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Old 04-17-2008, 04:21 AM   #105  
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Joined APC: Apr 2005
Position: 767ER capt
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Originally Posted by Carl Spackler View Post
Okay...this is from the NWA MEC just yesterday. It's the first small piece of concrete information I've seen thus far:

The first two negotiations took place in New York City with oil below $90 per barrel. While we achieved agreement on a joint contract and equity and made progress on a seniority list, we did not achieve an equitable seniority list. The third negotiation took place in Washington, D.C., and while more progress was made on seniority, a seniority list agreement was not reached.
The seniority negotiations broke down over the Delta pilot leadership’s desire to include aircraft options, not just orders, in the seniority integration ratio. We were not willing to adjust the seniority integration ratio in favor of Delta pilots based on options, particularly when such options were unlikely to be exercised, other than as replacement aircraft, in the worsening economic environment. There were additional problems concerning calculation of the number of active pilots at each carrier and staffing assumptions for the future. The resulting difference in our respective positions on a ratio was substantial. The actual breakdown occurred when, in response to my suggestion that we both compromise and bring that to our respective MECs for their consideration, we were advised that the Delta pilot group could not move off their last ratio proposal.

This is fascinating. If it is true, it looks like the NWA position moved completely off of DOH. The disagreement is now one concept of a ratio versus another concept of ratio. As far as wanting aircraft options included in the formula for ratio construction, that will be a very difficult sell in arbitration. In my 3 airline career I've been involved in 3 mergers. In all of those cases the arbitrator not only refused to acknowledge options, but refused all firm orders as well. A snapshot was taken of the ACTUAL AIRCRAFT on the property on the date of "constructive notice" (in our case that will be April 14, 2009). From that snapshot, DOH/Ratios/Fences were constructed. Who knows what an arbitrator will do today, but that is the history of my merger involvement.

Carl, sorry, I skipped over your message before. (Too long, w/ small font) I heard a little bit about this from my reps. I was told that the inclusion of our 777 options was a response to NWA's insistence on including the 787 options. What's really happened?- I don't know. I do agree with you, though; we should include only what's on the property when the companies are combined.

Like you, I look forward to seeing what the last table positions looked like.

Last edited by CVG767A; 04-17-2008 at 04:33 AM.
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