Midwest/TPG/NWA Threeway...

[Occam's Razor]

Dang it, Dash!

It was more fun when the "geniuses" had the whole conspiracy figured out!

 

[Lear70]

2. NW relationship will be similar to agreement when they bought part of Continental from TPG.

Yeah, 'cause THAT worked out well. If I remember correctly (and I'm addressing Occam here as well), NWA got to stick some pretty stringent restrictions on how CAL could compete directly with NWA that I *believe* still exist to this day. Could be completely wrong...

3. TPG's exit strait seems to be one of two options. First do it like all of the other airline transactions they have been involved in. ie... slow ipo over the span of 5 to 11 years.

Which is exactly what I said earlier. NWA has a formula for doing this and it's been VERY successful at it.

Secondly a full sale to NW. Both were indicated to not be options for several years.

That's a bunch of horsesh*t. Can you say carrot for the pilots? "Just sign this concessionary T.A. and you'll all be NWA pilots in a couple years".

4. TPG will reap return on their investment by increasing profitability and growth of the airline. I did not hear any of it that may indicate how that growth may happen. Via mailine or other. In addition quite a bit of time was spent on the potential revenue generation produced by a NW code share especially for over seas ticket sales.

I bet you a C-note growth will be mainly through RJ's. MD's will eventually be replaced, farmed out to charter ops, or outright gone.

Increasing profitability will come from those NWA code-share ticket sales, fuel savings from NWA's lower fuel prices, and those seat configuration changes that have already been started. Combined with the increase in market economy and slightly higher ticket prices, MEH will make money for 2-3 years and NWA will spin it off.

Good luck, guys. I don't think you're going out of business, but I don't see any big growth spurt coming that will directly help the pilots...

 

[DASHDRIVER]

Lear,

I don't dissagree with you on the possibilities that this could be bad for us. I think that there was and is risk in going any of the available routes. We had no assurances how a merger was going to happen between us and Airtran either. I do know that NW still has a significant share of Con, and Spirit. I also see they have not impeded the companies plans to significantly. There will be no NW members on the private board (as stated by TPG). TPG has a decent track record of rebuilding and growing airlines.

In the end all we can do as pilots at this point is continue trying to give TPG a reason to grow our product.

I still would like to add my continuing support to Airtrans pilots. I and many of the people I talk to hope for your success in your current negotiations and the future of your airline.

Dash

 

[Occam's Razor]

Lear,

The 6 restrictions regarding CAL still exist. They survived the C-11 at NWA because the restructuring didn't result in a "change of control". (Yeah, I don't buy it either...but the courts do)

I don't see NWA integrating (merger) Midwest as much as I see the potential for such a move with Frontier or Spirit. And I don't think those are too likely.

I think Fork Lift Joe got wind of the TPG action a few months ago, and "started" the bidding war. TPG's plan is to make money through equity growth. That's all they've ever done.

My WAG is that Midwest will be used as a SkyTeam partner to hammer UAL and AMR in the Chicago area...much as ValueJet/Airtran is being used to hammer DAL in ATL. TPG/NWA will impose some restrictions on the Midwest Board a la the CAL deal, in exchange for their independence.

TPG will sell their interest in a few years...make a pilot of loot...and move on. NWA will restrict the independent Midwest, but protect them from evildoers like Fork Lift.

 

[PeanuckleCRJ]

Can anybody explain to me who TPG is?

 

[PCL_128]

Can anybody explain to me who TPG is?

It's a private equity firm. Basically, a bunch of super-rich guys pool their money together and make investments in companies to later sell them off in an attempt to become even more super-rich.

 

[filejw]

I think it was once Texas Pacific Group.....

 

[Schwanker]

I think it was once Texas Pacific Group.....

You think correctly. Think Bonderman, Continental...

Schwanker

 

[IdRtherBsailing]

Alright guys and gals, enough of this pointless bickering and Joe is smarter than Timmy crap. We need to all concentrate now that this is over and bring our profession back to its true glory. We need to show that we are all a team and I move that we all coordinate marches in front of our perspective headquarters and show management that we will not be brought down.

Heres my idea http://www.youtube.com/watch?v=_15D1pz_ya8

 

[John Pennekamp]

I threw this out on another thread and no one picked it up and ran with it.

TPG is the parent company of Indigo, who owns Spirit. Spirit is NWA's biggest competitor in one of their largest hubs. In fact it could be said that NWA let Spirit live for the same reason Delta let Airtran live: to keep the antitrust regulators off their backs, and to relieve low fare pressure in low yield markets. So Spirit hasn't ever really been a "threat" to NWA even though they "compete".

Now NWA is teaming up with one of Spirit's parent companies to eliminate the competitor who is the most damaging in their bread & butter intra-Midwest routes, plus raids their hubs of MSP and DTW. And now this on the heels of Spirit announcing they are closing the DTW domicile and refocusing its operations on the Latin American market (of which NWA only dabbles) out of FLL.

Will the regulators approve? Has NWA been in bed with Spirit all along? This begs for an investigation into collusion and even price fixing when we have concrete evidence that two "competing" airlines have been working together behind the scenes all along. And NWA's iron grip on the upper Midwest strengthens. Discuss.

 

[CitationLover]

No, I think we will be just fine. To all the naysayers, let me just offer you this advice. " Better not take a dog on the space shuttle, because if he sticks his head out when you're coming home his face might burn up."

put the deep thoughts by jack handy book away!

 

[Wesb737fo]

It sure does suck when Valuejet does'nt have the cash to seal the deal.... Poor Valuejet.... Maybe when your out of business in a couple of years you can get a job with some other SCAB Airline..... Hey I hear Midwest is looking for some 737's... Maybe they can buy some of the ones you will be deferring!!!!!!
HAHAHAHAHAHAHAAH!!!!!!!!!!!!!!!!!!!!

The prize for the most ignorant post goes to .....
yep..rugstool (whatever). I can't believe you logged 10,000 hours without someone killing you by now.

 

[russtgol]

The prize for the most ignorant post goes to .....
yep..rugstool (whatever). I can't believe you logged 10,000 hours without someone killing you by now.

The truth hurts....

 

[Redmeat]

TPG will sell their interest in a few years...make a pilot of loot...and move on.

I'm sure you meant "pile" of loot.

You have created one of the best Freudian Slips EVER!

 

[PCL_128]

John P., the problem is that the current administration is so enamored with the private equity firms and airline executives that they'll never allow the DOJ to do a real investigation into any of this. NWA is practically untouchable with the Bushies in power.