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Important

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Trained employees - Eastern estimates the value of Colonial's trained employees to represent an investment of $934,505. In support of this estimate, Eastern maintains that this cost represents the expense which would be incurred in providing basic airline training to an entirely new employee without previous airline experience who would emerge from this training as a new and green employee. No expense has been considered from mere orientation of experienced airline personnel. 

Eastern contends that the cost of hiring and training competent personnel is substantial in the operation of an airline, that the opportunity to secure the services of 786 trained employees would be of real value, and that the value which it has assigned to these employees represents a minimum cost savings. It points out that other factors exist for which no allowance has been included in the appraisal. For example, when new employees are hired a certain percentage will be unable to perform the work. The employees of Colonial with proven ability will include none of this type. In addition expenses for materials, equipment and supplies, floor space, building rental and other indirect costs incidental to the training of such employees have not been included in the estimate.

It also is pointed out that a large percentage of Colonial's employees are located in New York, which is a very difficult labor center, with attendant higher employee costs. The availability of these employees will avoid the difficulty similar to the one Eastern is now experiencing in locating licensed mechanics all over the