Originally Posted by
JoeMerchant
It has to be written into the mainline agreement, or it has to be an agreement with the mainline management. Your right, Eagle paid an expensive price with the 16 year agreement to buy this....However it was traded away.
Joe,
That might be a bit of an over simplification. As I understand it, it was waived via a grievance settlement prior to the formal bankruptcy filing. At the time no one knew if a Judge would invalidate Labor Protective Provisions as part of a bankruptcy reorganization. Most "historians" thought no, but most attorneys stated it could happen and ALPA's Representation Dept thought it was likely. No one really knew.
Well, Judge Sean Lane ruled much as ALPA's Counsel thought he would, by invalidating labor protection provisions. While some remained, he mostly gutted the American Section 1, leading to what we might call industry standard outsourcing (and certainly making American a more viable merger target).
Did the Eagle MEC screw up? Who knows. It is very likely their Section 1 would have been lost in bankruptcy.