Possible effect of Northwest bankrupty on Mesaba or Pinnacle??

[aviatorman_1979]

What would the effects of a Northwest bankrupty have on either Mesaba or Pinnacle?

 

[ClubORD]

i.e.

Air Wisconsin
Atlantic Coast Airlines

There are plenty of people willing to fly for peanuts these days. I do not know where these carriers fall in the labor cost structure but I would bet a NWA bankruptcy would cause some serious pay/QOL issues there.

 

[PCL_128]

What would the effects of a Northwest bankrupty have on either Mesaba or Pinnacle?

There would be no immediate effect, but problems could come later on. The ASA (Air Service Agreement) that Mesaba and Pinnacle have with NWA could come up during BK. NWA could always get the judge to void the current ASA and Pinnacle and Mesaba would have to renegotiate a new ASA or risk losing the contract to another regional like Mesa or CHQ. I'm not too worried, seeing as how Pinnacle is currently the lowest cost regional in the country (yes, even lower cost than Mesa). Mesaba just got the next few CRJs by agreeing to fly them for a very slim profit margin, so I doubt their contract is in jeopardy either. Basically, bad things could happen, but it's not very likely.

 

[SRMairlines]

I would imagine similar cases to the UAL and US Ch. 11's we've seen. 70 seaters to who can do it the cheapest. Probably a lot more growth opportunities for Mesaba/Pinnacle and possibly someone else. NWA is cut-throat so they will do what they need to survive.

 

[RP170]

There would be no immediate effect, but problems could come later on. The ASA (Air Service Agreement) that Mesaba and Pinnacle have with NWA could come up during BK. NWA could always get the judge to void the current ASA and Pinnacle and Mesaba would have to renegotiate a new ASA or risk losing the contract to another regional like Mesa or CHQ. I'm not too worried, seeing as how Pinnacle is currently the lowest cost regional in the country (yes, even lower cost than Mesa). Mesaba just got the next few CRJs by agreeing to fly them for a very slim profit margin, so I doubt their contract is in jeopardy either. Basically, bad things could happen, but it's not very likely.

Don't count on getting anywhere in your contract negotiations at PCL if NW files.

 

[ERJDRVR2]

Misleading joke... To mess with PCL.

True memo. But 170's in DTW for DL.

 

[PCL_128]

PCL,

FYI, CHQ/RP/Shuttle is opening a DTW base effective Sept 1.

Source? Is this guy just full of crap, or can someone else from CHQ confirm?

If it's true, then welcome to DTW. You certainly won't be flying any 170s with a red tail until scope changes, but we'll be happy to have you up here.

 

[DoinTime]

PCL,

FYI, CHQ/RP/Shuttle is opening a DTW base effective Sept 1.

Assuming that this is legit.......So what???

Are you assuming these airplanes will be flown for NWA? If so you are on crack.

 

[KingAirer]

Why do you want to start a war ERJ? You and everyone else knows that flying is not NW flying.

 

[BoilerUP]

The rest of the story

"Special Notice: This bid is for Delta EMB 170 service originating out of Detroit, MI for September 4, 2005 through approximately October 15, 2005. Only those Shuttle America pilots who will be qualified on the EMB 170 by September 1, 2005 will be eligible to bid these openings."