NWA pilots want stake in merged carrier....article

[General Lee]

Northwest pilots want stake in merged carrier

Thu Jan 24, 2008 1:56pm NEW YORK, Jan 24 (Reuters) - The pilots of Northwest Airlines Corp (NWA.N: Quote, Profile, Research) said on Thursday they would support a merger between Northwest and another carrier, but want a stake in a combined airline in return.
"We would agree to be favorable toward a merger if the right partner could be found," Greg Rizzuto, a spokesman for Northwest's pilots union, told Reuters. "For that, we'd want job security for our pilots, contract improvements ... as well as an equity stake.
"We need a viable company that can survive the economic ups and downs and $100 a barrel oil," Rizzuto said in a telephone interview.
Delta reportedly started merger talks with both Northwest and United Airlines parent UAL Corp (UAUA.O: Quote, Profile, Research) earlier this month. The airlines have declined to comment.
On Thursday, Delta repeated its statement that it is not providing updates of its ongoing strategic review. Northwest was not immediately available for comment.
The statement is the latest sign the airline industry's powerful labor unions are willing to back a merger if they get something in return.
Northwest's flight attendants, which like the carrier's pilots were forced to accept deep wage cuts while Northwest was in bankruptcy, said earlier this week that its backing of a merger would be conditional on job protection, higher wages and a stake in the combined company. (Reporting by Chris Reiter; Editing by Andre Grenon)


Bye Bye--General Lee

 

[Superpilot92]

Northwest pilots want stake in merged carrier

Thu Jan 24, 2008 1:56pm NEW YORK, Jan 24 (Reuters) - The pilots of Northwest Airlines Corp (NWA.N: Quote, Profile, Research) said on Thursday they would support a merger between Northwest and another carrier, but want a stake in a combined airline in return.
"We would agree to be favorable toward a merger if the right partner could be found," Greg Rizzuto, a spokesman for Northwest's pilots union, told Reuters. "For that, we'd want job security for our pilots, contract improvements ... as well as an equity stake.
"We need a viable company that can survive the economic ups and downs and $100 a barrel oil," Rizzuto said in a telephone interview.
Delta reportedly started merger talks with both Northwest and United Airlines parent UAL Corp (UAUA.O: Quote, Profile, Research) earlier this month. The airlines have declined to comment.
On Thursday, Delta repeated its statement that it is not providing updates of its ongoing strategic review. Northwest was not immediately available for comment.
The statement is the latest sign the airline industry's powerful labor unions are willing to back a merger if they get something in return.
Northwest's flight attendants, which like the carrier's pilots were forced to accept deep wage cuts while Northwest was in bankruptcy, said earlier this week that its backing of a merger would be conditional on job protection, higher wages and a stake in the combined company. (Reporting by Chris Reiter; Editing by Andre Grenon)


Bye Bye--General Lee

Thats great, DAL pilots should want the same thing.

 

[FDJ2]

Thats great, DAL pilots should want the same thing.

Do you think?

Lee Moak the DAL MEC Chairman has been beating that drum for months now. ALPA national got on the band wagon about a month ago and both the NWA and UAL MEC's are now in too. That's great and that's how it ought to be.

That being said, a DAL/NWA merger is not a done deal.

 

[NuGuy]

That being said, a DAL/NWA merger is not a done deal.

Not by a long shot. Last wire report had them squabbling about who was going to run the show.

http://www.startribune.com/business/14167791.html

This is EXACTLY what sunk the last NWA/DAL deal back in 1986.

If I was NWA, I wouldn't order a Zoot Suit (key chain optional) just yet, and if I was DAL, I wouldn't relax and become a cool person just yet...

Nu

 

[Superpilot92]

Do you think?

Lee Moak the DAL MEC Chairman has been beating that drum for months now. ALPA national got on the band wagon about a month ago and both the NWA and UAL MEC's are now in too. That's great and that's how it ought to be.

