ASA & Expressjet Newest

[buscap]

From the ASA MEC

Dear fellow ASA pilots:

Recently I, along with MEC Vice Chairman Sterling Roach, MEC Negotiating Chairman Chris Mankamyer and officers of the ExpressJet MEC met with SkyWest CEO Jerry Atkin, Atlantic Southeast President and COO Brad Holt and ASA VP Flight Operations Charlie Tutt to further discuss details of the ongoing merger transaction.

There are a multitude of items that must be accomplished to the satisfaction of both MEC’s to ensure a smooth merger process – those discussions generally are proceeding amicably. Though one large issue is the status and interpretation of the Scope and Successorship section of the XJT Contract, specifically Letter 1, often referred to as the ‘Holding Company Letter’ and whether or not it compels the integration of all carriers under SkyWest Inc. Jerry Aktin and Brad Holt reiterated their intent that this deal is only about the merger of ASA and XJT and will not include integration of SkyWest Airlines. However, a commitment was made to ALPA to provide certain specific guarantees relating to protections against whipsaw in the areas of staffing, transfers of aircraft and so on. These items and others would be incorporated into a formal Transition Agreement, assuming the merger process moves forward. In terms of the scope language in our current ASA Contract, the merger plans as we know them are compliant.
With the above commitment in concept, Atkin and Holt indicated that ALPA’s acceptance of the terms of the proposed purchase agreement would be required in order for the transaction to proceed (merging only ASA and XJT). Otherwise, SkyWest Inc. would likely withdraw from the transaction and move on.

This week, the ASA and ExpressJet MECs are in session separately with legal and other staff professionals to discuss the commitments made and the transaction details necessary to navigate through this process and ensure the best outcome for the future of our careers.

Tailwinds and fly safe,

 

[JumpersAway]

Interesting. Looks as if they want everyone on board from both parties, or the party is over. I guess the bottom line is that it is up to the ExpressJet pilots. If they're not on board, they've got the power to tank the deal and soldier on. The next move appears to be in their court.

 

[79%N1]

Here we go!!!

My opinion, this deal will never be done. XJT will kill the deal demanding the integration with Skywest. (Which is their right) What happens next is anybody's guess for XJT. My guess is they will need further concessions to their contract anyway - and a lot more so than if they went with ASA - to stave off further financial woes or bankrupcy.

Good luck with your decision.....

 

[JumpersAway]

Well at least it's an option for them. I'd like to work with the ExpressJet folks- a fantastic pilot group and absolutely the level of professionals I'd like to work with. However, I have to be honest here also. I have no desire to work in a hostile, unhappy, and devisive work environment with lots of whining and complaining. I enjoy things here, and I hope to keep enjoying things here. Sure, there is definately room for improvement, and it's my hope we're able to do that with the help of our bretheren at ExpressJet. We will see.

At least the ExpressJet have absolute control over their own future now.

 

[ASA Captain]

They would be stupid to let this go down the drain. But, it is their choice.

Maybe if they can secure language to block any whipsaw they could be happy with it.

It boils down to who's got better lawyers and who the judge will be that decides the terms of the XJT scope.

We'll be waiting.

 

[Jetjockey]

Good for you guys. There is power in numbers. Make them merge all 3 lists! NO MORE WHIPSAWING! Look back at history when Eagle was 5 different airlines. AMR could no longer whipsaw all the different pilot groups.

STRENGTH IN NUMBERS, STRENGTH IN UNITY!

 

[79%N1]

Except if XJT's lawyers win.....they lose! If they can bind SKYW to their 3 way merger, Skywest is 100% most definitely dropping the buy! So, they don't get any merger, they go back to going it alone, which is fine! I would rather they do that. They are NEVE going to get the 3 way merger done, but we can secure other provisions to protect our side.

Which will it be?

 

[wms]

Good for you guys. There is power in numbers. Make them merge all 3 lists! NO MORE WHIPSAWING! Look back at history when Eagle was 5 different airlines. AMR could no longer whipsaw all the different pilot groups.

