Any idea on how ALPA monitors 1-C-3 to ensure that the block hour restrictions are being obeyed? Also, anyone know if the 125% ASM limit (also known as UAL pilots signed away 25% of their international ASMs) is aggregate number or by individual JV's?

Cabotage in reverse?

So..UAL is spending money. Usually, they do this to show less profit, hide money, therefore run up to contract negotiations and bonuses. But I am paranoid...

I can see it now....a special message form Howard:

"...thank you for your professionalism...we fell short of profit sharing goals...in other news UAL completed it's multi-kazillion dollar equity purchase in foreign carriers who will soon be executing against our longterm plan to eliminate all labor costs....remember to turn your APU off..."

I agree. And to take it a step further...Isn't it all about lowering the cost of labor? Wouldn't their angle be how to lower the pilot costs of certain routes?

I am convinced the entire Aer Lingus deal was designed to put downward pressure on labor costs on transatlantic routes so that ultimately management could come to the pilots and say "30 percent of European crossings are done at X payrate, or Y payrate and we will need to lower our rates to be competitive." Otherwise, there's no incentive for management.

It's actually starting to sound like Howard is an Alabama fan. Just like every Alabama fan says "roll tide" after each sentence. Can you hand me another beer, roll tide? How you doing today? Roll tide. I like bacon in my grits roll tide. We want our pilots to work for less Roll Tide. Taxi with one motor and turn that APU off Roll Tide.

Wondering what's the point of a 5% stake? What does that get you? A seat on the BOD?

I was wondering the same thing, other than hiding money for the quarter.

They did get a seat on the Azul board. The money spent on an investment like this affects their cash on hand, but has no affect on near term profitability or reporting. If the investment has the desired effect of the decision makers it will add to future profits.

It's sort of like tasting the soup without ordering an entire bowl. I think it's just an investigative position that allows them to put a few chips on the table and play them without putting out too much risk.

That may be the limit of what % is allowed to be owned per the company's articles of incorporation.

I know UAL has a max % limit (5% I believe) that any one investor can own without BOD approval.

Prevents a hostile takeover.