They've got jobs and are still the best paid, most secure airline employees in the country...and have the best pension plan in the NAmerican industry since the US carriers are one by one abbrogating their pension responsibilities upon going through Chapter 11. Benefits packages are also among the best on the continent. AC's major competitor doesn't offer a real pension plan, nor as extensive a benefits package.

ACE's management group restructured the company at a minimal level of job losses and have moved it into a profitable footing. The "screw ups" you refer to are spin-offs from: 9.11, high gas prices, SARS and cut throat domestic competition.

This was a neutral arbitration settlement based on the facts of what the company could bear and what the workers needed to meet cost of living increases. And while these are across the board increases, remember that increasing numbers of employees are low down on the wage scales, so they have lots of other increases coming to them over these same three years that should move them up their specific "band" as well as up to another level in the wage scale through promotions. Band movements are generally 2% to 3%, so really employees can get up to 4% to 5% with compounding each year, and that's certainly above the 2.5% to 3% inflation rate.

If you're prepared to buy only LATITUDE PLUS tickets, then I suppose AC could afford a higher settlement, but the reality is the majority of AC customers want to pay TANGO fares, if not even less.