On Your Six
Well-known member
- Joined
- Mar 8, 2004
- Posts
- 4,507
Warning: I will admit up front that this information comes from Airliners.net - not the most accurate source. I copied it directly from that site - right or wrong... If this is accurate, it is very bad news for the NWA folks. This industry continues to decline... Is it coincidence that the NWA CFO is the former USAirways CFO?
I know that Delta is also close to bankruptcy, but hasn't Delta had nearly 2,000 pilot retirements since May of 2004? That lump-sum retirement option for Delta helped to thin the pilot ranks a bit - but I don't think NWA offers the lump-sum retirement option. The discussion of "Small Jet Newco" is interesting and disturbing to say the least... I wonder if Delta would offer the E190 (or any 100 seater) to any of its current or potential furloughees?
Check it out below. Again, I cannot confirm 100% accuracy:
DATE: August 04, 2005
RE: NWA PILOT CONTRACT PROPOSAL.
LABOR COST TARGET.
* NWA believes $1.1B total annual labor "give is necessary for a
successful business plan.
* ALPA contribution is $322M per year (in addition to the $250M/year
per
the Bridge Agreement.)
* Management's position is that ALPA gets no credit for $15M revenue
enhancement in the Bridge Agreement.
* Management's position is that ALPA gets no credit for pension
savings
from a freeze.
* Management views that as our non-Chapter 11 premium.
Management believes credits for revenue enhancements or scope changes
are inappropriate.
CONTRACT CHANGES.
* On 6/21/05 NWA presented ALPA with a list of possible contract
changes.
* NWA believes these changes produce $322M.
* Based on "UAL-bankruptcy like" contract for competitive purposes.
* Management indicated that how we produce the target amount is
immaterial to them.
Management's proposal would reduce required pilot staffing by 1181 (in
addition to the 500+ pilots on furlough).
MANAGEMENTS PROPOSED CHANGES.
* 5 year duration.
* Amendable 12/31/2010.
* Average pay cut of 22.3%
* Eliminate Captain Augmentation.
* Remove seniority list instructors.
* Eliminate premium pay.
* Reduce vacation (30 days max)
* Cap sick leave at 850 hours
* Deadhead for 50% pay and credit.
* Raise monthly caps to 89 hours international and 95 hours domestic.
* Trip rig to 1:4 Wide-body, 0 for Narrow-body.
* Average 4:15 duty day.
Other miscellaneous cuts.
WET LEASING.
* In any year NWA may schedule for wet lease 10% of international
passenger block hours on aircraft types not in the NWA fleet.
* In any year NWA may schedule for wet lease 10% of freighter block
hours
on aircraft types not in NWA fleet.
* In any year, NWA may schedule for wet lease 5% of the total block
hours
of the company to handle peak flying opportunities.
If new aircraft are on order, NWA may schedule for wet lease an
equivalent number of aircraft as a bridge until the new aircraft are
delivered.
SCOPE PROPOSAL.
* On 7/14/05 NWA presented Section 1 C. (Small Jets) proposal.
* NWA stated that-
* Other scope modification proposals for joint ventures, successor,
and
fragmentation restrictions were forthcoming.
* Proposed a separate airline "Newco" for Small Narrow-body flying.
* May or may not be existing carrier.
* May or may not be a NWA affiliate.
All Newco aircraft carry NW code.
SMALL JET NEWCO.
* Newco would operate aircraft seating up to 100 passengers.
* No numerical or use restrictions.
* Separate seniority list and employment.
* Flow up/flow and down provisions between Newco and NWA.
* ALPA recognized as the bargaining representation.
* Contract to be long term with no strike/ lockout clause.
* Contract based on Regional Industry average costs.
Expedited interest arbitration to settle disputes.
SMALL JET NON-NEWCO FEEDER CARRIERS (PCL, MSA).
* Could operate aircraft up to 76 seats.
* No numerical or use restrictions.
* Could operate aircraft of any size for other airlines.
Up to 36 AVROs may be operated with NW code with 85 seats and no use
restrictions.
DOMESTIC CODE SHARE.
* No restrictions on domestic code share.
* Meet and confer with ALPA before entering or extending
relationships.
