Latest news regarding DAL/NWA merger...

[luvthe9]

"We want any seniority list integration to be fair to pilots at the top, middle, and bottom of the list" said Greg Rizzuto, a spokesman for the Northwest branch of ALPA. " A pilots career is tied completely to his or her seniority ranking. A short-term economic benefit is not worth sacrificing the possibility of advancement".

 

[NewHampshire Black Bears]

"We want any seniority list integration to be fair to pilots at the top, middle, and bottom of the list" said Greg Rizzuto, a spokesman for the Northwest branch of ALPA. " A pilots career is tied completely to his or her seniority ranking. A short-term economic benefit is not worth sacrificing the possibility of advancement".

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Be that as it may,.....I've got a gentleman's Bet that says even THE most JUNIOR NW A330 FO, doesn't "trade" his seat for a 757, or Lower !

 

[luv2fly]

It is being leaked that the real problem with the negotiations has something to do with the old Republic pilots. Perhaps someone could explain exactly what the rift is about between the NW and Republic pilots. What issues are still unresolved after all this time? I heard that there is still an arbitrator involved as well.

 

[luv2fly]

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Be that as it may,.....I've got a gentleman's Bet that says even THE most JUNIOR NW A330 FO, doesn't "trade" his seat for a 757, or Lower !

It isn't about trading anything. It's about relative seniority. The objective of the integration should be to place a pilot around his or her same relative position on the combined list. Placing the top 400 NW pilots at the top and the bottom 3000 DL on the bottom does not fit that description.
NW has half the number of widebodies DL has. Roughly 30% of its narrowbody fleet is composed of older DC-9's slated for retirement with no known replacement.

 

[Kev3188]

It is being leaked that the real problem with the negotiations has something to do with the old Republic pilots. Perhaps someone could explain exactly what the rift is about between the NW and Republic pilots. What issues are still unresolved after all this time? I heard that there is still an arbitrator involved as well.

When NW/Republic merged, the seniority integration went to arbitration. There was a 20 year fence put up. Obviously, that just elapsed not long ago. Maybe this is playing a role?

Here's an article on the issue.


"Northwest, with its Pacific routes, had a fleet of widebody aircraft and pilots who aspired to fly them when it bought domestically focused Republic. Republic pilots poured into the ranks, some with years of experience that would put them in line for the big planes ahead of Northwest pilots.

An arbitrator decided that pre-merger Northwest pilots would stay in line for the big jets ahead of Republic pilots. That locked some pilots out of widebody flying for decades and caused serious bitterness. The Air Line Pilots Association said an arbitrator is still working on some of the issues, although it declined to provide details. "

I'm sure an NWA pilot will jump in and provide much more detail.

 

[brokenwrench]

Internal Memorandum

Date: February 26, 2008
To: Delta Colleagues Worldwide
From: Richard Anderson and Ed Bastian
Subject: Richard and Ed Memo: Update on Consolidation

The media continues to have daily coverage speculating on the airline industry, including speculation involving Delta. As you know, for several months our Board and leadership have been reviewing strategic alternatives, including potential consolidation, to ensure that Delta maintains its leadership position in the industry.

Our review has been guided, from the beginning, by certain principles that have to be met if there were to be consolidation with another airline. Our principles are:

• that the airline be called Delta, headquartered in Atlanta

• that the seniority of our people is protected

• that the pension plans of our employees and retirees are maintained

• that the network is strengthened and our plans for international expansion are accelerated

• and, most importantly, that there is even greater job security along with more career opportunities for our people

To date, we have not arrived at a potential transaction that meets all of our principles. Rest assured that we will not complete a transaction unless all of these conditions are met. We have a strong stand-alone plan. We will maintain our attention on executing that plan while we continue to look at strategic alternatives.

We appreciate the professionalism and dedication you show every day in running the airline. It is the “Delta Differenceâ€￾ that sets us apart.

Thank you.

 

[DLflyer]

I believe that this merger is "DEAD in the Water"! I think it is time for DL and NWA to move on..........

 

[Red Tail Bear]

I believe that this merger is "DEAD in the Water"! I think it is time for DL and NWA to move on..........

Agreed!! So far this merger hasn't sounded like a good deal for either company.

 

[LGA Fleet Service]

• that the pension plans of our employees and retirees are maintained

Oddly enough, no mention of the $1.5 Billion pilot pension they stuck the government with...

What happened there buddy? Ohhh, right...rank and file pensions are cheaper to maintain than pilot pensions.Thank god you were able to game the Chapter 11 process to stick the government with that billion and a half dollar shortfall.

 

[luv2fly]

Oddly enough, no mention of the $1.5 Billion pilot pension they stuck the government with...

What happened there buddy? Ohhh, right...rank and file pensions are cheaper to maintain than pilot pensions.Thank god you were able to game the Chapter 11 process to stick the government with that billion and a half dollar shortfall.

