It's back, but now it's "mini-NewCo"

[YourPilotFriend]

I guess they really do want a third regional to operate 76 seat aircraft, no 100 seaters allowed. NWA pilots are still making the stand.

 

[Avro dude]

Where did " mini newco" come from.

 

[YourPilotFriend]

"mini NewCo" is the current deal offered up this week. According to the plan, NWA is buying the 76 seat jets now to lease them out to a third party unnamed airline(Mesa highly likely).

 

[Rossa]

YPF,

If I'm not mistaken, you previously said that NWA wanted to have whatever entity that was going to operate these proposed a/c, to purchase them AND operate them. Now you have a different story...................sounds like NWA is making it up as they go along!
I think that you guys should be more afraid of MESA than your current Airlink partners - MESA pilots and mngt have shown that they have ZERO second thoughts about flying bigger a/c, for less money!!
Someone is either pulling your leg, or NWA mngt knows that the NWA Pilots fear the unknown more than XJ and 9E (whose Pilots have some reservations about flying 70+ seats for 50 seat rates). You need to get your rumors straight!!
NWA will hold a third "unknown" over all our heads until we collectively call their bluff!
My .02 is that XJ will put it's guys through the "ringer" until they feel that they can't gain anything more from it, NWA will announce that if XJ can deliver on their "race-to-the-bottom" promises, they will take 9E's flying........9E Pilots will react.........and voila!!! Everyone is screwed and NWA retains operational control of everything!!
If they bring in MESA, they will get what they pay for - just ask ANY United or USAIR guy!!!
Good luck with the rumor!

 

[Butters]

"mini NewCo" is the current deal offered up this week. According to the plan, NWA is buying the 76 seat jets now to lease them out to a third party unnamed airline(Mesa highly likely).

Wouldn't be like you to fan the flames, would it?

Spare me the "you just can't handle the truth" speech. I just have to remind myself that you were always picked last for kick ball so you try to stir up the muck in here to make yourself feel better.

 

[YourPilotFriend]

Sadly, this is not a rumor, but the airline flying them is currently still unknown. In other words, they haven't finished whipsawing the SJP's yet.

 

[DoinTime]

.....

 

[DoinTime]

Sadly, this is not a rumor, but the airline flying them is currently still unknown. In other words, they haven't finished whipsawing the SJP's yet.

YPF...You really need to read your own Union's communications. Its sad to see that some of you mainline guys know so little about what is going on.

Although management had moved off its “Newco” proposal, it is now demanding a “mini-Newco” that is almost identical to its original Newco proposal. Management’s new mini-Newco proposal involves purchasing 95 jets (90-seat aircraft configured in a two class 76-seat arrangement) that would be owned by NWA and flown by non-NWA pilots. As you recall, management’s original Newco proposal involved purchasing 105 jets (77- to 100-seat aircraft) by 2010 that would be owned by Northwest and flown by non-NWA pilots.

MiniNEWCO is no different that NEWCO. It is an airline to be owned by NWA and flown by non-NWA pilots (meaning furloughed mainline pilots on a new seniority list).

 

[Tank Commander]

It will be said, XJ has won the bid. XJ will take up to 50 of our A/C. This will send us into turmoil over our pilot contact, so they hope. This will happen over the next 1-3 months. In hind site, we will realize the RSP was nothing more then a ploy to get 9E and XJ to cut cost. NWA whip saws all its groups and regional partners. The last thing they would tolerate is a regional carrier that could whip saw them against their competitors. One must ask why has 9E and XJ have not strayed off to fly for other carriers? Because thats the way "Big Daddy wants it". BigSky, A ticket with nothing happening with it. Yet, Mair Holdings has all kinds of money to play with. 9E and its new ticket it was trying to get off the ground. It's not even being talked about anymore. During discussions between 9E and NWA I'm sure it came up, and they were told, "go out side and loose your flyng here". One thing to watch for is a merge between NWA and Delta. Then Comair would become a major player in all of this.

It will be said, NWA and its MEC have reached a T/A. "No new co, but 76 seat flying and below will be out sourced to it's regional partners. I CALLED THAT ONE 6 MONTHS AGO! That announcement was made as a proposal to the MEC by NWA last week in the Wall street Journal. Release of 70 seat flying by the MEC is what NWA wanted two years ago. With this proposal, the MEC will be able to claim victory, that it has defeated new co and it kept 76 seat and above flying at mainline.

Well, YPF got part of it right. He usually doesn't get $hit right!

 

[YourPilotFriend]

MiniNEWCO is no different that NEWCO. It is an airline to be owned by NWA and flown by non-NWA pilots (meaning furloughed mainline pilots on a new seniority list).

Come on, NWA management has no intention of hiring back furloughed NWA pilots. I do agree that the final deal we be a scope relax to allow 76 seat jets flown at the regionals.

 

[ilinipilot]

Honest Question.

Does Mesa have the resources, time, sim training etc to even operate another 50 planes. They already fly for 4 code-shares, have 2 certificates, fly everything from 1900s to CRJ-900.
A rumor was spread around that mesa was running out of sim time for the erj fleet operated by freedom.

Wouldn't it be better to improve your existing operating currently than to keep taking on more flying and dilute your product. I can see a scenario where by adding one more you could lose 2.

