Impact of Mesa's injunction on Delta

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I'd like to get thoughts on what impact Mesa's injunction on Delta's management of Delta Connection flying is likely to have on the Delta / Northwest merger.

First, the injunction is a strong indication the Court finds merit in Mesa's case. An injunction is effectively putting the verdict ahead of the trial. The Horse ahead of the Cart. Injunctions are very difficult to win and Courts do not simply hand them out to anyone who asks.

Second, SkyWest / ASA and probably Republic / Chq / Shuttle have contracts which are either bankruptcy proof, or more restrictive than the Mesa contract.

Third, it is believed Comair's jets are the only RJ's that can now be parked without restriction.

Fourth, the DC9 is a large RJ that costs much more per seat mile to operate than the CRJ700/900.

Fifth, the Delta MEC has been silent on the issue of Compass to the best of my knowledge. It is my assumption they will be against any form of one list, as has been past practice.

• Will Delta park RJs? If so, how?
• Would Delta park its' own new $21,000,000.00 RJs?
• Will this put even more pressure on Delta to park DC9s?
• Is Compass a priority for the the NWA MEC?
• Any guess as to how this new wrinkle is going to be ironed out?
• Should new hires be looking for jobs, instead of Mesa pilots?

 

[Superpilot92]

you should definitely start looking for a job. Good luck

 

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^^^^

I don't disagree with you. But it is interesting that you admit Delta pilots should be looking for jobs because NWA's DC9s are more likely to get parked.

NWA was planning on replacing them with RJ's. Delta offered a reprieve, but that looks like it is falling apart. Overcome by events as Occam likes to say.

So now, when NWA's airplanes get parked, Delta pilots should hit the street.

Come here, fishy fishy fishy....

Figured you'd bite. Although, it is an honest question.

 

[Superpilot92]

^^^^

I don't disagree with you. But it is interesting that you admit Delta pilots should be looking for jobs because NWA's DC9s are more likely to get parked.

NWA was planning on replacing them with RJ's. Delta offered a reprieve, but that looks like it is falling apart. Overcome by events as Occam likes to say.

So now, when NWA's airplanes get parked, Delta pilots should hit the street.

Come here, fishy fishy fishy....

Figured you'd bite. Although, it is an honest question.

Relax, i tell you all the time put the drama down. I was just poking at you since if you leave i might get a seniority bump. MGMT has their job to do and we have our job to do not only to fly our planes but to protect our jobs. Until both groups figure that out and start working together there is nothing YOU or I can do about it. relax :beer:

 

[JECKEL]

I believe Comair was going to taking some future hits (parking aircraft) because of the merger/oil prices, but nothing to shake the foundation. Now, however, I think Comair's "foundation" may be at risk.

Delta has to park aircraft and the biggest target would be the 50 seat RJ. Mesa was to be the largest of the regional targets to get this done. With that in question, or maybe out of the picture, look for more of Comair's 50 seat aircraft to come into focus for cuts.

Comair continues to hire and those plans have not had a chance to change ... yet. Contrary to what some believe, most of this hiring is do to a perception that Comair was to get someone else's flying in the near future (a very small part). The first time Comair has ever been proactive on anything. I believe that perception may change in the coming weeks with the results of this injunction.

Another question ... did Delta really feel they had the upper hand on this? Or was this a hope or a dream that they could drop their mess known as Mesa? I would like to think that the Delta legal team is not this ill prepared and, at the least, would have thought this through over lunch before trying to terminate a carriers contract. Just thinking out loud.

 

[waveflyer]

Since scope muddied the waters the wrong guys get furloughed way too often... I hope that doesn't happen here.

For those not in the know- what's the injunction Mesa won-- i was really hoping they'd go away.

 

[lookin4better]

...they will sell Compass

 

[Superpilot92]

...they will sell Compass

i emailed the union about that and they said as of right now mgmt has no intention of doing that. They like keeping the profits in house. We shall see.

 

[WSurf]

i emailed the union about that and they said as of right now mgmt has no intention of doing that. They like keeping the profits in house. We shall see.

And selling them would give them a profit also.

