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SKYWEST TO OBTAIN 737's from UAL?

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Lrjtcaptain

Well-known member
Joined
Oct 28, 2002
Posts
927
Alrighty, I know this might stir up some heat but I heard from a Skywest EMB120 F.O. that if UAL goes down, that Skywest is going to buy the 737's from UAL and take over most of their west coast routes. Now being non union, there can't be too many things that can stand in the way here but is this a possibility or pilots just running their mouths?
 
There have been other threads on this site about those kind of rumors. Do a search. I guess if you are a United Express carrier; thinking about a Plan B would be prudent.
 
B-737 Captain position at $50/hour.

Welcome to the future.
 
If I read the Delta contract with Skywest correctly, (I say again, IF) the first time an airplane with more than 70 seats hits the property, they can chop off the contract. I would hope so. That would mean they would have a whole lot of pilots and airplanes doing nothing.
Just my 2cents....
 
This subject has been thuroughly beaten to death in many threads. Do a search. Rumors are flying about anything and everything right now. Bottom line is that if SkyWest gets anything bigger than 70 seats they loose DL. Doesen't sound like a good deal to me.

--03M
 
That is interesting. I don't expect many of the United haters on this Board to believe it yet, but most of the analysts are finally saying United has turned the corner. Read the Wall Street Journal from May 5 or Denver Post from May 6. Unless we have a major terrorist incident very soon, I wouldn't start brushing up on 737 systems.
 
I believe Delta management has an agreement/contract with its pilots that says it (Delta) will not contract with any carriers that flys equipment with more than 70 seats. Even if the 70+ seaters are totally unrelated to the Delta operation (hence the Freedom Air manuver). If management wants to keep their pilots happy, they won't contract with any carriers that have 70+ seaters. If they did, the pilots could file a greviance and then strike if it was not settled to their (pilots) satisfaction.

strega7
 
If Skywest got 73's they would lose Delta but I guess the plan would be to feed themselves then. Having said that, I hope UAL pulls through. It would suck to see that many people (not just pilots) out on the street!
 
skykid said:
That is interesting. I don't expect many of the United haters on this Board to believe it yet, but most of the analysts are finally saying United has turned the corner. [/i]


You have GOT to be kidding. You don't have to be a UAL "hater" to realize that the hallmark of UAL for the past ten years has been that they are completely out of touch with reality.

They don;t have a rat's ass chance in hell of making their financial targets . . . . . but, hey, good luck.

http://www.ridiculopathy.com/stock/ual_bankruptcy.jpg
 
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ATR-DRIVR said:
If I read the Delta contract with Skywest correctly, (I say again, IF) the first time an airplane with more than 70 seats hits the property, they can chop off the contract. I would hope so. That would mean they would have a whole lot of pilots and airplanes doing nothing.
Just my 2cents....

I'm curious. Have you actually read the contract between Delta, Inc. and Skywest, Inc.? If so, has Skywest agreed to consent to and honor the terms of the PWA contract between Delta and ALPA? Frankly, I doubt that.

I don't really believe that Skywest will operate 737's in the near term. However, if they decide to do so you'll probably find out in a hurry that the only people that believe the Delta PWA can really prevent that (if the airplanes are NOT operated for Delta) fly desks in Herndon, VA and/or play union politics in Atlanta. Delta (the Company) isn't likely, IMO, to risk huge lawsuits by canceling its contract with SKYW in an effort to enforce a contract with its pilots, to which Skywest never agreed.

Unless you've physically read the actual contract between SKYW/DAL and know that Skywest has agreed to be bound by the Delta PWA, I wouldn't bet too many marbles on that one.

Some unions seem to believe they can simply write whatever they want in a scope clause and automatically enforce it against companies with whom they have not contract at all. That's wishful thinking.
 
Rumor mill

Just thought I'd add to the rumor mill... I heard that our pilot reps agreed to payscales for airplanes in the 737 capasity range and the pay is Southwest minus 20%. Nothing offical yet though.

