Midwest Growth Plan?

[IdRtherBsailing]

I don't see Midwest getting merged into DAL or NWA. NWA doesn't own Midwest and the merger discussions between NWA and DAL are already going on, including the pilot seniority integration piece. NWA/DAL will have a tough time getting through DOJ intact and Midwest would just add more problems.

After the DAL/NWA merger if it happens, who knows but if the merger between DAL and NWA results in furloughs from the combined carriers I can pretty much guarantee you that whatever happens there isn't going to be any Midwest pilots flying planes (assuming Midwest gets purchased from TPG by DAL/NWA) while any DAL/NWA guys are on the street. There's 10,000 plus of those guys and there would be a riot. Midwest is probably a less important piece in the overall merger than Comair is. My only question in this whole thing is how does TPG get their money back?

Support your troops.

 

[hockeypilot44]

I'd rather be at the bottom of NWA or Delta than Midwest right now. We'll probably know who's better off in the next couple of years though. This is just an opinion. Nothing more, nothing less.

 

[Propsync]

The DOJ already approved NWA purchasing Midwest.

I think he knows that. Re-read the sentence.

 

[IdRtherBsailing]

I think he knows that. Re-read the sentence.

O.K. Re-read complete. Thanks for pointing that out. I will now edit that original post.

 

[Propsync]

No prob. Mesa bashing would have worked there, too.

 

[GOULET!]

Not to hijack the thread everybody but for those of you who haven't seen this yet, this is how Midwest is treating the Skyway pilots in light of all this:


Fellow Skyway Pilots,

It is with great sadness that we must report to you management’s actions regarding a severance pay package for the pilots.

As you know, we initially met with management on January 17 to discuss this issue. We gave them a proposal that mirrored the severance package the company is giving to all other Skyway employees who are losing their jobs. Yesterday, February 13, MEC Chairman and MEC Secretary-Treasurer met with CEO David Reeve, Director of Operations, and Director of Human Resources and received management’s written response.

It is with bitter disappointment that we must report to you that management has refused to extend to us, the Skyway pilots, the same severance pay package that it has given to all other Skyway employees. Although Midwest Air Group Chairman Tim Hoeksema said publicly that all employees losing their jobs would receive severance and other assistance, it is now clear that the Skyway pilots will not receive any severance pay, nor will we receive the COBRA cost-sharing package that has been given to everyone else.

In addition to excluding pilots from the severance pay package that has been given to all other employees, management’s proposal offered little value that is not already required by law. In exchange, they wanted work rule changes such as allowing captains to be assigned as first officers that may double their exposure to JA.

We asked the company to reconsider their position. We pointed out that we are the same as the non-union employees as there is no requirement either in the law or in our contract requiring severance benefits and we see no reason that the pilots should be singled out this way. Mr. Reeve simply replied that the Skyway pilots have had the benefit of a collective bargaining agreement for ten years while the other employees haven’t.

We are glad that our fellow employees are not being deprived of severance benefits – including the recently organized Skyway Flight Attendants; the company tells us that since they don’t have a contract, they will receive the benefits.

The Skyway pilots will have those benefits provided by their contract and the law:

Unless you voluntarily resign giving less than two week’s notice, you will be paid the value of your 2008 vacation;
The WARN Act provides for 60 days of pay and benefits from the time the company gave ALPA notice of the April 6, 2008 shutdown- you will be paid through the shutdown unless you elect to leave sooner;
Under COBRA, you will be eligible to buy the company’s health insurance for 18 months so long as you pay 100% of the cost.

More information on these will be provided shortly.

The bottom line: Skyway management is punishing its pilots for having union representation and a collectively bargained contract. Clearly, this vindictive and mean-spirited targeting of the Skyway pilots by management is discriminatory, anti-union, and anti-ALPA. We are considering all of our legal options.

We understand and share your outrage at the company’s actions. However, we know that you will remain professional. We will let you know if management contacts us with any information that improves this ugly situation.

Please continue to Fly Safely,

Your SYX MEC


What scumbags. My guess is Tim "retires" within 6 months.

 

[IdRtherBsailing]

Not to hijack the thread everybody but for those of you who haven't seen this yet, this is how Midwest is treating the Skyway pilots in light of all this:


Fellow Skyway Pilots,

It is with great sadness that we must report to you management’s actions regarding a severance pay package for the pilots.

As you know, we initially met with management on January 17 to discuss this issue. We gave them a proposal that mirrored the severance package the company is giving to all other Skyway employees who are losing their jobs. Yesterday, February 13, MEC Chairman and MEC Secretary-Treasurer met with CEO David Reeve, Director of Operations, and Director of Human Resources and received management’s written response.

It is with bitter disappointment that we must report to you that management has refused to extend to us, the Skyway pilots, the same severance pay package that it has given to all other Skyway employees. Although Midwest Air Group Chairman Tim Hoeksema said publicly that all employees losing their jobs would receive severance and other assistance, it is now clear that the Skyway pilots will not receive any severance pay, nor will we receive the COBRA cost-sharing package that has been given to everyone else.

In addition to excluding pilots from the severance pay package that has been given to all other employees, management’s proposal offered little value that is not already required by law. In exchange, they wanted work rule changes such as allowing captains to be assigned as first officers that may double their exposure to JA.

We asked the company to reconsider their position. We pointed out that we are the same as the non-union employees as there is no requirement either in the law or in our contract requiring severance benefits and we see no reason that the pilots should be singled out this way. Mr. Reeve simply replied that the Skyway pilots have had the benefit of a collective bargaining agreement for ten years while the other employees haven’t.

