US Airways ALPA PHL LEC Update - Dec. 5, 2006

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PHL Council 41 Update - December 5, 2006

Fellow Council 41 pilots,

We will be meeting with the AWA MEC tomorrow during day three of our 4th quarter MEC meeting in Charlotte . We may even have a visit from one of our Management “Deal Makersâ€. We will keep you posted. Timely information is available on the MEC Code-A-Phone at 1-800-FOR-ALPA.

Day two of the seniority Arbitration in Washington DC is completed. Philadelphia First Officer Rich Wargin has written another synopsis of today’s events that we would like to share with all of you.

ARBITRATION TODAY"

This is Rich Wargin with the Arbitration update for Tuesday, Dec. 5, 2006.

Arbitration hearings continued today in Washington , D.C. with 6 observers in attendance.

NOTE: USAirways Merger Committee is currently in their case presentation phase. America West pilots will begin their case presentation in January, 2007. Due to the complex nature of arbitration, no decision or award is anticipated from Mr. Nicolau before late spring 2007.

Since the arbitration process presents unique dynamics, after ending presentation of evidence and testimony on Monday, the committee and Mr. Katz, the attorney for the USAirways pilots, continued case preparation through late Monday night.

Tuesday morning, Presiding Arbitrator George Nicolau, and two pilot neutrals (Capt. Stephen Gillen of UAL & Capt. James Brucia of CAL ) resumed case presentation of the USAirways Merger Committee team.

The day began with USAirways’ presentation of a video of Mr. Parker’s “Brown Bag Lunch Meeting†with America West employees on Jan 25, 2006. Merger Committee member Kevin Barry’s continued testimony in cross-examination and concluded with Mr. Katz’s redirect. After clarifying issues contained within the Shuttle Integration, he concluded by reflecting proper characterization of many current issues. Kevin’s testimony could best be described as open, honest and to the point.

During cross-examination, the America West counsel attempted to call into question Mr. Parker’s honesty concerning his responses to his own employees during the above mentioned meeting. He asked if Kevin was aware of the need for, or lack of, legal requirements of Mr. Parker in any statements to his employees in attendance.

We find it striking that any counsel for an America West employee group would infer dishonesty in Mr. Parker’s discussions with his own employees, or call into question Mr. Parker’s character or integrity.

Next, Dean Collelo was sworn and testified relating to furloughed pilots, including the C. E. L. (Combined Eligibility List of furloughs) group, forecasts for recall and methodology of probability modeling of pilots accepting and/or declining recall. He briefed the group on both pilot and company responsibilities and venues to bypass recall. He also detailed the longevity of service concept, furlough time(s) and the recall process and probabilities.

In summary, his modeling demonstrated the company will experience a probability of less than 33% of our furloughed pilots expected to accept recall, since a majority of these highly qualified pilots have found other, better, less repressive, non-harassing and non-employee-victimizing employment at such carriers as SouthWest and FedEx. Working conditions, salaries, benefits and retirement within such companies are so far superior as to understandably generate little, if any, desire to forfeit such. We believe everyone understands this concept all too well.

While Mr. Freund’s cross-examinations and comments continued to try to impugn our case presentation and substance, he made no secret of continuing attempts to limit as many exhibits as possible. We believe this course of action understandable given the type, preparation and presentation of supporting documentation in multiple formats to promote ease of comprehension.

Captain Robert (Bob) Kirch was the called upon to explain admission of various exhibits containing detailed information pertaining to multi-format list examples. Data contained in exhibits submitted during Bob’s testimony were all calculated identically to promote ease of use and contained substantial quantifiable detail.

Bob showed the difference between fundamental promotional opportunity concepts: growth probability vs. real attrition potential. He went on to illustrate exactly how growth is significantly less probable than accurately predictable attrition based promotional opportunities in both near and long-term scenarios - regardless of regulatory change potential. Given publicly available information, we believe everyone understands this.

The highlight of Bob’s testimony came when he clearly revealed, using a “Date-of-Hire†list example, a substantial number of promotional opportunities for the America West pilots given the extraordinary attrition rate of the USAirways pilots over several time-periods. Almost everyone in the room was astonished by this revelation, as well. Further, supporting data clearly exposes how 80% of normal annual attrition expected within the next 10 years originates from within the pre-merger USAirways pilot ranks. “Date-of-Birth†sorting is one example of how this can be easily seen and functionalizes ease of quickly extrapolating information, for example how almost 90% of the pre-merger USAirways pilots will be retired within 10 years, presenting incredible opportunities for pre-merger America West pilots as well. Adding to that are further probabilities for a significant number of pre-merger pilots to leave early, and well… (You see the implications.)

Everyone was astounded in how, by the time the combined seniority lists are fully implemented (using “Date-of-Hire†methodology) pre-merger America West pilots will be holding wide-body, international captain positions in less than 1½ years from today without fences.

Bob Kirch discussed several issues during further testimony and avoided “apples to oranges†comparisons with his extensive experience and expertise and, basically, skillfully avoided topics delving too far into minutiae to be of any significance.

On Wednesday the arbitration process continues, but will be slightly shortened due to prior travel obligations of Mr. Nicolau.

Rich Wargin, Jr.
PHL B767 F/O

NOTE: Please REMAIN aware of the fact that your Merger Committee members have listened to your suggestions. They are aware of your concerns and desires and have implemented many of your ideas and suggestions. Please don’t be offended if you don’t receive an individual response. Instead, recognize how a limited number of people simply can’t respond to numerous daily emails & telephone calls. They need to, and are, doing a very difficult but completely thorough job.

Arbitration hearings will continue next week in Washington , D.C. at the Wardman Park Marriott, located at 2660 Woodley Road . The hotel is located at the Woodley Park Metro stop on the Red Line. The hotel may also be reached by taxi for about $25 from DCA.

Pilots and spouses are invited to attend these hearings in order to understand and see first hand the process of integrating the US Airways and America West pilot seniority lists. If you haven’t seen it, you’ll be amazed at how well prepared your representation is for this process!
 

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