Scott
 
surplus1 said:
I'm curious. Have you actually read the contract between Delta, Inc. and Skywest, Inc.? If so, has Skywest agreed to consent to and honor the terms of the PWA contract between Delta and ALPA? Frankly, I doubt that.

I don't really believe that Skywest will operate 737's in the near term. However, if they decide to do so you'll probably find out in a hurry that the only people that believe the Delta PWA can really prevent that (if the airplanes are NOT operated for Delta) fly desks in Herndon, VA and/or play union politics in Atlanta. Delta (the Company) isn't likely, IMO, to risk huge lawsuits by canceling its contract with SKYW in an effort to enforce a contract with its pilots, to which Skywest never agreed.

Unless you've physically read the actual contract between SKYW/DAL and know that Skywest has agreed to be bound by the Delta PWA, I wouldn't bet too many marbles on that one.

Some unions seem to believe they can simply write whatever they want in a scope clause and automatically enforce it against companies with whom they have not contract at all. That's wishful thinking.

Have you read the contract? I think not. Funny thing about contracts between employers and unions--they ARE enforceable. You are really out there, S. I think a vacation may be in order.
 
surplus1 said:
I'm curious. Have you actually read the contract between Delta, Inc. and Skywest, Inc.? If so, has Skywest agreed to consent to and honor the terms of the PWA contract between Delta and ALPA? Frankly, I doubt that.

I don't really believe that Skywest will operate 737's in the near term. However, if they decide to do so you'll probably find out in a hurry that the only people that believe the Delta PWA can really prevent that (if the airplanes are NOT operated for Delta) fly desks in Herndon, VA and/or play union politics in Atlanta. Delta (the Company) isn't likely, IMO, to risk huge lawsuits by canceling its contract with SKYW in an effort to enforce a contract with its pilots, to which Skywest never agreed.

Unless you've physically read the actual contract between SKYW/DAL and know that Skywest has agreed to be bound by the Delta PWA, I wouldn't bet too many marbles on that one.

Some unions seem to believe they can simply write whatever they want in a scope clause and automatically enforce it against companies with whom they have not contract at all. That's wishful thinking.

It really seems you have no clue, it is enforceable.

Just because the no furlough clause did not "hold up" in most peoples eyes.....the rest of the contract is still worth the paper its written on. If you really think Delta Inc could get away with something over 70 seats don't you think they would have done so already?!?!

I wish Skywest all the luck in the world and hope they are flying the concorde soon, just more for the us in DFW. I wouldn't mind upgrading before the end of time.

Bottom line, if they want to keep Delta flying.....it is NOT GOING TO HAPPEN!!!!:D
 
csmith said:
Have you read the contract? I think not. Funny thing about contracts between employers and unions--they ARE enforceable. You are really out there, S. I think a vacation may be in order.

I have NOT read Skywest's contract with Delta and I said so. I don't think you have either. Have you?

I've have read ALPA's (PWA) contract with Delta. I agree that your contract with Delta is enforceable against Delta. It is not enforceable against Skywest as long as Skywest has not agreed, with Delta, before or after the fact, to recognize your PWA. Two parties cannot make a contract enforceable against a third party without the consent of the third party. Don't take my word for it, ask your lawyer. The principle is not rocket science.

Perhaps you would care to identify by Section and paragraph the specific part of your PWA that you believe would prevent SKYW from operating 737's in its own behalf and independent of any relationship with Delta Air Lines, Inc.

Skywest may not want to make waves with Delta. However, if Skywest chooses to operate an aircraft, independent of the "Delta Connection", in its own right, I believe the only remedy that Delta has is to cancel its contract with Skywest. The terms of the cancellation will be governed by the contract between Delta and Skywest and NOT by the Delta PWA.

