What do we know about Compass?

[DoinTime]

If NWA Merges, the CBA still applies until ALPA agrees to modify it. Until the language below changes, CPS can't be sold (not even to the mighty RAH).


1-11 Section 1 – Recognition and Job Security

B.7.c.(7)(d) Feeder Carrier Affiliate The Company may establish a Feeder Carrier which is an Affiliate (as defined in Section 1 B.1) (Feeder Carrier Affiliate), and which operates 51–76 seat aircraft which carry the NW code designator, provided that such Feeder Carrier Affiliate operates in accordance with the following provisions of Section 1 B.7.c.(7)(d)1' through Section 1 B.7.c.(7)(d)8':

B.7.c.(7)(d)1' The Feeder Carrier Affiliate operates only 50 seat aircraft (as defined in Section 1 B.7.c.(6)) and/or 51–76 seat aircraft for so long as it remains an Affiliate of the Company; and

B.7.c.(7)(d)2' The Feeder Carrier Affiliate makes all pilot positions (Captain and First Officer, including check pilots) available to Company pilots in accordance with Letter of Agreement 2006-10 (the "Flow Agreement"), before filling any such pilot positions with new hire pilots; and

B.7.c.(7)(d)3' The Feeder Carrier Affiliate recognizes ALPA as the representative of the pilots employed by the Feeder Carrier Affiliate; and

B.7.c.(7)(d)4' The Feeder Carrier Affiliate enters into a collective bargaining agreement with ALPA in accordance with the provisions of Letter of Agreement 2006-07; and

B.7.c.(7)(d)5' The Company or an Affiliate of the Company owns more than 50% of the Feeder Carrier Affiliate when it starts operating as a Feeder Carrier for the Company; and

B.7.c.(7)(d)6' Except as provided in Section 1 B.7.c.(7)(d)7', the Company or an Affiliate of the Company controls the Feeder Carrier Affiliate, and the Company or an Affiliate retains more than 50% of ownership of the Feeder Carrier Affiliate, and

B.7.c.(7)(d)7' If at least 10 77–110 seat aircraft have entered into active service at the Company the requirements of Section 1 B.7.c.(7)(d)6' shall no longer be effective, provided however that the carrier (the "Feeder Carrier Successor") may nevertheless continue to operate as a Feeder Carrier under this subparagraph B.7.c.(7)(d), provided (i) the Feeder Carrier Successor remains in compliance with the provisions of Section 1 B.7.c.(7)(d)2' and Letter of Agreement 2006-10 (the "Flow Agreement"), (ii) all pilots of the Feeder Carrier Affiliate have the right to transfer to the Feeder Carrier Successor, and (iii) the Feeder Carrier Successor is in compliance with the successorship provisions of the pilot collective bargaining agreement of the Feeder Carrier Affiliate. In the event that the foregoing requirements of this subparagraph B.7.c.(7)(d)7' are met, the 51–76 seat aircraft upper cap of Section 1 B.7.c.(7)(a) shall continue to apply to the Feeder Carrier Successor, and;

B.7.c.(7)(d)8' In the event that (i) the requirements of Section 1 B.7.c.(7)(d)7' are not met, or (ii) the rights to pilot positions or flow rights set forth in Section 1 B.7.c.(7)(d)2' together with Letter of Agreement 2006-10 as they may apply to the Feeder Carrier Affiliate or Feeder Carrier Successor, are modified or terminated for any reason, other than through a written agreement between the Company and Association as representative of the Company’s pilots, the maximum number of 51–76 seat aircraft permitted by Section 1 B.7.c.(7)(a) shall be reduced to the lower cap (i.e. 55).

I agree that these provisions remain intact until a successor agreement is crafted. These provisions, however, do not prevent CPZ from being dissolved and the parts sold off to another carrier. The only thing that changes without CPZ is the 76-seat limit is reduced to the low cap. The "affiliate" carrier is not required to exist per this language.

