Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

The real reason NWA wants NEWCO

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web

jetflier

Well-known member
Joined
Dec 22, 2003
Posts
718
This message was posted on the ALPA web board by a USAIR Captain explaining what NWA'S new CFO formerly the USAIR CFO did at USAIR.

Cohen, NWA CFO is the push behind the plan to create NEWCO.Copied from the ALPA Crewroom message board:
----------------------------------------------------------------------------
-----------
Ladies and Gentlemen of Northwest:
I am Captian Eddie xxxxx, a 757 Captain with USAirways. I have posted to
you before regarding the tactics of Niel Cohen and the way he has attempted
to con you out of your jobs, pay, pension and lifestyle. He did it here
because we as pilots fell for his empty threats. In our own defense, we did
not know any better. You, however, will.
I will say this for Mr. Cohen. He is consistant. Unimaginitive, yes; but
nevertheless consistant. The same "1.4 billion" in pay cuts and his
proposal
to create an alter ego airline worthy of Frank Lorenzo is exactly what he
did on our property. Now he brings his scam to you.
At our airline, our MEC was conned into the sacrifice of our junior pilots
and those on furlough. These pilots lost their seniority, their contract
and
their lifestyle. Again, let me reiterate, this was done with the
acquiesence of our union. Don't let it happen to yours.
Our DB pension was terminated to fund the purchase of Regional Jet aircraft.
In the Bankruptcy brief to Judge Stephen Mitchell of the Fourth Court, the
Company stated that it business plan demanded the pilot pension to fund
the purchase of RJs, some of which would be used by a new subsidary and the
remainder being given to third party carriers operating on behalf of
USAirways under contract. This business plan, as the demise of Independence
Air
will attest, is flawed. RJs are expensive to operate and Regional airlines
cannot survive with out a mainline sugar daddy to pay their bills. Here at
USAIR, we have the highest "Other " costs in the industry listed on our
yearly balance sheet. The reason for this is that we buy the aircraft, pay
for the fuel, maintain the res system and generally hand an outfit like MESA
a free ride. Well, not exactly free...we also guarantee it an 8%
profit.
Allow me to relate the saga of MDA, which was to be MidAtlantic Airlines.
MDA was designed to take the RJs that our pension paid for, be flown as
USAIRways flights on USAIRways routes. However, the pilots were USAirways
pilots that were on furlough and were offered employment at first year pay
and
seniority. This had the effect of splintering our seniority list and
achieving the "divide and conquer" effect that Cohen desired.
While it makes no sense to buy aircraft that demand, by definition the
services of pilots, WHEN PILOTS ARE ON FURLOUGH and then to recall those
pilots
without the protection of their collectivly bargained contract, this was the
case at USAir. Initially, MDA was supposed to have it's own Operating
Certificate separate from USAIR to make the scam look legal. But even the
FAA
saw through the smoke and the Op Cert was denied. Futhermore, as MDA is
being in the process of being sold, our MDA pilots sought arbritration
maintaining that such a sale constituted a change of control that would have
afforded the affected pilots various protections. The arbitratior however
ruled against the pilots. But while our MDA pilots lost the battle, they
may
have won the war. By ruling that the sale of MDA was only an asset sale,
the Arb noted that since MDA never had a operating certificate, the aircraft
purchase was just that, AN AIRCRAFT PURCHASE.
Any airline can buy any airplane it wants. But that airline has a contract
with this Union. Do not allow your union to let your airline use a mere
aircraft purchase as an excuse to trash your contract and sacrifice your
pilots.
One more point: Mr. Cohen is fond of using the "L" word. Liquidation will
strike fear into the hearts of some of your weaker sisters. Some of them
are
scabs just waiting for a picket line to cross. Don't fall for it. NWA is
NOT FLYi. There are WAY TOO MANY interests that have alot of money riding
on the viability of NWA. It is the old story....if I owe you $1,000, I am
in deep doo-doo to the tune of a grand. But if I owe you
$1,000,000,000...YOU'RE IN DEEP DOO-DOO, there, PARTNER. Good luck to you
, and us, all.
Fraternaly, Captain Eddie xxxxx, USAIRWAYS ALPA xxxxxx1
PS feel free to drop me an email at [email protected] if you wish me to
call Cohen's next shot. Been there, seen it.
 
Of course, if NWA liquidates the holding company will have to eat the debt NWA owes to it. Isn't it around $3.000.000.000 in bonds, on top of $14.000.000.000 in debts? Someone has to be responsible for that kind of cash.
 

Latest resources

Back
Top