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Old 07-05-2015, 12:50 PM
  #1  
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Default BOA issues ruling on 3 questions...

Issued today, July 5th.

22 page interesting read.

Yes to question 1. "For the reasons previously noted, we are further persuaded that APA should utilize best efforts to appoint such a Merger Committee."
They recommend the APA appoint a new east committee, but leave it up to the APA if that's to be done. If a new committee is appointed it must be spooled up by Sept 29, as the show will go on with or without them.

Question 2, should the new committee be bound by the 9th. They say its not for them to answer, leaving the ball in Silvers court.

Question 3, arbitration schedule and dates.
"in our answer to Question No. 3. To the extent that USAPA and its Merger Committee have exited the process and have decided not to return, that is not the responsibility of the Board or the remaining Parties and should not materially prejudice their legitimate rights and expectations with respect to the timing of the seniority list integration arbitration proceeding in this case."
We only lose the week in July.
Arbitration hearings (to the extent needed) are scheduled for the following periods: September 29, 30, October 1, 2, 12, 13, 14, 15 and 16, 2015; January 4, 5, 6, 7, 8, 11, 12, 13, 14,15, 2016, in Washington, D.C.

Next up...what will the APA do, and how will they do it?
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Old 07-05-2015, 02:58 PM
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Exactly as expected. They answered all questions the way they should have.
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Old 07-05-2015, 04:43 PM
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Among other things, I'm impressed and relieved that the arbitrators seem to want to get this done on time.
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Old 07-05-2015, 05:16 PM
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Personal opinion only but I think you'll see the Nic implemented on the east/west side then the combined list merged into the AA list.

Obviously the west is going for the Nic out of the gate. The new "east" merger committee will also be bound to argue for it, regardless of the title on their door (USAPA or not). Not doing so opens them up significantly to lawsuits.

I would expect AA to push for it as well, avoiding any sort of lawsuits in the future.

It's the most simplistic, easiest solution that prevents the most lawsuits. The east will be dragged kicking and screaming into this.

Let's get this done.
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Old 07-05-2015, 05:24 PM
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Originally Posted by inline five View Post
Personal opinion only but I think you'll see the Nic implemented on the east/west side then the combined list merged into the AA list.

Obviously the west is going for the Nic out of the gate. The new "east" merger committee will also be bound to argue for it, regardless of the title on their door (USAPA or not). Not doing so opens them up significantly to lawsuits.

I would expect AA to push for it as well, avoiding any sort of lawsuits in the future.

It's the most simplistic, easiest solution that prevents the most lawsuits. The east will be dragged kicking and screaming into this.

Let's get this done.
Silver will most likely solidify whether any East committee must argue for integration based on the Nic. As for AA (I assume you mean AAG), they must remain neutral as to any order of integration, including the Nic. The arbitrators have no requirement whatsoever to include the Nic in their final ISL.
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Old 07-05-2015, 07:07 PM
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It's pretty interesting to see if APA will support the Nic.... In the end it could hurt them potentially. Nic gave the West very large gains for the smaller "acquiring carrier" against a larger/international network carrier. If that same logic is applied going forward then there could be some unhappy folks on the AA "acquired" side. Their "superiority" argument could actually hurt them....disclaimer. This is from a junior 3rd lister Easty with very little skin in the game.
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Old 07-05-2015, 07:32 PM
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Originally Posted by asacimesp View Post
It's pretty interesting to see if APA will support the Nic.... In the end it could hurt them potentially. Nic gave the West very large gains for the smaller "acquiring carrier" against a larger/international network carrier. If that same logic is applied going forward then there could be some unhappy folks on the AA "acquired" side. Their "superiority" argument could actually hurt them....disclaimer. This is from a junior 3rd lister Easty with very little skin in the game.
The 9th decline to require APA to use the Nic. Will they anyway.... Only if it makes them more "superior"!
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Old 07-05-2015, 08:03 PM
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Well... Not necessarily. They declined to rule until a court decides whether the East committee as the successor to USAPA is bound by the Nic.
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Old 07-06-2015, 12:41 AM
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Originally Posted by asacimesp View Post
It's pretty interesting to see if APA will support the Nic.... In the end it could hurt them potentially. Nic gave the West very large gains for the smaller "acquiring carrier" against a larger/international network carrier. If that same logic is applied going forward then there could be some unhappy folks on the AA "acquired" side. Their "superiority" argument could actually hurt them....disclaimer. This is from a junior 3rd lister Easty with very little skin in the game.
APA is autonomous. For them to take any position on the Nic would put them at risk by proving they are not.
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Old 07-06-2015, 05:00 AM
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"Whether or not a Merger Committee is required to advocate in favor of adoption of the Nicolau Award, we are not only authorized but obligated, as a result of the provisions of McCaskill-Bond and the language of the Protocol Agreement, to consider and give appropriate weight to all relevant facts and history when determining both an appropriate methodology and when determining whether the resulting integrated seniority list is fair and equitable.
For all of these reasons, we decline to answer Question No. 2 to the extent that it seeks to have us opine on the applicability of a judicial restriction on advocacy by any newly appointed East Merger Committee. To the extent that it asks about whether there will be a Board-imposed limitation on advocacy by any newly appointed East Merger Committee, we answer the question in the negative."
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