NWA "Newco" proposal

Butters

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A friend at NWA read me some of the highlights from the "Newco" offer from NWA. Forgive me if this has been posted before.

  1. Newco would have its own seniority list, however it would flow up and down with NWA mainline.
  2. Newco would fly all jets between 76 and 100 seats for NWA.
  3. Mesaba and Pinnacle could fly unlimited jets up to 75 seats.
  4. 35 Avro RJ-85's with 85 seats could be flown by someone else (didn't say Mesaba) as the only exception.
  5. Newco would have a "no stike" clause.
NWA boys have the right to defend their flying. But I certainly hope they shoot this piece of crap down.
 

xjavro85

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enough
Butters said:
A friend at NWA read me some of the highlights from the "Newco" offer from NWA. Forgive me if this has been posted before.

  1. Newco would have its own seniority list, however it would flow up and down with NWA mainline.
  2. Newco would fly all jets between 76 and 100 seats for NWA.
  3. Mesaba and Pinnacle could fly unlimited jets up to 75 seats.
  4. 35 Avro RJ-85's with 85 seats could be flown by someone else (didn't say Mesaba) as the only exception.
  5. Newco would have a "no stike" clause.
NWA boys have the right to defend their flying. But I certainly hope they shoot this piece of crap down.
I truly doubt that 75 and under go to the airlinkers, why would they do that if thay can give it all to NewCo.
 

Jimdandy

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because their are 70 seat crjs out there that we already fly except with 50 seats. Saving them ramp up costs in the millions.

Its all about the benjamins
 

xjavro85

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Jimdandy said:
because their are 70 seat crjs out there that we already fly except with 50 seats. Saving them ramp up costs in the millions.

Its all about the benjamins
I agree with you there, however I am sure that NWA will manage to turn this 70 seat deal into a bidding war between 9E, XJ and "NEWCO". Speaking of which anyone hear anything yet about this secret meeting between XJ MEC and mgnt?
 

Jimdandy

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very true xjavro85 you can count on it. I hear it is true through the grape vine; what it is about, no clue.
 

TinGoose1

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Because it's cheaper. Who is going to work on these planes? Who are the ground people going to be? Flight attendants? Do you really think that they will get the majors to undercut the commuter cost structure? I don't think so. All growth will be to anyone not on the NWA mainline payroll.
 

xjavro85

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TinGoose1 said:
Because it's cheaper. Who is going to work on these planes? Who are the ground people going to be? Flight attendants? Do you really think that they will get the majors to undercut the commuter cost structure? I don't think so. All growth will be to anyone not on the NWA mainline payroll.
You think the airlinkers will be cheaper than NewCo? The whole purpose behind newco is so nwa can set their own price for wages. After the recent amfa strike at nwa with all the scab workers out there working for sh!t wages it shows that there are enough people willing to work for cheap. Newco will be the end of any flying over 50 seats by the airlinkers.
 

FN FAL

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xjavro85 said:
You think the airlinkers will be cheaper than NewCo? The whole purpose behind newco is so nwa can set their own price for wages. After the recent amfa strike at nwa with all the scab workers out there working for sh!t wages it shows that there are enough people willing to work for cheap. Newco will be the end of any flying over 50 seats by the airlinkers.
If I was at pinnacle or XJ, I would be more worried about Newco, than exhuberant.

The Newco pilots and planes are going to be competitive with contract operations.
 

Lear70

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Do you people have ANY idea what it COSTS to start up an airline? We're talking in the hundreds of millions here, people...

First, they have to get office space and office equipment, then aircraft leases, then a new certificate, management and labor costs to run the offices while in startup, train an entirely new labor force from dispatchers and schedulers on down to F/A's and Mechanics (and let's not forget pilots that cost between $50,000 and $100,000 to train EACH).

Time to spool up that entire effort: just shy of one year.

How many DECADES of operation would it take to offset the cost of just going with one of the existing airlinks who would be within 10-15% of the monthly operating cost of NewCo...?

And you think the bankruptcy judge is really going to go for this?

IF, for some god-awful reason Newco does come to pass, the 'Links can kiss about half their RJ's goodbye: many of our routes are 70 or 90 seat routes flown by 50 seaters only because a -9 or 'Bus wouldn't be cost-effective on that route. Where those routes overlap you would eventually see replacement by 70 and 90 seaters and given that their public strategy is to REDUCE available seat miles... well... you get the picture, and it ain't pretty.
 

noonan

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Don't think NW won't start Newco because of start-up cost?
Look at UsAirways and MidAtlantic. UsAirways was in much more trouble than NW, yet they had the capital to do it.
Got the pilots to agree to a ridiculous contract (wage). Top captain pay for the Erj170 is less than $60,000 a year. 1/3 of our Saab captains make that.
Afraid of Newco, you bet.
 

Jimdandy

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Yes newco is a real threat. Nwa mgt seems intent on always talking about it.

HOWEVER, this could be a ploy to give mainline some negotiating strength.

Lets say the really intend is to bring it to a regional but mgmt knows if they do this they could create a work stopage. So they let the pilots negotiate some great j4j deal in their favor with some regional. No regional in their right minds would give up all their seniority unless they thought the HAD TO get nwa pilot to agree to this concession.
 

timmay

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They already have an approved 121 certificate. White out NWA, write NEWCO and there you have it.
 
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