Nicolau Arbitration Award - Leonidas

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America West view, US Airways was a failed carrier at the time of the
merger, an airline nearing liquidation. Its history shows a steady
decline in its fortunes, with no hiring at all between 1990 and 1998, an
unsuccessful Metrojet "airline within an airline" venture, an inability
because of government disapproval to merge with a then stronger
United Airlines, continuing furloughs after September 11, 2001, a
concessionary Restructuring Agreement in July 2002, an August 2002
bankruptcy filing, a failed reorganization following its emergence from
bankruptcy because of its inability to resolve its structural problems,
and a consequent second bankruptcy in September 2004, after which
its pilots had to make additional concessions of both pay and
protection if the carrier was to have a chance to survive. When all this
is coupled with the fact that as of the time of the merger there had not
even been the presentation of a stand-alone reorganization plan to its
creditors' committee it is plain that the career expectations of the US
Airways pilots were bleak indeed, with no prospect of growth or
significant advancement even through attrition, and the clear
possibility of no jobs at all.
The America West pilots maintain that the picture at their airline
was not at all similar; that the airline was strong and growing with a
"solid business model and Lee structure." In addition to the evidence
of its financial performance, the fact is that 360 pilots, close to 20% of
the work force, had been hired between 11/4/02 and the date of the