Does any of you aspiring legal eagles know how the McCaskill bill will affect this acquisition if it goes through? I know provisions were put in place after the AA/TWA disaster.

 

It was the result of the TWA fiasco, but 7 years too late.

Previously, if a carrier acquired another carrier who had the same union, then the union process would determine seniority (ie AAA/AWA). This may be a contentious process, but nobody is going to get boned, or at least everyone gets boned equally. I know the AAA guys THINK they got the raw end, but that actually got a better deal seniority-wise than AWA. The problem there is that the AAA guys are so old that most will retire in the next 5-10 years and not have much time to benefit from their seniority.

However, if a carrier acquired somebody with a different union (or no union), there were no rules, the acquiring carrier could do whatever they wanted: Fair integration, staple, or just fire all of the acquired pilots. Effectively AA stapled and then "furloughed" all the TWA pilots (and FA's). Few will ever return.

The McCaskill bill prevents this sort of behavior going forward...it requires by law that acquired or merged pilot groups get integrated fairly (using a seniority formula). I think that if both groups are the same union, then internal union rules prevail, otherwise a certain formula is required (Alleghany-Mohawk).

The significange to this is that non-union SKW cannot be stapled by alpa, even if SKW management decided to allow that for some reason. It would also protect ASA/XJT from being stapled by SKW. The law clearly applies in the event of actual merger. I'm not sure how it applies to a holding company which operates multiple certificates...it may not protect against moving airplanes around. The courts would probably have to decide that.

 

Well, I got news for ya, have you looked at the finances of these airlines? not pretty.

The problem is these airline management guys have gotten crafty with he term "holding company"

 

Isn't that what I said? Anybody can get blind-sided by BK.

 

yeah, that is what you said

 

That's why I'm tired of hearing that the XJT pilots knew what they were getting into when oil was at $80/barrel. I could make the same excuse if something happens with United going BK or merging with USAir or DAL/NWA merger, because SKW new hires knew what they were getting into. Hindsight is always 20/20.

 

Well we better start getting our heads around working a solution soon...the finance blogs (I know take it with a grain of salt) is saying the deal is done and hands have been shaken and the deal will be announced tomorrow. They've, the folks with the money (ie not pilots), decided to go with this without dealing withe the pilot group...will save that fight for a date to be determined. Once again take it with a grain of salt. I don't believe things until they actually happen. Old horse..Old tricks

 

You should call your rep.

 

And do what? If its SEC they won't be able to a thing...I'll still have a cold one and sleep tonight and wait to see if if is was crap or not.

 

All I got to say is call your rep, because you seem to put more faith in what some anonymous person on a board says.