CO offers its pilots the Delta contract plus $1/hr

[FWAAA]

Interesting way to speed up negotiations:

http://online.wsj.com/article/SB1000142405...mp;mod=yahoo_hs

 

[HottootrotNyc]

Interesting way to speed up negotiations:

http://online.wsj.com/article/SB1000142405...mp;mod=yahoo_hs

Almost hysterical! The day after this contract would pass they would be ordering 100 seaters for Colgan! NOTTTTTTTTTT! The Pilot's are not dumb, unless it has the current scope protection it won't pass!

 

[brokenwrench]

Analyst Dan McKenzie with Hudson Securities ssued an interesting note this week.
He wrote,

"We’ve been saying a CAL-UAL merger is "inevitable" since our 7/14/09 CAL initiation (and since 2008 for that matter). Now prognosticating a CAL-UAL merger by the end of the year or early next. If not, we likely don´t see it for another 3 years. We outline 3 key thoughts behind our view.
• First, UAL & CAL are profitable, but not profitable enough to give labor the increase they would like. Perhaps interestingly, CAL´s 2010 nonfuel CASM guidance of +1% suggests CAL labor groups are unlikely to receive a raise this year. Ditto for UAL. That is, should CAL & UAL offer labor a raise today, they would be hard pressed to turn around and offer a second raise in order to coax labor to go along w/ a merger at a later date – industry economics are too fragile. Until UAL & CAL are certain one way or the other, they are better off repairing balance sheets and holding off on raises near-term.
• If investors connect the dots on where LUV is going with its network strategy (see our 2/23/10 LUV note), we believe investors will conclude it’s unwise for CAL & UAL to wait. LUV reports plans to move into Caribbean & Mexican markets - presumably from Houston, thereby threatening CAL revenues. UAL has already faced network degradation [from LUV]. Said differently, if UAL & CAL decide to merge in 3 years and thus integrate networks in 4 to 5, hundreds of millions of potential CAL/UAL merger synergies are disintermediated by LUV as it consolidates its market share grip.
• Separately, CAL mgmt has pointed out the DL-NW post merger financial results are disappointing, but in our view, it’s an apples to oranges com-parison. DAL labor contracts are largely out of the way while UAL’s and CAL’s are not. So if investors superimpose the inevitable higher wage expense on today’s results at UAL and CAL [as standalone carriers], the financials for both naturally look worse (vs DAL). Said differently, DAL/NW enjoy a relatively mature & stable labor cost structure today, CAL & UAL do not.
• Finally, since Jan 1, 2009, DAL has traded at a 186% premium on average to a combined CAL/UAL market cap as standalone companies, which makes Glenn Tilton (UAL CEO) correct when he says the markets have spoken. Shareholders admittedly are right to demand more. Separately, we would argue a merger earlier in the cycle (vs later) makes more sense as it reduces financial uncertainty over execution risk."

 

[HottootrotNyc]

Analyst Dan McKenzie with Hudson Securities ssued an interesting note this week.
He wrote,

Have you heard that new song, blah blah blah? Well here is what I have to say to this article, blah blah blahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh,

 

[brokenwrench]

Have you heard that new song, blah blah blah? Well here is what I have to say to this article, blah blah blahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh,

An articulate and well thought out response, kudos.

 

[HottootrotNyc]

An articulate and well thought out response, kudos.

I'd like to think so!!!