NWA Wants....WHAT?

[Deli Guy]

Hey Lear 70,

Quote by Lear 70
Simply not true. Our CASM is higher than NWA only because of fewer seats. The operation is indeed subsidized, mainly fuel costs (Pinnacle pays a great portion of the leasing cost of these aircraft back to NWA - don't ask me, doesn't make much sense to me either but it's in every public filing out there).

Landing fees/gates/fuel/etc etc Ok, we dont have the numbers between us--hard to debate.



However, our mechanics are the cheapest, as are the f/a's, dispatchers, schedulers, and all of those positions are SEVERELY understaffed - NO airline in the Continental U.S. staffs as low in EVERY position as WE do. Ask Phil, he brags about it daily. That translates to the lowest unit operating cost anywhere. I don't like it, it makes our lives miserable, but that's the facts of life we live in.

Again, no hard numbers, but to simply stretch our mechs, fas, dispatchers etc. we already have in house vs. stretching yours (and the write offs NWA would have for those expenses) or facing chapt 7 when we strike over it (if we have the balls to do it) is pretty negligable. I am sure the creditors would see it our way as well. Just my take....

 

[surplus1]

I don't have a dog in your debate seeing as how we have our own. But, are you not overlooking something big?

If NWA is going to put these "new" airplanes at NW, NW will have to buy them. If on the other hand NW, which no longer owns its feeders, just changes the terms of thier contract so that PCL and MSA have to buy whatever airplanes they fly for NW, would NW save billions in debt?

The capital expenditure rather than the pilot salaries may well be the key to who gets what.

 

[787]

Steenland and Wilson have a bit bigger problems...as of late...on NBC this evening, SEC is questioning them on stock sales weeks before filing...

 

[Deli Guy]

Hey Surplus 1
Good point, the thing that is different about NWA vs. Delta U, USair is that we are doing our own DIP financing. I think people are missing the shrewedness of this mgmt team. We went into BK with about 2 billion $. I think the financing could be accomplished. Maybe I am wrong. PCl and Mesaba do not have the assets to finance them either. NWA supplies them with their airplanes. It was set up that way so that PCL/Mesaba would essentialy be staffing agencies, thus having low start up costs. Now that NWA has missed their payments to PCL/Mesaba, their credit ratings are in the dumpster. I guess that CHQ/MESA could come in and bid the flying but would ALPA stand for that? Is CH 7 better for the creditors?

 

[Deli Guy]

Hey 787,
Lets see where that goes. Lets hope for some resignations without golden parachutes. Confusion to the enemy!
Deli

 

[WillowRunVortex]

No kidding Deli.

Not sure if what 787 stated is fact, but wouldn't that be some sweet justice?

 

[787]

I hear IAM is asking airport & reservations folks for a 17.5% wage cut, plus lots of work rule changes. Pilots we all know about. NWA leader of the AMFA broke the picket line to get his job back. FAA is increasingly looking into maint. records of the last month. I won't feel sorry if top brass gets in a wringer.

9E, well, I really can't say anything nice. I'm sorry for the guys at XJ that will be affected. NWA-ALPA has a smart bunch behind the scenes, and I believe will weather the storm. I'm glad I punched out in June.

 

[ackattacker]

Regarding scope... I think many are missing the big point. It seems to me that operating and leasing costs at NW verses NewCo should be similar... but that the seperate seniority lists would save the company megabucks. All pilots/fa's/mechanics/dispatchers hired into NewCo (or other regional) start at the bottom. If they ever flow-through to NW they start at the bottom again. Net result... NW is overall paying for a younger workforce. If the 76-100 seaters are on the NW seniority list, then the average seniority in the company is increased and hence the average pay is much higher.

 

[mynameisjim]

Regarding scope... I think many are missing the big point. It seems to me that operating and leasing costs at NW verses NewCo should be similar... but that the seperate seniority lists would save the company megabucks. All pilots/fa's/mechanics/dispatchers hired into NewCo (or other regional) start at the bottom. If they ever flow-through to NW they start at the bottom again. Net result... NW is overall paying for a younger workforce. If the 76-100 seaters are on the NW seniority list, then the average seniority in the company is increased and hence the average pay is much higher.

Good point, I never thought of that. In meetings they have specifically mentioned how even if NWA had the same pay scale as JetBlue, our pilots would cost more because JetBlue pilots have only been around 5-6 years.

 

[Lear70]

Now that NWA has missed their payments to PCL/Mesaba, their credit ratings are in the dumpster. I guess that CHQ/MESA could come in and bid the flying but would ALPA stand for that? Is CH 7 better for the creditors?

Not quite, Northwest holds the leases and subleases them to Pinnacle at a set rate. Pinnacle pays Northwest, not anyone else, and Pinnacle is still paying their debts other contractors (hotels, etc), so PCL's credit is just fine... for now. Who knows whether NWA will start ponying up money but if they don't, we won't be afloat more than another 2 or 3 months at best.

Can't speak for Mesaba and their lease situation.

9E, well, I really can't say anything nice. I'm sorry for the guys at XJ that will be affected.

Why would 9E be any different than XJ? We both were ASSIGNED flying (we didn't bid on it). What makes one worse than the other? Just curious about the acrimony.