New letter from Airtran's Joe Leonard regarding Midwest

[FlyWolf]

http://sec.gov/Archives/edgar/data/948845/000119312507077188/dex99a39.htm

 

[Eagle757shark]

Very interesting letter. This is why I don't understand the Midwest MEC not staying neutral. If this plan was put into effect, post merger all at Midwest would gain substantially. 215 daily flights out of MKE alone, just short of the 245 flights a day currently in Atlanta. 264 new pilot jobs in MKE and 396 new flight attendant jobs. 66 mechanic jobs and so on. Listening to the locals, how could this not benefit the city of MKE? It appears on paper AirTran is putting their cards on the table. Very interesting plan. It will be interesting to see how the MIdwest shareholders vote going forward.

 

[75M]

I thought that was a pretty good letter.

 

[likeitis]

Very interesting letter. This is why I don't understand the Midwest MEC not staying neutral. If this plan was put into effect, post merger all at Midwest would gain substantially. 215 daily flights out of MKE alone, just short of the 245 flights a day currently in Atlanta. 264 new pilot jobs in MKE and 396 new flight attendant jobs. 66 mechanic jobs and so on. Listening to the locals, how could this not benefit the city of MKE? It appears on paper AirTran is putting their cards on the table. Very interesting plan. It will be interesting to see how the MIdwest shareholders vote going forward.

Because it's in the MEH MEC best interest to back MEH. Nothing to lose from that stand. A Neutral stand and MEH wins out and no merger there is poor mojo between the company and ALPA forever. A neutral stand and AAI wins out, what is lost? Eventually the MEH pilots will be combined into the post merger seniority list. What is Joe going to do seek out each individual pilot to make their life hell? I don't see why the AAI pilots take the MEC's stand personal? It has nothing to do with the two pilot groups relationship. It's the MEC looking at the most likely scenarios and seeing which stand will cause the least amount of friction for the group down the road. If this deal does go through the MEC's stand should have no bearing on what happens henceforth. If somehow the roles got reversed I would expect the NPA to back AAI's management. It's the least harmful position to the pilots no matter the result.

Tim laid out the entire business plan to the MEC and they have always in the past been completely unimpressed to say the least. Since Tim has met with the MEC their attitude is completely different. We have our contract negotiations soon enough and if the MEC didn't back our management and our management wins this battle what price are the pilots of MEH going to pay for that?

I'm sure there is some self perservation in ALPA's decision but knowing the MEC it would be negligible.

 

[FlyWolf]

I also think "if its all legit and I think it is since they filed it with the security exchange" its very impressive, 215 flights out of MKE, more jobs and keeping the training center, reservation center and hanger is great. Lets hope for the best.

 

[metroplex]

You guys believe everything joe says. Man, he must have a lucky group of employees.The ME mec would probably support a merger if there is a date of hire integration, with hardly 400 guys it would not have a big impact, vs having 2000 integrate.. Maybe T.H. gave the MEC some inside look what plans they have with Midwest, that will hardly share with the competition.

 

[mnboyev]

yeah... contract RJ service....some insight.... This MEH AAI deal would be good for both companies..... ATL boys will not head up nord... and the MKE folks wont head south..... period.

I used to think they were full of it at AirTran.. 6 yrs ago.. I will tell you this.. If they say they something .. they mean it ... and act on it.. have yet to see smoke and mirrors.. lofty goals that were not attainable.. and crazy growth plans with hair brain planning... We may be cheap.. but 'they' do what they say...... (contract talks aside...of course)

 

[Steeler Fan]

The ME mec would probably support a merger if there is a date of hire integration, with hardly 400 guys it would not have a big impact, vs having 2000 integrate..

Date of hire?

Remind me not to drink soda when I'm reading your posts, because it just shot out of my nose!

Based on initial talks between unions, relative seniority with fences.

If Midwest gets date of hire, your attorney earned every penny.

 

[likeitis]

Date of hire?

Remind me not to drink soda when I'm reading your posts, because it just shot out of my nose!

