OK guys, I finally dug up NWA LOA 2006-14 to see exactly what it says about termination of flow after selling Compass. Here's the language:
LETTER 2006-14
(76-Seat Small Regional Jet Flow Through Agreement)
LETTER OF AGREEMENT
between
NORTHWEST AIRLINES, INC.
and
THE AIR LINE PILOTS
in the service of
NORTHWEST AIRLINES, INC.
as represented by
AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
This Letter of Agreement is made and entered into in accordance with the provisions of
Title II of the Railway Labor Act, as amended, by and between Northwest Airlines, Inc.,
(hereinafter referred to as the “Company”) and the Air Line Pilots in the service of Northwest
Airlines, Inc. as represented by the Air Line Pilots Association, International (hereinafter
referred to as “ALPA”).
WHEREAS, the Company and ALPA have agreed to certain modifications of the
NWA/ALPA Collective Bargaining Agreement (the “Pilots Agreement”) in furtherance of the
Company’s effort to improve liquidity and profitability and successfully restructure its capital
structure and operations and reorganize through the Chapter 11 bankruptcy process; and
WHEREAS, the Modifications embodied in this Letter of Agreement pertain to the
agreement of the parties to permit the Company to establish a Feeder Carrier Affiliate pursuant
to the provisions of Section 1 B.7.c.(7)(d) of the ALPA Restructuring Agreement (hereinafter
“Feeder Carrier Affiliate ”), and
WHEREAS, the parties have agreed to a 76 Seat Small Regional Jet Flow Through term
sheet and are desirous of reflecting the terms thereof in this Letter of Agreement.
NOW, THEREFORE, BE IT RESOLVED, the undersigned parties do hereby agree as
follows:
A. General.
1. This Letter of Agreement governs employment opportunities at the company and
at the Feeder Carrier Affiliate for all NWA pilots with a system seniority number
together with future pilots employed by the Company and pilots employed by the
Feeder Carrier Affiliate. In the event of a sale of Feeder Carrier Affiliate such that
it is no longer an affiliate of NWA, the flow up rights of Feeder Carrier Affiliate
new hire pilots (Sections D and H below) can be terminated by the Feeder Carrier
without impacting the Company’s upper cap in Section 1.B.7.c. (e.g. upper cap of
90) The ramifications of a stoppage of flow down rights of NWA furloughees
(both current and future laid off NWA pilots, including new hire NWA pilots
from Feeder Carrier Affiliate and elsewhere) in this circumstance are addressed in
Section 1.B.7.c. (e.g. reduced to lower cap of 55).
(snip)
Therefore, the language in the CBA that states that the 71-76 seater cap reverts downward if the "flow provisions of LOA 2006-10 and 2006-14 cease to be available" appears to be superseded by the language within the LOA itself. Compass can cancel the flow up, only the flow down has to remain in place.
