Slightly above and bankruptcy
We're not asking for industry-leading rates. However we would like to see payrates slightly above currently successful airlines like CHQ, XJT, and SKW. I don't think 1-2% above that is going to make us that much less competitive.
While I'm sure this would be the wet dream of about 30-50% of the SkyWest pilots (cool, instant upgrade thanks to those greedy ASA pilots!), I think you drastically underestimate how slowly the Chapter 7 process goes. Everything must go through the courts, and even if it took 3 months to get it finalized, that's 3 months of struck work that can't be flown. That would be enough to bankrupt SkyWest and kill Delta.
"slightly above" is irrelevant in the bigger picture. "Slightly above", "even with", or "below" Skywest wages is irrelevant if they are not competitive in the broader market. And besides, compensation is much more than pay rates - work rules, benefits, and even the commuter clause costs the company money (The commuter clause forces the company to hire more pilots to cover those commuters who exercise the clause ) Theseand other factors are all part of the calculation of "labor costs". Thats why so many pilots have the mistaken impression (based on hourly pay rates alone vs. other direct operating costs) that anyone arguing that labor is the second highest cost center behind fuel is lying through their teeth.
On the other hand, Skywest pilots, flying across seat ranges and flying for one single pay rate are more productive than ASA pilots and require somewhat lower total staffing levels - in summary Skywest pilots overall compensation, when these factors are considered, is most likely at an overall lower compensation level. Its one reason why Skywest is in the big picture generally competitive for new business.
As to the bankruptcy, lets assume that I want to start an airline - lets call it Wham-o Airlines. I can incorporate, build a training curriculum, acquire aircraft, hire and train pilots and even conduct proving runs under Part 91 before I get an Air Carrier Certificate.
Not until I receive the Air Carrier Certificate from the FAA am I a Part 121 carrier and legally able to conduct scheduled operations.
Now, 20 years later, my company has be acquired by a holding company, who owns the gates and the hulls, and my pilots are about to go on strike. The BOD makes a determination that over a 10 year period, its more cost efficient to eat their initial investment in Wham-o, liquidate the company, and then transfer the assets to a sister company.
All they have to do is turn in their Air Carrier Certificate! At that point the FAA no longer considers them to exist as a Part 121 carrier - their work is no longer struck work.
The company that is left is simply a corporation of capital assets awaiting final disposition via bankruptcy proceedings. Thus as far as ASA's flying being struck work, that can be taken care of expeditiously by simply returning the Air Carrier Certificate to the FAA, enabling Delta immediately to at least partially cover the flying with other carriers. A good case can be made that any ALPA crews refusing to fly the routes after the Certificate has been returned can be sued in court for engaging in illegal job actions.
