Law passed on DEC 26th 2007 that protects pilots during a merger/acquisition

[mt2]

Actually, SWA bought ATA "AS A WHOLE" according to the bankruptcy judge. As part of buying ATA, SWA even obtained the ATA operating certificate.

I was really surprised the ATA pilots never filed a petition with the NMB for single-carrier status of ATA and SWA! Worst case is that the NMB could have rejected the petition so I think it was incompetent of ALPA not to at least file the petition.

This happened as part of the LGA slot purchase, long after ATA had ceased operations. OTOH, signing away the single carrier petition with World was a big oops.

 

[HalinTexas]

ATA did NOT give up the single integration list with WAH. In fact they did not even think of pursuing it until just prior to Ch. 7. SWA surrendered their interest in ATA in Dec. of 2005 to Matlin-Patterson. They bought the ATA cert. after the 2008 liquidation. Labor had no say in the matter.

On a related note. I spoke with one ex-ATA guy working overseas and he told me that an individual bought 3 L1011's for less than $2M in BK. They're doing Haj flights, now.

In April 2007, after MP bought WAH, I was one of the minority yelling that a SIL needed to be implemented immediately. ATA-ALPA, N. A. and World didn't think it necessary and didn't want it, respectively. I was of the mind that NA would get carved off first. Silly me. Should be more like SWAPA and not care about the profession, just myself.

 

[Ty Webb]

SWA is buying F9 (assets) out of bankruptcy. They hold all the leverage.
Remember SWA bought ATA assets out of bankruptcy and look what ultimately happened to them.

They're not buying assets, they're buying a functioning airline, if the press releases are to be believed. The ATA deal was done differently- As I recall, SWA bought some assets, mainly MDW gates, a gave them some cash, and a deal to do some feed for SWA. . . . I'm sure some ATA guys on here can give us the painful details.

 

[Splert]

What everone is missing is that nothing in the legislation requires an airline which purchases another to merge the airlines together.

If SWA wants to operate the company as a wholly owned subsidary they can and the same with Republic.

 

[Cometman]

What everone is missing is that nothing in the legislation requires an airline which purchases another to merge the airlines together.

If SWA wants to operate the company as a wholly owned subsidary they can and the same with Republic.

Finally a correct statement. I agree with you 100%. SWA can do whatever it wants with Frontier after they buy it. All the legislation says is if they merge the operation they have requirments to meet.

 

[BeachBummer]

Finally a correct statement. I agree with you 100%. SWA can do whatever it wants with Frontier after they buy it. All the legislation says is if they merge the operation they have requirments to meet.

Right, so like ATA they will buy rearrange and then disolve what is not useful. SWA doesn't want the planes or the people, at least I wouldn't think they would. They want the structure that holds that stuff up.

I have a hard time seeing this as anything but bad for the employees of Frontier.

Good Luck

 

[Cometman]

Right, so like ATA they will buy rearrange and then disolve what is not useful. SWA doesn't want the planes or the people, at least I wouldn't think they would. They want the structure that holds that stuff up.

I have a hard time seeing this as anything but bad for the employees of Frontier.

Good Luck

I disagree. Since this is much more than ATA I think they will offer a staple and to encourage the F9 pilots to agree they will throw in the pay freeze. Since it will take time for SWA to get rid of the AB and replace them with the 737 it only makes sense to keep them on. As long as they have their SWA number they can come over as each AB leaves and replaced with a 737. The Denver Base lock will help them in the transition. It will not hurt SWA since they cannot fly the AB. That will be more than any F9 would expect. Remember, they are being auctioned off. They could be out on the street.

 

[gt1900]

I would be willing to bet that SWA will buy F9. Operate them as two seperate company's, and slowly kill off F9. There won't be a merger, just SWA getting rid of its competition on its own terms, and taking the routes and gates as they see fit. F9 guys will get pref interviews at SWA when SWA starts hiring, but very few will get hired. Eventually SWA will just shut F9 down completely and sell off the assets they don't need.

 

[PCL_128]

SWA is buying F9 (assets) out of bankruptcy. They hold all the leverage.

Not really. Another offer is on the table (Republic), and they have already said that Frontier would be operated as a separate entity. Hence, no SLI screw-job for the F9 pilots. The IBT argues that an SLI would be required, but Bedford can easily purchase F9 on his own with his own money and that of other investors rather than using RAH funds to get around the IBT language, since he has no plans for operational integration anyway. The way I see it, the F9 pilots are much better off in that situation rather than putting themselves at the mercy of SWAPA and SWA management.

 

[BeachBummer]

I disagree. Since this is much more than ATA I think they will offer a staple and to encourage the F9 pilots to agree they will throw in the pay freeze. Since it will take time for SWA to get rid of the AB and replace them with the 737 it only makes sense to keep them on. As long as they have their SWA number they can come over as each AB leaves and replaced with a 737. The Denver Base lock will help them in the transition. It will not hurt SWA since they cannot fly the AB. That will be more than any F9 would expect. Remember, they are being auctioned off. They could be out on the street.

Hope you are right my friend...