e. Tax equalization as provided in paragraph C. of this LOA.
f. Airline Tickets. The pilot shall be entitled to one set of round-trip business class tickets to position him and his dependents from his permanent residence to the FDA at the beginning of his assignment and from the FDA to his next base at the conclusion of his assignment. For each year a pilot completes in the FDA location as an active pilot after the end of his two year commitment, the Company shall provide one set of coach class round-trip tickets for the pilot and his dependents living with him at the FDA back to the location of his permanent residence (or a destination of similar cost).
g. Commitment Period
i. A pilot must complete two years as an active pilot in the FDA, unless released from his obligation due to extenuating circumstances by the Vice President, Flight Operations.
ii. If a pilot fails to complete his commitment period without a release from the V.P., he shall be obligated to repay his seed money and any money paid by the Company for storage.
iii. If a pilot changes or attempts to change his crew status within his FDA (e.g., upgrades from F/O/CDG to CAP/CDG), his original commitment period shall be extended by twelve months plus the time spent in training.
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h. Return Household Goods Shipment. Upon successful completion of his commitment period, a pilot is entitled to household goods shipments via FedEx Express, on a space available basis, of up to a total of 3,000 pounds. Unless different locations are authorized by the Managing Director, Human Resources Operations Support, shipments shall be from the FDA base where the pilot served his commitment to his last pre-FDA permanent residence or his new base at his option. This provision shall not limit or abridge any relocation rights which accrued to the pilot prior to his FDA assignment (e.g., rights accrued by SFS and ANC pilots under 1999 and 2006 LOAs)
i. In the event the Company closes an FDA, pilots who have not met their commitment period shall not be required to repay any seed money or monies paid by the Company for storage and shall be permitted to return up to a total of 3,000 pounds of household goods as provided under paragraph B.2.h.
j. Upon a pilot’s activation into the CDG or HKG crew position, he shall be entitled to a household goods shipment to his FDA location via FedEx Express, using international economy (IE) service (or the most comparable such service if IE is discontinued), not to exceed a total of 500 pounds. If the pilot’s shipment exceeds 500 pounds, the pilot shall be responsible for paying the cost of the excess.
k. Orientation and Housing Search Services
During the first 30 days of a pilot's assignment to the FDA, the Company shall make available to pilots awarded CDG/HKG local real estate and orientation assistance. This shall be provided through individuals who are fluent in the local language and who are familiar with the FDA location. This service may last up to two days and may be provided individually or in small groups. If a pilot chooses to live in a local hotel during the first 30 days of his assignment , instead of the housing allowance for that month, the Company will reimburse the pilot for the cost of hotel arrangements up to $250 per night, for up to 30 days.
C. Federal Tax Equalization Services
Pilots accepting permanent vacancies in CDG or HKG are both entitled and required to use the tax equalization procedures and tax return filing services (US and foreign) offered by the Company through its vendor. The purpose of tax equalization is to provide that a pilot bears approximately the same US Federal tax burden as he would pay if he were assigned to a domestic base rather than CDG or HKG. To facilitate accurate tax computations and reporting, pilots will be required to provide all necessary tax information to the appointed tax provider.
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D. Special Temporary Vacancies for CDG and HKG
In lieu of Section 24.B.2., the following rules shall apply to Special Temporary Vacancies (STVs) at CDG or HKG. STVs shall only be available for the first two years after each FDA opens. Thereafter, if the Company advises ALPA in writing of its intent to close CDG or HKG, the STV rules contained in this paragraph shall once again become available in the FDA that is closing, when the Company is regularly operating fewer than 50% of the aircraft which it regularly operated in that base at the time of the notification of its intent to close. The use of STVs in conjunction with a base closure is limited to 540 days from the Company’s first use of the STV application rule in that context.
1. STV awards shall have a duration between one and three bid periods.
2. STV awards shall begin and end concurrent with a bid period.
3. A STV posting shall specify the crew position(s) from which bids will be accepted and, if applicable, the number of bids which will be awarded at each domicile from which bids are accepted.
