Northwest Airlink (Wholly Owneds)

[HA25]

I have a question about the Northwest wholly owned airlines like Compass and Mesaba (I forget the other one)..

Why?


Why is there 3 separate companies rather than just one? What was the logic of starting up Compass if they could have just grown Mesaba. It would seem like there would be great cost advantages in keeping it all under one certificate rather than 3? Or am I missing something or some history?

thanks for baring with my maybe stupid question..

 

[WSurf]

For the purpose of Whip-Sawing! We pilots tend to be dumb and only think about ourselves.

By having 3 different companies management can sit back and watch them fight each other over certain carrots that management holds over their heads. This along with a ineffective Union tends to be entertaining.

Welcome to the Airline Industry.

 

[Hollywood82]

NWA only owns Compass and Mesaba. Unless I am missing something. Pinnacle is a seperate entity.

 

[Raskal]

NWA only owns Compass and Mesaba. Unless I am missing something. Pinnacle is a seperate entity.

That is correct. For better or worse, Compass and Mesaba are both under the same holding company and currently share quite a bit of administration. Who knows...???...

 

[Flybywire44]

Don't forget limited liability... lawsuits only affect one group of assets.

 

[contrail67]

............

 

[Wesb737fo]

what is 2nd year pay on those pnuckle 90 seaters?....anyone....bueller......bueller....

 

[DoinTime]

First year - $25.73
Second year - $32.81
Third year - $35.49

 

[Propsync]

Why is there 3 separate companies rather than just one? What was the logic of starting up Compass if they could have just grown Mesaba. It would seem like there would be great cost advantages in keeping it all under one certificate rather than 3? Or am I missing something or some history?

Not a stupid question at all. Like another said, whipsawing is part of it. The larger part is service disruptions during a strike. Comair's strike shut CVG down. It was a fantastic show of unity. Unfortunately, Delta management learned well from the strike and looks as if it has spent every day trying to keep history from repeating.

The downside of this is cost. You need to have multiple carriers to ensure service. You get a slight cost advantage when you can whipsaw, but it doesn't negate the cost of multiple carriers. Think of the phase 'Don't keep all of your eggs in one basket'.

You also are probably aware of XJET and how things have changed since their contract, as well as what American wants to do with Eagle. I'm surprised Alaska hasn't done more with Horizon.

I say those that have the best contract these days have the most to lose. Airplanes, concessions, both. It's too bad. The strike was necessary, and successful, just the outcome has led to more trying times for all involved.

 

[DrewBlows]

I have a question about the Northwest wholly owned airlines like Compass and Mesaba (I forget the other one)..

Why?


Why is there 3 separate companies rather than just one? What was the logic of starting up Compass if they could have just grown Mesaba. It would seem like there would be great cost advantages in keeping it all under one certificate rather than 3? Or am I missing something or some history?

thanks for baring with my maybe stupid question..

Mesaba was purchased by NWA after NWA forced them into bankruptcy by withholding owed payments during NWA's own bankruptcy.

Compass was formed as a result of bankruptcy negotiations between NWA and it's pilots. Right now there isn't a way to merge Compass and Mesaba because of the NWA pilot's working agreement. Both companies have flow through, but the language is much different. NWA also has language dictating the size of Compass and has certain mainline aircraft bench-marks that must be met before Compass can be sold.

Pinnacle isn't owned by NWA and I think they divested all remaining PNCL stock last year.

 

[MCOE175]

Brian Bedford at Republic is like a shark just waiting to take over compass. With his father in law on the board at NW... how he is saying we should prosper will from this merger. I wouldn't be surprised, if that were to happen. Also, compass is building a MX building that is being built on RP owned land.
Things that make you go hmmm...

 

[DrewBlows]

Brian Bedford at Republic is like a shark just waiting to take over compass. With his father in law on the board at NW... how he is saying we should prosper will from this merger. I wouldn't be surprised, if that were to happen. Also, compass is building a MX building that is being built on RP owned land.
Things that make you go hmmm...

I'm calling Shenanigans on pretty much this whole post!

1. NWA can't sell Compass until certain narrow body fleet requirements are met at NWA. I don't have the exact number but there has to be more aircraft at mainline before Compass can be sold. Does Bedford have a brother-inlaw on the NWA MEC?

2. Show me somewhere other than another Flightinfo post where it says Compass is building a maintenance hangar on Republic property. The hangar is in SDF, are you telling me the City, County, or whomever else controls the airport just sold vacant airport property to Republic so they could turn around and sell it to Compass? I doubt it. What the hell does that have to do with Republic buying Compass? The only thing the two companies have in common is the same aircraft type. By that logic Southwest is going to by Alaska, Airtran, Delta, Continental, United, and Aeromexico.

What makes me go "hmmm" is where you guys come up with these rumors?

