More reason to vote no!

[Detroitpilot22]

The TA has not even been approved yet!
This is rediculous.


Northwest Pushes To Unveil Subsidiary 'Compass' In June
By Lori Ranson/Aviation Daily
03/29/2006 08:50:10 AM

Northwest is pressing for a June launch of its new subsidiary, Compass, and plans to hand either Bombardier or Embraer a new aircraft order to supply 76-seat planes for the airline in April.

The carrier outlined the plans for Compass, formerly dubbed Newco, in a filing with the U.S. Transportation Dept. after buying FLYi's operating certificate for $2 million.

Northwest is asking authorities for swift approval of the transfer of the certificate from FLYi subsidiary Independence Air to Compass to start flights in June from a base at Washington Dulles Airport with a single CRJ-200 that might "be sourced from" aircraft formerly flown by Independence.

Compass is also employing Independence's directors of maintenance, safety, operations and its chief pilot and chief inspector, noting that local FAA personnel have worked closely with those individuals. Taking that into account, Northwest said, "It is believed that the issuance to Compass of operating authority equivalent to that held by Independence Air will be obtained in a minimum amount of time."

Northwest wants to launch daily nonstop flights on Compass in June from Dulles to Minneapolis/St. Paul. The airline is targeting placing 76-seat planes into service during the first full year of operations, "under a tentative growth plan forecasting operation of at least 36 such aircraft in domestic markets in five years." The carrier noted those planes are replacing Avro RJs flown by partner Mesaba.

If Compass secures all the pertinent regulatory approvals, the carrier wants to take delivery of larger planes, starting in March 2007. "These aircraft will be the Bombardier CRJ-900 and/or the Embraer 175," Northwest said. "Final selection is expected to be made in April 2006." Compass would fly the -900s with 12 first-class seats and 64 in coach, while the Embraer 175s would be configured for 11 first-class seats and 64 in coach class.

Northwest is drawing from its own management to run Compass. Former US Airways executive and current Northwest CFO Neal Cohen is Compass's CEO. Dan McDonald, current VP-finance and fleet planning at Northwest is Compass's senior VP-business development. The Compass team is rounded out with VP and Secretary Mike Miller, who currently is Northwest's VP-law and secretary.

Compass is receiving $4 million in capital from Northwest. Projected operating expenses at startup are about $1.1 million, growing to about $14 million during the first year of operations.

Previously, Northwest said furloughed mainline pilots would have first rights to jobs at the subsidiary on a separate seniority list

 

[Occam's Razor]

"The TA has not even been approved yet!
This is rediculous."

Other than the fact that NWA pilots voted in November, 2004 to allow a 3rd Airlink in the system?

The T/A allows the size of the aircraft mentioned. The agreement we ratified 17-months ago allows the operation...it would just be restricted to 55-seats.

Keep it straight. This stuff is important.

 

[Detroitpilot22]

Fine, I did not know that, but it is still ridiculous.

 

[Rossa]

What is ridiculous, is your spelling!

 

[Rossa]

Ahhhhh............That's better, Thanks.

 

[bailout]

I havent been following this too deeply, so just so im clear, Is it Mainline Northwest pilots who are going to be flying this new airline?

 

[saviboy]

1)What is the interest in creating a new airline such as this one?
I understood that republic, freedom,*************************s were created to go around a 70 seats and above aircraft restriction from their major partner. but I assume Northwest wouldn't do that to itself.
2)or is it because they don't have to pay any senior pilots since they would have no one with more than a year seniority?
3)also the first post says that the airline would be flying 76 seats aircraft but occam's razor writes that compass would be resrited to 55 seat aircraft. what is the airline gonna fly.
4)would they re hire the avro guys from mesaba in priority? that would be nice.

 

[Alchemy]

Why have only 2 regional affiliates to whipsaw against one another when you could have 3? The more regionals competing in the already over-flowing RJ marketplace, the better. Smash those hourly wages and work rules into oblivion, hooray! ALPA needs to get a freaking grip on this.

