Nicolau Arbitration Award - Leonidas

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Constructive Notice pilots. Because there have been no new hires
since the merger and inasmuch as we have decided on particular
integration methodologies regarding active pilots, their placement at
the bottom of the integrated list, a position they know occupy on the
US Airways list, will not adversely affect America West pilots.
As to the construction of the integrated list, we have made
certain assumptions. The first is that the list should be constructed
based on a continuation of the Age-60 Rule. The Board is aware that
the FAA has undertaken a formal study of the desirability of increasing
the retirement age to 65; that legislation to that effect is being
considered; that the US Airways MEC has asked the Company to
support individual waivers of the rule, and that the Company has
indicated its willingness to do so. However, previous efforts to modify
the rule have not succeeded and the likelihood of near-term
modification is by no means assured. Moreover, the Company's assent
is contingent on conditions the FAA might impose, such as requiring a
below age-60 pilot to accompany an above age-60 pilot, and ALPA's
agreement on the manner in which to treat inevitable seniority
conflicts in the event a split cockpit is ultimately adopted. In the
Board's view, all of this uncertainty requires caution, rather than risk.
As a consequence, the list is not constructed on the assumption that
pilots will be able to fly until age 65. We may, of course, be wrong on