Hold on tight

[outerfix]

Wow, a lot of ground to cover. First off, It's not the Teamsters saying that buying 50% of the assets would trigger a pilot transfer, it's McCaskill-Bond as I stated at least a week ago.

I never said the Teamsters were evil. Our MEC has a lot of blood sweat and tears into getting this union together and they stuck their necks way out. Our MEC union to the core and is buying everything that the 1108 is selling them. I don't think any independent research has been done on a seniority list integration with the exception of consulting the 1108, which is Option's pilots.

OHGOON, It's been said more then once because you keep saying it. The 1108 is saying things that are flat out false. If we were not Teamsters, we would follow the procedures of Allegany-Mohawk as outlined in McCaskill-Bond. As much as they would like to hope, the Teamsters would not control the process, we would not follow Teamsters merger policy and we would expect a much different outcome then if we were Teamsters.

Aero, An airline has a route structure, we have owner contracts. The contracts are the assets. Whats 50% of a negative asset. I don't know the answer to that. The Midwest/ Republic is the first merger under McCaskill-Bond and I think a good template for what will happen, if anything is going to happen. In the Midwest/Republic merger the FA's got merger integration rights even though the routes were the only things that transferred over.

How to pay for it. Preparing a case for an arbitrator and spending one day in court presenting it is not going to cost a fortune. I think we would get paid back the first Christmas we get to spend at home rather than on the road because of crappy seniority. Fighting the company would take significantly more money, but if we are not willing to fight for what is right then we deserve what we get.

`

 

[Sparse]

Can you expand on this?

Seeing as you have been proven to have the best info on this topic can you look into the crystal ball and let us know what is up in more detail?

I think he said a few replies ago that CA pilots should have their resumes ready.

 

[AeroBoy]

I think he said a few replies ago that CA pilots should have their resumes ready.

The best piece of advice for CitationAir pilots is to hope for the best but plan for the worst. There's no harm in having an updated resume, and I'd hope that many of the CitationAir pilots had already done this months ago, as Cessna/Textron's interest in running a private lift operation has waned with each passing minute since announcing its exit from the fractional business early last year.

 

[NJAowner]

Fo/DAC would probably not be buying that many "assets" of CA. I would see a deal structured where CA just assigns "liabilities" (its obligations under the management contracts) but keeps its assets (tangible and intangible, receivables, etc.). Other than the "core fleet" which FO does not need, the planes belong to the owners and are not the assets of CA. It is issues like these that will have lawyers on one side structuring the deal one way, and the union lawyers advocating for their client's positions.

 

[Fresh Air]

Fo/DAC would probably not be buying that many "assets" of CA. I would see a deal structured where CA just assigns "liabilities" (its obligations under the management contracts) but keeps its assets (tangible and intangible, receivables, etc.). Other than the "core fleet" which FO does not need, the planes belong to the owners and are not the assets of CA. It is issues like these that will have lawyers on one side structuring the deal one way, and the union lawyers advocating for their client's positions.

Thanks for posting that. Gives a bit of perspective from the viewpoint of someone familiar with business dealings instead of just flying planes. So if Directional doesn't pick up CA's assets, then Kenn can do whatever he wants with the crews and this whole integration discussion is kinda moot, huh?

 

[dime line]

NJA Owner, does CS own a 1/16 or 1/32 of each (maybe not each) plane that they have in their control?

 

[NJAowner]

Fresh Air -- I am not sure what it mean she can do under the other agreements, but I am just telling you from a 40000 foot level (ok a flying analogy) how the deal may be structured. Especially since (as rumor is) the $$$ are flowing from CA to DAC (in order to assume liabilities), it is less of a purchase of assets.


Dime - not sure. For example, NJ hopes that it doesn't own any interest in any jets. But practically it ends up with stub pieces from a departing owner having 1/4 and only being able to resell 3/16 at the time in question. Ideally, each jet starts off (or after initial sales starts off) with 0 company interest. Plus, if you are looking at a 50% of assets standard, there are many ways around that. First, in many acquisitions receivables are not purchase and in a fractional company they have to be huge. Secondly, intangible assets such as good will and the trademarks may have substantial value and may not be sold. It is very different than a manufacturing company where plant and equipment is sold or even an airline where jets are sold.

All being said, I think FO needs something between the Phenom and the X (since they are phasing out the Hawker 800) and the planes don't fly themselves. They would instantly need many well qualified pilots and getting then from CA is a logical choice.

 

[gret]

Fresh Air -- I am not sure what it mean she can do under the other agreements, but I am just telling you from a 40000 foot level (ok a flying analogy) how the deal may be structured. Especially since (as rumor is) the $$$ are flowing from CA to DAC (in order to assume liabilities), it is less of a purchase of assets.


