Atlantic Coast Backs Pilot Raises If Bid

[erjman]

Atlantic Coast Backs Pilot Raises If Bid Succeeds - WP
Thursday October 23, 1:13 am ET


NEW YORK (Dow Jones)--Executives from Atlantic Coast Airlines Holdings Inc. (NasdaqNM:ACAI - News) and the leaders of its pilots union agreed to a new contract provision that would increase pilot pay an average of 3 percent if the airline was acquired, the head of the airline's pilots union said, The Washington Post reports in its Thursday edition.

The tentative agreement was seen by some industry insiders as a defensive measure to make the company less attractive to Mesa Air Group Inc. (NasdaqNM:MESA - News) , which has mounted a hostile takeover bid for Dulles-based Atlantic Coast. Jonathan G. Ornstein, chief executive of Phoenix-based Mesa, said it was too early to determine whether the proposed pay increase would make Atlantic Coast too costly, according to the Post.
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Sounds like a smart move on the part of ACA. I am not familiar with what happens to contracts when two companies are merged? Do payscales necessarily stay the same? Or is the contract reopened? Either way, it should solidify the pilot group against the merger, if that wasn't the case already.

 

[skydrvr]

Here's somewhat of an answer to your question....many a pilot would quit. Working for Mesa would be the demise of those that know better. Where those who have no choice and did not know better I see your pain (that is me and many others). Mesa is to the airline industry as what the slave trade was many years ago.

To be honest I wish Mesa the worst of luck with the exceptioin of those that had B*lls and voted no.

As to your contract, the USA Money article of J.O. made me sick to my stomach.

 

[full_of_carp]

Yeah, but ...

I read somewhere that the Mesa contract requires all pilots to work under the same contract terms, and read somewhere else that the ACA contract requires that its terms apply to its workers in the event of a takeover.

So, whose rules prevail when they're at odds? And what prevents JO from closing down ACA, transferring the RJs to Mesa, firing all the ACA pilots, and force them all to sign on with Mesa, with pay cuts etc etc, and thus come under the terms of the Mesa contract if they still want a job?

And, do any ALPA provisions help prevent that?

 

[House_X]

Yeah, but ...

I read somewhere that the Mesa contract requires all pilots to work under the same contract terms, and read somewhere else that the ACA contract requires that its terms apply to its workers in the event of a takeover.

So, whose rules prevail when they're at odds? And what prevents JO from closing down ACA, transferring the RJs to Mesa, firing all the ACA pilots, and force them all to sign on with Mesa, with pay cuts etc etc, and thus come under the terms of the Mesa contract if they still want a job?

And, do any ALPA provisions help prevent that?

Nobody can afford to fire 1600 pilots and then hire another 1600 to replace them....training cost would be prohibitive. The Board's position is clear and KS made a counter move...we "Checked" JO's queen...now it's his turn. The game is surely a-foot now...

 

[WhiteCloud]

Nobody can afford to fire 1600 pilots and then hire another 1600 to replace them....training cost would be prohibitive.

But, if given time (a few years?) that's what will take place. The track record is too clear. Slowly disable the company that's taken over and transfer assest to MESA.

 

[dav8or]

CC Air had a better contract than Mesa and what happened to them?

 

[asarjfo]

Atlantic Coast Backs Pilot Raises If Bid Succeeds - WP
Thursday October 23, 1:13 am ET


NEW YORK (Dow Jones)--Executives from Atlantic Coast Airlines Holdings Inc. (NasdaqNM:ACAI - News) and the leaders of its pilots union agreed to a new contract provision that would increase pilot pay an average of 3 percent if the airline was acquired, the head of the airline's pilots union said, The Washington Post reports in its Thursday edition.

The tentative agreement was seen by some industry insiders as a defensive measure to make the company less attractive to Mesa Air Group Inc. (NasdaqNM:MESA - News) , which has mounted a hostile takeover bid for Dulles-based Atlantic Coast. Jonathan G. Ornstein, chief executive of Phoenix-based Mesa, said it was too early to determine whether the proposed pay increase would make Atlantic Coast too costly, according to the Post.
---------------

Sounds like a smart move on the part of ACA. I am not familiar with what happens to contracts when two companies are merged? Do payscales necessarily stay the same? Or is the contract reopened? Either way, it should solidify the pilot group against the merger, if that wasn't the case already.

We are living in some CRAZY times. I never thought I would see management agree to a give an employee group a raise for "defensive reasons".....that is classic. I think it is a smart move, it should have been about 20% to really slam the door on JO's face!

 

[sstearns2]

"Nobody can afford to fire 1600 pilots and then hire another 1600 to replace them....training cost would be prohibitive. "

Actually that is exactly what Lorenzo did when he took over Continental. The pilots went on strike and he fired them and hired a new set of pilots. Keep in mind that a new set of pilots are all on first year pay and that makes up for training cost real quick. This hole things sucks and I hope JO fails, but this may be what he is thinking. Read the book 'hard landings'.

Scott

 

[Gndedbyfurlough]

ACA BOD unanimously agreed to not pursue MESA's offer!!! and will file wih the SEC to prevent being replaced by those that would vote to go with MESA. Plan on 87 RJ's and 33 narrow bodies at IAD. This is the best news that ACA has put out in a while>

 

[MJG]

Can anyone from ACA share the TA rates for the narrow-bodies? I know they won't be spectacular but just curious.

 

[j41driver]

Can anyone from ACA share the TA rates for the narrow-bodies? I know they won't be spectacular but just curious.

Info not available to us yet. The CVG CA rep told me that more info about the TA would be available on Tuesday. I'll post it when I get it.

 

[GogglesPisano]

The webcast is more accurate. There is no pay RAISE if ACA changes ownership, at least comapred to our current contract. The cost benefits afforded to management in the way of pay rates/work rules in the UA TA will be null and void if ACA changes hands. We revert back to our current green book (Comair -1%) if the company is sold.

 

[AirBoard]

Hi Mesa,

This was in the papers, ouch sorry it's true! But hey, you guys worked so hard to get where you are. JO, a true bottom feeder, tries to lure a game fish in. God I hope not, my 667 votes say F@#$$ NO!

''Atlantic Coast pilots are among the highest-paid regional airline pilots. Mesa pilots, however, are among the lowest-paid. Hunt said he expected the airline's 1,600 pilots to vote on the provision by Nov. 7''