That being said, a DAL/NWA merger is not a done deal.

I do think and I agree!

 

[FDJ2]

I do think and I agree!

Good one. :beer:

 

[Diesel-9]

I'm still betting NWA/CAL.

 

[NuGuy]

I'm still betting NWA/CAL.

Agreed. All the benefits and no annoying hiss of over-inflated egos.

Plus you'd get to watch the UAL-DAL train wreck from the sidelines.

Although MSP/DTW/IAH/EWR could very well become the hat trick of awful crew bases... but the resulting airline could have one stop shopping for really piss poor places to be based.

Nu

 

[jke406]

between management that doesn't give a rat's bare behind about it's rank-and-file employees (NWA) and a company that pays its new pilots jack without heath insurance for six months...now there's some "synergy" for you.

enjoy that.

 

[Max Powers]

Thats great, DAL pilots should want the same thing.

Delta is doing the buying their stake will be in their seniority. In other words Delta will be buying NWA for a premium so NWA pilots want a cut of that money. Delta will not have any surplus in funds in fact they might want you to pony up. In any event when the NWA pilots get screwed over in seniority integration they can use the money for extra Vaseline.

 

[NuGuy]

Delta is doing the buying...

Maybe, maybe not. Last word was a straight stock swap, sooo you might be a bit premature with that.

The Frenchies ponying up money is only a writer's speculation.

Nu

 

[XJohXJ]

Agreed. All the benefits and no annoying hiss of over-inflated egos.

Plus you'd get to watch the UAL-DAL train wreck from the sidelines.

Although MSP/DTW/IAH/EWR could very well become the hat trick of awful crew bases... but the resulting airline could have one stop shopping for really piss poor places to be based.

Nu

Just be sure you negotiate one heck of a good commuter policy into the final contract!

 

[Superpilot92]

why would NWA want to get into bed with CAL? The reason why DAL cited NWA and UAL is because of the international route structures right? Dont you think thats the reason why DAL didnt list CAL as a possibility?

 

[Schwanker]

why would NWA want to get into bed with CAL? The reason why DAL cited NWA and UAL is because of the international route structures right? Dont you think thats the reason why DAL didnt list CAL as a possibility?

Or could it be NWA can squelch a DAL/CAL combination?

Schwanker

 

[NuGuy]

why would NWA want to get into bed with CAL? The reason why DAL cited NWA and UAL is because of the international route structures right? Dont you think thats the reason why DAL didnt list CAL as a possibility?

Heyas,

No, becase CAL/DAL is mostly redundant. NY/EWR and ATL/IAH covers pretty much the same territory domestically, and both are heavy into Europe and reasonable in SoAM.

The only thing CAL has that DAL doesn't is a Asian network. CAL has a pretty nice European thing going.

Anderson, when he was at NWA, was once asked at a pilot meeting what his biggest mistake was, and he said point blank "not buying CAL when we had the chance". Steenland could be trying to pull that coup to one up his old boss.

CAL and NWA have been working together since 1998. I've seen CAL carts on NWA AC and vice versa and they've been swapping met services for a while.

CALs Guam flying and NWAs NRT routes would really put a hold on the Pacific, and the two route structures complement each other at least as well as DAL/NWA, and it's a smaller overall package, and probably better able to jump the DOJ hurdle.

NWA still has the option to buy out CAL via the Newbridge Agreement. I'm betting that is their ace in the hole, because they can tell DAL to go piss up rope and still put together a killer deal in a matter of weeks, and DAL is left with some "less than optimum" options. The latest news in MSP (Strib) says that NWA IS talking with other parties, but who knows what that means.

Besides, NWA + DAL has some rather nasty history anyway. After the failed deal in 86 over who was going to run the show, and the sleigh of hand NWA pulled in 98 to snake CAL away from DAL at the last minute, there is some definate bad blood between them.

So, who f'in knows? I have my popcorn and beer, so I'm just watching the show...

Nu