Dime - not sure. For example, NJ hopes that it doesn't own any interest in any jets. But practically it ends up with stub pieces from a departing owner having 1/4 and only being able to resell 3/16 at the time in question. Ideally, each jet starts off (or after initial sales starts off) with 0 company interest. Plus, if you are looking at a 50% of assets standard, there are many ways around that. First, in many acquisitions receivables are not purchase and in a fractional company they have to be huge. Secondly, intangible assets such as good will and the trademarks may have substantial value and may not be sold. It is very different than a manufacturing company where plant and equipment is sold or even an airline where jets are sold.

All being said, I think FO needs something between the Phenom and the X (since they are phasing out the Hawker 800) and the planes don't fly themselves. They would instantly need many well qualified pilots and getting then from CA is a logical choice.

Don't forget if they keep the receivables, they also have to keep the payables...which are also massive and usually exceed the receivables in the case of an aviation company.

A seller of a frac has to pay the buyer cash because of the obligations, including the buy out for the owners if they leave the program. The seller is escaping and has to pay to get out of a bad business.

 

[Sparse]

I find it funny that Allen edmunds shoes advertises on this web site. In this thread, people are worried about their jobs and how to feed their family. I doubt they are concerned about what style of $300 shoes they are going to buy. Now don't get me wrong, they make great shoes, I have two pair I have had for 12 and 30 years, but with the exception of NJOwner, I doubt many on this site are going to be shopping for theses items.

 

[jonjuan]

I find it funny that Allen edmunds shoes advertises on this web site. In this thread, people are worried about their jobs and how to feed their family. I doubt they are concerned about what style of $300 shoes they are going to buy. Now don't get me wrong, they make great shoes, I have two pair I have had for 12 and 30 years, but with the exception of NJOwner, I doubt many on this site are going to be shopping for theses items.

Maybe it's a leak over from the 10/250 thread where advertisers are Rolex, Mercedes, and Members Only. :laugh:

 

[gunfyter]

In THE MILLIONAIRE NEXT DOOR, I remember it said that most millionaires had never spent $149 or more for a pair of shoes.

That was one example ... but there were many other items he mentioned too. The people buying this crap are people who can't afford it

 

[NJAowner]

Re: Allen Edmunds. Great shoes and if you get them re-soled when needed can actually be a better value than cheaper shoes. They can last a long time (but do need more $ upfront). I have one pair for over 10 years -- get them resoled and conditioned every 2 years or so and they are better than new -- just like new but already broken in.

Gret --"Don't forget if they keep the receivables, they also have to keep the payables." Not quite sure how many transactions you have been involved in but very rarely is something that "they also HAVE TO" anything. In probably 75% of asset acquisitions, that is probably the case, but is far from a "HAVE TO". I would envision a deal structure that has some type of a post-closing "work out/earn out" for dealing with the owner buybacks, etc. CA may even stay on the hook directly for those. This is not the "first rodeo" for KR & DAC. If they are assuming the owner buy back liabilities I assume they will be adequately compensated for it. Since they are all Cessna products maybe they just take them back.

Sparse --a good bit of internet advertising on these boards is based upon other websites which have been visited on your computer. You may see "Allen Edmunds" because you were looking at shoes, Fisch will see oceanfront condos in Maui or La Jolla because he has been trying to figure out how to spend all his 10/$250 and retirement benefits, and I don't think we really want to know what comes on Jonjuan's screen. But we probably all get the Sporty's and pilot stuff. That is just how internet advertising usually works.

 

[ProFracPilot]

Firefox + AdBlock Plus = Advertising? What advertising ?

 

[Sparse]

Re: Allen Edmunds. Great shoes and if you get them re-soled when needed can actually be a better value than cheaper shoes. They can last a long time (but do need more $ upfront). I have one pair for over 10 years -- get them resoled and conditioned every 2 years or so and they are better than new -- just like new but already broken in.

.

They are great shoes. Don't know if it is still the case but Delta pilots could buy these through payroll deduct for 1/2 price. That's how I got mine. I have had one pair factory refurbished and they are just like new. I have had that pair for over 30 years.

 

[dime line]

In THE MILLIONAIRE NEXT DOOR, I remember it said that most millionaires had never spent $149 or more for a pair of shoes.

That was one example ... but there were many other items he mentioned too. The people buying this crap are people who can't afford it

Make no mistake about it, they might not buy 149.00 shoes, but I bet they have 50,000 into a home stereo. just saying