CAL-UAL Anti-RJ Proposal

[Plug]

Reading through this thread I see a lot of mis-information. The merger between CAL/UAL has been approved by the BOD's, EU, and DOJ based on presentations by Jeff and Glenn. They are touting billions of $$$$$ as a combined unit. When your current/future CEO makes these presentations while entering section 6 negotiations the word "concession" is not part of any deal. Anything given up is a concession. Since we are in JCBA negotions you have to look at both contracts when deciding what a concession is. We here at CAL have a scope clause that prohibits outsourcing of jet aircraft with greater than 50 seats. Prior to JCBA negotiations we had never intended to give any relief on that. What makes you think we will give relief now? Our baseline for negotiations is a combination of the beneficial language of both contracts and anything less would be a concession. We have the financial data that says our individual airlines would survive just fine with out merging so it is in management's best interest to respect the position of strength the pilots have. The NMB is also pro-labor so that helps as well.

 

[General Lee]

If you think this contract will be worked out by Christmas, you have been sniffing glue.

Maybe you don't understand ALSO, the management types want this DONE ASAP, because WALL ST. wants it done ASAP. This AINT normal contract talks that last 5 years. Bonuses are on the line here. The faster the SOC (Single Operating Certificate), the larger the bonus. A joint Contract comes first, and Wall St and the hedge fund people who are really running the show anyway want to see a smooth ride. Delta is worth twice what CAL and UAL are worth now, combined. That means a lot of money down the road if they can have a SMOOTH transition. Look at the market caps for Delta and then UAL and CAL together. Wall Street wanted this to happen, and the management will be rewarded if it goes smoothly. That is called leverage.


Bye Bye--General Lee

 

[General Lee]

To quote Peanuts: Good Grief General Lee

Thanks for the cogent,precise response. Too bad Snoopy/Skippy couldn't come up with anything even close.

General Lee...you do make sense on your points...I doff my hat.

I don't completely agree...but I will give your response serious consideration.

Guess I am so used to United management bending the pilots over that it is hard for me to conceive of a different outcome.

That is all.

Well, thanks I guess. Look, this would be the time for ANY union at an airline to go for whatever they could, because management is looking for a smooth transitions and their own bonuses. That doesn't mean unions will get everything they want, but I bet they will get a lot more than usual contract talks. When DL/NWA did their joint contract, oil was at $130 a barrel, which meant bad timing. The timing now for UAL and CAL looks a lot better.


Bye Bye--General Lee

 

[waveflyer]

Maybe you don't understand ALSO, the management types want this DONE ASAP, because WALL ST. wants it done ASAP. This AINT normal contract talks that last 5 years. Bonuses are on the line here. The faster the SOC (Single Operating Certificate), the larger the bonus. A joint Contract comes first, and Wall St and the hedge fund people who are really running the show anyway want to see a smooth ride. Delta is worth twice what CAL and UAL are worth now, combined. That means a lot of money down the road if they can have a SMOOTH transition. Look at the market caps for Delta and then UAL and CAL together. Wall Street wanted this to happen, and the management will be rewarded if it goes smoothly. That is called leverage.


Bye Bye--General Lee

which begs the question... Why didn't delta work for some scope takeback?
My answer bc you don't care as long as those widebodies keep flying
what's your answer gen?

 

[Plug]

which begs the question... Why didn't delta work for some scope takeback?
My answer bc you don't care as long as those widebodies keep flying
what's your answer gen?

They (DAL/NWA) didn't have the leverage that we (CAL/UAL) have. Also, CAL is the last of the legacy carriers to have no more than 50 seats in our scope section. Neither DAL or NWA could claim the same. Since we (CAL) have it now we don't plan on conceding it on the JCBA because this combined company will supposedly generate billions $$$$$$$ in synergies, etc. It certainly won't stop management from trying though.

 

[BlackPilot628]

I think this could be a good thing for the industry....Lets remember that the mainline guys pissed on the small Jet flying and need to learn to blame themselves. With that said, I am in FULL support of you guys realizing that you made a mistake and wanted to fix that mistake. I expect that your rates on the 70+ seats will be that of the DC9-10's and F28/F100 rates pre 2000. Because you DO NOT want to help the "race to the bottom".
Making narrow-body rates on the 70+ seaters would be kick aszz. I sure you guys will make that happen.
Strike for Scope. WELL HELL YES!

 

[P38JLightning]

Since we (CAL) have it [51 and up seat scope] now we don't plan on conceding it on the JCBA because this combined company will supposedly generate billions $$$$$$$ in synergies, etc.

Love it. Throw that back in their faces every time they squeal about how expensive it is for an airline to actually fly it's own airplanes.

 

[contrail67]

They (DAL/NWA) didn't have the leverage that we (CAL/UAL) have. Also, CAL is the last of the legacy carriers to have no more than 50 seats in our scope section. Neither DAL or NWA could claim the same. Since we (CAL) have it now we don't plan on conceding it on the JCBA because this combined company will supposedly generate billions $$$$$$$ in synergies, etc. It certainly won't stop management from trying though.

We are all about to see the strength in the United merger...

The last place I would want to be right now is in an RJ.

 

[hyflyin]

Delta's Comair unit to cut jobs, fleet size

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Delta Air Lines, Inc.
DAL.N
$10.68
+0.22+2.10%

Wed Sep 1, 2010 6:35pm EDT
* Most 50-seat planes being retired

* Fleet to shrink to 44 by end 2012 from 97 now

* No specifics on job cuts

ATLANTA, Sept 1 (Reuters) - Delta Air Lines Inc's (DAL.N) Comair regional subsidiary plans to cut jobs and reduce the size of its airplane fleet by more than half to lower costs, the carrier said on Wednesday.

In a memo to staff, Comair said it would retire most of its aging 50-seat jets in 2011 and 2012 and cut staff as the regional airline shrinks.

Comair, which has about 2,600 workers, did not comment on the number of planned job cuts but said the reductions would affect all departments.

"Our current cost structure -- which remains approximately 20 percent higher than our peers on a cost-per-block-hour basis -- does not enable us to be competitive in the current industry environment," Comair President John Bendoraitis said in a memo outlining the changes.

By the end of 2012, Comair expects to operate a total of 44 aircraft, down from 97 planes now, a spokeswoman said.

Delta sold its Mesaba and Compass regional units in July and had shopped around Comair [ID:nN01115223].

"Absent any action on our part to change our current direction, our future will remain in question," Bendoraitis said in the staff memo. (Reporting by Karen Jacobs; Editing by Richard Chang)

 

[Jetjockey]

Economics are forcing the 50 seaters out. Above 50 seats belongs to mainline. End of story, next section of the contract please.