Will SWA and AT truly merge?

[General Lee]

Gen, if all that is true, why doesn't it work that way in the rest of the country? You know why, dollar cost averaging, that is why. Take care you have a great day, I hear Delta is a swell place to work these days, enjoy it.

ASADFW7,

Yeah, DL is a swell place to work, and hopefully SWA style pay wages will come back this way again someday. The point I was making with regard to AT is that every employee group there will want to make at least what current SWA employees make, which is top scale for the whole industry. That means it will get more expensive for SWA to bring parity, because they don't want to disturb that SWA Culture. How will they do that? Probably by raising fares, and that is good for all airlines. Have a great one.


Bye Bye--General Lee

 

[SWA/FO]

General,

SWA makes money now, paying all their employees. I would guess that this will continue after we aquire Tranny.

 

[Kharma Police]

ASADFW7,

Yeah, DL is a swell place to work, and hopefully SWA style pay wages will come back this way again someday. The point I was making with regard to AT is that every employee group there will want to make at least what current SWA employees make, which is top scale for the whole industry. That means it will get more expensive for SWA to bring parity, because they don't want to disturb that SWA Culture. How will they do that? Probably by raising fares, and that is good for all airlines. Have a great one.


Bye Bye--General Lee

Respectfully, the combined Delta was able to make money after bringing pay parity to all employees.

 

[General Lee]

I luv u gen nuts! the retirements are calculated off the SWA side. This includes posible medical and early retirements. I stated it was a AVG of 2000. Gen you are a person of good information. (most of the time). I think you are scared of the possibilities this acquisition might bring.

Texman,

I hope you are right about your retirment numbers. Big time movement is always good for junior people, at any airline. As far as being scared of the possibilities of this merger of yours, yes, that will bring a lot more price competition to some of the DL hubs. As far as infrastructure goes, it will be hard for SWA to acquire more gates at ATL, since all of the gates were recently leased again for the next 7 years (with the city). And, 25 min turns are hard to do in ATL, and probably LGA as you know by now. Some airports like LBB are probably easier to get those turns out on time.

But, there is no doubt adding AT to the SWA mix will provide pressure on the legacies, and also cost pressures to SWA. You just can't have a B-Scale and keep the "culture." The good thing about that for DL employees is that that may also mean higher wages for DL employees too, since AT used to be a lot lower cost, and DL would always complain that they couldn't COMPETE against AT with their lower wages. Well, that means DL employees will be asking for at least what the "neighbors" have.... I guess costs will go up for a lot of airlines thanks to your merger.

Regardless, YOU ALL ARE FANTASTIC people, and I hope you go out there and do something nice for someone today, like buying a greek Gyro sandwich and giving it to a pal. No, that doesn't mean you "like" him, that means you like those sandwiches. "Going Greek" isn't always bad..... See ya!


Bye Bye--General Lee

 

[texman]

Heyas,

Just so we're clear:

1) The NMB LOVES precedent. They love it because it doesn't make it look like they're inventing anything. This goes double (or triple) if it was recent.

2) The last few pilot arbitrations has gone straight relative seniority. Strip the handwaving/justification away from the recent DAL/NWA merger, and that's what you got, down to a decimal point. Pay didn't matter, contracts didn't matter, merger or acquisition didn't matter, relative size didn't matter. AAA/AWA was essentially the same, with the exception of a cutout for the larger 330 aircraft. AAI/SWA has no such differential.

3) Alot of effort has been used to move away the DOH method of integration. It will be VERY difficult to re-introduce it at this point and be able to point to recent precendence.

4) Pay/contracts do not figure into the equation. The career expectaions that the NMB will see is this: SWA pilot at the end of 20 years: 737 captain. AAI pilot at the end of 20 years: 737 captain.

5) Holding companies prior to SOC are extremely common, and nothing should be read into it. The companies cannot fully merge until they have achived a single operating certificate, which is not done overnight. NWA was placed into their own holding company, operated as a subsidiary to DAL until that date. Even though they carried DAL paint, NWA birds read "Operated by Northwest Airlines" , and used the NWA callsign until SOC, which was a year after the corporate closing.

6) The SWA pilots and the AAI pilots can decide in their own mind whatever is fair, but what they think doesn't matter. In the end, both sides agree, or someone else gets to decide what is fair for them.

7) While it is true that SWA management MAY decide to run a legal gauntlet to set up separate ops, it would be a risk to do so. Relying upon what SWA management has considered important in the past, such as corprate culture, is also suspect, because so may of the other things that were important to them in the past have been jettisoned already, including mergers, hub operations, congested airports, code sharing and bigger/different aircraft.

8) Depending on some sleigh of hand corporate handwaving on SWAs part to avoid combining the pilot groups may help you sleep at night, but I would place odds against it. What you see in the SEC filings happening is a safe bet.

Nu

Nu,

No flame, but how would this be same as NWA/DAL? So recent precedents would not apply. I think you will see a whole different outcome. Not saying unfair but fair in regards to the big picture. SWA is smart. They are not changing but evolving. Don't think that yesterday the company said " looks like we cant make money anymore, let's do something drastic. This has been in the plans since 1971. If you don't evolve you die. Freedom to fly!

