Thread: ASA Rumor Mill
View Single Post
Old 07-03-2009 | 07:07 AM
  #11  
Deez340
Gets Weekends Off
 
Joined: Jun 2007
Posts: 890
Likes: 0
From: 757/767
Default

Originally Posted by John Pennekamp
From what I'm hearing the situation is dynamic. The Mesa ruling (they won their lawsuit against Delta) kind of threw a monkey wrench into the mix. I keep hearing that Delta still plans to dump Mesa, but now they need to buy out their contract. This cash infusion will keep them going through the fall. This means they probably won't go bankrupt this fall, and may not lose their UAL flying, as many suspected. I also keep hearing that there is another 2 for 1 deal coming our way, which I suspect is for the -900s Mesa is operating for Delta.

Nevertheless, I'm fairly sure that the remaining 60 unprotected pilots will be furloughed. There may also be some captain downgrades, if we don't pick up more flying. ExpressJet is finishing their 3 month UAL contract in Sep. and they may or may not get the flying after that. I've heard we're getting it, but everything in this industry is subject to change at a whim.

Someone mentioned Delta deliberately torpedoing ASA to make us a more attractive buyout, and the possibility of a merger/staple. From what I've heard coming out of ALPA and DALPA that's actually not as far fetched as it seems.

I want to point out that a lot of the doom & gloom coming out of SH is the company posturing for PBS negotiations. They want to paint a picture of the company being desperate and that if we don't give them PBS on their terms, bad things will happen. This is why I think they'll furlough the last 60, as a show, or in union jargon "taking them hostage". Then we'll agree to PBS and suddenly all of this flying (that I mentioned above) will come our way. Conversely, if we don't accept PBS, and some of the flying doesn't come our way (for reasons I mentioned above) they will say it's because we didn't go with PBS. I know this, because it's the same tired play book ASA has used for the last decade.

I guess the bottom line, is just hold on and watch. Big things are going to happen this fall, whether they're good or not. The pieces are starting to fall into place, and we'll have a good picture soon. Personally, I think the doom & gloom are B.S. and it will work out in our favor.
Actually no. The lawsuit hasn't been heard yet. Mesa has simply had their temporary injunction upheld which is fairly common in cases like this. The fat lady won't sing on this for a while. Read Delta's release to employees below.

Court upholds Mesa injunction, Delta will ask for trial
July 2, 2009


A federal appeals court Wednesday upheld a preliminary injunction stopping Delta from terminating a regional flying contract with Freedom Airlines, a subsidiary of Mesa Air Group Inc., according to The Associated Press.

“Today’s ruling is only a preliminary step in this process and we look forward to the opportunity to fully make our case in district court,” Delta said in a statement following the ruling. “We believe that Delta is entitled to terminate its contract with Freedom Airlines for performance, and we will continue to assert this belief on behalf of our customers. Delta customers rely on Delta Connection carriers for outstanding service and we will continue to insist on a high level of performance from our partners.”

Delta notified Freedom last year of its decision to terminate its Delta Connection based on operational performance reasons. Freedom’s parent company, Phoenix-based Mesa, said that terminating the contract would cripple its airline.

A federal district court in Atlanta granted Mesa a preliminary injunction to block the termination, and the 11th U.S. Circuit Court of Appeals, also in Atlanta, affirmed that decision Wednesday.
Reply