Skywest to buy Mesaba?

[Max Q]

Sure about that.
Have you seen what the Delta/NWA contract states about it.

Assuming you're actually asking me a question, yes, I am sure about that and I have read the contract. Have you?

 

[xjgearbtch]

Typical, got my hopes up for nothing thanks for the clarification. Well Mesaba "F-you Friday" CEO update, will be on thursday since all the managers will be bailing on friday to celebrate the fourth of July.

Great company, great people too bad in the business world that doesn't account for squat to the bean counters.

 

[bomberbubba]

Announcment 9:30am Thurs

 

[mynameisjim]

Is there any money on the odds of the announcement?

Or is it going to be a new logo?

 

[Erlanger]

Every talks about how Mesaba will be merged with ASA if this buyout happens. Has anyone noticed that Skywest in the past month or so has positioned itself with a big presence in MSP with alot of flying there already. This couldn't happen of course without Delta's blessings. We were even told unofficially recently that there was going to be base announcement for MSP soon.

Me thinks either Mesaba will be bought and operated as a standalone airline or bought just for it's assets and planes. I hope it's not bought for it's assets and planes by Skywest. It will be very bad.

 

[resetjet]

Can someone actually provide some concrete info on what Mesaba's assets are?

 

[Erlanger]

Can someone actually provide some concrete info on what Mesaba's assets are?

Mesaba has 28 Saabs to be phased out, 19 CRJ200s and 41 CRJ900. Skywest has only 21 CRJ900s and ASA has only 10 CRJ900s. Its those 900s I think Skywest, Inc really wants.

 

[resetjet]

Mesaba has 28 Saabs to be phased out, 19 CRJ200s and 41 CRJ900. Skywest has only 21 CRJ900s and ASA has only 10 CRJ900s. Its those 900s I think Skywest, Inc really wants.

I would agree. Who actually owns the airframes?

 

[WAVIT Inbound]

Every talks about how Mesaba will be merged with ASA if this buyout happens. Has anyone noticed that Skywest in the past month or so has positioned itself with a big presence in MSP with alot of flying there already. This couldn't happen of course without Delta's blessings. We were even told unofficially recently that there was going to be base announcement for MSP soon.

Me thinks either Mesaba will be bought and operated as a standalone airline or bought just for it's assets and planes. I hope it's not bought for it's assets and planes by Skywest. It will be very bad.

The other thing to think about is all the Mesaba 900's flying out of SLC. If you think Inc is going to bring ASA/Mesaba merged pilots out to do that flying you are crazy. Those airframes would just go to Skywest. I have been hearing about this happening for months.

 

[NotTooBad]

Unfortunately, flying for Delta does not make you an affiliate.

Applicable NWA contract language:

The term "Affiliate" means (i) NAC (NORTHWEST AIRLINES [FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]CORPORATION)[/FONT][/FONT], (ii) any subsidiary, parent or division of the Company or NAC or any subsidiary, parent or division of either a parent or subsidiary of the Company or NAC or (iii) any entity that controls or manages NAC or the Company or is controlled by or managed by NAC or the Company.

"Participating Feeder Carrier" means a Domestic Air Carrier that is a Feeder Carrier (both as defined in Section 1 B.7.a. and Section 1 B.7.c.(1) of the Agreement) that has contracted with the Company to operate Qualifying Aircraft.

"Qualifying Aircraft" means a 51-76 seat aircraft as defined in Section 1.B[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]. [/FONT]7.c.(1) of the ALPA Restructuring Agreement. [/FONT]


a. "Category 1 Participating Feeder Carrier" means a Participating Feeder Carrier that is an Affiliate of the Company.

b. "Category 2 Participating Feeder Carrier" means a Participating Feeder Carrier that is not an Affiliate of the Company and that operates Qualifying Aircraft that are owned, financed, leased, or sub-leased by the Company (not including the AVRO85 replacements at Mesaba Airlines).

c. "Category 3 Participating Feeder Carrier" means a Participating Feeder Carrier that is not an Affiliate of the Company and that operates Qualifying Aircraft that are not owned, financed, leased or sub-leased by the Company.


Offers of Opportunity (Filling of Vacancies)
1. A Category 1 Participating Feeder Carrier shall make 100% of New Positions (Captain and First Officer) and 100% of Backfill Positions available to Eligible Furloughed Pilots.

2. A Category 2 Participating Feeder Carrier shall make 50% of New Positions (Captain and First Officer) and 100% of Backfill Positions available to Eligible Furloughed Pilots, subject to conditions and restrictions that provide for efficient and timely processing and hiring of such Eligible Furloughed Pilots.

3. The Company will provide enhanced opportunities for a laid off Company pilot to obtain pilot employment at a Category 3 Participating Feeder Carrier. As part of the negotiation of a new ASA agreement, or to amend an existing ASA agreement with a Category 3 Participating Feeder Carrier, the Human Resources Departments of the Company and such Feeder Carrier will develop a mutually acceptable program that will serve to provide laid off Company pilots who meet all other pilot hiring criteria defined by such Feeder Carrier with "additional weighting" relative to other pilot candidates not already employed by such Feeder Carrier. Nothing in this program will guarantee that any laid off Company pilot will be hired ahead of other candidates who are not laid off Company pilots


MSA Flow history lesson:

The reason MSA had a flow agreement put in place was because of a grievance settlement. By purchasing MSA, it became an “affiliate” under the NWA CBA (aka Category 1 Participating Feeder Carrier), which is why the flowthrough was put into place. See NWA LOAs 2007-04 & 05 (which resulted in NWA LOA 2008-01 MSA flowthrough agreement).