Eliminate certain DL and CO restrictions.
INTERNATIONAL CODE SHARE.
* No restrictions.
* Meet and confer with ALPA before entering or extending
relationships.
Other miscellaneous
I know that Delta is also close to bankruptcy, but hasn't Delta had nearly 2,000 pilot retirements since May of 2004? That lump-sum retirement option for Delta helped to thin the pilot ranks a bit - but I don't think NWA offers the lump-sum retirement option. The discussion of "Small Jet Newco" is interesting and disturbing to say the least... I wonder if Delta would offer the E190 (or any 100 seater) to any of its current or potential furloughees?
Check it out below. Again, I cannot confirm 100% accuracy:
DATE: August 04, 2005
RE: NWA PILOT CONTRACT PROPOSAL.
LABOR COST TARGET.
* NWA believes $1.1B total annual labor "give is necessary for a
successful business plan.
* ALPA contribution is $322M per year (in addition to the $250M/year
per
the Bridge Agreement.)
* Management's position is that ALPA gets no credit for $15M revenue
enhancement in the Bridge Agreement.
* Management's position is that ALPA gets no credit for pension
savings
from a freeze.
* Management views that as our non-Chapter 11 premium.
Management believes credits for revenue enhancements or scope changes
are inappropriate.
CONTRACT CHANGES.
* On 6/21/05 NWA presented ALPA with a list of possible contract
changes.
* NWA believes these changes produce $322M.
* Based on "UAL-bankruptcy like" contract for competitive purposes.
* Management indicated that how we produce the target amount is
immaterial to them.
Management's proposal would reduce required pilot staffing by 1181 (in
addition to the 500+ pilots on furlough).
MANAGEMENTS PROPOSED CHANGES.
* 5 year duration.
* Amendable 12/31/2010.
* Average pay cut of 22.3%
* Eliminate Captain Augmentation.
* Remove seniority list instructors.
* Eliminate premium pay.
* Reduce vacation (30 days max)
* Cap sick leave at 850 hours
* Deadhead for 50% pay and credit.
* Raise monthly caps to 89 hours international and 95 hours domestic.
* Trip rig to 1:4 Wide-body, 0 for Narrow-body.
* Average 4:15 duty day.
Other miscellaneous cuts.
WET LEASING.
* In any year NWA may schedule for wet lease 10% of international
passenger block hours on aircraft types not in the NWA fleet.
* In any year NWA may schedule for wet lease 10% of freighter block
hours
on aircraft types not in NWA fleet.
* In any year, NWA may schedule for wet lease 5% of the total block
hours
of the company to handle peak flying opportunities.
If new aircraft are on order, NWA may schedule for wet lease an
equivalent number of aircraft as a bridge until the new aircraft are
delivered.
SCOPE PROPOSAL.
* On 7/14/05 NWA presented Section 1 C. (Small Jets) proposal.
* NWA stated that-
* Other scope modification proposals for joint ventures, successor,
and
fragmentation restrictions were forthcoming.
* Proposed a separate airline "Newco" for Small Narrow-body flying.
* May or may not be existing carrier.
* May or may not be a NWA affiliate.
All Newco aircraft carry NW code.
SMALL JET NEWCO.
* Newco would operate aircraft seating up to 100 passengers.
* No numerical or use restrictions.
* Separate seniority list and employment.
* Flow up/flow and down provisions between Newco and NWA.
* ALPA recognized as the bargaining representation.
* Contract to be long term with no strike/ lockout clause.
* Contract based on Regional Industry average costs.
Expedited interest arbitration to settle disputes.
SMALL JET NON-NEWCO FEEDER CARRIERS (PCL, MSA).
* Could operate aircraft up to 76 seats.
* No numerical or use restrictions.
* Could operate aircraft of any size for other airlines.
Up to 36 AVROs may be operated with NW code with 85 seats and no use
restrictions.
DOMESTIC CODE SHARE.
* No restrictions on domestic code share.
* Meet and confer with ALPA before entering or extending
relationships.
Eliminate certain DL and CO restrictions.
INTERNATIONAL CODE SHARE.
* No restrictions.
* Meet and confer with ALPA before entering or extending
relationships.
Other miscellaneous
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