deadstick
Well-Known Member
This is the biggest question I have on the matter. I haven't ventured much of an opinion, if at all. But really, is pilot labor rates the key factor in this deal?
For awhile now, I have believed that there are other agendas at work here. I don't think it's just the Midwest pay scales that are the target, but the DAL/NWA ones too. It could also play into the DC9 replacement plan for NWA. The new DAL/NWA still has Compass for flow-back and a certificate with the 170 on it, but they can't put 190s on it (my understanding, correct me if I am wrong). Now they own 47% of another certificate that they can put 190s on and not worry about scope of current Republic or Shuttle contracts. It's taking awhile because they have to get planes, the certifcate modified -- their dicks in a row, if you will. TH and Midwest management almost blew this whole thing 1)with the way they closed up Skyway and 2) when they low-balled Boeing on the 717 leases. This is out of their incompetant hands , now.
That $35M (?) loan from RAH to Midex put RAH at the head of the line of creditors. If it shutsdown, that $35M was the downpayment on the Midwest certificate.