Originally Posted by
Aero1900
I'm talking about business models. The differences between our contracts doesn't even factor into the decision to merge/aquire
Actually, it does.
To a lesser degree, is the fact that the managers will have to assume that the better labor contract will prevail and in fact the pilots may succeed in cherry-picking the best of each.
But the big deal is a scope... if a legacy, all of which rely on regional feed (all but HA to a large degree), were to purchase and merge a LCC with a successorship and a "no outsourcing" scope clause that could be a show-stopper. They would actually have to negotiate with the LCC pilot group to waive their scope. Otherwise they could buy, but not merge, the LCC. Of if they did merge them, they'd have to immediately ditch ALL of their regional feed including long-term FFD contracts which would have to be bought out
Good scope is a show-stopper, unless they can bribe the acquired pilot group to waive it.