Here's the applicable language from the ACO pilot agreement:

Section 1. Recognition and Scope:

C. Successor/Merger: This Agreement shall be binding upon any subsidiaries formed by the Company and/or any successor or merged Company, which shall employ the pilots on the Company Pilots' System Seniority List in accordance with the provisions of this Agreement.

D. Seniority Integration

--2. If the Company sells over 40 percent of its aircraft in a single transaction as a going concern, the Company will, as a condition of the sale, require the purchaser to offer employment to those pilots assigned to that portion of the fleet at the time of the sale.

F. The Company agrees that if any existing aircraft, pilots, or routes operated by the airline are transferred out of the airline to a new subsidiary of the Company for the purposes of starting a new airline within one hundred and twenty days from the filing of an application for an operating certificate with the Department of Transportation, all pilots employed by such airline will be covered by this agreement.

Provided further, "existing aircraft, pilots, or routes operated by the airline" shall mean those aircraft, pilots and routes operated by the airline one hundred and twenty days prior to the date of filing an application for an operating certificate with the DOT.

The Company agrees to notify the MEC of any pending transfer no later than ten days from the date of filing with the DOT.

END OF SECTION