Mesaba losing the Avros (?)

[nwaredtail]

I would also say this is a management ploy. They were taken out of the NWA reservations system but now are back. I would say that the only thing that will become of this is less money for Mesaba to fly them, which will eventually lead to lower wages for the crews.....

 

[Butters]

I would also say this is a management ploy. They were taken out of the NWA reservations system but now are back. I would say that the only thing that will become of this is less money for Mesaba to fly them, which will eventually lead to lower wages for the crews.....

Agree 100%. Classic case of "divide and conquer."

Good luck, Northwest pilots. You don't deserve this.

 

[nwaredtail]

Ramptower, I would say the 1000 or so furloughed NWA pilots will accept the industry rates on the 70 seaters, if they buy them. Remember, the dc-9 looks a whole lot better when the crew costs come down. I would thinka furlough guy would be willing to fly a new E-170 for 80-90 bucks an hour vs. unemployment.

 

[Butters]

Ramptower, I would say the 1000 or so furloughed NWA pilots will accept the industry rates on the 70 seaters, if they buy them. Remember, the dc-9 looks a whole lot better when the crew costs come down. I would thinka furlough guy would be willing to fly a new E-170 for 80-90 bucks an hour vs. unemployment.

Once again, I agree with you.

The only problem from the Northwest side is will the FA's, mechanics, gate agents, rampies, etc. work for the same reduced wages? That is the battle you face. If the answer is yes, you will get the planes as you should.

I just don't think the rest of the clan at Northwest is as smart as the pilots. You guys were the ones who were proactive on this from the start. Too bad they weren't forward thinking too.

 

[filejw]

Ramp Tower,
NWA owns 27 % of Mesaba.The exclusive contracts goes back to the late eighties when the air link flying was done by Simmons.AMR bought Simmons and NWA used them for 1 or 2 yrs and didn't like the set up.So they put out contracts for the flying and told all bidders you can serve us only or don't bid.

 

[DoinTime]

I would also say this is a management ploy. They were taken out of the NWA reservations system but now are back. I would say that the only thing that will become of this is less money for Mesaba to fly them, which will eventually lead to lower wages for the crews.....

Anyone who thinks NW is not serious about fleet reductions this time around must have their head up their a$$. PCL just annouced today they are parking 15 CRJs.

 

[Monster Buck]

DoinTime you and I have disagreed in the past but I KNOW YOU SEE THROUGH THIS BS. Many people from your airline have said that you run the CRJ cheaper than anyone. Why take away the cheapest run 50 seat rj in their fleet? Especially when they are still leasing more?

 

[RampTower]

Ramptower, I would say the 1000 or so furloughed NWA pilots will accept the industry rates on the 70 seaters, if they buy them. Remember, the dc-9 looks a whole lot better when the crew costs come down. I would thinka furlough guy would be willing to fly a new E-170 for 80-90 bucks an hour vs. unemployment.

Sorry if I came across like the furloughed pilots would not fly a 70+ seat aircraft, even at "industry average" wages. (btw what is industry average when you consider both ends of the spectrum like Comair to Mesa or CHQ?) I don't speak for those pilots but it was just in my opinion I see you/them turning down 70+ seat "small jet" flying for whatever payrates. I know a year or two ago your pilot group was in discussion with management about 70 seaters and the payrates you wanted vs. what mgt. had in mind were completely different. Throw in slashed work rules, a recycled pension... But then again, like you said, 80-90 bucks/hour is better than no paycheck. I honestly hope if your group flies the 70-90 seaters that whatever payrates you get help control costs and turn around NWA.

 

[dondk]

9E plays thier hand

Item 8.01 Other Events
Pinnacle Airlines Corp. ("Pinnacle") has received a request from its airline partner, Northwest Airlines, Inc. ("Northwest"), to remove 15 CRJ aircraft from service, effective October 31, 2005. Pinnacle expects its block hours and cycles in the fourth quarter of 2005 to be reduced by approximately 11% and 10%, respectively, compared to its original expected schedule operating a full complement of 139 CRJ aircraft. Pinnacle is making arrangements to place these aircraft in long-term storage.
Under the Airline Services Agreement between Pinnacle and Northwest (the "ASA"), Pinnacle receives variable revenue based on the number of block hours and cycles it produces, fixed revenue based on the number of aircraft in its fleet, and revenue to reimburse Pinnacle for certain expenses arranged by Northwest, such as aircraft rent and fuel. Under the ASA, Pinnacle expects the schedule reduction to impact only the variable components of its revenue; accordingly, Pinnacle expects fourth quarter 2005 revenue to be reduced by approximately 7% from the Company's previous expectations. Pinnacle has informed Northwest that it expects to continue receiving fixed based components of its revenue calculated on the basis of its full 139 aircraft fleet, in accordance with the terms of the ASA. However, should Northwest try to dispute the terms of the ASA and claim that it owes an even lower amount of revenue from the schedule reduction, the impact to Pinnacle's fourth quarter revenue could be substantially greater.
Management has already begun steps to reduce Pinnacle's costs to compensate for the 15 aircraft schedule reduction. Pinnacle will have excess staffing levels in all areas of its operations after the 15 aircraft are removed from service. Management expects to reduce staffing levels through a combination of regular attrition and voluntary employee leaves. It is possible that the Company will be forced to resort to involuntary furloughs, should the number of employees electing voluntary leaves be insufficient. Pinnacle is also reviewing other components of its cost structure to reduce its costs further.
As a result of the 15 aircraft schedule reduction, Pinnacle expects fourth quarter earnings to decline between 10% and 15% as compared to its previous projections based on operating a full complement of 139 aircraft. The earnings impact could be materially greater based upon the final outcome of discussions with Northwest regarding Pinnacle's revenue to be earned under the ASA, and based upon the Company's ability to eliminate costs associated with the reduced operations.
On September 15, 2005, First Tennessee Bank advanced Pinnacle $17 million under the Company's revolving credit facility. Based on the informal discussions that Pinnacle has had with Northwest, Pinnacle expects to receive pro-rated payments on September 30, 2005 and October 17, 2005 from Northwest for regional airline services performed subsequent to September 14, 2005. If Northwest makes the pro-rated payments as expected, Pinnacle believes its liquidity is adequate.

 

[RampTower]

XJ gate agents in MSP, working the Avro C-gates, confirm that several of their positions are being cut "because the Avro is going away". The position cuts are confirmed (they have to rebid other concourses/gates) and their supervisors are telling them that Avro is going away. (Not trying to start sh!t.) Make your own judgement.