jetwash
Well-known member
- Joined
- Mar 30, 2002
- Posts
- 879
I will have to go with what our lawyers say and trust their opinion in this matter. I think they have my interst in mind more then the company lawyers or other posters on Flightinfo.
I recommend that you research things for yourself. I do not trust attorneys. I don't. (I am one but chose not to practice)
McCaskill-Bond statute (49 U.S.C. ? 42112) applies when two or more air carriers are involved in a "covered transaction." This is defined in the statute as:
Purchasing less than 50% of the assets (if the aircraft are assets, which I doubt, as the vast majority of aircraft and ALL Frax (which by definition) are not assets of the company) makes M-B moot.
- A transaction for the combination of multiple air carriers into a single air carrier; and which
- Involves the transfer of ownership or control of?
- 50 percent or more of the equity securities (as defined in section 101 of title 11, United States Code) of an air carrier; or
- 50 percent or more (by value) of the assets of the air carrier. 49 U.S.C. ? 42112 (b)(4).
Finally, you are incorrect. Your lawyers are in the debate because it makes them money and for no other reason.
Bob
Here is the explanation that the lawyers presented as to why they think M-B applied.
To begin, there is no doubt that based on the proposed terms of the acquisition, as described to us in our recent meeting with Flight Options, the purchase of CitationAir would qualify as a ?covered transaction? under McCaskill-Bond. This is because 1) Flight Options and CitationAir are air carriers, 2) the transaction would involve the transfer of ownership or control of 100% of the assets of CitationAir to Flight Options, and 3) the purpose of the transaction would be to combine Flight Options and CitationAir into a ?single air carrier? with Flight Options being that single remaining air carrier and CitationAir ceasing to exist. Hence, McCaskill-Bond?s requirement that a covered transaction occur before the statute applies would be satisfied.
I was not in the room when the union lawyers were questioning the company lawyers as to how the deal was set up. From what they were told by the company about the transaction they feel that it was covered. So I have to trust that they were correct.