January 22, 2007 - Leonidas

0122Final1413 percentages; in LOA 93 the percentages were 1014 percent for pre-tax margins of 0.1 percent, to 515 percent, and at above -- for that above 5 percent it16 was 25 percent of the pre-tax margins.17 Q So now in the transition agreement it has18 been scaled back --19 A Tremendously.20 Q -- so from 5 to 10 percent, it is going to21 be 10 percent instead of 25 percent?22 A Well, not only -- not only does the level23471 change from 5 percent to 10 percent, okay, but it2 also changes for the profit percentage in excess of3 that from 25 percent to 15 percent, significant4 change.5 Q So the trigger is later for the enhanced6 value and the enhanced value is a lower percentage7 than it was before?8 A Yes, it is. Significantly lower.9 Q And were there resolutions of the10 outstanding equity issues as well in the transition11 agreement?12 A As far as the transition agreement was13 concerned that did not address the equity issue.14 Q That was in a separate agreement with the15 USAir MEC?16 A That is correct.17 Q Then finally on page 9 there is a18 reference that has been highlighted to the share of19 the pool of profit allocated to the pilots of US20 Airways and America West at 36 percent?Page 16