Impact of Mesa's injunction on Delta

[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

 

[~~~^~~~]

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.

 

[~~~^~~~]

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.

 

[~~~^~~~]

That's not true. Injunctions can actually be very easy to get...

Ask your fellow Delta pilots about the 2000 negotiations and voluntary green slips. ...

This injunction was placed because Mesa was posturing to file bankruptcy if something wasn't done.

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.

Well you may have put me in my place :laugh:

Good post!

Hope it will be much less than fifty cents on the dollar. I'd take half a billion a year to walk.

ASA's business with Delta was around 1.6 Billion a year at the time of the 2005 sale.

 

[ACL65PILOT]

Like I stated above. It is just an injunction. Given the fact that they also have that little issue to deal with in HI, it made sense for them to get it. I bet that Delta does come out on top of this.
Fin you and I know that Delta's in house legal council is some of the best. I am sure that they would not have taken on a fight in this environment that they cannot win. A win is Mesa going away, one way or another. Buy out or a total loss of their flying, it does not matter. They are a cancer that needs to be stopped.

 

[another cfii]

What's sad is that when they settle out of court, Ornstein will be another few million richer, while the company goes kaput later...

 

[Lear70]

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.

Jeez, girl, you've been coming out swinging the last couple days with some zingers of some posts...

Did you catch your man cheating on your or something? Some serious angst more than I've seen from you before.

Kinda fun to watch, though. Sick 'em!

 

[OCP]

I'm sure it can be argued that the Delta/Skywest agreement is probably the biggest and strongest of them all, and there is a catch that Delta can terminate that one if performance is not met. I can't remember what Delta has to pay Skywest if that happens, but it seems like it was $200-300 mil or something like that. I would bet the termination fee with Mesa would be a drop in the bucket in comparison. Say $100 mil maybe? That would still be MUCH cheaper for Delta in the long run, and they get rid of 35 ERJs.