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Old 08-10-2010 | 11:13 AM
  #44966  
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acl65pilot
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From: A-320A
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Originally Posted by Superdad
I don't have to do myself any favors before posting a rumor. I heard the rumor from a captain and I posted it. I didn't realize this board was reserved only for hard facts. If it was, I guess we wouldn't need the board, would we.

The point ppl are trying to make is that this "rumor" has been going around for some time. My point is that even if the Neg Committee had a TA that allowed this sort of thing, the MEC Reps would have to vote to ratify it. IMHO if would not get past the first step (right now) but if it did, the reps would vote it done. God for bid it went past that it goes to MEMRAT since it is a significant change in our PWA.

I am not sure that the company wants to obtain 100 seat scope concessions at the current point in time. It would be a win for them in regards to leverage against us, but the unintended consequences are that the pilot group would revolt. With that possibility they may get a more radical group in the MEC and that is probably not something that DAL wants.

My "fear" if you will is these super regionals. These guys are getting to the point that they will control 30-50% of a mainline's lift each. When they get to that level, they will be able to exert extreme leverage on the mainline carrier in regards to pricing, pass though costs, et al. What it comes down to is that they will determine the cost of their operation, not DAL or UAUA, etc. If they opt out of their ASA's they literally could shut airlines like UAUA, DAL, LLC etc down. That means that if they demand something airlines like DAL would probably have to give it to them. In turn when they get to this power level, they may be able to demand and obtain the coveted 100 seat market.

What DAL did with the sale of CPS to TSH is continue to spread the flying out enough that no one or two carriers had this sort of control. The devil is in the details in regard to the next step. If these ASA's allow the carriers like Pinnacle, CPS, et al to be sold or acquired by carriers like RJET and SKW, then the above scenario is very likely. If the ASA's state that DAL has the right of first refusal, or a sale nullifies the ASA then there is a change that the super regional airlines will never get to this level of power.

I suspect that airlines like SKW, and RJET will try to buy airlines like Pinnacle/Mesaba, TSH, Expressjet (done) etc so that they can exert better pricing power on their mainline partners. If the mainline carrier balk it will cost these regionals dearly. If not and they allow these transactions to transpire, I suspect that it will be the mainline pilot bargaining units that will be the ones the mainline carriers will be coming after.

I feel fairly confident with the makeup of the LEC voting reps on the MEC. These pilots seem to get it. Of course time will tell.