4. A pilot shall be entitled to one business class ticket positioning him to the STV location at the beginning of his assignment and back to his permanent base at the conclusion of his assignment. The Company shall also provide a pilot’s dependents with one round-trip coach class ticket from the pilot’s permanent residence to the FDA location during the assignment.
5. The pilot shall be entitled to per diem for the duration of his STV assignment, when the pilot is not otherwise being paid per diem (e.g., on a trip). This shall be accomplished by the submission of a pay log unless pay automation eliminates the necessity for a pay log.
6. The pilot shall be entitled to Company paid lodging in accommodations of quality similar to that of the local contract hotels.
7. Notwithstanding Section 24.C.5., if a STV position(s) remains unfilled following the STV award process, the Company may inversely assign the most junior qualified pilot(s) holding the applicable crew position to the remaining STV positions. If a pilot is inversely assigned, the following shall apply:
a. A pilot shall not be inversely assigned to a temporary vacancy at CDG or HKG more than once in any period of six times the duration of the STV (e.g., for a temporary vacancy of 3 bid periods, a pilot could not be assigned more than once every 18 bid periods).
b. The pilot may not be inversely assigned for more than three bid periods at a time.
c. The pilot shall be positioned and de-positioned to the temporary vacancy using business class accommodations. If the pilot so elects, his dependents may join him using round-trip coach class tickets provided by the Company.
d. The pilot shall be entitled to per diem for the duration of his STV assignment, when the pilot is not otherwise being paid per diem (e.g., on a trip). This shall be accomplished by the submission of a pay log unless pay automation eliminates the necessity for a pay log.
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E. Pilots Relocating from SFS to HKG or CDG
Provided he otherwise qualifies, a pilot may elect to take his FDA move back
provided in Section 6.E.2.b., prior to his activation into CDG/HKG. Once moved
back to the United States, a pilot who selects the “enhanced option” may take
advantage of the household goods storage provided in paragraph B.2.c.
F. Pilots Relocating from ANC to HKG or CDG
For an ANC pilot who is entitled to a "return move" relocation package from ANC, the pilots may elect to be treated in the same fashion (except that their base is in ANC and not SFS) as the SFS pilots in paragraph E. above.
G. Surface Transportation from Hong Kong to Guangzhou
Surface transportation from HKG to CAN is estimated to be slightly over three hours. The limitations contained within Section 8.B.1. of the basic Agreement are waived for purposes of this LOA.
H. FDA Maximum Time Limitation
Should an FDA have a maximum stay time limitation established by the host governmental authority, the Company shall advise the Association as to how it intends to transition pilots to this restriction without abrogating seniority as articulated in the CBA.
I. Crew Position Changes to Different FDAs in the Same Geographic Location
If the Company opens multiple FDAs in the same geographic location (e.g., 757 MEM/CDG; A300 MEM/CDG), the following shall apply to pilots who activate into a different FDA within the same geographic location (e.g., a 757 F/O MEM/CDG upgrades to A300 F/O MEM/CDG).
1. The following shall apply to pilots who chose the enhanced option as part of their original award:
a. Such pilots shall be eligible for the benefits described in paragraph B.2.a. (seed money) and B.2.b. (Four Year Service Credit), treating their new award as a completely separate award to an FDA in CDG or HKG.
b. The commitment period for the new award shall be accounted for treating their new award as a completely separate award to an FDA in CDG or HKG.
c. The benefits described in paragraph B.2.c. (Storage), B.2.d. (Housing Allowance), B.2.e. (Tax Equalization), B.2.f. (airline tickets), B.2.h. (Return Household Goods Shipment), and B.2.k. (500 lb. household goods shipment) shall be administered as if the pilot had not changed FDAs, but rather, had been on one continuous assignment in the same FDA.
d. If a pilot’s crew position changes to a different FDA in the same geographic location and the pilot has not completed his original commitment period, the pilot shall not be eligible to receive the seed money otherwise provided by paragraph I.1.a. above.
2. Pilots who chose the existing CBA option as part of their original award shall continue to receive tax equalization benefits provided by this LOA.