Based on initial talks between unions, relative seniority with fences.

If Midwest gets date of hire, your attorney earned every penny.

We've lock up the best in the business but no way in hell could he even come close to DOH.

 

[Eagle757shark]

Because it's in the MEH MEC best interest to back MEH. Nothing to lose from that stand. A Neutral stand and MEH wins out and no merger there is poor mojo between the company and ALPA forever. A neutral stand and AAI wins out, what is lost? Eventually the MEH pilots will be combined into the post merger seniority list. What is Joe going to do seek out each individual pilot to make their life hell? I don't see why the AAI pilots take the MEC's stand personal? It has nothing to do with the two pilot groups relationship. It's the MEC looking at the most likely scenarios and seeing which stand will cause the least amount of friction for the group down the road. If this deal does go through the MEC's stand should have no bearing on what happens henceforth. If somehow the roles got reversed I would expect the NPA to back AAI's management. It's the least harmful position to the pilots no matter the result.

Tim laid out the entire business plan to the MEC and they have always in the past been completely unimpressed to say the least. Since Tim has met with the MEC their attitude is completely different. We have our contract negotiations soon enough and if the MEC didn't back our management and our management wins this battle what price are the pilots of MEH going to pay for that?

I'm sure there is some self perservation in ALPA's decision but knowing the MEC it would be negligible.

Sir I asked why not stay neutral? From what Midwest presented to the Security and Exchange, their business plan is based off growing with 50-seat RJs. They will ad 2, again (TWO) MD-80s. AirTran proposes over 50 new 737-700 aircraft that are under FIRM ORDER! I don't know what Midwest promised your MEC, staying neutral makes a big statement to the Midwest management and works to the pilots advantage either way. So your negotiations are coming up soon, do you think because you threw a bone at your management they are going to give you the sky in negotiations? You may have had more bargaining power with your management had you just stayed neutral. (MAKE THEM GIVE YOU SOMETHING FIRST FOR THAT SUPPORT) Either way does not matter to me. Good luck to us all!

 

[CitationLover]

somehow in the back of my mind i am picturing an advertisement with the tagline, "two great airlines, one great future."

http://www.youtube.com/watch?v=YayAONi07s0

yes the letter is very rosy, but leonard is an ex-amr executive. is he planning a caarty for MKE? we will find out, it's above my pay grade (and a very low one at that).

 

[Kharma Police]

You guys believe everything joe says. Man, he must have a lucky group of employees.The ME mec would probably support a merger if there is a date of hire integration, with hardly 400 guys it would not have a big impact, vs having 2000 integrate.. Maybe T.H. gave the MEC some inside look what plans they have with Midwest, that will hardly share with the competition.

Ask for DOH from SkyWest when they buy you.

 

[likeitis]

Sir I asked why not stay neutral? From what Midwest presented to the Security and Exchange, their business plan is based off growing with 50-seat RJs. They will ad 2, again (TWO) MD-80s. AirTran proposes over 50 new 737-700 aircraft that are under FIRM ORDER! I don't know what Midwest promised your MEC, staying neutral makes a big statement to the Midwest management and works to the pilots advantage either way. So your negotiations are coming up soon, do you think because you threw a bone at your management they are going to give you the sky in negotiations? You may have had more bargaining power with your management had you just stayed neutral. (MAKE THEM GIVE YOU SOMETHING FIRST FOR THAT SUPPORT) Either way does not matter to me. Good luck to us all!

Read my statement again, second sentence. I don't understand why a line pilot for FL would care what the MEH MEC thinks. The MEC's opinion is in response to what they know of each companies business plans. I'm sure ALpa's past dealings with Joe, Kolski and the Lorenzo disciples on the board sure doesn't give them a warm fuzzy.

It's not in any way shape or form a statment about either pilot group.

How do you know that our management hasn't given us anything for our support?