 

[okcplt]

1)What is the interest in creating a new airline such as this one?
I understood that republic, freedom,*************************s were created to go around a 70 seats and above aircraft restriction from their major partner. but I assume Northwest wouldn't do that to itself.
2)or is it because they don't have to pay any senior pilots since they would have no one with more than a year seniority?
3)also the first post says that the airline would be flying 76 seats aircraft but occam's razor writes that compass would be resrited to 55 seat aircraft. what is the airline gonna fly.
4)would they re hire the avro guys from mesaba in priority? that would be nice.

1) To get/keep mainline furloughs off the street.

2) Mainline furloughs will keep their seniority # and flow back up to mainline in seniority order.

3) Compass will fly 76 seat ac unless the TA doesn't pass (but it is expected to)

4) All of the Captain slots and a some of the FO slots will be furloughed mainline (depending on how many furloughs go to compass) it is expected that most will given they keep their mainline seniority and are guaranteed to flow back up to mainline. I doubt any XJ or 9E pilots will be given a priority at Compass (NW has already tenaciously demonstrated that they are unwilling to "rob Peter to pay Paul").

The kicker with the last point is the street guys at Compass will supposedly get a mainline seniority number and flow up to mainline as needed when all the mainline furloughs have been recalled (from what I've been told).

 

[YourPilotFriend]

The kicker with the last point is the street guys at Compass will supposedly get a mainline seniority number and flow up to mainline as needed when all the mainline furloughs have been recalled (from what I've been told).

Somewhat correct, only some of the pilots coming out of compass will get a shot at mainline. You will still have to go through the interview process, but you are going to get an interview. The pilots want to vote down the TA to get better value for compass airlines, they do not want to stop it from happening. No matter what happens, compass is a reality. They most likely will give XJ preferential hiring since they will need pilots and that's a better pilot base than the street.

 

[filejw]

Whats sad is all the people that make statements like DTW22 and have not read the TA. At least read the thing.

 

[JustaNumber]

Could someone at NWA please help me understand why the NW pilots have not been pushing hard to get all these jets on mainline property? It blows my mind that they are voluntarily allowing more outsourcing!!!!!!!!!!!!! :angryfire

 

[Detroitpilot22]

Whats sad is all the people that make statements like DTW22 and have not read the TA. At least read the thing.

It doesnt take reading a bunch of stuff that lawyers wrote to know what is going on here. I will admit i did not know that this 3rd airlink was allowed back in 2004, but let me ask you a question, have you ever heard of mid-atlantic?

 

[Occam's Razor]

Could someone at NWA please help me understand why the NW pilots have not been pushing hard to get all these jets on mainline property?

1. We did. NWA's initial position was "Newco", which would have gobbled-up all DC-9 flying (and jobs) and included new 100-seat jets. All of that flying would have been "sold off" at some point. The T/A essentially changes the RJ size restriction in the contract from 55-seats, to 76-seats. What we pushed hard to get...and got...was retention of our DC-9 fleet and it's replacement. That will include any aircraft above 76-seats. The net result is no more furloughs (recalls likely in early 2007) and employment options for our pilots who are furloughed now.
2. We are in bankruptcy. In 1998 we moved the size limit on Airlink aircraft from 70-seats to 55-seats (with a ratio, and "granfathering" of the 36 MSA Avros). The industry was healthier, and other airlines were making strides in their contracts too. We all had leverage. In bankruptcy, you don't have as much leverage. The sheer number of things in our contract that were under attack was huge, with nearly all of them very important to us. It was matter of priorities and choices.
3. The industry. We weren't the first pilot group to face this choice. Pilots at UAL and AAA (both in bankruptcy), and AMR have already conceded the size of RJ's being flown by their feeders. For that matter, so had DAL, before the bankruptcy. It's not like we had Starship Enterprise deflector shields to protect us from the same forces that hammered the other pilot groups. Although NWA pilots are unquestionably the coolest and most skilled aviators in all the land, we are still vulnerable to kryptonite. And bankruptcy is kryptonite.

