I've got a nice pair of walking shoes ready to go, but the NMB would rather ice us than release us. Why do I get the feeling the NMB saw this coming and we didn't.....

 

This industry just got a whole lot worse

 

i wonder since all this money is floatin around if it will help the contract talks on the payside of things, obviously they have the money

 

As a CA on the Saab for Colgan I want to know when am I getting my $6.50 a hour raise to Mesaba rates. You can add that to my next pay check please.

 

One List








The message you have entered is too short

 

Just so we are clear here... it was sarcasm... and here is some more sarcasm... I can't wait to see what type of great pass bennies we would get from flying for big daddy D.

 

I think it's time to start some recalls and get an mec that will have a pair of ba11s that can deal with mgmt.-take action and quick getting jerked around.

I guess mgmt wanted to wait and see what happened with xj and now the parent letter won't apply if we ever get another ta, big if......

Won't have to do much if any hiring because now they can shuffle aircraft around.

Welcome mesaba, you've been pinnacleized. I truely am sorry, you'll now see how great the pass travel is and what a shame that you'll lose the flow through...

All you'll need to know are 2 things....
1. We fixed it
2. Simply the best...

 

This might help you out.



How will my pass benefits be affected? When will the benefits change?
There will be no immediate changes. However, in 2011 Mesaba employees will transition
to the “independent” regional airline pass travel program with Delta. That will mean the
loss of buddy passes, lower priority on some flights, equal privileges on Pinnacle Airlines
flights and some changes in pass-travel costs. We will keep you informed on the timing
and details of the changes.

 

