Old 02-23-2008, 07:09 AM
  #1  
Zoomie
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Joined APC: Feb 2008
Posts: 403
Default NW/DAL merger: Has this idea ever been entertained?

Hello all, I've been brainstorming since this merger mania started with Delta/NWA, and I had an idea which I wonder has ever been entertained.

From what I understand, there are many NWA guys who believe that DOH should be the general rule for a merged list, mainly because there are a large number of older guys at NWA who are near retirement age and the average NWA pilot is older than the avg DL pilot.

On the other hand, it sounds like most DL pilots are more in favor of a "relative seniority" integration since there are not as many retirements in the near term at Delta.

NWA guys think relative seniority wouldn't be fair since after 5-8 years, the top part of the NWA list will be forced to retire at 65. Thus, at that point, DL would own the top of the list and will stay there since they are much younger.

Here's an idea I thought about that seems to be pretty fair, to me at least as an outsider from either NWA or DL: Here goes...



1) Merge initially due to relative seniority. If you are 1% at DL or NWA, you retain ~1% at the merged carrier; if 50% prior to merger, you retain ~50% at the merged carrier, etc, etc.

2) Compare the two lists and determine the point at which the disparity exists between DL and NWA. (since NWA is top heavy with ppl close to retirement). Lets say that number is ~500 in the NWA list. If those top 500 weren't there, basically the DL and NWA lists would be easy to combine since they would have similar age pilots with similar time in service.

3) Once you have this number (500), once this 500th pilot retires or more fairly, say 90% of the 500 pilots retire (just in case #500 is real young), then you re-calculate everyone's relative seniority(ie: repeat step #1) at the day that threshold passes and do another relative seniority integration (with only those on property when the merger happens; no newhires hired AFTER the merger would participate in the re-integration)

This idea would FIX 2 problems in my opinion:

1) There would be no need for an expensive buyout of older NWA guys who may or may not take the buyout anyway.

2) The people at NWA would get the relative seniority they think they deserve once that retirement threshold is crossed. It would also make DL pilots happy since the top of their list won't be put after the NWA guys just because they are older at the time of the merger.

The re-integration would effectivly push NWA guys hired before the merger up a number of spots putting them back in line where they would have been at NWA. Thus, at this point, some NWA would jump in front of DL guys, but rightly so.

Once this threshold is crossed, the pilot groups will line up much more effectively, thus a relative seniority merger would be pretty fair.

What do you guys think?

I think this idea could work. What am I missing?
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