Northwest also files Chap. 11

[Erlanger]

http://biz.yahoo.com/cbsmb/050914/ef12b6e224af47f79857d11055ed3375.html?.v=1

 

[General Lee]

http://biz.yahoo.com/cbsmb/050914/ef12b6e224af47f79857d11055ed3375.html?.v=1

Crazy. Both at the same time? Merger.....


Bye Bye--General Lee

 

[J3CubCapt]

Nope, they are just filing before the Chap 11 rules change next month. Now two more airlines can fail to pay their bills, cut wages etc. while SWA continues to run a responsible business.

Well I guess someone will now say this is SWA's fault. You know, it's exciting to think that little ole SWA can cause all of this kaos.

J3

 

[PCL_128]

Crazy. Both at the same time? Merger.....


Bye Bye--General Lee

I wouldn't be surprised to see a merger announcement within the next year. In the end, it would probably be for the best. It would certainly be a very difficult transition though.

 

[320AV8R]

Well I guess someone will now say this is SWA's fault. You know, it's exciting to think that little ole SWA can cause all of this kaos.

J3

SWA the cause.....? Yea, right.

It had nothing to do with high fuel prices, outlandish debt and pension payments, labor costs that were above the industry average, incompetent Management, trying to compete with other airlines in CH 11, failed labor negotiations, did I mention high fuel prices ? etc,.........

Yea, it is Southwest that is causing all these problems.

Don't flatter yourself.

320AV8R

 

[General Lee]

Nope, they are just filing before the Chap 11 rules change next month. Now two more airlines can fail to pay their bills, cut wages etc. while SWA continues to run a responsible business.

Well I guess someone will now say this is SWA's fault. You know, it's exciting to think that little ole SWA can cause all of this kaos.

J3

What? So, you don't think filing within 30 minutes of each other means anything? NW has a better balance sheet, and they still filed. Why?

Hey, how is the Boeing strike affecting you guys at SW? I hear hiring will stop soon.


Bye Bye--General Lee

 

[General Lee]

I wouldn't be surprised to see a merger announcement within the next year. In the end, it would probably be for the best. It would certainly be a very difficult transition though.

A difficult transition? Delta only has one union, which means less strike potential. And, ALPA covers the pilots at both. It would be worse if an ALPA carrier merged with a non ALPA carrier.


Bye Bye--General Lee

 

[PCL_128]

A difficult transition? Delta only has one union, which means less strike potential. And, ALPA covers the pilots at both. It would be worse if an ALPA carrier merged with a non ALPA carrier.


Bye Bye--General Lee

Come on General, you have to admit that any merger is tough on the employees of both airlines. The circumstances in this case certainly make it much better, but that doesn't mean that things would go easily.

 

[Flopgut]

You know, it's exciting to think that little ole SWA can cause all of this kaos.

J3

This is a bad day. No one should forget the sentiment expressed by this SWA pilot. Their day will come.

 

[Traderd]

A question of curiosity only; I have no dog in any fight.

Do striking workers continue to picket a bankrupt corporation?

 

[vc10]

Bankruptcy and labor laws are largely (but not completely) independent of each other. Workers can strike a bankrupt company.

A question of curiosity only; I have no dog in any fight.

Do striking workers continue to picket a bankrupt corporation?

 

[Traderd]

Bankruptcy and labor laws are largely (but not completely) independent of each other. Workers can strike a bankrupt company.

Thx Vc10. I assumed they could, but I am curious if history shows that a BK changes anything during a strike. Other than liqiudation of course.

 

[AnimalTale]

Actually,

IMHO, Bankruptcy seems to be a great tool (b4 the rule changes on 10/17). Look at UAL, they have been surviving under chp11 for quit a bit now. The airlines out of Chp11 need to worry (SWA,CAL,Jblu,F9,Airtran,FDX,UPS etc.) because they have unfair competition now and restructured labor,pension,loans etc.

The concessions and reforms are going to snowball quickly.

ccya

 

[320AV8R]

A question of curiosity only; I have no dog in any fight.

Do striking workers continue to picket a bankrupt corporation?

AMFA will still picket, but since they do not have a contract with NWA, their relationship is severed with the corporation. IOW, AMFA is basically non-existent, now that CH 11 has been filed.

The Court will work with and recognize ALPA, IAM, PFAA, etc.......but not AMFA.

The scabs are not recognized either.

Should get interesting......................

320AV8R

 

[320AV8R]

Crazy. Both at the same time? Merger.....
Bye Bye--General Lee

General-

I just listened to Steenland speak at a press conference on tv.

He said it was "purely coincidental" that both filed on the same day.

NWA had some equipment and pension payments coming due in a day or so, that NWA didn't want to make; to preserve liquidity.

About mergers, he said there were too many seats chasing too few pax. One way to correct that, would be through consolidation, but he didn't see anything happening soon.

Remember: he's a lawyer, who has worked for Lorenzo, etc..... He only tells true lies.

320AV8R

 

[General Lee]

General-

I just listened to Steenland speak at a press conference on tv.

He said it was "purely coincidental" that both filed on the same day.

NWA had some equipment and pension payments coming due in a day or so, that NWA didn't want to make; to preserve liquidity.

About mergers, he said there were too many seats chasing too few pax. One way to correct that, would be through consolidation, but he didn't see anything happening soon.

Remember: he's a lawyer, who has worked for Lorenzo, etc..... He only tells true lies.

320AV8R

Sure it was speculation, but Grinstein said all of them are looking for dancing partners. NW/CAL/UA/DL. A management guy I talked to in ATL today was speculating and he said he could see NW/CAL/DL as one, or UA/CAL and NW/DL. Even the third grade paper the USAToday stated today that the gov't will have to change it's stance on mergers and allow more, or many job losses will result. Everyone likes to say "oh, the LCCs will absorb it"----not when passenger numbers are climbing like crazy. Consolidation will happen---they are all looking at it right now. (Thanks to the USAir/AWA deal)


Bye Bye--General Lee

 

[densoo]

"On Thursday, the Air Line Pilots Association said Northwest was reducing flying levels, which would result in 400 pilot furloughs over the next eight months. That's in addition to around 500 Northwest pilots already on furlough, the union said in a statement. A Northwest spokesman confirmed the furloughs, but had no comment on them."

http://biz.yahoo.com/ap/050915/airlines_bankruptcy.html?.v=21