winglet

eaglefly,

I don't think anyone doubts that there is a good argument for a post bankruptcy management change.

There are many possibilities at this point in the process and some of them include:

A. Chapter 7 Liquidation
B. Reorganization with Present Management
C. Reorganization with New Management
D. Reorganization with subsequent Merger or Acquisition
E. Reorganization with or without Delta, USAirways, United, Go!/Mokulele
F. Etc..etc..

As far as the majority of Mesa pilot's are concerned, I'll bet that most would endorse plan C or even D (with stipulations). With any post bankruptcy merger or acquisition the merging or acquiring company would probably have to negotiate scope with the pilot group. If nothing else, MAG pilots have some of the strongest Successorship Transaction language in the industry.

The picture will become clearer after the litigation issues are settled and the financials are revealed. The opening round has just begun...

winglet

p.s. Nice flatulent stubborn horse analogy .

PSACFI

Winglet, many others have said this but thanks for your continual updates and unbiased reporting of the facts.

winglet

PSACFI,

You're welcome, but I wouldn't call it that unbiased .

winglet

Nevets

And its the exact same language that Skywest management balked at when trying to buy XJT. Skywest management and the XJT MEC did meet to negotiate scope. Skywest's wanted all scope removed. They wouldn't even agree to language that ASA has in their contract dealing with transfer of pilots with aircraft. So no deal was made.

eaglefly

Winglet, I admire your optimism and your information is certainly beneficial.

Clearly, you are of the opinion (or hope) that by Mesa simply changing its management, it will somehow convince those carriers they're currently dragging through the financial mud or others that are watching, to let by-gones be by-gones and forget what is happening.

I have serious difficulty seeing that.

Additionally, the hope of a merger or acquisition seems just as unlikely as I can't think of any realistic interest in Mesa's remains, especially with any "successorship" stipulations like that included. Given the recent troubles with that at several carriers, those stipulations would seem to make it more trouble then worth it for any carrier that would want to acquire Mesa, let alone merge with Mesa. Most carriers have learned by now, that acquiring the assets of failed companies is far better then attempting mergers, especially on the regional level where assets are easier to acquire. I'll bet Parker wishes he could roll back the clock.

In Mesa's case, unbridled optimism is proabably the only way to get through the day as the consideration of the greater likelyhoods is very painful. Mesa's been screwing its employees for decades and IMO, they haven't finished yet. When one considered Mesa's ruthlessness in placing their own needs at the expense of virtually every other enttity they've ever dealt with from employees to creditors to customers to affiliates to businesses to local, state and federal governments, new wrapping alone isn't going to turn Mesa into a desirable gift.

Godspeed to you though and keep us up to date.

BTW, your successorship/scope language looks just like ours and CHQ begins flying our routes in April. If we lose that fight, that successorship agreement wont be worth the paper it's printied on.

Nevets

You mean like the troubles at the most recent SLI, DAL/NWA? Unless you are SKW, I don't see the successorship stipulations being an obstacle to a management team that saw value in acquiring Mesa out of BK. It certainly didn't stop RAH from acquiring Frontier.

What is going on there? Did they transfer aircraft from EGL to CHQ and using them to fly the routes you are currently flying?

iPilot

SkyWest wanted to acquire ExpressJet but was thwarted by the union's successorship stipulations. It basically required all pilots to be merged onto one seniority list and, of course, SKW didn't want that. In the end there is no amount of money, power, or influence that can sweep a CBA under the rug outside of bankruptcy. Even in bankruptcy it's not as easy as it sounds.

eaglefly

I was thinking more along the lines of AA/TWA, U/AWA and the Midwest situation. Frontier had different strategic benefits than the wreckage of Mesa would. Mesa is just another RJ feed provider in an industry overpopulated with feed providers and equipment.


No, CHQ is bringing their own aircraft to fly our routes out of ORD. AMR is attempting to transfer flying formerly done by us to another carrier.

Nevets

I know that all too well. That is why I said that unless you are the SKW upper management, you wouldn't let the fear of unions and their contracts get in the way of a good business decision, as the SKW acquisition of XJT would be.

And just to be absolutely clear, it wasn't the succersorship clause that thwarted SKW from buying XJT. NOTHING stopped SKW from buying XJT other than their own stipulations on the acquisition.

Nevets

Seems to me that AA/TWA worked fine from a management's point of view. Midwest situation? Working out good for BB. As for UA/AWA, you can make a viable argument that management is saving a lot of money by keeping two subpar pilot contracts while the pilots fight with themselves. They are already benefiting from the synergies of all the other departments being merged.

The point I'm trying to make is that from a management's point of view, mergers and acquisitions are usually a good sound business decision after the dust settles. And the successorship stipulations rarely get in the way of good sound business decisions, unless you are SKW. Even when the DAL and NWA couldn't agree, their managements still went ahead anyways even though they said they weren't if the pilots couldn't agree to a SLI ahead of time.

What exactly does your scope clause say because it doesn't sound like what you are describing is anything that Mesa's scope clause would prevent.