January 22, 2007 - Leonidas

0122Final141 section that caps the amount that can be put into a2 qualified plan, the remainder has to go into a3 nonqualified plan which is basically a liability to4 be paid out in the future, but it does not affect5 cash.6 So, in order to provide other relief to7 the company to make up the difference between the8 expense and cash, the company provided two payments9 in the future for that investment. That is how10 those numbers came about.11 Q Okay. And so the, these changes resulted12 in a change for the America West pilots, too,13 according to provision 8-D of the transition plan.14 Can you explain what was the benefit to the a the15 America West pilots secured in that provision?16 A Well, in this particular case the America17 West pilots had a contributory plan. In other18 words, the company contributed a certain amount and19 then the pilot would have to contribute another20 amount that would be matched. So in other words,21 the pilot had to take available cash flow to him and22 defer that into a plan in order to have the23531 matching.2 What this did here made the company make3 the entire contribution, not require a contribution4 from the pilot, and so in reality that freed up cash5 flow to the pilot to either spend or invest or make6 a decision to expend that money in some manner that7 was not available in the past.8 Q All right. Page 12 of the transitionPage 20