2005 TBD 2009
N742US N117UW TBD 2010
N744US N118US TBD 2010
N745UW N119US TBD 2010
N746UW N120US 11/1/2005 TBD 2010
N747UW N121UW TBD 2010
N748UW N122US TBD 2010
N749US N123UW TBD 2010
N750UW N124US TBD 2010
N751UW TBD 2010
N752US TBD 2010
N753US TBD 2010
N754UW TBD 2010
N755US TBD 2010
N756US TBD 2010
9-20-05
22
Attachment B: Fleet Plan, US (Continued)
Date: August 31, 2005
B737-300 B737-300 (cont) B737-400
Aircraft Return Date Add Date N558AU 9/15/05-9/30/05 Aircraft Return Date Add Date
N300AU 1/31/2006 N560AU 9/15/05-9/30/05 N404US
N334US N563AU 12/1/2005 N405US
N335US N573US 9/15/05-9/30/05 N406US
N340US N574US N409US
N350US 9/15/05-9/30/05 N575US 1/15/2006 N417US
N352US 2/1/2006 N577US N418US
N353US 2/1/2006 N588US N419US
N354US 1/15/2006 N589US N420US
N355US 1/15/2006 N590US N421US
N356US 1/15/2006 N591US N422US
N373US 12/10/2005 N592US N423US
N374US 10/28/2005 TBD 12/1/2009 N424US
N375US 2/10/2006 TBD 12/1/2009 N425US
N376US 10/15/2005 TBD 1/1/2010 N426US
N383US 2/7/2006 N427US
N384US 11/14/2005 N430US
N385US 9/15/05-9/30/05 N432US
N387US 9/15/05-9/30/05 N433US
N389US 9/15/05-9/30/05 N434US
N391US 12/10/2005 N435US
N392US 10/17/2005 N438US
N393US 1/30/2006 N439US
N394US 1/7/2006 N440US
N395US 12/9/2005 N441US 6/1/2009
N396US 11/14/2005 N442US 12/1/2009
N397US 12/10/2005 N443US 9/1/2009
N504AU N444US
N505AU N445US 6/1/2009
N506AU N446US 9/15/05-
9/30/05
N511AU N447US 9/15/05-
9/30/05
N512AU N448US 9/15/05-
9/30/05
N514AU N449US 7/1/2009
N515AU N775AU 9/1/2009
N516AU N776AU 8/1/2009
N517AU N777AU 9/1/2009
N518AU N778AU 10/1/2009
N519AU 9/10/2005 N779AU 10/1/2009
N520AU 9/2/2005 N780AU 10/1/2009
N522AU N781AU
N525AU N782AU
N526AU N783AU
N527AU N784AU
N529AU N785AU
N530AU
N531AU
N532AU
N533AU
9-20-05
23
Attachment B: Fleet Plan, US (Continued)
Date: August 31, 2005
A330 B757 B767
Aircraft Return Date Add Date Aircraft Return Date Add Date Aircraft Return Date Add Date
N670UW N600AU N645US
N671UW N601AU N646US
N672UW N602AU N648US
N673UW N603AU N649US
N674UW N604AU N650US
N675US N605AU N651US
N676UW N606AU N652US
N677UW N607AU N653US
N678US N608AU N655US
N609AU N656US
N610AU
N611AU
N612AU
N613AU
N614AU
N617AU
N619AU
A350 N620AU
Aircraft Return Date Add Date N621AU
TBD 2011 N622AU
TBD 2011 N623AU
TBD 2011 N624AU
TBD 2011 N625VJ
TBD 2012 N626AU
TBD 2012 N627AU
TBD 2012 N628AU
TBD 2012 N629AU
TBD 2012 N630AU
TBD 2012 N631AU
TBD 2012 N632AU
TBD 2012 N633AU
TBD 2013
TBD 2013
TBD 2013
TBD 2013
TBD 2013
TBD 2013
TBD 2013
TBD 2013
9-20-05
24
Attachment B: Fleet Plan, AWA
Date: August 31, 2005
A319 A320 A320 (cont)
Aircraft Return Date Add Date Aircraft Return Date Add Date Aircraft Return Date Add Date
N801AW N601AW N661AW
N802AW N602AW N662AW
N803AW N603AW N663AW
N804AW N604AW N664AW
N805AW N605AW N665AW
N806AW N619AW N667AW
N807AW N620AW N668AW
N808AW N621AW N669AW
N809AW N622AW N670AW 11/1/2005
N810AW N624AW N671AW 10/1/2005
N812AW N625AW N672AW
N813AW N626AW N673AW
N814AW N627AW N674AW
N815AW N628AW N675AW
N816AW N629AW N676AW
N817AW N631AW N677AW
N818AW N632AW N678AW
N819AW N633AW N679AW 12/15/2005
N820AW N634AW N680AW 12/15/2005
N821AW N636AW N681AW 5/15/2009
N822AW N637AW N682AW 7/15/2009
N823AW N638AW 9/15/2005 N683AW 7/15/2009
N824AW N639AW 12/1/2005 N684AW 8/15/2009
N825AW N640AW N685AW 9/15/2009
N826AW N642AW N686AW 10/15/2009
N827AW N644AW N687AW 11/15/2009
N828AW N645AW N688AW 12/15/2009
N829AW N646AW
N830AW N647AW
N831AW N648AW
N832AW N649AW
N833AW N650AW
N834AW N651AW
N835AW N652AW
N836AW 10/15/2005 N653AW
N837AW 11/15/2005 N654AW
N838AW 11/15/2005 N655AW
N839AW 2/15/2006 N656AW
N840AW 2/15/2006 N657AW
N841AW 3/15/2009 N658AW
N842AW 4/15/2009 N659AW
N843AW 12/15/2009 N660AW
9-20-05
25
Attachment B: Fleet Plan, AWA (Continued)
Date: August 31, 2005
737-300 B757
Aircraft Return Date Add Date Aircraft Return Date Add Date
N154AW N901AW
N155AW N902AW
N156AW N903AW
N157AW N904AW
N158AW N905AW
N160AW N906AW
N164AW N907AW 3/1/2006