IF Delta's only reason for cancellation of its contract with Skywest is Delta's desire to comply with its separate contract with ALPA, Skywest could have cause for an action against Delta. That could be tied up in court for years and meanwhile Skywest will continue to operate.

In addition, another key is just who the parties are in the Delta/Skywest contract. Is it between Delta Air Lines, Inc and Skywest, Inc? Is it between Delta and Skywest Holdings, Inc.? Is it with DCI, Inc.? Do you know (I don't) specifically?

The USAirways PWA was allegedly a lot "tighter" than yours, but it sure didn't stop Ornstein from createing Freedom to circumvent it, did it?

It is not my opinions that you need to think about csmith, it's the legal technicalities of the applicable contracts. Like it or not, most "scope dikes" are legal sieves and managements have been running water through the holes for a long time. That yours is the sole impenetrable dam is little more than a figment of your imagination.

The idea that your PWA can prevent an independent corporation, which has never agreed to any part of it, from conducting its business is ludicrous. The contract we all need to read, which is not a contract "between employers and unions", is the one between Delta and Skywest, not the Delta PWA. I doubt that any of us has read that contract. If that is the case, our opinions as to how it may apply are all hypothetical.
 
This is just like all that bravado about SKW not being able to operate as United Express into SLC or they would "surely loose the DL contract" Well they have over 10 flights per day to DEN/SFO/LAX. Oh yeah, and they still fly over 100 flights out of SLC for DL.
 
SSDD,

Actually, it is not like that at all. This is a contractual issue. The other was not.

(For the record, I was not one of those saying the united express stuff.)
 
FDJ,

I don't think we'll actually see this one argued in court, 'cause I don't think SKW is game for anything bigger than 70 seats.

BTW I've read a lot of your exchanges with Surplus, and given what has happened with force majeure, furloughs, DCI flying, and all, your faith in contracts is admirable.
 
Well, let's just say it's not what it once was!

For the record, I agree that Skywest won't be getting 737's, at least I hope they wouldn't.

If the did, however, I would imagine that my MEC would probably roll over on that one, too. They, much to my chagrin, do not seem to view scope issues with the same degree of concern that I do.
 
Ty, do let me know what you base that on. I'm not sure you are keeping up with current events. I had a classmate from the Air Force Academy and an IP buddy from Whiting Field die on United airplanes recently. You have no idea how mad I am having seen your little picture. Not cool.
 
skykid [B]Ty said:
I base that on their recent rraffic reports and financials, and with an eye toward the extremely optimistic terms they agreed upon. They have hard deadlines to meet and to turn a profit, and I don;t see any evidence that they will make it.

I had a classmate from the Air Force Academy and an IP buddy from Whiting Field die on United airplanes recently.

Whoa, where did this one come from? I thought we were talking about airline financials here. Sorry to hear of your loss, but that doesn;t have any bearing on this discussion.

You have no idea how mad I am having seen your little picture. Not cool.

It's not mine; it came from another mesage board. Seems that the loss of your friends is somehow coloring your perception.

Sorry.
 
I'm curious. Have you actually read the contract between Delta, Inc. and Skywest, Inc.? If so, has Skywest agreed to consent to and honor the terms of the PWA contract between Delta and ALPA? Frankly, I doubt that.

I have read our (Pinnacle's) service contract with Northwest and we are bound to Northwest pilots PWA.
 
SSDD said:
This is just like all that bravado about SKW not being able to operate as United Express into SLC or they would "surely loose the DL contract" Well they have over 10 flights per day to DEN/SFO/LAX. Oh yeah, and they still fly over 100 flights out of SLC for DL.


Its only for 90 days, then it go's back to AWAC.
Ha ha.......

Have a nice day.
 
From Surplus

I have NOT read Skywest's contract with Delta and I said so. I don't think you have either. Have you?

No, they are closely guarded by company lawyers.

I've have read ALPA's (PWA) contract with Delta. I agree that your contract with Delta is enforceable against Delta.

