CAL Merger Plans

[UALfurloughee]

How does our fleet leave a lot to be desired? Just asking honestly - I know we have our issues, but our fleet is the youngest out there.

Thanks!

 

[Occam's Razor]

fortunately or unfortunately UAL and CAL will merge if DAL/USAIR merge. NWA has little say...even with the spoiler share.

Dunno if a UAL or CAL deal is imminent or even possible...

...but I do know that you're mistaken on your second point.

NWA doesn't own a "spoiler share". The CAL BOD signed a 25-year agreement in the summer of 1998 with NWA. It restricts transactions that the CAL Board can make without the consent of the NWA Board. It was done in anticipation of the situation the industry is in right now...consolidation maneuvering.

Unless somebody wants to pay NWA a buttload of money to buy out the agreement, the NWA Board will determine whether or not CAL merges, acquires, joins, dates, kisses, or humps another airline. Period.

 

[BID]

According to Bethune, CAL can acquire another airline, NWA has no say in that. True?

 

[Palomino]

...unless NWA merges with another airline. then all bets are off and CAL can do as they please. and CAL can buy anyone they want...they just can't be bought without NWA consent.

 

[Occam's Razor]

According to Bethune, CAL can acquire another airline, NWA has no say in that. True?

Nope. Bethune knows better. He was there when the commercial agreement was signed in 1998.

One of the 6 restrictions is CAL acquiring another airline...of any size.

The SEC filing docs got a lot publicity at NWA right after the deal was done. NWA created a holding company called "Newbridge" to buy Bonderman's control of CAL (and his 15% equity stake). When the DoJ said "nyet" to NWA holding control without a full merger, the commercial agreement was forged. Essentially, it was a Hobson's Choice for the CAL Board. If they wanted "full control" of their corporation, they had to sign the deal.

The deal has not been superceded, and has successorship language that is not affected by Chapter 11.

 

[Occam's Razor]

...unless NWA merges with another airline. then all bets are off and CAL can do as they please. and CAL can buy anyone they want...they just can't be bought without NWA consent.

Huh?

The commercial agreement is dependent upon the terms of such a merger. If NWA is merged,then the successors or assignees hold the agreement.

 

[ASA Captain]

Huh?

The commercial agreement is dependent upon the terms of such a merger. If NWA is merged,then the successors or assignees hold the agreement.

Unless it is given up as part of the deal in order to gain fed approval.

 

[Captain X]

How does our fleet leave a lot to be desired? Just asking honestly - I know we have our issues, but our fleet is the youngest out there.

Thanks!

Just repeating what we were told in a new-hire by Larry and Jeff.

CAL:

Doesn't want Boeings in different configurations/powerplants. Seems reconfiguring the ATA 757-300's was more pain than they hoped.

Doesn't want 747's -- doesn't want anything with more than two motors...and they are trying to figure out a way to get ETOPS approval to shut one down intentionally to save gas -- j/k

Doesn't want Classic 737's -- getting nothing but NGs. We're putting winglets on some Classics b/c the price was right (next to nothing) and the added fuel efficiency + future resale return is worth it.

Doesn't want Airbuses -- good thing going with Boeing and would have to get the busses for "free" to incur the added pilot training costs and maintenance/stores/parts issues that would arise. Plus, they said they still have nightmares from the A300 days of long ago. I guess Airbus was not a pleasurable company to deal with.

Are you refering to CAL when you talk about the youngest fleet? 'Cuz that's what they tell us...that we (CAL) has the youngest fleet in the US...of course that's probably what they told new-hires at NWA

 

[Deerkiller]

Avg age of fleet in 1999 = 7.4 yrs
http://www.continental.com/web/en-U...ntent/company/news/release/1999-12-14-01.html


I can only imagine that it is younger than that now considering we've gotten rid of everything non-boeing and we've added over 150 NEW a/c since.

dk

 

[Hutchman]

Avg age of fleet in 1999 = 7.4 yrs
http://www.continental.com/web/en-U...ntent/company/news/release/1999-12-14-01.html


I can only imagine that it is younger than that now considering we've gotten rid of everything non-boeing and we've added over 150 NEW a/c since.

dk

If my math is right, that was 7 years ago. Of course it always counts the 274 RJ's. Are we the youngest? Maybe.