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Nicolau Arbitration Award - Leonidas

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4<br />

international presence in which planes not in America West's fleet are<br />

flown. However, in most categories, America West's pay scales are<br />

higher. Beyond this, at the time of the merger announcement, US<br />

Airways had a significant number of pilots on furlough while America<br />

West had none. Moreover, the financial future of US Airways was not<br />

comparable to or as bright as that of America West.<br />

These factors, as could be predicted, led to great differences In<br />

the Parties' concepts of a fair and equitable merger. In basic outline,<br />

US Airways argued for a Date of Hire list, adjusted for Length of<br />

Service, subject to certain seven-year conditions and restrictions, a<br />

model that placed the most senior America West pilot far down the<br />

seniority list and merged a number of furloughed US Airways pilots<br />

above active pilots at America West. In contrast, America West, relying<br />

heavily on its view of the pre-merger financial picture at US Airways,<br />

urged a series of ratios that gave little weight to the longer service of<br />

pilots at US Air. Despite indications by the Board that both approaches<br />

created difficulties if the goal was a fair and equitable integration,<br />

those positions were not fundamentally changed.<br />

Before discussing the aforesaid approaches in greater detail,<br />

some uncontroverted facts and then some recent history. US Airways is<br />

the product of a series of mergers stretching back to 1968. At the time

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