The pilots
of Atlas Air
vs. Apollo.

The Related Entity definition combines 50% or more equity ownership with effective control. Effective control concerns decisive authority, by contract or otherwise, over the airline or arrangement. The ownership number alone should not be presented as resolving every Article 1 issue.

The definition of covered “flying” excludes flying conducted by another entity under a dry lease. A dry lease is an aircraft lease where the company or related entity does not provide the crew. This exception must remain part of the analysis.

Article 1.C addresses specified aircraft transfers that would directly cause a reduction in force and the company’s reasonable efforts to obtain a flying agreement. Article 1.D addresses defined subcontracted revenue flying, with permitted circumstances, notice, information, time limits and exceptions. These are distinct provisions with factual conditions.

On request, the company agrees to supply documents and information reasonably necessary to determine Article 1 compliance. Proprietary, sensitive or confidential information may be subject to a standard confidentiality agreement if the company requires one.

The clause prohibits creating an alter ego to avoid the agreement’s terms and conditions. An ownership diagram is not, by itself, a determination that an alter ego exists. The arrangement and supporting evidence would need to be examined.

Relevant ownership and control documents; aircraft and lease records; customer and flying arrangements; crew and employment effects; and existing information requests, grievances, responses and outcomes. The absence of a public account does not establish that no action was taken.