FlySlow, I agree with your premise that the East pilot costs have contributed to subsidizing the operation but I think you over estimate the importance of those costs. 3500 employees out of 18 to 20 thousand is really not that significant. I can see where you get that idea from just looking at the cost difference in the two contracts and comparing those numbers to the profit and loss statement but consider this: when fuel costs rose astronomically the company still made a profit. Those extra costs were covered by an increase in revenue.
I believe that if we had a joint contract similar to the Kirby proposal, which would have had an increase in pilot costs of 160 million per year, that the revenue would have been tweaked to cover those costs. It is just easier for them to let things go on right now the way they are right now rather than really work to maximize the yield. I also think Parker and Kirby are more than happy to let USAPA stew under LOA 93 because they are the ones who stalled the merger by not accepting the SLI and renegotiating every section of the joint contract. They will take full advantage of USAPA until they day that they do not have to, the day when either the AA deal goes down or the judge rules that the company is bound by the Nicolau Award.