I'm probably going to regret this. I said I was leaving and I did, just tuned in every once in a while to check on the usual subjects.
I've been reading the opinions on the MOU. I wasn't able to attend the road show, so I've asked for a summary of what was presented from friends and have been reading other's opinions.
I don't get the angst about the equity that the AA pilots are getting. From what I understand I have to agree with AAviatior. That stake was negotiated in their chp 11 negotiations with AA. They have nothing to do with the merger, it's compensation for what they lost. They will get that stake whether we merge or not. So, if we don't merge the get approx. 15% of the new stock. If we do merge, AA stake holders get around 70% of the new AA and US shareholders will get around 30%(%s to be determined). So the AA pilots will get 15% of the 70% of the new AA, or about the same as they would absent a merger. We are not entitled to that. Back in 2004 we negotiated LOA 93 with two 35 million dollar payouts and stock options. In 2005 our POR upheld those payouts, but west pilots were not entitled to a share, were they? The AA pilots had the power/luck to get more than we did. If the merger is successful, their % of the company may be worth more. Good for them. The US/AW merger raised the value of our stock options. If I remember correctly I received about $30,0000 in stock option and lump sum payouts that west pilots didn't get.
Concessions in the MOU. There certainly are some, like the reserve guarantee and life insurance. Seems to be more for west pilots than east. But, every contract I have seen at the company, except maybe the first one at PI, has had some concession to it. On the whole, a MOU led contract will have much more give than take.
COC. Yes, I believe it has value, just not enough to rely on it. Let's say we turn down the MOU, a merger goes through and we press COC. The company will drag it out in court and even if we do win we will only get the rates until the APA takes over and renegotiates a new joint contract.
Fire away.