Delta and America West merger?

[FlyDeltasJets]

SDD,

It's a legitamate question, and I will be happy to answer it. As per section one of our contract, the company must integrate the lists within six months of the acquisition if they buy any carrier that "operates aircraft other than permitted aircraft types". Anything over 70 seats is not a "permitted type" so management would be forced to merge the lists of AWA, regardless of what else they operated, because they also operate airplanes other than "permitted types".


Clear as mud?

Example: If comair had one 737, than we could force management to combine the lists. They don't, so we can't. Right or wrong, that is the way the contract is written. I believe comair's contract contains similar language, except the 70 seat limit is 19 seats. Someone please correct me if I am wrong.

 

[skydiverdriver]

Nope, sounds clear enough to me. So, if DAL decided to purchase AmWest under Comair, in other words, have Comair buy them, then you would have to merge both of us, correct?

 

[FlyDeltasJets]

SDD,

That's an interesting question, though I doubt it would ever happen. However, if CMR attempted to buy AWA, only two things could legally happen, as far as I know.

1. They would not be allowed to, as they cannot buy any airplanes over 70 seats... or

2. We would have to merge the combined operations (CMR,AWA,DAL) as per our contract.


The only interesting (and scary) proposition is that CMR could buy awa and operate them as a seperate carrier (i.e. Freedom Air). I don't have your contract language handy, but I would hope that it includes language preventing this. Perhaps you could let me know?

As I said, I believe that our contract prevents this scenario, but it is nice to cover all the bases! (Not that I think the proposition is very likely)

 

[skydiverdriver]

I actually heard this scenario as a rumor quite awhile ago. Believe me, I find it as frightening as you do. But, if our company decides that it may serve some advantage, I don't know if we have the language in our contract to stop it. I'm not an expert at our new book, but our scope clause is pretty weak at best. Remember, our management wrote our contract, as we were railroaded into voting for it. I hope this never happens, but I'm afraid that it might.

 

[cactus]

To answer some of the previous questions:

PHX is only domicile. AWA has 1800 pilots. We haven't opperated Dash 8's since the early 90's, so that is a moot question.

Our MEC chairman addressed this rumor on last weeks hotline and he said he has heard nothing about a merger from ANY official sources.

This rumor has been going around for the last 10 years. I doubt it will ever come true. We are mainly an Airbus airline and Delta dosn't like Airbuses. I just don't see it happening.

 

[FlyDeltasJets]

Cactus,

I agree with you that this rumor is a long shot at best, but I've been surprised before! For the record, I hope you are right.

By the way, would you mind posting your MEC hotline number? I enjoy listening to them.

Thanks

 

[cactus]

FlyDeltaJets check your private messages.

 

[skydiverdriver]

Cactus,
Yes, I know you don't have Dash-8's anymore. I knew some of your pilots furloughed from in when I worked at Piedmont. However, it was a hypothetical question only, and I appreciate FDJ for answering it.

So, if Delta purchased Mesa, and they had one 90 seat airplane, all of Mesa's pilots would be folded into Delta ahead of Comair and ASA's pilots? Does that make sense to anyone? So, Comair is restricted from purchasing a 90 seater, because of Delta's scope clause, but another airline could do it BEFORE they were purchased and then be merged? So, just because we are owned by Delta, we are restricted from doing the one thing that would get us merged. This sounds pretty dangerous to me.

Well, if Delta does purchase Cactus, they will have to get behind Comair and ASA pilots since we were purchased first.

 

[RJFlyer]

SDD:

So, if Delta purchased Mesa, and they had one 90 seat airplane, all of Mesa's pilots would be folded into Delta ahead of Comair and ASA's pilots?

But I'm of the understanding that Mesa can't have 90 seaters (or 70-seaters, for that matter), that's why they're starting Freedom Air.

 

[skydiverdriver]

Well, Mesa has 90 seaters ordered, so they are getting them. How they fly them is a matter for the owner of Mesa to determine, but my point was as soon as they have one90 seater, they would be more worthy of merging with Delta mainline than an ASA or Comair pilot who has been owned by Delta for two years now.