Any thoughts

D

 

[DCMartin]

I thoght Mesa rejected NW offer

By Ted Reed
TheStreet.com Staff Reporter
1/25/2006 3:51 PM EST
Click here for more stories by Ted Reed


Mesa Air Group (MESA:Nasdaq - commentary - research - Cramer's Take) CEO Jonathan Ornstein said Tuesday that his company will continue to seek new opportunities to fly for major airlines, but has little interest in proposals that ask commuter partners to share in fuel costs, contrary to longstanding industry practice. Ornstein also said during a conference call that Mesa will inaugurate inter-island Hawaii service in April, offering reduced fares aboard 50-seat regional jets.
He acknowledged that the airplanes that will initially fly in Hawaii have relatively high operating costs, but he said Mesa can profit nonetheless. The airline expects to carry not only local passengers, but also connecting passengers, as several major carriers have inquired about code-share opportunities.

"We feel pretty strong that the inter-island business can be profitable for a low-cost carrier," Ornstein said.
To start, Mesa will commit just four to six aircraft to Hawaii, but the number could rise to eight or 10 in the future, and the 50-seaters could be swapped for CRJ 900s, which can seat 90 passengers. Fares won't remain 23% below existing fares indefinitely, he said, although they will remain below current fares over the next three years.
Ornstein wouldn't comment on whether Mesa will respond to a Northwest Airlines (NWACQ:OTC BB - commentary - research - Cramer's Take) solicitation that seeks partners but reportedly asks them to share fuel cost responsibility.
"We're not going to do things we think are high risk," Ornstein said, adding that major carriers are unwilling to take the risk of acquiring new regional jets. "As it becomes harder to finance aircraft, there become fewer and fewer of us who can do it. If we are going to make significant investments in new equipment, we expect reasonable rates of return." His comments came after Mesa said net income fell slightly in the quarter ended Dec. 31, a result of one-time costs related to a debt conversion, one-time gains in the same quarter a year earlier and the transition of aircraft to new operating partners.

Net income was $13 million, or 31 cents a share, in the company's fiscal first quarter. Mesa reported net income of $13.9 million and 32 cents a share for the same period a year earlier. Mesa's shares were down 3 cents to $11.51
Before $600,000 of costs for converting debt to equity and net investment losses of $200,000, the company would have earned $13.8 million, or 32 cents a share, in the most recent quarter.

Analysts polled by Thomson First Call were expecting a profit of 31 cents.
Revenue rose to $58.8 million, up 22%, as Mesa's regional jet fleet increased to 145 aircraft at the end of the year from 132 the year before. The Mesa regional jet fleet includes 38 planes with 86 seat, 15 with 70 seats and 92 jets with 50 seat. Customers include UAL's United (UALAQ:OTC BB - commentary - research - Cramer's Take) with 58 jets, America West with 56, US Airways (LCC:NYSE - commentary - research - Cramer's Take) with 19 and Delta (DALRQ:OTC BB - commentary - research - Cramer's Take) with 12. Mesa also operates 36 turboprops.

 

[YourPilotFriend]

I don't think Mesa pilots would want to be picking up the red tail as they go into contract negotiations. Also NWA is buying the jets, they are looking for the cheapest operator.

 

[CapnVegetto]

YPF,

If I'm not mistaken, you previously said that NWA wanted to have whatever entity that was going to operate these proposed a/c, to purchase them AND operate them. Now you have a different story...................sounds like NWA is making it up as they go along!
I think that you guys should be more afraid of MESA than your current Airlink partners - MESA pilots and mngt have shown that they have ZERO second thoughts about flying bigger a/c, for less money!!
Someone is either pulling your leg, or NWA mngt knows that the NWA Pilots fear the unknown more than XJ and 9E (whose Pilots have some reservations about flying 70+ seats for 50 seat rates). You need to get your rumors straight!!
NWA will hold a third "unknown" over all our heads until we collectively call their bluff!
My .02 is that XJ will put it's guys through the "ringer" until they feel that they can't gain anything more from it, NWA will announce that if XJ can deliver on their "race-to-the-bottom" promises, they will take 9E's flying........9E Pilots will react.........and voila!!! Everyone is screwed and NWA retains operational control of everything!!
If they bring in MESA, they will get what they pay for - just ask ANY United or USAIR guy!!!
Good luck with the rumor!

You forget, Mesa turned down 737 flying because the pay and bennies were too low.

Don't blame Mesa pilots, blame JO for lying and underhanded tactics.

 

[CapnVegetto]

Honest Question.

Does Mesa have the resources, time, sim training etc to even operate another 50 planes. They already fly for 4 code-shares, have 2 certificates, fly everything from 1900s to CRJ-900.
A rumor was spread around that mesa was running out of sim time for the erj fleet operated by freedom.

Wouldn't it be better to improve your existing operating currently than to keep taking on more flying and dilute your product. I can see a scenario where by adding one more you could lose 2.

Any thoughts

D

No, no, and no. They are already short staffed, (nothing new there) in pilots, FA's and operations. Training takes forever due to the lack of sim time, and lack of IOE captains. When I went through, I had a 2 month wait between my sim check and IOE. There were a few guys in my class that waited about a month for a sim. Of course, I didn't mind. I sat at home, played golf, fished, and hunted while I got paid my min guarantee to do nothing.

Mesa is the most poorly run operation I have ever seen, all completely due to inept managment. They lose so much money on inefficient scheduling, poor staffing, piss poor planning, and fat managment salaries it's not even funny. Another codeshare would just add to the misery. Not to mention the fact that they have NO spare airplanes.

 

[Truckdriver]

XJT will probably have around 700 pilots to fly them come early 2007.