In contrast to US Airways on the day prior
13 to the merger, there were no America West pilots on
14 furlough, America West of course like every other
15 carrier in the country had if you are lows following
16 September 11th, but those if you are lows didn't
17 last very long. Most of them, as I look back onto
18 the list, most of them lasted a couple of months,
19 none of them lasted for longer than a year.
20 Everybody was recalled by September of 2002, and
21 following the recall of the last furloughed pilot,
22 9-11 furloughed pilot America West had hired some
39
1 360 additional pilots.
2 In short, the airline was a functioning,
3 viable, competitive company that provided secure
4 jobs for its pilots and that was slated to provide
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5 promotional opportunities as a result of the
6 delivery of the remainder of that order of 22 A320s
7 that had been partially delivered prior to the
8 merger announcement.
9 Those are about as stark a set of airlines
10 as one could imagine, in this airline environment.
11 You had one airline that was growing and was stable
12 and one airline that was, again with respect to our
13 colleagues, was a failed business, failed carrier,
14 and did not offer the prospect of any career
15 enhancement, let alone career stability to its
16 employees. Not just its pilots but to its employees
17 as a whole.
18 So what are the consequences of the
19 merger.
20 Q Because I think that is something else
21 that has to be taken into account, when assessing
22 how these lists should be put together.
.
5 I think the best place to look to
6 understand what the consequences for the merger was
7 on the US Airways pilots is the words of US Airways
8 own CEO, Mr. Lakefield said, quoted it in our brief,
9 I am going to short quote, I am going to read it
10 again here, he said "there were times when we felt
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11 we would not be able to stay in business for more
12 than a few weeks. But we did, and what we have now
13 is far more than we could have hoped for."
14 As we sit here today US Airways pilots are
15 being recalled to fly aircraft they couldn't
16 possibly have acquired without this transaction.
17 As we sit here today US Airways pilots are
18 on the verge of obtaining literally hundreds of
19 millions of dollars in economic benefit just from
20 coming to parity with the America West collective
21 bargaining agreement. And that is the case
22 notwithstanding the fact that the US Airways pilots
41
1 collective bargaining agreement on a stand alone
2 basis, if you want to assume that they could have
3 stood alone, we don't assume it but if you want to
4 assume it for purposes of thinking about what I am
5 saying, the US Airways pilots collective bargaining
6 agreement was not amendable until 2010,
7 notwithstanding that, they will be the inheritors of
8 hundreds of millions of dollars of pay and benefit
9 increases as a consequence literally just of coming
10 to parity, putting to one side the question of what
11 additional increases may be negotiated as a
12 consequence of the merger. I
I am not making any
13 predictions obviously about what those negotiations
14 might produce, all I can say is that they are, the
15 parties are in negotiations and that proposing wage
16 increases over and above what it takes to bring the
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17 US Airways pilots to parity.
18 The consequence to America West was really
19 exactly the opposite of the consequence, the
20 consequence to the America West pilots is the exact
21 opposite of the consequences to the US Airways
22 pilots.
42
1 America West, notwithstanding that it was
2 slate Todd grow to 161 aircraft by the end of 2007,
3 as a consequence of the order of the 22 A320
4 aircraft stopped growing, and the promotional
5 opportunities that would have been there had those
6 aircraft been delivered as scheduled disappeared.
7 Additionally on the economic front, again
8 I am not going to try to predict what the America
9 West pilots would have been able to negotiate on
10 their own. The only thing I can say is, and I think
11 this really goes without saying, there are scarce
12 dollars that are available for bargaining over
13 wages, and it is going to take a huge number of
14 those dollars in order to bring the you US Airways
15 pilots to parity with the America West pilots and
16 the use of those scarce dollars to bring the US
17 Airways pilots to parity with the America West
18 pilots will mean just in the normal course of
19 things, we are all big boys and girls, we have all
20 been through these situations before, it will mean
21 nothing more and nothing less than the fact that
22 there will be less dollars available for wage
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43
1 increases and benefit improvements for the America
2 West pilots than there would have been under
3 alternative scenarios.
4 Those are the facts, those are critical
5 facts, those are the facts on which we say and we
6 believe one has to base an assessment of what the
7 pre merger career expectations of the two pilots
8 were and what the consequences of the merger were
9 for the two pilot groups.