Compass: What's the outlook if the DAL/NWA merger happens?
 

I've heard a lot of speculation that Compass could be sold off to the highest bidder (Republic?) if the merger goes through. It seems like a very likely possibility since there's money to be made and DAL doesn't need another feeder in the mix. Any thoughts?

Just returned from my 4 day trip and there are many new interesting threads here, including this one.

Do you fly for Compass or are you thinking of going there? If you are thinking of going there from another regional now, it would be a risky move.

This is my guess based on information I have gathered by reading up on what aviation analysts are saying and by talking to pilots at the NWA. If the merger goes through, and if this fuel price keeps soaring like it has been, and all the indications are that they will be, I think Compass will be built up and then sold off. It will most likely be not sold to Republic, because NWA and DAL do not want to make Republic any bigger than it is. NWA/DAL will try to balance out the regionals. XJT, if they have the cash, may be a potential buyer. Alternate potential buyer that NWA/DAL will consider is another Major that wants a wholly owned regional.

Initially, NWA/DAL will operate Compass as a part of Mesaba Compass Holding Corporation. There's also been talks that Compass may be merged with Mesaba eventually. This would depend on what aircraft NWA decides to replace DC9s with. If NWA picks E190s as a DC9 replacement, Compass may be merged with Mesaba. If NWA picks Bombardier C Series as a DC9 replacement (I think this is more likely), Compass will be sold.

there is something in the contract in regards to this. I dont have it available but Compass cant be sold unless certain requirements are met. So they cant just up and sell right away is how i understood it. fwiw

mesaba and compass will be merged and they will be sold once the nwa/dal merger takes place. delta already sold asa. they are trying to sell comair. they don't want to own regionals anymore, that is obvious. delta will be the controlling company, and nwa will have no say in what happens to mesaba/compass. they will be sold.

Sounds like solid info :rolleyes:

HA! Thanks for the good laugh! Dont give up your day job.

Two of the well known rumors are:

1. NWA DC-9 pilots may flow back to Compass when DC9s are retired.

2. NWA will sell off Compass for a profit. NWA does everything in the interest of fattening their pockets.

Start a company, build it up, sell it off for a profit.

"its a new day at Northwest Airlines"

Keep in mind that in a merger, the Delta PWA will have the surviving scope clause and regardless of E190 or C series, Compass would be limited to 76 seats per aircraft. Plus, all Compass aircraft would be counted as part of the 200 70/76 seat RJs that the DCI are allowed to operate. Also, the whole flow up / flow down would have to be revisited. With that said, all this could all ready have been negotiated, but would have to pass memrat.

Yeah, the scope clause will remain, hopefully. I was not suggesting either Compass or Mesaba will be operating anything bigger than CRJ900s or the E175s. C Series or the E195s belong in the mainline fleet.