redflyer65 said:Explain to me why Northwest needs to even waste money buying a new certificate. Why don't the Northwest pilots fly these planes under the Northwest banner at industry standard rates?
I welcome anyone to answer this question. No one seems to know the answer. Its just 'that's what everyone else is doing'.
Oh, I know this one!!!!
It is to:
1) Raise capital by selling the compass unit in a few years (see MDA, and the Pncl IPO)
and
2) Create more long term leverage against the employee groups. It will accomplish this by putting more of the flying in a "contract" basis, which means if any one group gets too good a contract, that company can be replaced by one with lower paid employees. It will also allow mgmt to point at a yet larger aircraft being staffed, maintined, etc. by lower paid employees when discussing the airplanes at mainline. As in "well, we'd like to pay more to fly the EMB190/DC9?A319, but look at how much lower these people operate the EMB175 for. And it will work great in the next downturn too: "judge, our airlink partners fly the EMB175, so it makes much more economic sense for us to outsource our EMB195's to the them as well, given the efficiencies of operating them together."
Turbo (running to walgreens for KY)