I think most airlines like to keep there profits in house. But when there's a money crunch who knows if the need of fast cash outweighs the need for long term cash.

 

[ACL65PILOT]

Lets not jump the gun. First it was an injunction. Look at each sides arguments. Fact is that Mesa had the most compelling case. They stated (It is probably truth) That if this contract was voided they would cease to operate. Because of this the judge ordered the injunction so that they would continue to operate until the case is decided. It is quite standard in this situation.
It does not change the fact that Delta will probably win the case. It just keeps Mesa in business long enough to fight it.

 

[RedRum]

Compass not for sale at this time

i emailed the union about that and they said as of right now mgmt has no intention of doing that. They like keeping the profits in house. We shall see.

I agree.

Compass is not going to be sold, unless Delta can figure a way to park the DC9's and leave all the junior NWA guys hanging in the breeze. It is a safety net for NWA pilots right now which is nice and we earned it.

I am sure DALPA wants a part of that safety net as well. It is only 36 jets but it would be a step in the right direction to bring this flying in house. Not at the current seat rates but at a new mainline rate. From what I understand this has been factored in to the new joint contract.

RA and DS both stated on the day the merger was announced on a teleconference that they understand the benefit of keeping 70 seat market in house as it lowers operating costs. Fee for departure will eventually go by the wayside if these oil prices continue to climb. If I am Delta or NWA, I am looking for any out I can right now.

It is unfortunate for regional pilots at Pinnacle and Comair, but it will end up being better in the long run assuming this race to bottom stops soon.

ONE AIRLINE ONE CONTRACT

 

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Superpilot:

Delta keeping the profits in house would be smart. ASA, with its warts, has been one of the most profitable airlines on the planet and continues to be a profit center (for SkyWest).

Redrum:

I've never heard that Anderson and Steenland stated an intention to keep the 70 seat market in house. That would be interesting. Do you have alink, or a steer for where that information might be available in its' most original form?

If true, why do you think DAL and NWA guys should be looking for work? It seems if DAL and NWA were interested in keeping flying, a furlough job would not be necessary.

ACL65:

Juries are likely to be influenced by hard luck stories. Judges much less so.

Obtaining injunctive relief is as good as a win for Mesa in the short term. In the long term, Delta is less likely to even try to break these contracts if they got their hand slapped on the case they thought they were sure to win.

If the injunctive relief lasts as long as the trial, or as long as final appeal, then it is a win for the future as far out as any of us can see in this business.

Delta has to manage DCI. If adjustments to Mesa flying are off the table for even 24 months, then something else has to give. How long this case will last is anyone's guess, but with 1 Billion + at interest, there is plenty of incentive for Mesa to keep it going and counsel on both sides to bill their clients for many, many, many, y e a r s .

Not to mention the product Mesa will provide in the interim.

This is ugly and I do not like having John Orenstein plant a fist on my nose with his first swing. I also don't like the fact that it seems Freedom and Mesa's big growth spurt was directly related to trying to whipsaw the ASA and Comair pilots during contract negotiations. It wasn't even worth it back then.

 

[FlyingDawg]

...they will sell Compass

And Bedford will buy it.

 

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I actually thought he would have bought Comair by now.

 

[BOX OFFICE]

First, the injunction is a strong indication the Court finds merit in Mesa's case. An injunction is effectively putting the verdict ahead of the trial. The Horse ahead of the Cart. Injunctions are very difficult to win and Courts do not simply hand them out to anyone who asks.

That's not true. Injunctions can actually be very easy to get... it depends on the political climate and the attitude of the judge. Ask your fellow Delta pilots about the 2000 negotiations and voluntary green slips. The purpose of an injunction is to stop a arty from taking action before the court decides.

This injunction was placed because Mesa was posturing to file bankruptcy if something wasn't done. Effectively, irreparable harm would have occurred to Mesa before the facts of the case were even argued in court. In light of this, no competent judge would have allowed such, because overruling this injunction would have decided the case before it even began.

All this injunction means is that status quo must prevail until the trial. Nothing more, nothing less. I predict it doesn't go to trial, though. Delta will settle with Mesa for $0.50 on the dollar for the contract with the stipulation that Mesa goes away.