We are glad that our fellow employees are not being deprived of severance benefits – including the recently organized Skyway Flight Attendants; the company tells us that since they don’t have a contract, they will receive the benefits.

The Skyway pilots will have those benefits provided by their contract and the law:

Unless you voluntarily resign giving less than two week’s notice, you will be paid the value of your 2008 vacation;
The WARN Act provides for 60 days of pay and benefits from the time the company gave ALPA notice of the April 6, 2008 shutdown- you will be paid through the shutdown unless you elect to leave sooner;
Under COBRA, you will be eligible to buy the company’s health insurance for 18 months so long as you pay 100% of the cost.

More information on these will be provided shortly.

The bottom line: Skyway management is punishing its pilots for having union representation and a collectively bargained contract. Clearly, this vindictive and mean-spirited targeting of the Skyway pilots by management is discriminatory, anti-union, and anti-ALPA. We are considering all of our legal options.

We understand and share your outrage at the company’s actions. However, we know that you will remain professional. We will let you know if management contacts us with any information that improves this ugly situation.

Please continue to Fly Safely,

Your SYX MEC


What scumbags. My guess is Tim "retires" within 6 months.

I would walk off the job and go to the press.

 

[Moustache]

There should be a push for the press to air this(ALPA Maybe?). Milwaukee looks at YX as a gem. They overlook all the times YX has screwed its employees. All the press picked up lately was a EAS story planted by YX.

 

[Rommel]

Full out blitz in the press starting Tuesday, its time to get heard.

 

[deadstick]

Full out blitz in the press starting Tuesday, its time to get heard.

I believe our Zoomie brethren have a great phrase:
"Fight's on!"

 

[ultrarunner]

My only question in this whole thing is how does TPG get their money back?

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

 

[CitationLover]

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

yeah they'll do that then ask for doj approval on a DAL merger.....ok.....

 

[fam62c]

My guess is that TPG will sell out to NWA. NWA will then hold all the MEH assets..whatever they may be a the time.

Maybe set up MKE as a RJ maintenance facility with the hangars. Who knows.

Anything is possible but if NWA buys Midwest from TPG and operates the company as an independent division I think they run into scope issues due to the size of the Midwest planes. I think if they buy it they have to merge it and I'm not sure they want to do that, especially now in the shadow of DAL/NWA. I think that if Midwest merges it will be post DAL/NWA merger. This will be very interesting but in the end TPG has to get their money from somewhere, they are deep in the hole with this buyout and it will keep getting worse if Midwest bleeds money that comes out of TPG's pockets. I'm not sure that if TPG knew then what it knows now they would have gotten involved with this caper. I just don't see a return on investment here.

 

[CitationLover]

Anything is possible but if NWA buys Midwest from TPG and operates the company as an independent division I think they run into scope issues due to the size of the Midwest planes. I think if they buy it they have to merge it and I'm not sure they want to do that, especially now in the shadow of DAL/NWA. I think that if Midwest merges it will be post DAL/NWA merger. This will be very interesting but in the end TPG has to get their money from somewhere, they are deep in the hole with this buyout and it will keep getting worse if Midwest bleeds money that comes out of TPG's pockets. I'm not sure that if TPG knew then what it knows now they would have gotten involved with this caper. I just don't see a return on investment here.

the people at TPG knew EXACTLY what they were getting into. these people aren't idiots. they will make their money one way or the other. they aren't pilots throwing darts at a dartboard to pick stocks.....

 

[Island Hopper]

The sale of the aircraft and the gates to other carriers will help to start the return on investment and the rest can be used to show a loss on a balance sheet. Perhaps offsetting some of TPG's other profitable investments.

 

[BobbyBiplane]

the purge has begun. Kolshak is TH's replacement and will basically run the show.

You had better hope not!

 

[ultrarunner]

I don't think Midwest will get merged at all. TPG MUST get a return on their money. And IMO, nothing will happen to MEH until AFTER the NWA/DAL merger is completed, although plans for MEH will be done concurrently.

I think MEH's asset's are relatively few:

The Skyway and Midwest Operating Certificates are likely the most value of anything else.

The 717's are leased if I recall, as are the hangars I believe.

Not sure about their HQ.

Skyway is getting shutdown the the certificated is being shopped. I don't see that Skyway has any value at all except the Certificate.

There just isn't much there that I can see.

The certificate and gates/operating authority are what will bring in the bucks.

But I would agree with CitationLover: TPG has thought WAY ahead, and has take ALL of this, and stuff not even talked about yet, into account when they bought in. They smarts in that group are beyond belief. Rest assured they will 'Make Their Number', no matter what. And I think that is what a large number of folks here don't understand.

TPG's involvement here is ONLY about money and profit. PERIOD. It's about 'making the number'.

They don't give a rats doo doo about keeping a company intact, keeping folks employed, etc...

Don't believe any of TPG's lip-service.

TPG put up 200 PLUS million of investors money. You can damn well bet they will make their number!

 

[CitationLover]

you people are all starry eyed or something....

AAI is a publicly traded company. Fornaro is ALL about money PERIOD. AMR is a publicly traded company. Arpey is ALL about money PERIOD. etc etc etc.

in fact i would bet in the course of your life YOU are ALL about money and paying your bills. why else would you work?

 

[meigwo]

Um.... the words "Midwest" and "Growth" should never be uttered in the same sentence.

The media blitz about the Skyway pilots aint gonna work. No one in the town cares about these 'small' airplanes. Just give them a cookie and they will be happy.

 

[Island Hopper]

TPG ......... Gordon Gecko
Midwest Airlines......Blue Star Airlines

It maybe the beer, But I think I am seeing a familiar story here.