Hi Fins,
The point here is that the DAL guys are trying to change the process by permitting their company to run two airlines under one holding company. That way, you get a AF/KLM merger (although CAL/EAL might be a better example).
The obvious threat here is "Do what we say, or we'll do to you what Lorenzo did to EAL".
But, in order to do this, you must relax portions of section 1. No problem, it's your contract, do what you want.
BUT, the NWA contract doesn't permit this. All of section one remains binding on any holding company, as well as NWA. Your PWA is more than just what's in the binder that you get in your mailbox. Large decisions have been won and lost on the basis of what the "intent" of the contract language was.
The moment someone tries to pull a "funny" with section one, it becomes a "major dispute". We all know where that leads, and I can guarantee you that is exactly where it will go.
So, you're finger is on "the button", and so is ours. We can all step back, and work something out, OR we can add two names to the list of bankrupt airlines in 2008.
Nu
Nu: Interesting post. Very interesting. Several issues come to mind regarding the ability to bind third parties (folks who are not parties to your contract) and anti trust issues.
Ten years ago we researched scope as it applies to the organized labor exemptions to the Sherman Act and decided that these tremendously complex scope provisions could probably be challenged on anti-trust grounds. If the clearance agreement between the FTC and DOJ was written differently, scope as we know it would be challenged by the US Government (or would have been back then-same FTC Chair, but different FTC Counsel now). However ti was thought the scope defense line could be very easily breached by a third party, say Bombardier, GE, or even a Johnathan Orenstein type under anti trust grounds.
The problem being that scope has gone beyond labor protection provisions and morphed into remote control for third party airlines. "All NWA flying by NWA pilots" is easily construed as a labor protection provision. Three pages of "permitted flying" is not.
ALPA flat out has not received good legal advice on the topic. The ALPA attorneys have tried to make something work to meet political goals that just isn't in the law.
While obviously Delta and NWA management have looked at this deal without focusing on anti-competitive behavior (because lets face it, the merger is anti-competitive, hence the rush to get it reviewed by Bush's DOJ) there are holes larger than those that sunk the Titanic in ALPA's so called scope. (and I'm not just saying your scope, there is a lot of really poor contract language out there - written by lawyers that practice politics before law)
If a Comair line pilot can find holes, you would be well advised to find a better line of defense.
I could go into some more history, but it would probably be better as a PM. Point is, I don't know if your contract is capable of binding Delta. I would look for an economic argument and I hope Delta-ALPA has outside Counsel reviewing their own contract language.
You raise the point of how important this language is and I only add emphasis. Ford and Harrison could, if they were asked to do so, run through several airlines' scope like a hot knife through butter, the rub is third party involvement.
Sealing those holes might not be possible, which is yet another reason why all branded flying has to be done by pilots on that brand's seniority list.
All that has saved scope so far is the lack of a third party with a motivation to break it.
~~~^~~~