James Parker – Raymond James & Associates, Inc.

Okay. One more question. And sorry for the background noise. I am on my SkyWest flight about to take off. I apologize, but it appears that you don’t have a certificate for E-Jets, and there may be demand for E-Jets. How long would it take you to add that aircraft type to your certificate?

Unidentified Company Representative

Very good question Tim. We know that that exists. We know that there seems to be not only demand, but obviously with what one major carrier has just done. There is definite interest in that type, we’re very well position in our discussions with manufactures and our people are very well prepared and preparing for that type. The timing involved could be between, I mean think to do it right, it’s somewhere between six and twelve months. And by the way that’s not discouraging to us, because we think that aligned very well not only with our delivery positions, but we have, when the next round of demand will be from the major carriers.

2. DEFINITIONS

C. “Aircraft-type” means any variation of a particular model of
aircraft, e.g., CR7-CR9, CR2, AT7 and related models, so long
as the related model requires no transition training and remains
within the seat ranges established in this Agreement[/b]

D. New Aircraft-type
1. Should the Company place in revenue service aircraft other
than the aircraft for which rates of pay are specified in this
Agreement, the Association and the Company will meet
pursuant to Title I, Section 6, of the Railway Labor Act, ninety
(90) days, if possible, but no later than sixty (60) days before
the aircraft is scheduled to be placed in revenue service for
the purpose of negotiating rates of pay for such aircraft.
2. If no agreement has been reached by the thirtieth (30th) day
prior to the date the aircraft is scheduled to be placed in
revenue service, the parties will submit the issue to an
arbitrator for final and binding arbitration.
a. When the Company announces the decision to place such
aircraft into revenue service, the parties will mutually agree
upon the selection of an arbitrator. If mutual agreement is
not possible, the arbitrator will be selected from the list of
arbitrators contained in Section 21 by alternately striking
names until one (1) remains. The parties will determine the
order of striking by the toss of a coin. The winner of the coin
toss will have the choice of striking first or second.
b. The arbitration will be held at the earliest possible date
consistent with the arbitrator’s schedule. If the arbitrator
is not available within sixty (60) days after the new
aircraft is scheduled to be placed into revenue service,
either party may elect to restrike the arbitrator panel as
described in paragraph D.2.a., above. Fees and expenses
of the arbitrator, as well as costs of the hearing
room and the stenographic report, will be shared equally
by the parties.
c. Closing arguments may be made in lieu of post-hearing
briefs. The arbitrator’s decision containing the pay scales
and subsequent periodic increases, if any, for the aircraft
for the duration of the Agreement will be issued within
twenty-one (21) days following the close of the hearing.
3. Time limits may be extended by the mutual agreement of the
parties.
4. Should the Company place into revenue service aircraft other
than the aircraft for which rates are specified in this Agreement,
the pilots will, upon qualification, begin flying and
continue to fly the aircraft. Rates of pay will be retroactive to
the first day the aircraft was placed into revenue service.
5. The arbitrator’s decision will be based upon relevant factors
within the part of the U.S. airline industry comprised of
carriers, the majority of whose aircraft fleet (present and
future firm orders) and operation is substantially similar to the
Company’s and who meet all of the following criteria:
a. Are not currently operating under the protection of the
bankruptcy laws; and
b. Have a collective bargaining agreement with a labor
organization certified by the National Mediation Board
(NMB) covering its pilots; and
c. Are not carriers

So does your current CBA have this language sport?

>>5. The arbitrator’s decision will be based upon relevant factors
within the part of the U.S. airline industry comprised of
carriers, the majority of whose aircraft fleet (present and
future firm orders) and operation is substantially similar to the
Company’s and who meet all of the following criteria:
a. Are not currently operating under the protection of the
bankruptcy laws; and
b. Have a collective bargaining agreement with a labor
organization certified by the National Mediation Board
(NMB) covering its pilots; and