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Latest rumors about Midwest

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Hi!

DAL's new pilot contract will allow NWA/DAL to keep MWA separate.

cliff
GRB
 
I think its way too early to tell what will happen to Midwest now. Even though Northwest paid a "premium", it is still a drop in the bucket in the grand scheme of things.
 
Northwest is going to have to decide our fate before the Delta merger can be completed... at least thats what our MEC is telling us. 8
 
The official line from the MEC is that with out Delta contract relief one of two things needs to happen. One, Divest us or Two, Absorb us. If the rumor is true about Delta changing their scope to allow ownership of Midex it changes everything. (This is where my guessing starts) Now I think they can gamble on whether or not the DOJ will force a divestment or keep us seperate. Remember the only thing we have to do is secure MKE. We do not need many planes to do that. If they choose that root I think it will be a horrible outcome for Midex flight crews.

DD
 
This was taken from the Majors board:

Now that it is announced, here are some details of what the Delta pilots negotiated:


A three and one-half percent equity stake in the merged Company in fully tradeable stock at the close of the merger

Annual pay raises beginning with a five percent raise on January 1, 2009 and followed by four percent raises every January 1 through January 1, 2012. On January 1, 2011, Delta pilot pay rates will exceed the Letter 46 rates, without even considering the equity each pilot will receive.

A one percent increase to the DC Plan contribution rate beginning in January 2010.

Furlough protection—with certain exceptions, no pilot may be furloughed as a result of the merger for a period from merger announcement until 24 months after the close of the merger.

An increase in the full-pay sick leave bank from 240 hours to 300 hours.

The ability for a pilot returning from disability to refill his full pay sick leave bank once every four years instead of once in a career.

An increase in 737-700 pay rates to match the 737-800 pay rates.

In return for these improvements, we would provide various modifications to our scope clause to enable Delta to proceed with the merger. For example, we would allow the Company to place the Delta code and brand on Northwest flights on an unlimited basis after the close of the merger, provide greater flexibility on minimum block hour protections during the merger process, and permit the Company to retain Northwest’s large stake in Midwest Airlines (previously purchased by Northwest Airlines) while maintaining their separate operational status.
 
I wonder what the position of the DOJ is regarding this merger as it stands right now.

either way it ain't good.

1) divest us. who will buy us? we will have no negotiating leverage for a seniority integration if that happens.

2) status quo - timmy rules the roost of kimberly clark corporate flight department. we are simply a plug in MKE to stop LCC market share growth.
 
I figure if nobody mentions Midwest in any other paper but the MJS, that should be your clue of where you stand. I didn't hear what kind of powerhouse all three carriers will make. Good luck, but I think you guys are more than a third wheel. NW will take the loss and pay TPG cost plus a few percent and be done with it. They'll have more than enough on the plate synergizing two major carriers, folding you all in will be a waste of time in my eyes.
 

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