MILPILOT17
Well-known member
- Joined
- May 15, 2008
- Posts
- 378
The current bid by WN for F9 is $175m and they only want 40 of the 51 AC that F9 is currently operating. Being that WN is overstaffed and said that they are shrinking their operation this year, it is unlikely that the judge or F9 management will allow WN to take over F9 on these terms. F9 pilots will end up furlough fodder and WN can still say they have never furloughed a WN pilot because it will be 200 F9 pilots that will be getting the axe. Also, many redundant admin staff will lose their jobs do to this. WN is going to have to take ALL the pilots, not just enough to fly 40 aircraft or the judge and/or FAPA will scuttle the deal and we go with RAH. This judge is jobs oriented and not just creditor oriented.
FAPA has more leverage than I believe SWAPA is willing to admit. GK want this deal real bad because WN has failed to compete effectively with F9. I believe they thought they would have us out of business by now. Since WN's product is inferior to F9s, for about the same price, then Kelly feels like it is cheaper to buy the competition than to spend much more money trying to put us out of business over several more years. F9 actually get a small premium over WN on tickets in competing markets. WN is not going to meet it's contractually mandated 5% growth if it does not get F9. WN actually needs F9 worse than F9 needs WN
Having said this I hope that a deal can be worked out with WN if they win the auction. But rest assured fellow animals, FAPA will not accept a staple if it appears that it is to protect current WN pilots from furlough no matter how much money they throw our way to tempt us.
Sounds like you're "ALL IN"; hope you're not drawing dead. Best of luck to all the F9 folks.