Will SWA and AT truly merge?

[ATLplt]

This thread should have been originally named: "I'm a Southwest FO, and I'm scared to lose ANY seniority to a bunch of AirTran pukes"

Ahhh...fresh batch of popcorn. Please, continue with your conspiricy theories gentlemen. I'm slightly entertained.

 

[texman]

I've been making popcorn for a month now. lol

 

[slaquer5]

I. Do. Not think this bantering is healthy for either group. The other airline SWA haters are loving it.

 

[luv2fly]

You obviously dont read the whole link. SWAPA has a side letter keeping growth equal. If Airtran grows so do we. Equally.

The side letter does not say anything about equal growth. It allows SWA to grow, but doesn't require AAI to grow. Now if AAI grows, the side letter requires SWA to grow to maintain the fleet ratio discribed in the side letter. All growth is off at AAI after the purchase is complete and GH owns AAI.

 

[Sy-bill]

No one on this thread know all the laws that will pertain to this integration of seniority lists. Seniority issues also exist for other work groups like the Flight Attendants which will have some effect on the pilots and vica versa.

The point that was wise to present is that there is the impression that AT pilots want arbitration which means they already feel that they will benefit more from that than a workable solution with SWA pilots. If that is the case then we can assume that AT pilots will open with relative seniority as their idea of fair which is unreasonable. SWA should then start off the process with a staple to the bottom which is also unreasonable. Then let arbitration meet in the middle where SWA pilots will experience large relative seniority gains. DOH is the only fair integration in this type of merging of senioritys.

To under estimate the power that SWA has over AT with this acquisition is not being prepared to obtain what is best for you and your family. Don't think for a moment that SWA would not challenge any employees contract in court that could last for many years. Don't underestimate that SWA could slowly dismantle AT while growing their airline organically. There are absolutely no laws that keep them from doing just that.

As much as low amount of posts makes some labeled as trolls, once again it is only because the honest message does not agree with what you think or hope for.

The message I am sharing is you better think about this with a clear mind of the potentials, or you could find yourself further falling down the food chain.

SWA has been, and will be, the 800 lb gorilla in this bewildering industry.

 

[Tejas-Jet]

Could this Guadeloope Hioldings thing be a ploy to downsize....then just aquire assets ?

Who knows...all sorts of possibilities abound

 

[B727Driver]

According to an article in Bloomberg, Guadalupe Holdings was created specifically for this acquisition (named after the room where meetings were held). GH will then be merged with AirTran, leaving AT as a wholly owned subsidiary of SWA. This raises the following questions: why was GH created? Was GH created to facilitate this acquisition? After all, this looks like it is not a merger. Thoughts?

 

[fuzzy077]

Anyone with some business sense care to give a well thought out, logical response to why it would be beneficial for Southwest to acquire AirTran using a holdings company instead of purchasing it outright?

 

[redflyer65]

If the 717 program is such a money maker (according to AAI), then what would keep Guadaloupe Holdings from selling it off to another buyer? (And the 737 operation for that matter.) Does AAI have seperate operating certificates for both fleets?

If Gary does, in fact, still plans to persue it, that would keep the WN acquiring percentage well below 51%. IF... he ever chooses to by the remaining 737 operation from GH.

This could be a modern twist on the Gordon Gecko-Blue Star Airlines dismemberment. An innovative, shrewd way to elliminate a competitor. Who knows...

Wow. That would be an interesting end-run.

 

[FlyinGuy]

GH is protection for SWA. All assets are moved to the holding company and operated as a subsidiary. Once the transaction is completed to GH, then SWA can start to integrate operations. If anything pops up that becomes a problem for SWA, they will still have the option to sell off AT from GH before AT becomes SWA.