Are SWA/AAI guys worried?

[DougCorp-9]

And it's probably better to sell the 717's and hire off the street for ATL- and maybe you guys can work something out with the state department to go to Mexico or Malaysia where those 717's land, but MB won't apply bc it's not half the airline-

Not quite correct. MB deals with value of assets. Very little value is place an a bunch of leased (out of production) aircraft. Anyone can buy aircraft. Gates and slots and the 500 million in cash we had on hand would be way more than 50%. Sorry to burst you bubble.

(2) COVERED AIR CARRIER.—The term “covered air carrier” means an employee who—

(A) is not a temporary employee; and

(B) is a member of a craft or class that is subject to the Railway Labor Act (45 U.S.C. 151 et seq.).

(i) 50 percent or more of the equity securities (as defined in section 101 of title 11, United States Code) of an air carrier; or

(ii) 50 percent or more (by value) of the assets of the air carrier.

 

[redflyer65]

So your reply is that 51% of AAI total assest couldn't be divested? Interesting.

 

[Lear70]

ANYTHING can be divested prior to 18 months from DOCC, unless something is agreed sooner that changes our Sec 1 language. However if it's not less than 51% of the total assets (including ground equipment, value of fuel contracts, gate leases, etc, which it wouldn't be if it's JUST the planes), then M/B still applies to the SWA integration.

This means that if we don't buy off on the deal that's currently on the table because the protections claimed in the AIP weren't realized, there are still options that have been available since the deal was inked back in May, that is GK can sell off portions of the fleet prior to integration.

What will get REALLY interesting is if GK decides to divest SWA of the 717's BEFORE arbitration. What happens when you buy and begin to integrate a carrier whereby M/B is triggered but then divest yourself of a significant number of the airframes? Complicating that is how do you figure out what to do with the pilots, since by our Sec 1 language, since the 717 represents the majority of the airframes currently on property (Wave, this addresses part of your earlier post as well), SWA is required to negotiate for SOME of the pilots to go with it (it's not specific on who gets/has to go), but we already have a requirement to integrate those pilots into SWA per M/B, so who goes and who stays and gets integrated with SWA?

What happens if GK does it POST-arbitration or even POST-agreement (if this things passes)? If the 717's are still being operated on the AAI side, then AAI's Sec 1 language is triggered BUT those pilots have SWA seniority numbers?

Talk about complicated... although if you could negotiate a relative seniority or even DoH integration for the pilots going to Delta, you might have to force fewer people over the partition than you think; a large number of pilots might choose DoH Delta over 30% sen loss / stapled to SWA, depending on whether they ever wanted to fly heavy metal international, which still may be a decade or so away for SWA.

It's enough to make your head spin.

 

[Lear70]

Oh, btw, little birdie says that the last "big" hurdle for the final agreement language was cleared today, small housekeeping stuff now and they should be able to brief the MEC by the end of the week, have meetings next week, some open session, and an MEC vote.

 

[GuppyWN]

Newsflash . . . . No one's playing "hardball with Gary".

We're making sure that what was agreed to in the AIP is spelled out in clear language in a final Agreement. You can be sure that "Gary" understands the necessity of having the clear language.

What's your rush, anyway? This thing is going to move at a glacial pace as it is. Our guys won't see any pay boost until their May 2012 paycheck . . . . 30 months to transition, before any extensions? I think we can afford to take the time to get the language right, don't you?

Because arbitration starts the first week of October. Back up 45 days for a vote and information and we're just about out of time for ANY hope of further negotiations IF the deal is shot down. MEDIATION, which was agreed to by both parties will not even happen so it's straight to Arby's.

Good luck boys and girls. Your union is pissing away your future without you even getting a voice.

Gup

 

[GuppyWN]

Just got word that there will be no MEC vote this week. WTF are they doing over there. The Communications chair quit this morning over a heated phone call with one of our MEC members. The trust is gone and never to return. I cant say it all ALPA but our MEC members. They are a dysfunctional group to say the least.

Replied to TY before I read this post.

There you have it boys and girls. There is now little chance you will have ANY say in YOUR future.

Gup

 

[400ADude]

What will get REALLY interesting is if GK decides to divest SWA of the 717's BEFORE arbitration. .

I don't mean any harm to you but interesting would not be the word I would use to describe your fate in a situation like this.

 

[GuppyWN]

Oh, btw, little birdie says that the last "big" hurdle for the final agreement language was cleared today, small housekeeping stuff now and they should be able to brief the MEC by the end of the week, have meetings next week, some open session, and an MEC vote.

It's been 12 days and now you say they need another week?

I don't buy it. I think they are running the clock out on purpose.

Do you honestly disagree?

Gup

 

[400ADude]

Who cares Gup! Let them run it out and see what happens.:beer:

 

[Lear70]

That's why the integration language is so important.

I don't do fear. Management here did their best and I lived through it. I'm eager to be at SWA but want my 717 brethren protected moving forward. I think most of our pilots feel the same.

It'll all work out. Keep the faith.