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.