Then the rest of the discussion is just academic, isn't it? However,

It is not enforceable against Skywest as long as Skywest has not agreed, with Delta, before or after the fact, to recognize your PWA. Two parties cannot make a contract enforceable against a third party without the consent of the third party. Don't take my word for it, ask your lawyer. The principle is not rocket science.

Ok, fair enough. Allow me to quote first another:

Perhaps you would care to identify by Section and paragraph the specific part of your PWA that you believe would prevent SKYW from operating 737's in its own behalf and independent of any relationship with Delta Air Lines, Inc.

Section 1 covers exactly this situation. I am forgetful at this time if SKYwest would qualify as an affiliate or not. I do not believe that we own 30% of them, but I cannot remember exactly how much we own. Regardless, section 1 further describes some other factors which would cause them to be considered an affiliate. This would preclude them from operating 737s. If they indeed are not considered an affiliate, they can absolutely operate them under code share with UAL--unless the UAL PWA precludes it. My guess is that it does. More than likely, I would guess that this is covered under the agreement with Skywest and its agreement with Delta--although it really doesn't matter one way or the other. A violation of this section wouyld be very detrimental to Delta and would make the Delta pilots fairly wealthy if such violation would continue.

Although you enjoy touting the Delta scope section as a sieve, it is actually quite solid, and being upheld as we speak. Again, once the violation occurs, and Delta continues doing business with them, any lawsuit Skywest may have against Delta is really superfulous-sp., Surplus.

Or could this just be another missive on behalf of JC Lawson--who lost the 737s he was promised last time.

C
 
CRJDriver,

How's your "joyful" little post contribute to the discussion?

The way UA is playing you guys against one another you may all loose your UAX contracts to Mesa and Chautauqua.

I wouldn't be all that cheerfull if I were you.
 
csmith said:

Section 1 covers exactly this situation. I am forgetful at this time if SKYwest would qualify as an affiliate or not. I do not believe that we own 30% of them, but I cannot remember exactly how much we own. Regardless, section 1 further describes some other factors which would cause them to be considered an affiliate. This would preclude them from operating 737s. If they indeed are not considered an affiliate, they can absolutely operate them under code share with UAL--unless the UAL PWA precludes it. My guess is that it does. More than likely, I would guess that this is covered under the agreement with Skywest and its agreement with Delta--although it really doesn't matter one way or the other. A violation of this section wouyld be very detrimental to Delta and would make the Delta pilots fairly wealthy if such violation would continue.

No offense, but you may be misreading what I'm talking about. Both your PWA and United's PWA would prevent Skywest from operating 737's as a "Delta Connection" or a "United Express" This whole discussion has nothing to do with that.

The gist of the conversation is that Skywest was allegedly considering, should UAL liquidate, buying UAL's 737's and operating them independently as Skywest. No code share, no "connection". None of the flying in those aircraft would be conducted for or under any agreement with DAL. Whether or not they are actually even thinking about that is just speculation, which I didn't originate. I really don't have a clue what they may be thinking.

However, if Skywest did make that decision, my contention is that your PWA with Delta cannot prevent it. Skywest, IMO, does not meet the definition of "Affiliate" in your PWA. Also, Delta does not own any part of Skywest and, again IMO, your definition of "Control" does not apply.

That leaves only 1 part, again IMO, of your PWA that attempts to prevent them from operating such equipment in their own right. I do not believe that that part of your PWA is legally enforceable against Skywest, unless the contract between Delta and Skywest stipulates that Skywest accepts those terms of your PWA with Delta. The part I reference is Section 1. D. 2. (c).

Although you enjoy touting the Delta scope section as a sieve, it is actually quite solid, and being upheld as we speak. Again, once the violation occurs, and Delta continues doing business with them, any lawsuit Skywest may have against Delta is really superfulous-sp., Surplus.

