Here is a what LOA 91, "Consolidated Small Jet Agreement," is all about. This LOA allows RJ scope relief to the company in the following areas:
1. If the CRJ 701's positions now going to PSA are pulled by GECAS, or if PSA airplanes or sold, they can be bought by our Affiliate carriers (Mesa), thus staying in U colors, and requiring the acquiring Affiliate carrier to provide J4J's for U pilots (this applies to any wholly-owned, Piedmont and Allegheny, as well, but they are not scheduled to receive SJ's)
2. If the EMB 170's positions now going to MDA are pulled by GECAS, or if MDA aircraft are sold, they can be bought by our Affiliate carriers, thus staying in U colors, and requiring the acquiring Affiliate carrier to provide J4J's for U pilots.
3. If a wholly-owned is sold (PSA, for example), 100% of its pilots (and their contract) will go with the sale to the new acquiring carrier/owner. If the acquiring carrier is an Affiliate, J4J's will apply for all future vacancies.
4. If MDA is sold, 100% of its pilots (and their contract) will go with the sale to the new acquiring carrier/owner. If the acquiring carrier is an Affiliate, J4J's will apply for all future vacancies.
5. What MDA loses is fragmentation rights associated with a sale of some of its airplanes, with those fragmentation rights being replaced by the J4J's program. There is no change in the Mainline fragmentation protections, and any sale of MDA assets will be used as credit towards the 15% trigger that would apply to mainline assets if they too would be sold.
Additionally, PSA is allowed to increase its Large SJ fleet from 25 to 60 (for a total of 85 SJ's at PSA), increasing the total authorized Large SJ's fleet from 165 to 200, but with no increase in the already allowed limit of 315 Medium/Large SJ's that the company can fly in our colors.
And that's about it. Scope protections can't prevent GECAS from pulling delivery positions of these CRJ's or EMB's, nor can it guarantee that these planes, once pulled, will go to our Affiliate carriers. Furthermore, all the Scope in the world can't prevent the company from selling PSA or MDA if they so desire. All Scope can do is allow our Affiliates to use these planes under our colors, allowing us a revenue steam from these SJ's and a J4J's program.
Why did we have to trade MDA fragmentation protection for a J4J's program? Because GECAS is the secured creditor of these new EMB 170's, and they wanted the ability for U to sell these airplanes with no strings attached (except J4J's), thus readily finding a buyer for these EMB's if the need should arise (like prior to going into bankruptcy) in order to protect GECAS's investment.
Finally, if GECAS pulls deliveries and sells them to another carrier who is not one of our Affiliates, like Republic (United Express), then, of course, no J4J's program would apply as this is only an arrangement that we have with our Affiliate carriers. And this is exactly what we are trying to prevent from happening by providing GECAS the ability to sell these pulled aircraft to an Affiliate and thus still fly, with this LOA 91 Scope relief, under our colors.
And that takes care of that 38 page LOA 91 document.
Now, for Attachment A. The company agrees to the following:
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ATTACHMENT A
Company Small Jet Proposal
1. Tag Along: The Company will schedule and coordinate a three-way meeting between the Company, RSA, and ALPA. The meeting will be held Friday, March 5 in New York City with RSA attorneys, Company Representatives (John Luth and Liz Lanier), and representatives of ALPA. The parties will endeavor to expeditiously resolve all outstanding Tag Along issues. If necessary, follow up meetings will be held.
2. Jump Seat: The Company will participate in the industry off line jump seat plan: ATA Cockpit Security System (CASS). Once this process is approved, the Company shall apply to TSA to participate after it determines the cost of participation in the program. (See attached E-mail entitled "CASS System".)
3. Alternative Access: The Company agrees to implement a procedure arranging for alternative access to secure areas at pilot domicile airports. (See attached letter)
4. Commuter Policy: The parties will negotiate and implement a Commuter Policy by no later than July 1, 2004.
5. Trip Construction: The Company and Association will establish a working group to review pairing construction parameters with the objective of seeking mutually beneficial improvements to the quality and efficiency of pairings.
Alternative Access Letter
This letter confirms the Company's commitment to work directly with ALPA to obtain alternative access to secure areas at all pilot domicile airports. Each Chief Pilot will meet with a designated ALPA representative within two weeks of the effective date of this letter. The Chief Pilot and the ALPA designated representative shall determine how to best achieve pilot access to secure areas of the airport. Meetings with the TSA, airport authority or other necessary parties shall be expeditiously arranged. The goal shall be to have an acceptable mode of alternative access in place at all domiciles within 60 days of the initial meeting. If this is not achievable, the Chief Pilot and the ALPA designated representative will submit a complete report to the MEC fully explaining the delay and stating how access will be obtained.
Further, the Company commits to participate in the funding of the cost (up to $70 per pilot) of ID Cards, Badges, or other designation necessary to effectuate this policy.
Resepctfully,
USA320Pilot