formerdal

First off, let me say I am neither AA nor LCC.

This merger, if it happens is different than all the past mergers as it would be consummated while still in Bankruptcy. My question is this, the original equity stake for the AA pilots was based on a standalone exit, now if the companies merge in bankruptcy the value of the combined companies will be substantially higher. Shouldn't the LCC pilots receive a share of that since LCC is contributing to the greater value??

Surely this wasn't overlooked by the negotiators. It just doesn't seem right that the AA guys should receive the entire equity stake based on a much larger value created in part by LCC.

The AA pilots have come out of this bankruptcy much better than any other pilot group thus far, but I think the LCC guys should get thei fair stake as well for what their company brings to the dance.

Rudder1

As it was explained to us in the road shows at LCC, the 13.5 percent was an APA concession in exchange for cessation of their pension obligation.

adam28

I believe the 13.5% would be only on the value of AA in the merger, right now they are talking 70% so it would be 13.5% of the 70%.

formerdal

If that's the case then it would seem reasonable...

Sliceback

Shack. 13.5% of AA's share of the merged company.

R57 relay

Actually this merger would be a lot like US/AWA, as it was done in bankruptcy.

In our (original US)last concession package prior to the merger, we received equity. The details are fuzzy now, but there were a series of stock options issued. Those carried through the merger and only east pilots got them. They increased in value after the merger(US stock had no value in the reorganization). We also received two 35 million dollar lump sum payouts that they west pilots didn't receive. They did get a part of the profit sharing we negotiated.

I see the AA pilots stake the same way. It's their return for their concessions and I don't think we are entitled to it. The MOU is not a document that makes up for our past concessions, it is trading certain things for other things, putting us all same contract moving forward. Many guys are mad about that, but I just don't see how they can think we are entitled to that.

formerdal

OK guys thanks. All makes more sense now...

Stetson29

" The MOU is not a document that makes up for our past concessions, it is trading certain things for other things, putting us all same contract moving forward. Many guys are mad about that ..."

You are so right in your assessment.
So many of the guys that I have talked to who are voting NO on the MOU are doing so because it is not giving them retribution for the last 10 or so years of their career. They are so angry that they are not being duly compensated for the poor wages and work rules they have had to endure.
The MOU is a step forward to better pay and a better life for all. It's time to lift up our heels that were dug in in the past and move on.
No COC argument or hold out for retribution money is going to materialize.
Is it fair and just? Most could argue no, but the MOU puts us on a path for moving on and improving the life of every single US Airways pilot.