Here is some Q/A

ANSWERS TO QUESTIONS YOU MAY HAVE ABOUT THIS ANNOUNCEMENT
Section Topic
A The Transaction
B The Big Picture
C The Organization/Integration Matters
D Employee Matters
E Union Matters
F Mesaba-Specific Matters
G Customer Matters
SECTION A: THE TRANSACTION
A1. Whose idea was this?
Delta has said that regional flying will always be a key component of its network, but has
also long believed that it was not necessary to own these partners. Consistent with this
philosophy, Delta determined that it was appropriate to have its regional fleet in the
hands of a trusted partner, so it invited Pinnacle to begin discussions.
A2. Why was Delta willing to sell Mesaba to Pinnacle?
Since its merger with Northwest, Delta has indicated its desire to work with a smaller
number of strong regional partners. Pinnacle offers Delta a complementary fleet as well
as an attractive cost structure.
A3. What’s this costing Pinnacle? Does it put a strain on financial resources?
Delta has provided financing to the Company for the total $62 million purchase price
over the next five years under market terms, thus minimizing the financial impact on
Pinnacle. This is a good investment that will benefit the Company and all three of our
airlines. As long as we continue to provide consistent, industry-leading performance, we
will easily be able to service the debt.
A4. What about the disputes we’ve had with Delta?
We have amicably resolved several previously announced contractual disputes.
A5. Are regulatory approvals required?
No. However, notices were provided to the appropriate governmental agencies.
A6. How does this sale affect Delta’s agreement with the Metropolitan Airports
Commission?
That agreement is between Delta and the MAC. However, we have agreed to keep
Mesaba’s headquarters in Eagan, Minn., for at least two years.
A7. How does this affect the recent Saab announcement?
Delta’s announcement about retiring Saabs is not impacted by this announcement.
However, we’re a big fan of the Saabs and there are markets that are ideally suited for
this aircraft. We intend to work with our other network partners in an effort to find
business for some of the Saab aircraft.
2
SECTION B: THE BIG PICTURE
B1. Why is this good for us?
Our organizations are very strong and very similar. Together, we will be even stronger,
well-positioned to be a major competitive player for the long term.
We have we secured our future with Delta with a 12-year CPA for CRJ-900s – the
longest such contract in the industry – and our contract for CRJ-200s continues through
2017.
Pinnacle always has acknowledged that our CRJ-900 fleet had to grow for it to work for
us long-term. Likewise, Mesaba needed more CRJ-200 aircraft for the fleet to be more
efficient. Colgan operates a fleet of Saab turboprops along with the Q400s, while Mesaba
is phasing out its Saabs.
The bottom line is this agreement allows us to have critical mass in both the regional jet
and turboprop segments of the market. Because of our ability to provide the “right”
product offering to other network partners, we also have additional growth opportunities
– including taking advantage of the nearly 500 50-seat regional jet contracts that expire
over the next five years.
B2. What is our long-term strategy?
Our goal is to own our future and perform to win. Our airline partners are demanding
ever-improving cost effectiveness and fuel efficiency. We intend to fly the right aircraft
in the right way. As we grow, our emphasis will be on expanding our existing fleets of
CRJ-900s and Q400s, both of which are widely regarded as the next-generation aircraft in
their respective niches. Flying in the right way means keeping Safety first and being the
best-performing operator in each aircraft type we fly.
B3. Will the fleets be combined?
At this time, Pinnacle Airlines Corp. will continue to operate three separate fleets –
Pinnacle Airlines (jets), Colgan Air (turboprops) and Mesaba Airlines (jets/turboprops).
In keeping with our strategy of flying the right aircraft in the right way, we believe that
over the longer term, we can enhance efficiency and growth opportunities for our airlines
and our People by reorganizing around two operating airlines and two certificates.
o Our intent would be to combine the regional jets under Pinnacle Airlines and the
turboprops under Mesaba Airlines.
o The Colgan name would be phased out over time. While Colgan has a proud
name and history, what’s most important to our future are the outstanding People,
fleets and growth opportunities both Colgan and Mesaba have to offer.
o We’re proposing to keep the Mesaba certificate primarily because the
infrastructure to support a large number of aircraft is already in place.
o There are many complex issues to be addressed, and this will take time; we will
work closely with our internal organizations and our union partners, and keep you
fully informed.
3
B4. Is our future built entirely around Delta?
Delta is our largest partner and obviously is very important to our long-term success.
Going forward, we will have opportunities to grow our business not only with Delta but
with our other partners as well.
SECTION C: THE ORGANIZATION/INTEGRATION MATTERS
C1. How do the values and goals of our organizations compare?
We have comparable values and goals, built around safety, respect for people, customer
service and operational excellence.
C2. Will the Mesaba name continue? What about Pinnacle and Colgan?
All three names will continue for the foreseeable future, as we will operate three separate
fleets. Over time, our intent is to phase out the Colgan name as we reorganize into two
operating airlines.
C3. Who will run Mesaba?
The Mesaba management team remains in place. John Spanjers will report to Doug
Shockey at Corporate, as do Bob Muhs at Pinnacle, Buddy Casey at Colgan and Russ
Elander in Ground Operations.
C4. Where will Mesaba’s headquarters be located?
Mesaba’s headquarters remain in Eagan, Minn., for at least two years, although some
management/administrative functions may be relocated to Memphis over time.
C5. Will this affect the Pinnacle corporate headquarters relocation project?
No. We are continuing to seek an appropriate location to house our Memphis operations
and hope to make an announcement by the end of 2010.
C6. Will any management/administrative functions be combined?
Transition teams with representatives from all parts of our Company – Corporate,
Pinnacle, Colgan and Mesaba – will be working to create the most efficient organization
possible for the long term. Over time, it is likely that the anticipated synergies will result
in some reductions in the management ranks. A more detailed presentation on these will
be posted on the Mesaba, Colgan and Pinnacle employee Web sites by mid-July.
C7. Will Pinnacle/Mesaba schedules be combined?
As Delta Connection carriers, the schedules of Pinnacle and Mesaba are already fully
integrated with Delta. No significant changes are anticipated.
C8. Will safety and training programs be affected?
All three of our airlines have strong safety cultures in place. Our goal will be to ensure
that we learn from one another as we continually strive to achieve world-class safety.
Over time, there will be positive changes to our programs as they are improved and
upgraded.
4
C9. Will there be any structural / reporting changes in Ground Operations?
Mesaba Airlines currently does not have any Ground Operations employees. Current
Ground Operations employees at both Colgan and Pinnacle will continue to report
through the existing SVP of Ground Operations.
SECTION D: EMPLOYEE MATTERS
D1. What does this mean for me?
For now, it remains business as usual for employees in all parts of our organization, and
our primary focus remains on safety and customer service. Job responsibilities, policies
and procedures, and wages and benefits are unaffected at this time.
D2. How do wages/benefits compare among the airlines?
While there are differences in the specific provisions, the various rates of pay at all three
airlines – Pinnacle, Colgan and Mesaba – are generally similar and competitive for their
respective niches within the regional airline industry.
D3. Will there be layoffs/furloughs as a result of this acquisition?
Although layoffs/furloughs can never be ruled out in the ordinary course of business, we
do not anticipate any front-line layoffs/furloughs resulting directly from the acquisition of
Mesaba. We will endeavor to secure additional Saab business from our other partners and
make job opportunities available to employees in all three of our airlines.
D4. Will this agreement create opportunities for Mesaba’s furloughed Pilots?
It can. We will immediately engage with our Pilots’ union to find a temporary solution
that would allow furloughed Mesaba pilots to move to Colgan or Pinnacle. Pinnacle will
be hiring this month for an August class and Colgan is hiring now for the Q400 deliveries
that begin this August. We say “temporary” because it normally takes time to work out
the seniority issues created when unionized employees move from one company to
another.
D5. How will my pass benefits be affected? When will the benefits change?
There will be no immediate changes. However, in 2011 Mesaba employees will transition
to the “independent” regional airline pass travel program with Delta. That will mean the
loss of buddy passes, lower priority on some flights, equal privileges on Pinnacle Airlines
flights and some changes in pass-travel costs. We will keep you informed on the timing
and details of the changes.
D6. Will my health/dental/vision/disability benefits change?
There will be no changes during the current plan year.
D7. Will my 401(k) be affected?
There will be no changes during the current plan year.
5
SECTION E: UNION MATTERS
E1. Will there be any impact on my union representation?
Any representation issues that may need to be resolved will be determined in accordance
with the rules of the National Mediation Board.
E2. What are those rules?
If the National Mediation Board determines that a single carrier exists and that the size of
each carrier’s work group is comparable, it will conduct an election to determine
representation.
E3. What if I’m not represented by a union?
Again, the NMB rules will apply. Whether an election to determine union representation
is held or not will depend on the relative size of the work groups.
E4. What will happen to my contract?
We fully intend to comply with the terms of each contract. Issues relating to the
movement of aircraft and employees between airlines will be governed by the applicable
contract.
E5. Will my seniority be integrated?
Seniority integration may occur if it is required by Federal law, a collective bargaining
agreement or by mutual agreement.
E6. I understand ALPA and Pinnacle Airlines have tentatively agreed on a provision
that would require seniority integration. Is that true?
A provision that would require seniority integration of Colgan, Pinnacle and a
subsequently acquired airline was tentatively agreed upon as part of the failed tentative
agreement at Pinnacle. That agreement remains tentative and will not become effective
until a new agreement with ALPA is reached.
E7. If seniority is integrated, how will my seniority be determined?
We will deal with the respective unions in developing a process for fair and equitable
seniority integration if it is required. In some cases, the unions (ALPA, for example)
already have seniority integration policies.
E8. I have heard that a transition or fence agreement is often negotiated in asset
purchase situations. How does that work?
Some of the collective bargaining agreements may require that a transition or fence
agreement be negotiated to provide for an orderly transfer of aircraft and employees from
one airline to the other. If such an agreement is necessary, we fully intend to negotiate the
provisions of such an agreement with the designated union representative.
E9. How does this transaction impact the negotiations on the Pinnacle ALPA contract?
We don’t know at this time. Those negotiations are being conducted under the auspices
of the NMB and will continue under their jurisdiction. The NMB has been notified of the
transaction.
6

