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-   -   Southwest to buy AirTran Airways (https://www.airlinepilotforums.com/major/53718-southwest-buy-airtran-airways.html)

CHQ Pilot 09-27-2010 08:17 PM


Originally Posted by johnso29 (Post 877331)
Obviously you know very little about merging seniority lists. Perhaps you need to do some research. I suggest starting with the Bond-McCaskill act that prevents a staple. It was created to avoid a repeat of AA-TWA, in which most TWA pilots were stapled to the bottom of the AA list.

An straight integration will either be negotiated, or decided by an arbitrator. There is no staple allowed.


Let me preface by saying you bring up valid points and what transpires will have so many variables that the true outcome won't be known for years.

M-B is not a given in all situations. The F9 FAs argued that their merger was not air carriers but holding companies, allowing them to remain separate for the time. I'm NOT saying this would be the case in our situation, but pointing out that M-B isn't the only outcome in mergers/acquisitions.

SWAPA in the past has said that outside legal counsel has told them that employees do not necessarily have to come with a transaction. Again, I'm NOT saying that this is the case in this situation, but I do lend credence to lawyers that understand M and A law better than pilots.

There are too many variables in this situation to even guess how this will play out, but I know it's not going to be quick or fun. I would guess this may end up in arbitration in the end.

I guess my point is that dealing in absolutes of things that will or will not happen is irrelevant because none of us know (unless a deal has already been hashed out in principal before the announcement was made, which given the nature of things I wouldn't be totally surprised).

Check Essential 09-27-2010 08:28 PM

Everybody's just assuming the AirTran pilots will become Southwest pilots working under the Southwest contract. That doesn't happen automatically.
A quick read of the AirTran contract reveals a basic successorship clause.
It would seem SWA will have to negotiate a JCBA just like DAL/NWA did if they want to integrate the operation. That JCBA might just be a straight adoption of the SWA contract, but it doesn't have to be. Haven't studied it, but it looks like the pilots are going to get a crack at management due to this:

AirTran's contract:

D. SUCCESSORSHIP
This Agreement shall be binding on any Successor, or Assign of the Company, unless, or until
changed in accordance with the provisions of the Railway Labor Act, as amended. For the purposes
of this paragraph, a Successor or Assigned shall be defmed as an entity (other than an Air
Carrier, or an entity which owns, or is owned by an Air Carrier,) which acquires all or substantially
all of the assets or equity of the Company through a single transaction, or a multi-step related
transaction, which closes within a twelve (12) month period.

AtlCSIP 09-27-2010 08:55 PM


Originally Posted by Check Essential (Post 877400)
Everybody's just assuming the AirTran pilots will become Southwest pilots working under the Southwest contract. That doesn't happen automatically.
A quick read of the AirTran contract reveals a basic successorship clause.
It would seem SWA will have to negotiate a JCBA just like DAL/NWA did if they want to integrate the operation. That JCBA might just be a straight adoption of the SWA contract, but it doesn't have to be. Haven't studied it, but it looks like the pilots are going to get a crack at management due to this:

AirTran's contract:

D. SUCCESSORSHIP
This Agreement shall be binding on any Successor, or Assign of the Company, unless, or until
changed in accordance with the provisions of the Railway Labor Act, as amended. For the purposes
of this paragraph, a Successor or Assigned shall be defmed as an entity (other than an Air
Carrier, or an entity which owns, or is owned by an Air Carrier,) which acquires all or substantially
all of the assets or equity of the Company through a single transaction, or a multi-step related
transaction, which closes within a twelve (12) month period.

If I understood what you posted correctly, this is a moot point as SWA is an AIR CARRIER.

pilotrob23 09-27-2010 08:58 PM

or sw will hire a thousand pilots, let it go to court and years later, staple.

Check Essential 09-27-2010 09:06 PM


Originally Posted by AtlCSIP (Post 877412)
If I understood what you posted correctly, this is a moot point as SWA is an AIR CARRIER.