N166AW N908AW
N168AW N909AW
N173AW N910AW
N174AW N913AW
N175AW N914AW
N302AW N915AW
N303AW
N305AW
N306AW
N307AW
N308AW
N309AW
N311AW
N312AW
N313AW
N314AW
N315AW
N316AW
N322AW
N323AW
N324AW 9/15/2005
N325AW 2/1/2006
N326AW 5/1/2006
N327AW 9/15/2005
N328AW
N331AW 8/1/2006
N332AW
N334AW
N335AW
N336AW 4/1/2006
9-20-05
26
Attachment C
The Board of Directors of US Airways Group, Inc. (“Boardâ€) will establish a standing committee
of the Board called the Labor Committee (“Committeeâ€) to meet with representatives of the
labor organizations previously entitled to a Board seat to discuss issues, ideas and concerns
related to those unions. The Committee will be structured as follows:
1. The Committee will hold meetings quarterly prior to regularly scheduled meetings of the
Board.
2. Each labor organization will be limited to one attendee at such meetings.
3. The Committee will be comprised of three (3) members of the Board, including the
Chairman and Vice Chairman.
4. Subject to an appropriate non-disclosure/confidentiality agreement, the Association
representative will receive a briefing book and other documentary information that will
be, or is, presented to the full Board.
5. The Committee will make an oral report to the full Board after each such meeting with
the labor organizations and will report back to the labor organizations regarding the
disposition of such matters by the Board.
6. Labor representatives may discuss problems and issues, and present ideas and
suggestions to the Committee. However, the Committee will not discuss items related to
the application or interpretation of the collective bargaining agreements nor will they
have the authority or ability to enter into, bind or negotiate on behalf of US Airways
Group with respect to any collectively bargained matter.
7. The Chairman and CEO will meet with labor representatives on a quarterly basis. Such
meetings will be held within one (1) week of US Airways Group’s quarterly earnings
release and will include other members of senior management. All attendees will be
required to execute confidentiality agreements prior to receiving a briefing from the
CEO.
9-20-05
27
Attachment D
US EMB 190 Captain Rates
% Incr / (Decr) 0.0% 0.0% 0.0% 0.0% 2.0% 0.0% 2.0% 0.0%
YEAR
2006 -
2008
2009
2010
2011
2012
2013
2014
2015
1 78.57 78.57 78.57 78.57 80.14 80.14 81.74 81.74
2 80.36 80.36 80.36 80.36 81.96 81.96 83.60 83.60
3 82.14 82.14 82.14 82.14 83.79 83.79 85.46 85.46
4 83.96 83.96 83.96 83.96 85.63 85.63 87.35 87.35
5 85.82 85.82 85.82 85.82 87.54 87.54 89.29 89.29
6 87.53 87.53 87.53 87.53 89.28 89.28 91.07 91.07
7 89.29 89.29 89.29 89.29 91.07 91.07 92.90 92.90
8 91.07 91.07 91.07 91.07 92.89 92.89 94.75 94.75
9 92.89 92.89 92.89 92.89 94.75 94.75 96.64 96.64
10 94.74 94.74 94.74 94.74 96.64 96.64 98.57 98.57
11 96.64 96.64 96.64 98.58 98.58 100.55 100.55
12 98.58 98.58 100.55 100.55 102.56 102.56
US EMB 190 First Officer Rates
% Incr / (Decr) 0.0% 0.0% 0.0% 0.0% 2.0% 0.0% 2.0% 0.0%
YEAR 2006 -
2008
2009
2010
2011
2012
2013
2014
2015
1 41.22 41.22 41.22 41.22 42.05 42.05 42.89 42.89
2 43.72 43.72 43.72 43.72 44.60 44.60 45.49 45.49
3 46.22 46.22 46.22 46.22 47.15 47.15 48.09 48.09
4 48.72 48.72 48.72 48.72 49.70 49.70 50.69 50.69
5 51.13 51.13 51.13 51.13 52.16 52.16 53.20 53.20
6 52.16 52.16 52.16 52.16 53.20 53.20 54.26 54.26
7 53.20 53.20 53.20 54.26 54.26 55.35 55.35
8 54.26 54.26 55.34 55.34 56.45 56.45
9 55.34 56.45 56.45 57.58 57.58
10 57.58 57.58 58.74 58.74
11 58.73 59.90 59.90
12 61.11 61.11
Notes: Rates begin January 1 of each year.
Captain top of scale for 2006 through 2008 is Year 10. First Officer top of scale for 2006 through 2008 is Year
6. Each January 1 thereafter, top of scale increases by one year up to and including Year 12. First year FO
pay is the first-year first officer salary or rate under the US Airways or America West agreement as
applicable.
