Rah To Fly For Midwest Express

[ifly4u]

This violates our scope because it is a 10 year lease deal not a sale of airplanes. Any aircraft owned or leased by Republic Holdings have to be flown by RAH pilots. This appears to be a huge violation of our contract.

 

[dav8or]

D. Scope
1. This Agreement covers the company, any subsidiary of the
company, the company’s parent, any subsidiary of the
company’s parent and any future airline certificate(s) created as
a subsidiary of the company or subsidiary of the company’s
parent.
2. Except as otherwise provided in this Agreement, all present and
future flying (including that international flying which originates
or terminates within the United States or its possessions) and all
charters, ferry flights (not including ferry flights of newlyacquired
aircraft prior to being placed in revenue service),
training flights, test flights, (except test flights assigned to
management), or other utilization of aircraft owned or leased by
the company, the company’s parent or any subsidiary of the
company or subsidiary of the company’s parent shall be
performed by pilots on the Chautauqua Airlines Pilots’ System
Seniority List in accordance with the terms and conditions of this
Agreement or any other applicable agreement between the
company, the company’s parent or any subsidiary of the
company’s parent and the International Brotherhood of
Teamsters, Airline Division.
3. The Company, Subsidiary of the Company, the Company’s
Parent or Subsidiary of the Parent shall not establish any new
airline (alter ego or otherwise) or acquire a controlling interest in
any carrier whether directly or through the Parent or another
Subsidiary of the Parent, and maintain it as a separate carrier.
A “Controlling Interest” or “Control” means the ownership of an
equity interest representing more than fifty percent (50%) of the
outstanding capital stock of an entity or voting securities
representing more than fifty percent (50%) of the total voting
power of outstanding securities then entitled to vote generally in
the election of such entity’s board of directors or other governing
body.
4. The Company will not transfer aircraft, or operating authority to
its Parent, a Subsidiary of the Parent, or to a Subsidiary of the
Company for the purpose of evading the terms of this
Agreement. The Company will also not establish a third party
leasing device to evade the terms of this agreement.​

 

[DoinTime]

This violates our scope because it is a 10 year lease deal not a sale of airplanes. Any aircraft owned or leased by Republic Holdings have to be flown by RAH pilots. This appears to be a huge violation of our contract.

I don't think so....at the 1.5 year mark Midwest has the option to buy (or assume the leases) these airplanes.

Looks like RAH found a place to unload static aircraft that were draining the bottom line and taking up gate space in PIT. They might just get rid of them for good.

 

[TAWS]

You're forgetting some important stuff:

This is a secured loan - YX defaults, RAH ends up with alot of assets. (think of the F9 financing).

NWA needs someone to stop YX from sliding into oblivion, as they have their hands full with the DAL merger - BB is an NWA insider.

What is RAH getting out of the DAL deal, in return for doing this? (somewhere NWA is behind this).

 

[DoinTime]

BB is an NWA insider.

BB was kicked out of the NWA system.

 

[TAWS]

There is honor among thieves! Don't kid yourself, these guys move in the same circles. Your comment almost insinuated that NWA has ethics and morals - I almost questioned your sanity for a moment.

 

[PCL_128]

There is honor among thieves! Don't kid yourself, these guys move in the same circles. Your comment almost insinuated that NWA has ethics and morals - I almost questioned your sanity for a moment.

BB is not well liked in NWA circles. He did not leave on good terms.

 

[ifly4u]

I don't think so....at the 1.5 year mark Midwest has the option to buy (or assume the leases) these airplanes.

Assume the lease from whom? Republic owns the airplanes. RAH would be leasing the airplanes to Midwest.

 

[DoinTime]

There is honor among thieves! Don't kid yourself, these guys move in the same circles. Your comment almost insinuated that NWA has ethics and morals - I almost questioned your sanity for a moment.

NWA doesn't have ethics or morals. BB got kicked out because he wanted to reach out on his own and grab opportunity instead of do what he was told to do. NWA squeezed him out the door and inserted Foul Polley at Mesaba.

 

[DoinTime]

Assume the lease from whom? Republic owns the airplanes. RAH would be leasing the airplanes to Midwest.

The business arrangement is totally clear yet on ownership of these aircraft after the 1.5 year mark. RAH could sell them to a leasing company or sell them to Midwest. Either way it works around your Scope.