General Lee
Well-known member
- Joined
- Aug 24, 2002
- Posts
- 20,442
The wrinkle in that plan was another portion of the NWA scope.
It was actually a two tiered scope, with half the large RJs (the "Lower Cap") being available to any Airlink operator, and the other half (the "Upper Cap"), being available to a wholly owned Airlink (Compass, in this case).
You're right...it was expected that Compass would eventually be sold. However, in order to do so, and remain within the provisions of Section 1, 10 DC-9 replacement aircraft MUST be in operational service at the mainline.
In other words, no DC-9 replacement, no selling of Compass. There are additional roll-back provisions to protect scope after the spin off.
A 36 aircraft airline is a money loser. With all the duplication of effort (MX, admin, ect), you can't amortize the fixed cost out over a large fleet like bigger outfits.
It was thought at the time if you shackled NWA financially, you'd forced them to get a DC-9 replacement, and keep the flying in-house.
They were right...sort of. Compass has become somewhat of an albatross for NWA...can't expand it, can't sell it, can't transfer the flying to anyone else.
With the drawdown of some NB flying, the RJ cap comes into play, and both XJ and Compass were looking at cancelled orders, which made the cost side of things even worse for Compass.
Had the DAL thing not come down the pike, management would have been forced to curtail the 76 seat flying, get a DC-9 replacement or bring the 76 seat flying to the mainline. There was starting to be some serious talk about the latter happening, which, when coupled to the XJ flow through, would have been good for EVERYONE.
But, as Occam says, OBE.
If you guys sell out scope just to make a point, then, that's just stupid. Once sold, you never get it back, because management KNOWS the true value of it. And I'm sure you know, Fins, that price is too high for many mainline guys to willingly pay.
Nu
I would be highly shocked if Dalpa sold the 100 seaters down the river. Really. We fought hard to get those pay rates in BK. I think MOAK would have some major explaining to do. Let's just wait to see what happens I guess. But, in the meantime, you might want to get your negotiators over to ATL to solve some of YOUR problems. Did you see the price of oil today? I think this merger may happen, with or without your participation.
Bye Bye--General Lee