Blackbird
Topic Author
Posts: 3384
Joined: Wed Oct 06, 1999 10:48 am

Northwest Bankruptcy And Merger?

Sat Aug 19, 2006 8:38 am

I got a question... if Northwest and Delta or other carrier merged. Depending on who merged with NWA would be the one on top? Would the merge equally and blend in?

And how would pilot seniority be distributied, and other personnel?

AV Kamarov
 
DeltaGuy
Posts: 3965
Joined: Wed Sep 12, 2001 5:25 am

RE: Northwest Bankruptcy And Merger?

Mon Aug 21, 2006 5:42 am

Mergers among large flag carriers is never pretty. It's usually the bigger one that buys out the smaller one, and as such they get the top spots. Pilot seniority is a sticky issue oftentimes too...with two ALPA companies, there'd be a high probability of having the two lists merged according to hire date- in the case of AA and TWA (AA is APA represented), the TWA pilots got screwed over when they were in effect stapled to the bottom of the AA list, save for a few of the senior guys. As for the non-union groups, there'd be no protection from them getting terminated if not needed, but otherwise, they'll probably find work somewhere in the airline.

DL and NW would be interesting...vastly different fleets and labor groups...would make for a nice route structure though.

DeltaGuy
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
Blackbird
Topic Author
Posts: 3384
Joined: Wed Oct 06, 1999 10:48 am

RE: Northwest Bankruptcy And Merger?

Mon Aug 21, 2006 6:06 am

Delta is bigger than NWA, so they'd buy NWA out, correct?

Do you think they'd get blended in, or do you think the smaller one (NWA) would get stapled to the bottom?
 
sccutler
Posts: 5638
Joined: Thu Jan 27, 2000 12:16 pm

RE: Northwest Bankruptcy And Merger?

Mon Aug 21, 2006 10:20 am

All bets are off, when it comes to who "wins" in a mereger or buyout; everything is negotiable, and the leverage follows the money.

One good example: the "merger" of Continental and Texas International, in which TI effectively saved financially-moribund Continental, but kept the Continental name (for fairly obvious reasons).

In the case of DL and NW, you'd also have to consider that any action by either would have to be approved by the bankruptcy court, unless undertaken after a successful emergence from the bankruptcy process.
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