 

[CitationLover]

Ask for DOH from SkyWest when they buy you.

get over it. they are fighting a growing major carrier from buying them. they would fight tooth and nail over a regional carrier from buying them. i am sure skywest management wants another ALPA carrier under its belt to further pressure its bread and butter to adopt ALPA.

perhaps the $1.8 billion in debt skywest has should concern you.

 

[Kharma Police]

somehow in the back of my mind i am picturing an advertisement with the tagline, "two great airlines, one great future."

http://www.youtube.com/watch?v=YayAONi07s0

yes the letter is very rosy, but leonard is an ex-amr executive. is he planning a caarty for MKE? we will find out, it's above my pay grade (and a very low one at that).

Very good point, since Joe Leonard worked at AMR over twenty years ago he must think like Carty, Crandall or maybe C.R. Smith.

 

[Kharma Police]

get over it. they are fighting a growing major carrier from buying them. they would fight tooth and nail over a regional carrier from buying them. i am sure skywest management wants another ALPA carrier under its belt to further pressure its bread and butter to adopt ALPA.

perhaps the $1.8 billion in debt skywest has should concern you.

I would be concerned if I was a Midwest pilot and watched the future growth promised by my management go to Skywest.

http://biz.yahoo.com/prnews/070410/aqtu089.html?.v=4

 

[Eagle757shark]

Read my statement again, second sentence. I don't understand why a line pilot for FL would care what the MEH MEC thinks. The MEC's opinion is in response to what they know of each companies business plans. I'm sure ALpa's past dealings with Joe, Kolski and the Lorenzo disciples on the board sure doesn't give them a warm fuzzy.

It's not in any way shape or form a statment about either pilot group.

How do you know that our management hasn't given us anything for our support?

OK......It was the Midwest MEC that first said they were neutral and then changed their minds. What changed?
Next, compare the two business plans both filed with the Security and Exchange. If there is some secret game plan they have shared with the Midwest MEC, they may have a bigger problem with the SEC and the shareholders. By the way that last statement you made about your management giving you something, just read their business plan....IT SPEAKS VERY LOUDLY WHAT THEY HAVE PLANNED! Based off the facts that your management has filed with the SEC, management has given your flying and growth opportunities to Skywest! (OH...FOR YOUR SUPPORT)

 

[likeitis]

OK......It was the Midwest MEC that first said they were neutral and then changed their minds. What changed?
Next, compare the two business plans both filed with the Security and Exchange. If there is some secret game plan they have shared with the Midwest MEC, they may have a bigger problem with the SEC and the shareholders. By the way that last statement you made about your management giving you something, just read their business plan....IT SPEAKS VERY LOUDLY WHAT THEY HAVE PLANNED! Based off the facts that your management has filed with the SEC, management has given your flying and growth opportunities to Skywest! (OH...FOR YOUR SUPPORT)

Ever heard of letters of confidentiality? All the members of the MEC and even the office secretary had to sign the letters. So there is no SEC or shareholder problems.

 

[CitationLover]

I would be concerned if I was a Midwest pilot and watched the future growth promised by my management go to Skywest.

http://biz.yahoo.com/prnews/070410/aqtu089.html?.v=4

i am sure they are just as concerned as delta's and united's pilots are about skywest.

 

[Kharma Police]

i am sure they are just as concerned as delta's and united's pilots are about skywest.

Not a good comparison between DAL/UAL and Midwest (or Frontier) in terms of regional jet flying block hours. Like comparing an ant hill to the Sears Tower. Midwest has a much higher percentage compared to DAL/UAL of subsidiary flying.

 

[CitationLover]

Not a good comparison between DAL/UAL and Midwest (or Frontier) in terms of regional jet flying block hours. Like comparing an ant hill to the Sears Tower. Midwest has a much higher percentage compared to DAL/UAL of subsidiary flying.

do you have hard numbers to back this up? read united's and delta's latest 10-K's and annual reports. all of their regional affiliates are the fastest growing blocks of flying. sure it is not a good sign at midwest, but that doesn't mean skywest is buying them as you say. look at the breakdown of their asm's between mainline and affiliate. then look at midwest/skyway, but add 300% to skyway's to approx. skywest and you will see they are pretty similar to delta and united (about 20-25% of ASM's).