STRENGTH IN NUMBERS, STRENGTH IN UNITY!

No more whipsawing? There hasn't been any here.

As an ASA pilot I don't want to merge with the SKYW pilots. I hope the deal goes through, but I'd rather grow than merge.

 

[Jetjockey]

SKWY wants this merger. It's like a guy at a car dealer. He says if he doesn't get the deal he wants,he's walking away. the bottom line is he wants the car, he needs the car. I think that is purely management posturing. They want it their way. They have been used to getting their way. The pendulum is swinging towards labor now. I'd say with that letter, you can get what you want. It's the fly in Jerry's ointment.

If the merger falls through, Expressjet will be just fine. The way I see it is, Skywest NEEDS this merger. XJT is positioned very well with a solid operation and jets that conform to the scope clause. Either way, XJT comes out a winner.

Use that leverage to your advantage.

 

[wms]

SKWY wants this merger. It's like a guy at a car dealer. He says if he doesn't get the deal he wants,he's walking away. the bottom line is he wants the car, he needs the car. I think that is purely management posturing. They want it their way. They have been used to getting their way. The pendulum is swinging towards labor now. I'd say with that letter, you can get what you want. It's the fly in Jerry's ointment.

If the merger falls through, Expressjet will be just fine. The way I see it is, Skywest NEEDS this merger. XJT is positioned very well with a solid operation and jets that conform to the scope clause. Either way, XJT comes out a winner.

Use that leverage to your advantage.

SKYW wants the flying and the easiest way is to merge. And it's the best way for the XE employees. But if it means a three way merger, JA will let XE go the way of OH and buy the planes at a fire sale. The problem then is trying to hire fast enough to keep up with the growth.

 

[johnpeace]

The problem then is trying to hire fast enough to keep up with the growth.

Yet, in that case, there'd be a bunch of newly unemployed pilots looking for jobs.

Talk about whipsaw! JA whipsawing the XJT group against themselsves!

From where I sit, a merger with ASA looks like the better path for the XJT pilots. Though honestly, if they torpedo the deal over their scope language and the SKYW list integration, it won't upset me.

Good luck everybody...it's a minefield out there!

 

[damnflyboy]

Jerry Aktin and Brad Holt reiterated their intent that this deal is only about the merger of ASA and XJT and will not include integration of SkyWest Airlines. However, a commitment was made to ALPA to provide certain specific guarantees relating to protections against whipsaw in the areas of staffing, transfers of aircraft and so on. These items and others would be incorporated into a formal Transition Agreement, assuming the merger process moves forward. In terms of the scope language in our current ASA Contract, the merger plans as we know them are compliant.

And in this Transition Agreement will be language like "whenever possible", "company reserves the right to" and "if feasible". Just like our current contract language.

I don't trust them...and especially their lawyers. SkyWest Inc will not sign anything unless it sustains and protects their ulterior motives.

I smell poopies. One list.

 

[outtahere]

Its a crap shoot, force the issue, and see if Jerry is bluffing, or take what you can get to make the deal go through. Either way, xjt can't survive on there own for much longer. They are a good group of guys, but Nevets has put doubts in my mind about us working out an equitable SLI. Either way, ASA will be fine, hopefully XJT will be as well.

 

[Jetjockey]

SKYW wants the flying and the easiest way is to merge. And it's the best way for the XE employees. But if it means a three way merger, JA will let XE go the way of OH and buy the planes at a fire sale. The problem then is trying to hire fast enough to keep up with the growth.

It could be SKWY going the way of OH. I think XJT is better positioned for the future UAL after the merger is complete. Tighter scope is coming. You can bet on it. I know I am. In fact, I'm willing to bet my whole career on it! (Strike to maintain scope). The ceiling on regional growth is getting capped, management at the regional level knows it. Consolidation is the only way to survive. Reference the first post in this thread.

