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The future of "NEWCO"

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“NEWCO” will be the biggest variable in this ugly game at NWA, Pinnacle and Mesaba and possibly the future regional who will purchase “NEWCO”. The following is a pessimistic view of NEWCO and I welcome any optimism.

According to senior management "NEWCO" WILL fly 100 seat jets at regional pay as MYNAMEISJIM stated. Management already considers this a fact. NEWCO might be a new regional (operated by furloughed NWA Pilots), or a division of mainline (C-Scale), or something else that no one has mentioned.

Initially NEWCO was intended to fly 100 seat jets. However, after the Bankruptcy senior management stated that the cost differences between operating 70 seaters at a Regional vs. at Mainline have become “negligible.” And, subject to significant negotiations, 70 seaters could realistically be flown by mainline pilots (at regional wages) i.e “NEWCO”.

If NWA pilots create a separate division, I predict “NEWCO” will become the next generation MidAtlantic. Created to give the impression of saving mainline jobs and providing jobs to furloughs (as DC-9s are quietly replaced by RJs at regional wages) and later sold to gain financing in order to exit bankruptcy. I can’t think of any contract language to prevent this because a judge can approve anything if it is “necessary” for the survival of the company and to exit bankruptcy.

U.S. Airways created MidAtlantic ("NEWCO") while in bankruptcy and sold it to Chautauqua in order to exit bankruptcy. A genius management idea if you ask me. The average (almost all) NWA pilots have never even heard of MidAtlantic and most, who have heard of it, don’t know what happened. Those who don’t learn from the past are doomed to have it repeated. The NWA pilots may rationalize their concessions because they are saving their pensions. That is exactly how U.S Airways and United saved their pensions. Oh wait? They still turned them over to the PBGC. Again, we are destined to repeat our mistakes.

The irony is some 22 year old RJ First Officer will be annoyed when an ex-NWA DC9/A319/A320/757/A330/747 First Officer holds captain but is more junior to him/her in their newly acquired 100 +/- seat RJs. But don’t worry, it won’t be long before that 22 year old makes captain and now has his seat and seniority.
 
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nwaredtail

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With 1000 or so furloughed mainline NWA guys out there, I am not too worried about any 22 year old pilots flying any for NEWco anytime soon, if it happens at all. With a four + year wait for any embrarer product and the crappy stats on the CRJ700-900, I think the DC-9 at lower wages becomes alot more viable.
 

McNugget

messiah
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Flyinisforbirds said:
The irony is some 22 year old RJ First Officer will be annoyed when an ex-NWA DC9/A319/A320/757/A330/747 First Officer holds captain but is more junior to him/her in their newly acquired 100 +/- seat RJs. But don’t worry, it won’t be long before that 22 year old makes captain and now has his seat and seniority.
I would be annoyed too. How would you like it? Dang, the most hated people in aviation are "22 year old RJ First Officers". Like they are in on the board of directors meetings and decide how many mainline jobs get cut. But I guess if you aren't bitching, you aren't a pilot, right?
 

Butters

Keepin' it real...
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Flyinisforbirds said:
“NEWCO” will be the biggest variable in this ugly game at NWA, Pinnacle and Mesaba and possibly the future regional who will purchase “NEWCO”.
*yawn*

I'll believe it when I see it. Management may want that and even if the pilots agree to it, they still have to pay the mechanics, FA's, rampies, gate agents, etc. of NWA.

If they are going to hire there own people for each of those jobs, that makes getting this thing off the ground (pardon the pun) even more difficult.

Starting an airline from scratch is hard enough when times are good. How the hell is NWA going to do that when they are bankrupt?

Not likely.
 

redflyer65

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I agree with butters. The pilots already agreed to fly a 70 seater at comparible rates. Why wasn't it done? No one could get the 30.00/hr bag handler, or 30 year seniority FA or gate agents to go along with it. Do you really think that these groups are going to tolerate it when the judge tries to ram it down their throats? It would be easier to start NEWCO or throw the planes to PCL or XJ? I think the Airlinks will get unlimited 70's, and NEWCO will be the new Midatlantic. The hand writing is on the wall.

Northwest has been looking in this candy store for quite awhile. Now that the doors are blown off, we are going to see how nasty it gets. Just use their pre-bankruptcy actions as a guideline. Good luck to all, its going to be a bumpy ride.
 
