My cap and my Dad's cap.
Want a little history? Click on the title.
Yes, the guessing game is over and the two airlines have announced their intent to merge. Is this a good thing? I don't know. And the reason that I don't is because neither NWA, nor ALPA has given me sufficient information to make a rational, objective decision. According to news reports, our NWA MEC vows to fight this consolidation.
Here's what I do know however. Mr. Anderson over at DAL, promised to stand up for his employees and not pursue this merger unless his people were protected. As we know, a couple of months ago everything fell apart due to a lack of progress with the two pilot groups. The merger seemed dead in the water. That is until Mr. Steenland called Atlanta and suggested that they move forward, with or without the employees. Anderson though went back to his pilots, hammered out an eleventh hour deal and the process took flight. Apparently Mr. Steenland wasn't quite as interested in bringing us on board. His attitude, in the words of Larry the Cable Guy was just, GET 'ER DONE!
I wonder why? Well, I really don't; that was a rhetorical question. He dislikes all of us as much as we disdain him. But maybe this little article that I found buried in a Hawaiian newspaper will clarify the matter. Meanwhile, the aggravated, contentious scenario that Mr. Anderson was hoping to avoid, similar to that at USAirways, is unfortunately unfolding here.
And this, just in from today's WALL STREET JOURNAL on line. Pay particular attention to the highlighted text that states that we were "locked out." And to think that this turbulance, just over the horizon, could have been skirted.
The airlines are speed-dating. There are only six legacy airlines that dominate the airline industry, and now two of them are getting together. Meantime, Continental Airlines has been rumored to be talking to UAL’s United Airlines in recent months, and the Delta-Northwest deal provides the necessary impetus for Northwest to sell its “golden share” in Continental for $100, freeing Continental up to do a deal. What does American do now? Here are a few potential scenarios:
American makes a rival bid for Northwest: One way to fight against the Delta-Northwest deal would be to spoil it with a rival bid. American and Northwest flirted with each other back in the mists of time, in the late 1980s and early 1990s. Northwest’s pilots likely aren’t happy at being locked out of the Delta deal and may create enough trouble to give a rival bidder an opening. One caveat: American’s pilots are dissatisfied with the company already in their contract negotiations, and it isn’t clear whether they would welcome the distraction of merger talks. Heidi Moore, 4/15/08, 1033 a.m. WSJ online.
And how did the market react to the news today? DAL closed at $9.16, down .94 cents, loosing 12.60%. Its 52 week high was $23.25. NWA closed at $10.28, down $1.32 loosing 8.38%. It's 52 week high was $26.50. Ominous!
Here's an article by Ted Reed in TheStreet.com. It's interesting and all of a sudden made me realize why a deal with the NWA pilots will be difficult to achieve. It's because Mr. Steenland will still be here as a board member. We've been hoping for a merger for sometime now, if for no other reason than to watch our management team fade from the scene. Apparently that won't happen, so Mr. Anderson better grow accustomed to this terrible, bitter relationship. But he knows all about that.
Once again, thanks for reading, but keep in mind that these are just my own personal opinions, formed by my daily experiences.
11 comments:
I hope the merger works out for you and the rest of the NWA people!
wow. Crazy business, this. Hope you all come through relatively unscathed
http://www.newglobalairline.com/
"Apparently that won't happen, so Mr. Anderson better grow accustomed to this terrible, bitter relationship. But he knows all about that."
What does that mean? What does he know all about?
I just can't imagine how this merger will work out and save operating costs, much less help the consumer. Fleet commonality, not really, hubs that are close together, and labor issues migrating along with Northwest. The pilot seniority list is a nightmare, just look at the America West/US Airways merger.
Rand, maybe retirement is looking better?
Hope it works out for you.
Rand,
I have seen the term "redbook" pilots and "greenbook" pilots at Northwest. This has been brought up as an issue by the Delta pilots. Can you explain what "redbook" and "greenbook" means?
Anonymous, Mr. Anderson is well aware of the animosity between NWA employees and Mr. Steenland. After all, they served as CEO and President respectively at NWA for four years. If he is seriously interested in securing 30,000 NWA people, jettisoning Mr. Steenland would go a long way.
Redbook and Greenbook. These terms go back to 1986 during the REP/NWA merger and identify the parties. Redbook were NWA pilots and Greenbook were Republic pilots. Although I have no interest in opening old wounds, this was and to some extent remains a bitter battle.
And thanks very much, I hope that it works out too. But one very important lesson that I learned from my first merger experience. It's important to not become wrapped around the axle over all this. Events that most of us have little influence over will run their course. I come in, fly my airplane, go home, avoid having a coronary and neither contribute to or pay much attention to rumor central. Time spent indulging in rumors is time wasted that could have been used planning a business venture. We are after all just employees here, along for the ride I'm afraid.
Thanks,
Rand
Rand--
So when you come out of next month's SVT will this make the equivalent of an Orange Book pilot? (ducking).
It will take a while to iron all this out--so in the meantime I will be doing the same thing-go in, fly my trips, get out.
Not looking forward to the next sequence of trips.
See you down the line...
Tim_757
Tim,
Is that like Duck l'orange? Yes, we're in for more interesting times.
Rp
How ironic it looks like you and
your Dad both retire from the same
airline!!
Ron Turner
When properly operated with respect for employees and with an attitude of service, the airline business can truly be a money machine.
When operated primarily for the benefit of stockholders by overpaid buffoons, and when the mismanagement is enabled if not condoned by an equally inept and corrupt federal government, you get corporate war that trickles down and flattens employees and customers without regard.
Our government forgets (or does not respect the fact) that air service is not a luxury but for most of us a necessity. It, like other utilities, deserves even-handed regulation that promotes growth while protecting workers and consumers. The Bush maladministration's "hands off" approach has led to horrible safety breaches which, if permitted to continue, may well have led to another disaster. Certainly it has done nothing to help avoid the current situation.
And then there's the cost of fuel: Mission Accomplished.
Letting the "marketplace" sort out the issues is not working. I believe it's time to reign-in all the greed and restructure the entire mess. Maybe putting it back the way it was when the system actually worked would be the best thing?
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