 

[General Lee]

Respectfully, the combined Delta was able to make money after bringing pay parity to all employees.

I agree, but some on here think there should be a B-Scale, or they should get something in return for bringing up one group. That just won't happen, other than a slight increase for the larger group. Maybe a 5% raise for the larger group.

When you state that DL made money after paying parity, DL also did NOT pay past DL wages prior to BK. They may have to do that soon in the new contract, but they are still getting a good deal with 744 Capts at DL getting about the same as SWA 737 Captains. Do you think that is fair? DL had a $929 million profit for Q3. But, SWA will be paying AT SWA style wages, and that is top scale currently---for AT employees that are not at that level. That will be a huge jump in pay, and a jump for the payroll dept. So, fares will probably rise as a result, which is good for everyone.



Bye Bye--General Lee

 

[General Lee]

Nu,

No flame, but how would this be same as NWA/DAL? So recent precedents would not apply. I think you will see a whole different outcome. Not saying unfair but fair in regards to the big picture. SWA is smart. They are not changing but evolving. Don't think that yesterday the company said " looks like we cant make money anymore, let's do something drastic. This has been in the plans since 1971. If you don't evolve you die. Freedom to fly!

Arbitrators like to stick to precedent for SLI. That way, they can blame everything on someone else. It's all about blame. If you don't like the decision, you can always blame the arbitrator(s), lawyers, other decisions, etc.

And, SWA is evolving, because they were running out of places to expand. They have plenty of aircraft orders, but they lacked gates and slots at places they could expand. AT gives them some extra room now. But, you will have to take the AT employees with you. IT'S ALL GOOD!


Bye Bye--General Lee

 

[texman]

Texman,

I hope you are right about your retirment numbers. Big time movement is always good for junior people, at any airline. As far as being scared of the possibilities of this merger of yours, yes, that will bring a lot more price competition to some of the DL hubs. As far as infrastructure goes, it will be hard for SWA to acquire more gates at ATL, since all of the gates were recently leased again for the next 7 years (with the city). And, 25 min turns are hard to do in ATL, and probably LGA as you know by now. Some airports like LBB are probably easier to get those turns out on time.

But, there is no doubt adding AT to the SWA mix will provide pressure on the legacies, and also cost pressures to SWA. You just can't have a B-Scale and keep the "culture." The good thing about that for DL employees is that that may also mean higher wages for DL employees too, since AT used to be a lot lower cost, and DL would always complain that they couldn't COMPETE against AT with their lower wages. Well, that means DL employees will be asking for at least what the "neighbors" have.... I guess costs will go up for a lot of airlines thanks to your merger.

Regardless, YOU ALL ARE FANTASTIC people, and I hope you go out there and do something nice for someone today, like buying a greek Gyro sandwich and giving it to a pal. No, that doesn't mean you "like" him, that means you like those sandwiches. "Going Greek" isn't always bad..... See ya!


Bye Bye--General Lee

No doubt AT will bring a lot to the table. But with our route structure to other cities besides ATL, you will see the AT side being optimize like crazy. So cost pressures will be status quo. AT is a low Frequency airline we are a high freq. We do work hard, but that allows the good compensation.

I will say, AT will not be a b scale side of the company. There are to many former airline guy's at SWA that won't let that fly (even some of your early buy out brothers from dal). All the AT guy's will be SWA.

Here is what I see on this thread. A lot of SWA guy's have been educated on the AM/MB heavily from our union. I don't think they are popping off to be nasty, they are just stating information from what our contract states in it and what AM/MB really means to the whole acquisition. The union ran several scenarios with all the airlines (us buying or being bought). The MB will be law, but it does not state relative seniority is fair . Everybody keeps saying it will be like, or should be like the NWA/DAL deal. I have to disagree. I worry more it being like aa/twa if we don't play nice. Happy work force = Prosperity. What ever way it plays out, I wish us the best of luck.

 

[ivauir]

Comparing this deal to DAL/NW is just silly.

I suggest you drop the flamebait.

Your life is about to change dramatically! You're going to LUV it here!

 

[texman]

Arbitrators like to stick to precedent for SLI. That way, they can blame everything on someone else. It's all about blame. If you don't like the decision, you can always blame the arbitrator(s), lawyers, other decisions, etc.

And, SWA is evolving, because they were running out of places to expand. They have plenty of aircraft orders, but they lacked gates and slots at places they could expand. AT gives them some extra room now. But, you will have to take the AT employees with you. IT'S ALL GOOD!


Bye Bye--General Lee

We have 71 firm orders on our side too. They will either be replacement aircraft or net growth who knows? I don't think we are running out of places, I think we just took out are biggest competitor. For cheap. Plus we did gain ATL, slots and a bigger east coast presence. But people have to remember that SWA brings 5 times to the table on every thing ( the list is to long). Can you imagine the synergies. All positive.