 

[DashTrash400]

Thanks Koepp...


Dashtrash is that what you wanted again... This month Ive only been used 6 days on reserve but im happy im getting a decent line next month tired of commuting to sit on my rear.

Heh, well I can't say I *wanted* another month of hispeeds but had a few specific days I needed off & line 139 fit the bill.

I'm gonna have to bid something else next month or I'm gonna end up upgrading without having seen 90% of our cities!

 

[G2T]

A scenario which is highly likely and one that played out to the T with USAir and MidAtlantic with the AmWest merger .

I disagree, it is a different scenario. Everyone compares Compass and MDA, but forgets a big difference...Compass actually has an operating certificate. MDA never did and that is part of the reason they vanished into midair.

 

[DoinTime]

I disagree, it is a different scenario. Everyone compares Compass and MDA, but forgets a big difference...Compass actually has an operating certificate. MDA never did and that is part of the reason they vanished into midair.

An operating certificate is only valuable if you need one. IF the republic group were interested in CPZ you can bet that they wouldn't want the operating certificate.

 

[CRJ_Driver]

An operating certificate is only valuable if you need one. IF the republic group were interested in CPZ you can bet that they wouldn't want the operating certificate.

You're living in a fantasy world if you really think NW has any real interest in selling CPS to RAH. NW wants to IPO CPS in the future, but merger mania may derail those plans.

In addition, according to your logic, NW has an interest in selling MES to 9E. Not going to happen either.

 

[DoinTime]

You're living in a fantasy world if you really think NW has any real interest in selling CPS to RAH. NW wants to IPO CPS in the future, but merger mania may derail those plans.

In addition, according to your logic, NW has an interest in selling MES to 9E. Not going to happen either.

My speculation is based on DAL buying NWA. In this case NWA won't be selling anything because NWA will not exist. What you need to ask yourself is what will DAL do with the assets?

I think its a safe bet to assume that DAL won't have much interest in maintaining the NW pilots lifeboat airline. Richard Anderson is already on record saying that the number of DCI carriers will be cut in half over the next few years.

 

[CRJ_Driver]

My speculation is based on DAL buying NWA. In this case NWA won't be selling anything because NWA will not exist. What you need to ask yourself is what will DAL do with the assets?

I think its a safe bet to assume that DAL won't have much interest in maintaining the NW pilots lifeboat airline. Richard Anderson is already on record saying that the number of DCI carriers will be cut in half over the next few years.

While it may be viewed as a negative to wholly own your regional airlines, it can also be viewed as a positive. By eliminating paying an lift provider a guaranteed profit margin, an airline effectively earns 7-8% profit overnight plus any value they can create for the wholly owned in terms of spinning it off. That said, there is significant investment which probably makes for a poor ROI, but perhaps a great IRR down the road.

I don't know, I see the former DAL mgmt as being anti wholly owned after the Comair strike, but I don't view NWA mgmt as having that view and imho, Richard Anderson is NWA thru and thru.

I don't think CPS was ever viewed as a NWA pilot lifeboat by NW mgmt and that is why there is value here. But, if you don't take that view, then yeah, I agree with you when you say, why keep CPS around?!

 

[DrewBlows]

My speculation is based on DAL buying NWA. In this case NWA won't be selling anything because NWA will not exist. What you need to ask yourself is what will DAL do with the assets?

I think its a safe bet to assume that DAL won't have much interest in maintaining the NW pilots lifeboat airline. Richard Anderson is already on record saying that the number of DCI carriers will be cut in half over the next few years.

If Delta buys NWA they may very well not have an interest in keeping Compass. It doesn't really matter what their interests are though, because the collective bargaining language stays intact until it's negotiated away, which means NWA (or Delta) can't sell Compass until they negotiate a deal with the pilots to do so. The pilots may very well negotiate a sale of Compass, but I guarantee it won't be cheep.