So we don't have any leverage is what you are saying. 1) Do they really want these RJs? 2) Do they need our approval to operate them under our flag?

No, we don't buy airplanes, but we can set scope conditions.

 

i keep thinking Delta will buy the CPZ certificate, move the airplanes back and restart CPZ II to get around this...although its a hell of a lot of capital to do it...

 

Technically, they only need to buy the certificate, and merge it with Endeavor, same result.

The LOA itself probably doesn’t matter, only the section 1 issue of the provisions being continuously available, not stopped for more than a year.

 

I think you need to re-read the LOA if you think that will work. Specifically the part about Compass no longer being an affiliate of Trans States Holdings.

 

I could be wrong, but I thought someone already bought it.

 

Did they attempt to use that language for additional RJs tied to a flow back with Mesaba? Were there any scope provisions tied to that flow up? Was there actually any flow back to Mesaba, I don’t remember one? Are you sure this is the precedent you think it is?

 

The PWA language appears quite strong and let’s hope that any bargaining notes reinforce that. Delta’s inaction over the past year won’t help their case either. But despite that, there are ZERO guarantees in arbitration. I’ve seen losses from “clear wins” and vice versa.

 

35rjs are 35planes lost at mainline. It effects us and those not here yet. The more regional the less careers. The less pay and more games. The a220 can do everything an rj can do with more frieght 50 more people and extremely more profit

 

Here is the uphill battle that I believe that the company faces:

"Exception two: In the event the hiring or flow provisions of NWA LOA 2006-10 or LOA #9 cease to be available, either at the feeder carrier affiliate referenced in such LOAs or at another carrier, the number of permitted 76-seat aircraft in Section 1 B.47. e. will be reduced by 35."

The "trigger" is the hiring/flow provisions of LOA ceasing to be available. Further, the Company, if fact, reduced the number of 76-seat aircraft by 35, as admitted by PB in his memo of May 3rd. As such, the Company clearly believed that LOA #9 ceased to be available (NWA LOA 2006-10 was subsumed into the JCBA after the merger and has, therefore, been rendered "moo") and thereby reduced the number of 76-seat RJs by 35.

Looking at LOA #9, the language of 1.e clearly states:

"The flow rights of Compass pilots will no longer be effective upon a sale or divestiture of Compass, partial or complete, that results in Compass no longer being an affiliate (as defined in the PWA) of Trans States Holdings, Inc. In such event, Delta, Compass, and the Association will meet and confer for the purpose of discussing whether continuation or modification of this LOA would be appropriate given the circumstances at that time. Any continuation or modification will require the agreement of Delta, Compass, and the Association."

At a minimum, DALPA has skin in this game soley by the language of 1.e because DALPA is "the Association." PB's comment that:

"Should Delta and a regional carrier agree to provide LOA #9 hiring and flow rights, Delta pilots would be afforded the flow-down protection rights of LOA #9 at the other airline, and under the terms of Section 1.B.47.f. Exception 2 of the PWA, the number of permitted 76 seat aircraft would no longer be reduced" overlooks one crucial issue.....you have to have DALPA on board and in agreement. This is where (I believe) the company will fall short in an arbitration. Without DALPA's agreement, the 35 76-seaters stay parked.

 

Begging for INFORMATIONAL PICKETING on scope. Reps tell me this is going to be discussed at the June MEC meeting.

On the International Flying front, Delta's partners are bringing capacity to the market coming to the one place in the world they can make money; America.

American taxpayers put cash into saving these jobs, not just making placeholders for foreign nationals to fill our skies, coming to get American consumers.