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NWAREDTAIL,

Correct me if I am wrong, but U.S. Airways has approximately 1900 pilots on furlough. The furloughed pilots who were employed at MidAtlantic (U.S. Airways version of NEWCO) will soon be junior to many Chautauqua pilots as Chautauqua simply acquired the MidAtlantic assets. If I am wrong on this please correct me and tell me what really happened.


When NWA sells NEWCO to raise cash during the process of exiting bankruptcy I would assume the NEWCO (ex NWA pilots) would probably go with the assets but loose seniority. For example, if 18 months from now Mesa purchases NEWCO, I would assume NEWCO pilots (formerly NWA) would be extended the courtesy of going with the airplanes and keeping their seat but would be junior to many (if not all) Mesa pilots.
 
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Jimdandy

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NWAredtail ain't so bright read some of his other posts. He lacks the ability to look at things objectively. Me thinks he is an emotional type.
 

noonan

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A legacy airline starting up a low cost carrier.

It worked so stellar for United (TED)
and Delta (Song)

Can't wait to see NW's
 

McNugget

messiah
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Heck, TED just started flying to Miami, I think it is still expanding. Of course, it sucks that the mainline UAL base at MIA is no longer there.
 

NEWSOUTH

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ECSC#1
Unity

I just showing unity with my new STICKER!
 

Lucky Strike

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nwaredtail said:
With 1000 or so furloughed mainline NWA guys out there, I am not too worried about any 22 year old pilots flying any for NEWco anytime soon, if it happens at all. With a four + year wait for any embrarer product and the crappy stats on the CRJ700-900, I think the DC-9 at lower wages becomes alot more viable.
Don't forget that NWA ordered the B787 in April of 2004, but kept it a secret until after we agreed to concessions in Dec 2005...NW will be the N. America launch customer. For all we know, they already have 100 EMB-190's on order. These guys are sneaky bastards.
 

nwaredtail

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Jimdandy,

emotional maybe, 34 year old 757 copilot , yes. How's your career goin? Newco is never going to happen. USAIR did the midatlantic crap to save the pension. NWA MEC knows that won't happen so the Number 1 issue is scope.

Thanks for taking the time to look up my, what, 20 or posts over the last six months. What a loser. too funny.............
 
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NWAREDTAIL,

My only motivation for talking about NEWCO is for NWA pilots to have an awareness about what happened to MidAtlantic. I want NWA pilots to have MidAtlantic in their minds at the bargaining table and when voting on a contract.

I want this because I hate thinking about so many Mainline pilots on furlough while regionals are getting 70+ seat jets flying under the mainline codes. This should never have happened. I don't want NWA Pilots to be blind sided 18-36 months from now when NWA is trying to raise cash for the bankruptcy exit and decides to sell its neatly packaged "NEWCO" to the regional with the most cash to spare. Just be aware, thats all I ask.
 

Butters

Keepin' it real...
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nwaredtail said:
Jimdandy,

emotional maybe, 34 year old 757 copilot , yes. How's your career goin? Newco is never going to happen. USAIR did the midatlantic crap to save the pension. NWA MEC knows that won't happen so the Number 1 issue is scope.

Thanks for taking the time to look up my, what, 20 or posts over the last six months. What a loser. too funny.............
Don't let Jimdorky get you down. All red tail boys are in this together and now sharing the pain equally.
 
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Last I heard Continental is trying to modify the pension legislation to make it more difficult to terminate a pension. Could be bad if it forces you to liquidate, but good if it forces a company to negotiate on a fair playing field instead of just being able to default on a whim.
 

xjavro85

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enough
I think a little change in butters avatar is in order. What do you guys think

<-------------------
 

mynameisjim

Don't try this at home
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Paycut
I feel honored that my name was mentioned in the original post.


:)
 

Tank Commander

Jim "Tank Daddy" Bizzell
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20yr.
Correct me if I’m wrong, A vote was cast by M/L pilots long ago to keep the commuter/regional guy out of their ranks, and off their seniority list. Even ALPA supported the separation. This generated the “A” / “B” scale flying groups. This is something that I heard from an old crusty dog. Any truth to it?

 
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