If MSA was not an affiliate (e.g., Pinnacle) they would have been a category 2 feeder carrier if NWA owned the planes. If NWA did not control the planes, it would have been category 3.

Pinnacle was not a "participating" feeder carrier because they did not operate "qualifying aircraft". By selling MSA & the planes, what's left becomes a category 3 feeder carrier. The company voids NWA LOA 2008-01, and thus no flow.

Well written. Thanks for the info on the topic.

 

[ACL65PILOT]

the flow is written into the sale if the airline is sold. The only way the flow doesnt go along with the sale is if its negotiated away which i dont see happening.

Its been rumored for a long time that DALPA wants to have flowthrough agreements in place with all DCI carriers so as the regionals consolidate (more to come imho) than that may just happen.

Well add the 76 seat jets up and CPS, Freedom, and Republic and then subtract them from 153 (current limit.) What do you get?

Now look in the DAL PWA and see what the number allowed is if the flows become unavailable. Little too close for comfort?

 

[Erlanger]

The other thing to think about is all the Mesaba 900's flying out of SLC. If you think Inc is going to bring ASA/Mesaba merged pilots out to do that flying you are crazy. Those airframes would just go to Skywest. I have been hearing about this happening for months.

You don't have to tell me. I know Skywest doesn't want anyone else flying out of SLC. Skywest managed to get Comair out of here and had to buy ASA and send them back to ATL. I wonder if all along Delta intentionally put Mesaba in SLC and is forcing Skywest to buy Mesaba like they did with ASA. Jerry Atkin told us years ago in a newsletter that he didn't really want ASA but it was a necessary thing to maintain it's edge (monopoly, right?) with the Delta Connection flying.

BTW, Jerry once said he was very skeptical about ASA's future when they were bought (he just wanted their assets) but he now says ASA has been great for Inc.

 

[ACL65PILOT]

So what happend to Anderson saying he wanted to bring more of the connection flying IN HOUSE not sell it to an already dominant sized Skywest Inc. Delta would potentially be setting up the next Republic airlines doing that. Someone that would have the money to become a stand alone and start competing against Delta. Not a smart move.

Think of it this way. More flying for a change to the FFD agreements to include some risk sharing. Republic agreeing to exit the DCI portfolio with no penalties for said jets.

 

[resetjet]

As far as flow goes we don't need it or want it. During the last round of Delta hiring nearly a third of the pilots given jobs were from ASa.

 

[ACL65PILOT]

That's between Big Daddy D and the State of MN, not whoever buys Mesaba.

Plus they promised X many jobs in Minnesota. If we keep flying out of MSP, all those jobs still count. Get it?

I don't like this idea either but getting mad at the other carrier's pilots doesn't make it go away. Just because it doesn't make sense to you and me doesn't mean it won't happen either. This is a screwed up industry.

I believe that the DCI offices are up there as well.

 

[xjhawk]

the announcement is that Delta will merge Mesaba with Delta to relief the scope clause and buy 100 new 100 seat aircraft. it will be a date of hire intergration with 25% of the CA seats on the 777 set aside for former Avro captains and union members who negotiated the 04' contract.................... Riddle me this, how is it a carrier who is wholly owned by another could offer to buy a carrier-thsi rumor is bull-I like how it morphed into skywest buying XJ-priceless

 

[xjhawk]

The announcement is that MAIR holdings is now a hedge fund and has already bought Delta-Mesaba pilots has scope with MAIR so Delta's flying is now going to belong to Mesaba. Thats right you heard it hear first. See we can all make crap up

 

[Erlanger]

the announcement is that Delta will merge Mesaba with Delta to relief the scope clause and buy 100 new 100 seat aircraft. it will be a date of hire intergration with 25% of the CA seats on the 777 set aside for former Avro captains and union members who negotiated the 04' contract.................... Riddle me this, how is it a carrier who is wholly owned by another could offer to buy a carrier-thsi rumor is bull-I like how it morphed into skywest buying XJ-priceless

Not sure what you mean there but just play along.

 

[WAVIT Inbound]

BTW, Jerry once said he was very skeptical about ASA's future when they were bought (he just wanted their assets) but he now says ASA has been great for Inc.

But I have also heard him say since then that if INC were to buy another airline again that it would be assets only. The ASA thing worked out in the end but it was a HUGE headache. Not saying its right. But I have heard him say this.

 

[Erlanger]

But I have also heard him say since then that if INC were to buy another airline again that it would be assets only. The ASA thing worked out in the end but it was a HUGE headache. Not saying its right. But I have heard him say this.

He only said that about buying another regional. Jerry has been looking at buying a LLC like a Jetblue or an Airtran, operating it as a separate carrier of course and feeding for it.