 

[Kharma Police]

do you have hard numbers to back this up? read united's and delta's latest 10-K's and annual reports. all of their regional affiliates are the fastest growing blocks of flying. sure it is not a good sign at midwest, but that doesn't mean skywest is buying them as you say. look at the breakdown of their asm's between mainline and affiliate. then look at midwest/skyway, but add 300% to skyway's to approx. skywest and you will see they are pretty similar to delta and united (about 20-25% of ASM's).

If you are fine with the growth of Skywest at your company than more power to you. AirTran is offering 737/717s flown by Midwest pilots, not an RJ flown by another carrier. AirTran tried RJs for awhile then realized that we could make more money without them, hopefully you guys will have different and better results.

 

[CitationLover]

If you are fine with the growth of Skywest at your company than more power to you. AirTran is offering 737/717s flown by Midwest pilots, not an RJ flown by another carrier. AirTran tried RJs for awhile then realized that we could make more money without them, hopefully you guys will have different and better results.

i don't think anyone is "fine" with regional flying or the growth of it at midwest, it is simply a response to your smartalecky "skywest" purchase comment.

we will know the direction of this deal by the end of the week.

 

[Kharma Police]

i don't think anyone is "fine" with regional flying or the growth of it at midwest, it is simply a response to your smartalecky "skywest" purchase comment.

we will know the direction of this deal by the end of the week.

My apologies, but if we don't buy you, someone else will. The same holds true for AirTran.

 

[CitationLover]

My apologies, but if we don't buy you, someone else will. The same holds true for AirTran.

yes, frank lorenzo said that one time!

i would imagine 100% of the people wish for air tran than skywest. it is fear of the unknown that is driving the debate (if there is any) within the midwest pilots. at least with no air tran deal, it is the status quo. again i am not a midwest pilot yet, flywolf could better answer the internal debate.

personally, I like the smaller airline, knowing most people you work with, niche carrier feel.

 

[Flydaplane]

Simple, with a merger the MEH MEC goes away (after the integration period) and they actually have to fly the line. Power drives men to do strange things. I wonder how many of their trips have been dropped over the past year for "union business"? Oh yea, we can't see that because they've "blocked" their schedules. "We're not trying to hide anything" "we just do this for personal reasons"...yeah right!

 

[Donsa320]

Simple, with a merger the MEH MEC goes away (after the integration period) and they actually have to fly the line. Power drives men to do strange things. I wonder how many of their trips have been dropped over the past year for "union business"? Oh yea, we can't see that because they've "blocked" their schedules. "We're not trying to hide anything" "we just do this for personal reasons"...yeah right!

In the past on many carriers, the MEC Chairman NEVER flew. This was to protect him from any hostage taking. If you don't know what that means you have not been around long enough.

 

[CitationLover]

In the past on many carriers, the MEC Chairman NEVER flew. This was to protect him from any hostage taking. If you don't know what that means you have not been around long enough.

i'll second that. even some other ALPA personnel (like the grievance chairman) are alloted this also.

 

[CitationLover]

well they said no thanks.

http://www.midwestairlines.com/MAWeb/midwestMiles/programNewsDisplay.aspx?id=26

the biggest catch for me was this statement.

"As of March 31, 2007, Midwest had approximately $171 million of cash, representing more than $6.50 per share. According to AirTran, the cash portion of the revised offer and related expenses is approximately $240 million. Therefore, Midwest's cash on hand represents more than 70% of the cash estimated by AirTran necessary to complete the proposed acquisition."

i know the conspiracy theorists would like to say this is tim's doing, but the decision was unanimous by the board and goldman sachs told them don't do it. you've got to admit its a little fishy to have originally offered less than the cash on hand at midwest and now only a 30% premium over said amount (excluding the 51% stock swap).

 

[mnboyev]

Here fishy fishy....yup..fishy..flat out fishy...