 

[JumpersAway]

The primary issue isn't one list anymore. THERE SIMIPLY WONT BE ONE LIST WITH ALL THREE CARRIERS. I'd personally rather there be, but SkyWest Inc. isn't going to take the bait. That has already been made clear by their management team. The question now lies with Express Jet and their MEC/pilot group. From what I read, it's either take the merger with ASA alone, or stand alone. This merger is FAR from a done deal......................

I would have to agree that Nevits seems to have put a spin on the deal, for me, that I'm becoming wary of. I'm not sure if he is the minority or the majority. Quite frankly, I'm glad to be on the ASA side of things, as the biggest risk and decision has to come from our brothers at Express Jet.

 

[cybourg10]

My guess is XJT ALPA agrees to the terms as long as they provide a no transfer of aircraft clause and a few other important things. They are currently discussing it with their legal counsel and if I had to bet drafting up their version of a transition agreement. Nevets just wants our scope clause that we worked hard to get to be honored, now that we know JA isn't planning on doing that we must decide what our next course of action is. I agree with Nevets on a few things but personally I believe we are better off with ASA than going at it alone but I also wouldn't mind telling them scope or nothing. We nearly had a USAir 50 seat contract out of PHX before this deal started so I don't think we are definitely bankrupt without it. In the end I would bet that ALPA works out a transition agreement but we'll see. It is also unclear at this point if the XJT pilots will get a vote.

 

[777forever]

For goodness sakes, get on board with ASA, workout an industry leading contract with industry leading scope protection to prevent whipsaw, then lets work on getting Skywest on-board later. We gotta crawl before we can walk.

It will be a sad sad day of "what could have been" if XJT pilots decide to be chest thumpers, kill the deal, and lose their jobs a year or two down the road due to bankruptcy, when they could have still been flying around with an industry leading contract.

 

[wms]

It could be SKWY going the way of OH. I think XJT is better positioned for the future UAL after the merger is complete. Tighter scope is coming. You can bet on it. I know I am. In fact, I'm willing to bet my whole career on it! (Strike to maintain scope). The ceiling on regional growth is getting capped, management at the regional level knows it. Consolidation is the only way to survive. Reference the first post in this thread.

SKYW consulted with UAL before making this offer and they have assurances for the future. JA is not the kind of guy to take a risk and then cross his fingers. XE on the other hand has contracts expiring and an unsure future and has been operating at a loss for some time. They can't continue the way they have been.

I'd rather grow than merge. But it's in XEs best interest to join up with a company that can help turn them around.

 

[Dannone]

You think they should negotiate a scope clause in the new contract like they did in the last one?? Who says that will be honored??

 

[damnflyboy]

SKWY wants this merger. It's like a guy at a car dealer. He says if he doesn't get the deal he wants,he's walking away. the bottom line is he wants the car, he needs the car. I think that is purely management posturing. They want it their way. They have been used to getting their way. The pendulum is swinging towards labor now. I'd say with that letter, you can get what you want. It's the fly in Jerry's ointment.

If the merger falls through, Expressjet will be just fine. The way I see it is, Skywest NEEDS this merger. XJT is positioned very well with a solid operation and jets that conform to the scope clause. Either way, XJT comes out a winner.

Use that leverage to your advantage.

BINGO. Furthermore, all this agreement will probably say is "no transfer of aircraft between carriers." However, there won't be anything preventing stagnation on one side (ASA) and growth on the other side (SKW). There are more ways to whipsaw besides threat of moving around aircraft between carriers. Since the ASA side will now be bigger, how about agreeing to ASA getting 3 planes for every 2 planes SKW is awarded through acquisition or purchase from now on? We are soon to be the bigger airline, after all. That ratio should work fine. INC (skw in disguise) will grow the SkyWest fleet very soon. There will also be upgrades. There will be more larger planes. Just watch.

If this whole thing isn't about an attempt to whipsaw (according to management), then why not streamline and make 3 = 1? Curious.