You are too sensitive sometimes and you make assumptions about my motives or misconstrue my statements. I'm not against you guys and harbor no ill will. All I want you to do is keep your tentacles off my stuff. What you do with your own stuff is none of my business. We just happen to have different ideas about what is defined as your stuff and what is defined as mine. I don't accept your exclusive right to be the authors of the definition. That's all.

I said nothing about Delta's scope being a sieve. What I did say was that "most scope dikes are sieves". Actually, I think the Delta Scope caluse is the best there is, it only goes astray in a few areas. I also think that those areas (not the rest) were better in your '96 PWA. What other major airline pilot groups have often refered to as "Delta's stupid scope" is not my idea. The fact is that Delta's scope has kept Delta's head above water in these trying times, while the ridiculous scope of the other mega carriers has contributed to their demise. That may not have been the intent of your group, but it has been the result none the less.

If a "violation" were to occur and Delta continued to do business with SKYW, there would obviously be no need for litigation on the part of SKYW. We agree on that. However, if Delta should cancel it's contract with Skywest based on an alleged violation of an agreement (your PWA) that Skywest never signed, then Skywest would indeed have cause for an action against Delta. That would hardly be "superfluous".

Please keep in mind that this is a technical contractual issue that we are discussing. There is no need for us to quarrel over it.

Or could this just be another missive on behalf of JC Lawson--who lost the 737s he was promised last time.
C

You were going great until you said that. Now you've lost me completely. Whatever you may think of Lawson, he has never been offered or promised any 737's by anyone, has never lost any 737's or any other type of large aircraft. Where on earth did you get that idea?

Also I do not send missives on behalf of anyone. My opinios (or missives if you prefer) are my own and made on my own behalf.

As a final thought, there is one thing that you guys often seem to ignore. A contract is only as good as the good will between the parties that made it. At the point in time that either one of them decides that it is no longer in his best interest to honor the contract, he simply breaks it using whatever justification is appropriate in his opinion. That's when the lawsuits begin. Lawsuits never keep a broken contract in place, they merely allocate the damages to whomever the court decides is aggrieved. That is reality whether you or I like it or not.

A labor contract is even worse. When a company decides to violate it, it does. The union can then grieve it, which grievance will be denied if the Company realy wants to do whatever. Then you take it to arbitration. The rules, as you well know, of arbitration are not the same as a court of law but the outcome is just as final and there is no appeal. You can't take the Company to court because you don't like the arbitrator's ruling. On the other hand if the Company dislikes the arbitrator's ruling enough, they will simply ignore it. Then the union will have to take the Company to court. They can fight you for years before you get a decision one way or the other. By that time, most contractual disputes are moot anyway.
 
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From Surplus:


However, if Skywest did make that decision, my contention is that your PWA with Delta cannot prevent it.

You are wrong. the key section is 1D2--three caveats with it. All three must apply.

As for not being binding on a third party, as I suspected, it is in print. section 1G if it is an affiliate--and no, you don't have to own 30% of it to qualify as an an affiliate. There are other ways. Must admit, I have not downloaded the new version of the contract since section 1 waqs re-written, but I doubt these sections have changed.


A labor contract is even worse. When a company decides to violate it, it does. The union can then grieve it, which grievance will be denied if the Company realy wants to do whatever. Then you take it to arbitration. The rules, as you well know, of arbitration are not the same as a court of law but the outcome is just as final and there is no appeal. You can't take the Company to court because you don't like the arbitrator's ruling. On the other hand if the Company dislikes the arbitrator's ruling enough, they will simply ignore it. Then the union will have to take the Company to court. They can fight you for years before you get a decision one way or the other. By that time, most contractual disputes are moot anyway.

I don't really know why you decided to give the lecture on contractual law. I am quite versed in it. Believe me when I say that this is exactly what would happen--and I highly doubt a scope dispute would be moot. I would imagine that the Delta pilots would find the settlement worth the wait.
 

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