here tis
I'm cool with it
August 4, 2010
Dear fellow ASA pilots:
Today, Atlantic Southeast management announced their intent to acquire ExpressJet Holdings and merge ExpressJet Airlines with Atlantic Southeast.
As expected for some time and most recently witnessed at Mesaba-Pinnacle/Colgan and Compass-Trans States, consolidation is not limited to just the mainline operations. The forces at work in the industry have an impact on airline operations at all levels. One avenue available to some airlines with enough required capital is to invest in the future via merger and spread out costs over a larger platform, gain efficiencies through the economies of scale, and diversify. Now our company proceeds down this path as well.
Here are the initial highlights of the deal as presented to the Association:
· Completion of the corporate transaction by Q4 2010.
· Atlantic Southeast and Continental have a completed Capacity Purchase Agreement for 10 years.
· Single Operating Certificate by summer-fall 2011.
· No request for pilot contract concessions.
· A commitment to the Association for our full involvement to facilitate as smooth a transition as possible.
We as pilots are stakeholders in this transaction, and the ultimate success of this deal will not be possible without the participation and ultimate support of the 4,384 unified ASA and XJT pilots.
If crafted, developed, and administered well, the merger of ASA and XJT can lead to a corporate platform that serves as a model for the rest of the industry¾a safe, high-quality, efficient, and profitable powerhouse that respects and shares success with its hardworking professionals. Management’s commitment to this and the negotiation of a fair and equitable Joint Collective Bargaining Agreement that provides adequate returns and an Integrated Seniority List are top priorities in order for the combined entity to be successful. We commit to working toward this goal, nothing less. The recent Delta-Northwest merger serves as an example of what management and pilot labor working together can achieve; and, having just been through this process successfully themselves, the Delta MEC has offered any help and assistance that we might need.
With so many recent factors contributing to industry instability and the resultant uncertainty of our careers as professional pilots, we must be prepared and willing to cultivate and take advantage of opportunities that enable us to stabilize our airline and our careers long term. The MEC is actively consulting with legal counsel and ALPA experts to ensure that this transaction is conducted in a manner that protects our interests and advances our goals.
As we have been working closely with other ALPA MECs for some time in an effort to coordinate support and assistance across the board, working very closely with the ExpressJet MEC in the coming months will not be a new endeavor, and XJT MEC Chairman Christopher Cashmareck and I are in close consultation. The professional relationship that we already have established over the years will set the stage as our groups begin working together as the merger progresses over the next several months.
For now, our current contract continues normally as well as the implementation of PBS. It is understandable that speculation and many questions will ensue regarding something of this magnitude. Focusing on the facts instead of rumors and distractions will help us navigate the merger process successfully. More information on the merger process will be forthcoming to you, and as developments unfold, we will report them to you and keep you updated.
Tailwinds and fly safe.
In unity,