SWA culture!

[SWA/FO]

Don't be foolish enough to think SWA can do anything it wants without legal ramifications either. Thinking you can just stick it to the AirTran employees any way you want and walk away with their assets is a false assumption.

True Dat!

Also, don't assume its a sure thing either. Close, but not done.

 

[Dan Roman]

True Dat!

Also, don't assume its a sure thing either. Close, but not done.

Nothings a sure thing in this business!

 

[dicko]

You're both right. Now go have a beer ...... Both of you.

 

[Bob Dylan]

Hopefully these trannies will pull their heads out of their butts sooner rather than later. It's painful to watch them with very little leverage piss away their golden lottery ticket. Take the staple and count your blessings. You could end up with jack squat.

 

[RIDETHELIGHTING]

Man, having baghdad bob on my ignore list rocks!!!!

 

[Bill Nelson]

Dan

AirTran has zero assets. They were sold to SWA on May 2nd. SWA can do what it pleases with the assets it owns including a sale of the RJ's it bought that day.

The ALPA contract is clear, "nothing in this section precludes the company from divesting it's interests prior to a combination of operations."

You might want to reread your section one.

SWA can and will make money on Atlanta. If they do it with 717s and AirTran employees is still in question.

Never look a gift horse in the mouth.

 

[Lear70]

Man, having baghdad bob on my ignore list rocks!!!!

True dat! :beer:

 

[Lear70]

Dan

AirTran has zero assets. They were sold to SWA on May 2nd. SWA can do what it pleases with the assets it owns including a sale of the RJ's it bought that day.

The ALPA contract is clear, "nothing in this section precludes the company from divesting it's interests prior to a combination of operations."

You might want to reread your section one.

SWA can and will make money on Atlanta. If they do it with 717s and AirTran employees is still in question.

Never look a gift horse in the mouth.

Was wondering how long it would take people to get around to this...

The above is absolutely true... with a few caveats:

1. They have 18 months from DOCC to complete such "asset sale". If not, integration is absolutely required.

2. It's highly unlikely that anyone has the cash to purchase our 717's. It would likely have to come in the form of a deal similar to the Delta rumor trading 737 delivery slots for airframes and would have to occur slowly over time, as SWA would have to continue to fly the AirTran passengers that have already purchased tickets.

3. You're telling me SWA would sell a highly fuel-efficient short-stage aircraft to its competition? Maybe... doubtful, but it could happen.

4. Southwest would have to negotiate for whoever purchased the airframes to take the pilots with it (part of that same Sec 1 fragmentation language you posted). In that case, we're left in a very interesting predicament in that:

a. Which pilots go with the airframes? If it's not the sale of the entire airline but only a "substantial asset sale", it's only SOME of the pilots that go with it, and who goes? Bid system? The 717 pilots?

b. Again, if it's not the sale of the entire airline, but only a "substantial asset sale", you're still required to integrate the REMAINING pilots that are left working for AirTran. The CBA doesn't cease to exist with a substantial asset sale; the 18 month integration clause for remaining pilots that MV committed to would still be in effect for the remaining AirTran ALPA pilots.

Most importantly, SWA would likely lose a LOT of money on a deal like that in this environment, giving a fuel-efficient aircraft to their competition, and I don't see that happening unless something threatened to destroy the airline or cause more financial harm than the hundreds of millions such a "breakup" of AirTran would cost Southwest, not to mention the shareholders wouldn't much appreciate turning a money-making deal into a money-LOSING deal.

The attorneys have already been all through this and it wasn't found very feasible. There are other options that kill integration (like SWAPA pulling an F9/UAir) but the above isn't seen as very likely. Possible, just not likely. I still personally feel that something will be negotiated that's equitable before we get to an arbitrated solution, but hey,,, I'm an optimist.

 

[kwick]

GK has told investors that operations will be merged.

Any arbitrated list will be implemented or SW faces lawsuits from investors who
Have invested based on AT/SW operations being fully integrated.

GK is not going to have the company face financial disaster so that some SW pilots
gain seniority at the expense of the AT pilots.

 

[redflyer65]

What's interesting is that you guys thing your just negotiating with SWAPA, which is true but it goes a little deeper than that.

You're basically negotiating with SWAPA, Gary, and thousand of SW shareholders at the same time. The employees here hold a ton of SW stock, so you're right, the shareholders will make sure this won't harm the Southwest culture and 40 years of history.

I wouldn't be too sure about Gary operating a holding company for awhile if he needed to, be interesting to see how it goes down.