Here is the uphill battle that I believe that the company faces:
"Exception two: In the event the hiring or flow provisions of NWA LOA 2006-10 or LOA #9 cease to be available, either at the feeder carrier affiliate referenced in such LOAs or at another carrier, the number of permitted 76-seat aircraft in Section 1 B.47. e. will be reduced by 35."
The "trigger" is the hiring/flow provisions of LOA ceasing to be available. Further, the Company, if fact, reduced the number of 76-seat aircraft by 35, as admitted by PB in his memo of May 3rd. As such, the Company clearly believed that LOA #9 ceased to be available (NWA LOA 2006-10 was subsumed into the JCBA after the merger and has, therefore, been rendered "moo") and thereby reduced the number of 76-seat RJs by 35.
Looking at LOA #9, the language of 1.e clearly states:
"The flow rights of Compass pilots will no longer be effective upon a sale or divestiture of Compass, partial or complete, that results in Compass no longer being an affiliate (as defined in the PWA) of Trans States Holdings, Inc. In such event, Delta, Compass, and the Association will meet and confer for the purpose of discussing whether continuation or modification of this LOA would be appropriate given the circumstances at that time. Any continuation or modification will require the agreement of Delta, Compass, and the Association."
At a minimum, DALPA has skin in this game soley by the language of 1.e because DALPA is "the Association." PB's comment that:
"Should Delta and a regional carrier agree to provide LOA #9 hiring and flow rights, Delta pilots would be afforded the flow-down protection rights of LOA #9 at the other airline, and under the terms of Section 1.B.47.f. Exception 2 of the PWA, the number of permitted 76 seat aircraft would no longer be reduced" overlooks one crucial issue.....you have to have DALPA on board and in agreement. This is where (I believe) the company will fall short in an arbitration. Without DALPA's agreement, the 35 76-seaters stay parked.