It blows my mind that they are voluntarily allowing more outsourcing!!!!!!!!!!!!! :angryfire

"voluntarily"? That's a good one!

 

[DoinTime]

What we pushed hard to get...and got...was retention of our DC-9 fleet and it's replacement. That will include any aircraft above 76-seats. The net result is no more furloughs (recalls likely in early 2007) and employment options for our pilots who are furloughed now.

Retain your DC-9 fleet??? YGTBFKM. Do you think that these 90 or so 76-seaters will be purely growth aircraft and that you will get a 1 to 1 replacement of your DC-9 fleet with whatever they choose to replace it? These 76-seaters will likely replace at least half of your DC-9's. Thats about 900 more fuloughs.

There is a reason recall rights got pushed out to 14 years.

 

[filejw]

Mid Atlantic,yup. And I'm no lawyer but if I can read it anybody can. Before I vote no/yes I always have a look.

 

[Occam's Razor]

Retain your DC-9 fleet??? YGTBFKM. Do you think that these 90 or so 76-seaters will be purely growth aircraft and that you will get a 1 to 1 replacement of your DC-9 fleet with whatever they choose to replace it?

No. There are ratios included to incentify NWA to buy 77-110 seat aircraft to replace the DC-9. We understand that there will be some "tween" flying that would normally have to done by the DC-9 right now...but would be done by the 76-seat Airlink(s) in the future. We also understand that there will be some flying that must be done by aircraft larger than 76-seats. The only option will be the mainline.

It would have been nice to retain everything above 55-seats, but we'd have been the only pilots able to do that.

It's called a "concession" for a reason.

These 76-seaters will likely replace at least half of your DC-9's. Thats about 900 more fuloughs.

Exactly! Steenland will snap his fingers and 150 EMB-175's with fully-trained pilots will appear before our eyes! The DC-9's will be parked with his second finger-snap, and the investors providing the exit financing will think it's all very cool.

(sigh)

The DC-9 fleet represents about 1/4 of our fleet. NWA would not be able to get sufficient exit financing without a commitment to keep that fleet (the 100-117 seat niche) operating for it's service life. There will be attrition from our pilot group while the DC-9 winds down, the 77-110 seaters come online, and the 76-seaters are introduced at our Airlink(s). The PERP will shave some off the top, and "natural causes" will take another 200 before we even exit Chapter 11.

Since we were able to retain our cumbersome and complicated staffing method, and important work rules that affect staffing (trip rigs, avg day, 100% credit for DH, etc), the pilot-to-aircraft ratio will lead the legacy carriers.

There is a reason recall rights got pushed out to 14 years.

Do you know what that reason was?

I do.

 

[DoinTime]

There is no doubt that there are markets for 100-120 seat aircraft. With your newly proposed scope rules NWA pilots will capture all of this flying. Unfortunately, this flying only represents 80-90 aircraft. As bankruptcy drags out the DC-9 fleet will dwindle thus setting the bar very, very low for the "incentive" program you speak of.

Expect a combination of deliveries from both Embraer and Bombardier with significant fleet numbers on the properties of various regionals before the NW exit from bankruptcy.

NWA would not be able to get sufficient exit financing without a commitment to keep that fleet (the 100-117 seat niche) operating for it's service life.

Investors look at sound business plans when looking to provide exit financing. Expanded outsourcing and reductions in labor costs are unfortunately good for business.

Investors could care less the gauge of aircraft being flown but rather the money being pulled in by whatever aircraft are being operated. Most Midwestern markets the DC-9 currently does could easily be replaced with narrower gauge and higher frequency. The higher frequency will produce slightly higher ticket revenues and the more modern (and non-mainline staffed) 76-seat equipment will lower seat mile costs well below that of the -9.