 

[Airline Driver]

I'm calling Shenanigans on pretty much this whole post!

1. NWA can't sell Compass until certain narrow body fleet requirements are met at NWA. I don't have the exact number but there has to be more aircraft at mainline before Compass can be sold. Does Bedford have a brother-inlaw on the NWA MEC?

2. Show me somewhere other than another Flightinfo post where it says Compass is building a maintenance hangar on Republic property. The hangar is in SDF, are you telling me the City, County, or whomever else controls the airport just sold vacant airport property to Republic so they could turn around and sell it to Compass? I doubt it. What the hell does that have to do with Republic buying Compass? The only thing the two companies have in common is the same aircraft type. By that logic Southwest is going to by Alaska, Airtran, Delta, Continental, United, and Aeromexico.

What makes me go "hmmm" is where you guys come up with these rumors?

Who Says that RAH sold the land to Compass! Who says that RAH didn't build the hangar for Compass? The Facts are. 1: Compass Hangar in SDF. 2: It is on RAH's Land. 2: Bedford's Father-in-Law is on the Board of NWA. As far as selling off parts of the company, NWA can do what they want when they want. It all comes down to $$$$$$. If they want to up and sell mesaba or Compass, then they can end of story. Why do I say this, because it's management's game. I am not speculating anything because I do not have inside information. I do fly for Republic and nothing would surprise me in this day and age. What is going to happen is going to happen and we are all out of the loop and have no control over it. The Future holds what the future holds.

 

[DoinTime]

1. NWA can't sell Compass until certain narrow body fleet requirements are met at NWA. I don't have the exact number but there has to be more aircraft at mainline before Compass can be sold. Does Bedford have a brother-inlaw on the NWA MEC?

NWA can sell Compass at any time. If they do the number 51-76 seat jets at NWA drops to the lower cap of 55 airplanes.

 

[DoinTime]

Speaking of NW wholly owneds. Looks like Neal Cohen is jumping ship with no announced replacement.

 

[GOULET!]

Who Says that RAH sold the land to Compass! Who says that RAH didn't build the hangar for Compass? The Facts are. 1: Compass Hangar in SDF. 2: It is on RAH's Land. 2: Bedford's Father-in-Law is on the Board of NWA. As far as selling off parts of the company, NWA can do what they want when they want. It all comes down to $$$$$$. If they want to up and sell mesaba or Compass, then they can end of story. Why do I say this, because it's management's game. I am not speculating anything because I do not have inside information. I do fly for Republic and nothing would surprise me in this day and age. What is going to happen is going to happen and we are all out of the loop and have no control over it. The Future holds what the future holds.

The only fact is #1. #2 and #2 are Flightinfo and APF's rumor. At least get your numbers right the next time you want to pass on bogus crap. The Compass being sold to Republic rumor is as old as Compass is a company.

 

[MCOE175]

I'm calling Shenanigans on pretty much this whole post!

1. NWA can't sell Compass until certain narrow body fleet requirements are met at NWA. I don't have the exact number but there has to be more aircraft at mainline before Compass can be sold. Does Bedford have a brother-inlaw on the NWA MEC?

2. Show me somewhere other than another Flightinfo post where it says Compass is building a maintenance hangar on Republic property. The hangar is in SDF, are you telling me the City, County, or whomever else controls the airport just sold vacant airport property to Republic so they could turn around and sell it to Compass? I doubt it. What the hell does that have to do with Republic buying Compass? The only thing the two companies have in common is the same aircraft type. By that logic Southwest is going to by Alaska, Airtran, Delta, Continental, United, and Aeromexico.

What makes me go "hmmm" is where you guys come up with these rumors?

Its seems as though heads of the airlines can do what they want. Anything that is in the best interest of the company can be done.

The land is owned by RAH and I think you should show where it is not!

I am not speculating either but just incase, the pilots here already bought the big stapler.

 

[Airline Driver]

The only fact is #1. #2 and #2 are Flightinfo and APF's rumor. At least get your numbers right the next time you want to pass on bogus crap. The Compass being sold to Republic rumor is as old as Compass is a company.[/quote

My first two sentences were bogus comments to make a point and counter point. I was not being serious, it was a " Hmmm interesting" or a "What If" hypothesis. My other three statements that I called facts 1,2,& 3 are facts... End of Story!!! Not FI facts but facts of other sources. My main point was that management can do what they want when they want. Perhaps you need to learn to read between the lines before you jump down someone's throat.

 

[YourPilotFriend]

Speaking of NW wholly owneds. Looks like Neal Cohen is jumping ship with no announced replacement.

He got a sweet job raiding another company.

 

[HA25]

What is the size limit of the Compass jet fleet? only 36 E175s? Do you think that someone going there now would have a prayer to upgrade in a year or two?