ALPA’s constitution provided that, when two ALPA-represented pilot
groups were to be combined as part of an airline merger, the pilot seniority lists would be
integrated on a “fair and equitable” basis in a “final and binding” arbitration between the
two pilot groups. In accordance with the ALPA constitution, and consistent with the
requirements of a September 23, 2005 agreement negotiated between ALPA, the East
Pilots, the West Pilots, and pre-merger US Airways, Inc. and America West Airlines, Inc.
(the “Transition Agreement”), the East Pilots and West Pilots, through separate counsel,
participated in such an arbitration before neutral arbitrator George Nicolau. Arbitrator
Nicolau rendered his decision in May 2007 (the “Nicolau Award”). ALPA presented the
integrated seniority list mandated by the Nicolau Award to US Airways in late 2007, and,
as required by the Transition Agreement, US Airways accepted that integrated seniority
list on December 20, 2007.