Originally Posted by
Reroute
Mr. Bloch shed some light on how the arbitrators were leaning. It's difficult to decipher from the transcript, because there was some muttering and a digression in th middle, so I did take some liberty and do some editting by eliminating some of the muttering and the digression from the two main points he was trying to make. I've also included the uneditted quote for those who might think something of imporrtance might be in that.
So, what's a current prevailing equity? Because it appears that prevailing equities brought to the merger will dominate the decision. Not future expectations or perceived inequities of the past.
Please pardon my font malfunction:
edited
The first, of course, is to create a list that recognizes the prevailing equities of the new relationship and secondly, there is no doubt that you I know that we will not cure the inequities, real or perceived, of the past, nor can we isolate or insulate anyone against the vagaries of the future. Talk about career expectations in this industry is a little like dreaming about income expectations and investment opportunities at a roulette table.
uneditted
The first, of course, is to create a list
that recognizes the prevailing equities of the new relationship, some points on that, just a small digression. Numerous witnesses have alluded to the fact that this is a conglomeration of equals. You differ as to how equal, but I think Dr.Campbell was essentially correct in speaking of this being a merger and not some sort of an acquisition. I don't hear any serious argument from either side that one company is the savior of the other in this. And secondly, there is no doubt that you -- and I know that we -- will not cure the inequities, real or perceived, of the past, nor can we isolate or insulate anyone against the vagaries of the future. Talk about career expectations in this industry is a little like dreaming about income expectations and investment opportunities at a roulette table.
You've zoned in on one of the very important points, in my view. My interpretation of Bloch's use of the term "prevailing equities of the new relationship" is a reiteration of his comment that the arbitration board essentially agrees that neither airline is saving the other, and they view this as a merger of equals. Using the term "prevailing equitites of the new relationship" is shorthand for the board's overall view of the two companies and what they brought to the merger.
A bigger question for me is; why would he have said it? I have a strong suspicion as to why, but it's obviously only my opinon.
The comment of not being able to cure the inequities of the past is rather obvious. The comment of not being able to isolate or insulate anyone against the vagaries of the future means (I think) that they are going to use the tried and true method of taking a snapshot at some point (constructive notice, corporate closure, end of firm aircraft orders, etc.) and construct a list.
The only other question is, will they use the computer programs we've provided them to move the list forward into the future to see how the list will look down the road.
Carl