Yea, I see that. Weird exception.
I guess maybe the next paragraph applies?

E. MERGER PROTECTIONS
In the event of a merger between the Company and another Air Carrier, where the surviving
Air Carrier decides to integrate the pre-merger operations, the following procedures will
apply:
I. The Company will integrate the two pilot groups in a fair and equitable manner, including
where applicable agreement through collective bargaining
between the Carrier and representatives
of the pilot groups involved
2. In the event of a failure to agree pursuant to Paragraph 1, of the above, the dispute may
be resolved in accordance with Section 13, of the Allegheny-Mohawk Labor
Protective Provisions, except the integration of the seniority lists of the respective pilot
groups may be governed by Association merger policy if both pre- transaction pilot groups
are represented by the Association.
3. Discussions related to any merger shall not be pursuant to Section 6, of the Railway Labor
Act, and reaching an agreement with the Association shall not be a prerequisite for closing,
or any other aspect of the transaction, or operation pursuant to the transaction.
F. NOTICE
If
<<<AirTran>>> Airways, Inc., or its parent Company, AirIran Holdings, Inc., or any other subsidiary
of
<<<AirTran>>> Holdings, Inc., enters into any agreement of acquisition or merger, with any other
air carrier which has control of, or acquires control of another air carrier, it shall notify
the ATPA, in writing, of the proposed acquisition or merger within three (3) working days
after the execution of such agreement.
<<<AirTran>>> Airways, Inc., or its parent Company, <<<AirTran>>> Holdings, Inc., must give written notice
of the existence of this labor agreement to any air carrier, or any other entity which has
control of, or acquires control of, another air carrier with which
<<<AirTran>>> Airways, Inc.,
or
<<<AirTran>>> Holdings, Inc., enters into an agreement of acquisition or merger. A copy of this
written notice will be given to the ATPA, no later than three (3) working days after the parties
have signed an agreement of acquisition or merger.


80ktsClamp 09-27-2010 09:30 PM


Originally Posted by pilotrob23 (Post 877417)
or sw will hire a thousand pilots, let it go to court and years later, staple.


dream much? :rolleyes:

capncrunch 09-28-2010 01:52 AM

http://coolcanucks.ca/wp-content/upl...aples-logo.jpg

brakechatter 09-28-2010 03:43 AM


Originally Posted by tsquare (Post 877257)
Apparently since I received sanction from the moderators it is less acceptable than making fun of a potentially dangerous situation. Your arrogance is amazing, and the fact that it is allowed is disgusting.

I wouldn't sweat it. Juvenile mentality is what it is. The guilty are endlessly protected in our society. :rolleyes:

DYNASTY HVY 09-28-2010 03:49 AM

Those 717 would look real nice in SWA livery:)

DeadHead 09-28-2010 04:01 AM


Originally Posted by Bigflya (Post 877290)
If I were USAir I'd offer a higher competing bid and turn this thing into a hostile takeover. At least make SWA bid up the price higher ala AMR-PanAm-Delta. Even if they have no intentions of really wanting it. USair is the one stuck in the middle of the NE now getting squeezed more and more. It's a fight for survival for them.As always in this biz these are interesting times.


Maybe USair has already approached Airtran and their management team shot down the offer.

Maybe USair management hadn't even thought about the prospects of Airtran merging with SWA.

I think any decent airline manager or industry analyst saw this was coming from Airtran, but I get the impression this was designed to come out as a complete shock to everyone (as these things usually are).
It would be hard for USair to get into a bidding war with SWA, but if anything it could delay the whole process and cost them more money.
Hard to gamble with that which you don't have.

Either way USair is agreeably in a difficult position.
Any guess on who they might try to merge with now?
I guess AMR and JB is something on people mind.

USair has never addressed it's pilot labor issues, and I think that makes them unattractive to other companies who maybe considering to integrate.


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