 

PART II

SECTION F: MESABA-SPECIFIC MATTERS
F1. Will Mesaba’s Profit Sharing program remain intact?
Nothing changes at this time. Profit sharing is for all employees and is defined in the
Collective Bargaining Agreements.
F2. What about the Merit Pay program and AIP program for management?
Nothing changes at this time.
F3. Will Mesaba continue to operate crew bases in MEM, MSP and DTW?
Nothing changes at this time. Any future changes will depend on Delta’s schedule.
F4. Will this announcement affect the Flow Through Agreement with our Pilots?
Mesaba’s contract with Delta stipulated that the Flow Through Agreement is terminated
when Delta sells the airline. It also requires that the parties will meet prior to any
termination for the purpose of discussing whether continuation or modification would be
appropriate. With that in mind, the parties have agreed to honor flow for an interim
period while the parties discuss the possible continuation of flow through.
F5. Will Mesaba continue to provide support services for Regional Elite Airline
Services?
We will continue to provide support services for one year.
F6. Will Mesaba facilities (maintenance hangars, airport offices, etc.) be affected by the
sale?
Nothing changes at this time.
F7. Will General Office employees be retained? If so, for how long?
Mesaba’s headquarters will remain in Eagan for at least two years, although some
management/administrative functions may be relocated to Memphis over time.
Integration teams with representatives from all four parts of our Company – Corporate,
Pinnacle, Colgan and Mesaba – will establish near-term and long-term action items. It is
too soon to speculate on specific functions or timing.
F8. What’s the implication for the back-office functions at Mesaba?
Again, the integration teams will be working to determine the most appropriate
organizational structure to facilitate growth.
SECTION G: CUSTOMER MATTERS
G1. What will this mean for customers?
Nothing will change for customers. All of our aircraft will continue to reflect their current
brands, and no significant schedule changes are anticipated.