While I do not dispute the fact that the pilots defined benefit plan termintation was contemptible, it is worth noting the PBGC did receive an unsecured claim from Delta in the amount of 2.2 billion. In addition, the PBGC received 225 million in senior unsecured notes as part of the reorganization plan. I don't know what the PBGC ultimately received from their notes, but the pilots ultimately ended up with roughly 60 cents on the dollar.

 

[767jetz]

I believe that this merger is "DEAD in the Water"! I think it is time for DL and NWA to move on..........

If this is true, I'm wondering if DL will now approach UA again. It was clear in the beginning that DL was exploring a merger between either NW or UA. They obviously preferred NW. But if it's dead in the water, they might see if the UA and DL pilots can come to an agreement.

While I prefer a UA/CO merger for personal reasons, IMO it would be easier to combine the DL/UA pilots than the DL/NW pilots. Without NW being involved in a merger, CO can not merge with anyone due to the golden share.

I see 2 possible scenarios. DL pursues UA, and AA decides to go after NW in order to obtain their Asian presence. That would leave CO either in a position to strengthen their code-share ties with NW, or possibly pursue some other merger. The other scenario would be for DL to pursue UA and CO merging with NW. (More likely IMO)

The soap opera continues! Any other insight??

 

[NewHampshire Black Bears]

If this is true, I'm wondering if DL will now approach UA again. It was clear in the beginning that DL was exploring a merger between either NW or UA. They obviously preferred NW. But if it's dead in the water, they might see if the UA and DL pilots can come to an agreement.

While I prefer a UA/CO merger for personal reasons, IMO it would be easier to combine the DL/UA pilots than the DL/NW pilots. Without NW being involved in a merger, CO can not merge with anyone due to the golden share.

I see 2 possible scenarios. DL pursues UA, and AA decides to go after NW in order to obtain their Asian presence. That would leave CO either in a position to strengthen their code-share ties with NW, or possibly pursue some other merger. The other scenario would be for DL to pursue UA and CO merging with NW. (More likely IMO)

The soap opera continues! Any other insight??

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"Jetz",

Correct me if I'm wrong, but It's my understanding that UAL/ALPA is taking a much harder stance on pre-merger, that NW is.

If thats the case, and UAL won't give up the name,.............DL is SCREWED,....plus CO if Forced to give up its prefered independent status, will IMHO gravitate to NW/UA and AA.....BEFORE DL.

But for DL,......Not ALL is lost. LCC is still winking at DL, over there in the corner

 

[FWAAA]

This gives AA some more time to put together a deal.

One problem at LAX is that AA has maxed out T-4; an ideal solution would be for AA to end up with T-5 (right next door and connected via airside tunnel).

How to do that? DL and UA get together and consolidate at T-6 thru T-8, freeing up T-5 for AA to lease. AA buys NW, moves into a renovated T-5 and has plenty of room for LAX-China and other domestic feeder flights.

 

[luv2fly]

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"Jetz",

Correct me if I'm wrong, but It's my understanding that UAL/ALPA is taking a much harder stance on pre-merger, that NW is.

.

Third hand information says you are wrong.
Right now it appears the problem is more between the NW pilots themselves. Their own MEC cannot agree on what they want and there is a continuing power struggle between the Republic pilots and the NW pilots.
The numbers being offered to NW are quite lucrative. Much more so than what the DL pilots stand to gain. The single point of contention at this point is that the NW pilots want to effectively staple roughly 3000 DL pilots to the bottom of the list in addition to placing their top 400 at the top. Unreasonable would be an understatement.
It wouldn't suprise me at all if DL and UA start serious talks shortly.

 

[Nor'Easta]

Internal Memorandum

Date: February 26, 2008
To: Delta Colleagues Worldwide
From: Richard Anderson and Ed Bastian
Subject: Richard and Ed Memo: Update on Consolidation

The media continues to have daily coverage speculating on the airline industry, including speculation involving Delta. As you know, for several months our Board and leadership have been reviewing strategic alternatives, including potential consolidation, to ensure that Delta maintains its leadership position in the industry.

Our review has been guided, from the beginning, by certain principles that have to be met if there were to be consolidation with another airline. Our principles are:

• that the airline be called Delta, headquartered in Atlanta

• that the seniority of our people is protected

• that the pension plans of our employees and retirees are maintained

• that the network is strengthened and our plans for international expansion are accelerated

• and, most importantly, that there is even greater job security along with more career opportunities for our people

To date, we have not arrived at a potential transaction that meets all of our principles. Rest assured that we will not complete a transaction unless all of these conditions are met. We have a strong stand-alone plan. We will maintain our attention on executing that plan while we continue to look at strategic alternatives.

We appreciate the professionalism and dedication you show every day in running the airline. It is the “Delta Differenceâ€￾ that sets us apart.

Thank you.

All the Delta-Aid Drinkers will buy right into this letter. "The seniority of our people protected" will not happen for non-union groups. Even with the new law, a legal binding contract will prevail!

UNIONIZE! Protect your seniority and job in the event of a merger/aquisition!