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October 5th, 2006, 23:35
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#1 | | Moderator
Join Date: Jun 2003 Location: Eden Prairie, MN (KFCM) (KMSP)
Posts: 9,986
|  NWA...Seeks Permission to buy 72 new jets
... Quote:
Northwest Airlines Corp. on Thursday asked a bankruptcy judge for permission to buy 72 new jets for serving small and midsize markets.
The order will be split between 36 Embraer 175 aircraft and 36 Bombardier CRJ900 aircraft. Northwest said it had options for another 96 Bombardiers and an additional 136 Embraers.
The order was widely expected as Northwest has been looking to revamp the regional flying currently handled by Mesaba Aviation Inc. and Pinnacle Airlines Corp. Northwest is also seeking approval to start its own regional subsidiary, called Compass Airlines.
Northwest said Compass would fly 36 Embraers. It said a partner to be determined later will operate the 36 Bombardiers.
Pinnacle spokesman Phil Reed said it would compete to get the 36 Bombardiers, as well as 15 other regional jets that Northwest took away after it filed for bankruptcy protection. But he said Northwest has made it clear it won't award new jets until Pinnacle negotiates a new deal with its pilots. No new talks are scheduled.
Mesaba has also said new jets depend on winning a new contract with pilots, flight attendants and mechanics.
A new contract negotiated with mainline Northwest pilots allows regional carriers to fly jets with up to 76 seats, a size range that includes both the Embraer and Bombardier planes.
Northwest said Embraer would finance all 36 jets, including seven while Northwest is still operating under bankruptcy protection. Northwest said it expects to take its first deliveries of both aircraft in the second quarter of 2007. The values of the orders were not disclosed.
Northwest said the new jets will use less fuel and be cheaper to maintain than its current jets.
"This is one of the larger regional jet orders you'll see this year," said aerospace analyst Richard Aboulafia of the Teal Group.
Older airlines such as Northwest used smaller jets - often with about 50 seats - in the late 1990s and early 2000s, but they proved uneconomical, he said. Jets like the ones Northwest is buying are more economical because they spread similar costs among more passengers.
By Joshua Freed, AP Business Writer
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October 5th, 2006, 23:46
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#2 | | Old Skool
Join Date: Apr 2002 Location: New Bouncer at the Bungalow:denver
Posts: 3,107
| Re: NWA...Seeks Permission to buy 72 new jets
More JetU grads may be able to get on this, sweeeet!
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"I do not proofread"
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October 5th, 2006, 23:49
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#3 | | Senior Member
Join Date: Sep 2001
Posts: 1,419
| Re: NWA...Seeks Permission to buy 72 new jets
http://www.nwa.com/corpinfo/newsc/20...520061708.html
Northwest Announces Orders For Seventy Two Aircraft
Airline orders 36 Bombardier CRJ900 and 36 Embraer 175 aircraft as part of ongoing fleet renewal
MINNEAPOLIS – (October 5, 2006) – Northwest Airlines (OTC: NWACQ.PK) has achieved another major restructuring milestone with the announcement of orders from two manufacturers for a total of 72 new, two-class aircraft that will each accommodate 76 customers.
The airline announced that it placed firm orders for 36 Bombardier Canadair Regional Jet (CRJ) 900s and 36 Embraer 175s that will equip Northwest with modern aircraft that offer customers a comfortable travel experience, allow the carrier to pursue growth opportunities in important markets, including in the Heartland of the U.S., and provide Northwest with improved aircraft economics.
Northwest also received options for additional Bombardier and Embraer 76-seat aircraft. Both aircraft types are powered by General Electric CF34 engines.
Bombardier Canadair Regional Jet (CRJ) 900
Embraer 175
“Today’s orders are examples of the steady progress we are making in our restructuring which is focused on resizing and optimizing the Northwest fleet to better serve customers; realizing competitive labor and non-labor costs; and restructuring and recapitalizing the airline’s balance sheet,” said Doug Steenland, Northwest president and chief executive.
“The aircraft purchases from Bombardier and Embraer allow us to tailor our service to meet market demands while providing customers with a comfortable and efficient flight experience on Northwest. Both new aircraft types will lower Northwest’s operating costs over the aircraft they replace such as the Avro Regional Jet (ARJ) 85 through a combination of significantly lower fuel consumption along with inherent maintenance cost advantages,” he continued.
The values of the orders were not disclosed.
Discussing the multiple orders, Neal Cohen, executive vice president and chief financial officer, said, “Our Bombardier purchase builds on a well-established, long-term relationship and the Embraer order introduces another highly respected aircraft product line to Northwest travelers.”
Northwest’s CRJ900 and Embraer 175 aircraft will provide a best-in-class product experience for Northwest Airlink customers. They both will be configured with 12 seats in first class and 64 seats in coach class. The 12 first class seats, arranged in a one seat-aisle-two seats configuration, will have 36 inches of pitch, or space between rows. Coach class, arranged in a two seats-aisle-two seats configuration, will have pitch comparable to other aircraft in the airline’s current mainline fleet.
The CRJ900 has a range of nearly 1,400 miles (2,253 km) while the Embraer 175 will eventually have a nonstop range of nearly 1,700 miles (2,735 km). Northwest expects to take initial delivery of both aircraft in the second quarter of 2007.
Tim Griffin, executive vice president-marketing and distribution, said, “The new aircraft are ideally suited to serve Northwest’s Heartland markets by connecting passengers through the airline’s Detroit, Minneapolis/St. Paul and Memphis hubs to the carrier’s expansive domestic and international route network.”
“In addition, the introduction of highly-efficient 76-seat aircraft into the fleet will allow Northwest to offer new service and develop markets where demand does not yet support service with a 100-seat DC9-30, but exceeds what could be accommodated with a 50-seat Northwest Airlink CRJ200.”
Discussing a future replacement for Northwest’s DC-9 aircraft, Steenland said, “We are continuing to meet with aircraft manufacturers to review our requirements for a 100-seat aircraft that would replace our DC-9s." Northwest said that its regional subsidiary, Compass Airlines, will operate the 36 Embraer 175s as Northwest Airlink. An Airlink partner, to be determined at a later date, will operate the 36 Bombardier aircraft.
In addition, as part of the agreement to order new CRJ900 aircraft, Bombardier, GECAS and Export Development Canada have reached an agreement on restructuring the existing 126 CRJ200 aircraft fleet. This agreement includes the return of 15 previously rejected CRJ200 aircraft back into the Northwest Airlink fleet. This marks the completion of Northwest’s CRJ fleet restructuring. As a result, the Airlink fleet will total 141 aircraft.
The agreements are subject to the approval of the U.S. Bankruptcy Court for the Southern District of New York.
Northwest Airlines is the world’s fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.
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The real questions:
1. Who will get to operate the CR9s ? Mesaba? PNCL? Other (Mesa, etc) ?
2. The 15 CRJs returning... will they go back to PNCL? | |
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October 5th, 2006, 23:50
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#4 | | Senior Member
Join Date: Sep 2001
Posts: 1,419
| Re: NWA...Seeks Permission to buy 72 new jets
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October 6th, 2006, 00:58
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#5 | | Old Skool
Join Date: Jan 2005 Location: Socal
Posts: 2,485
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by Cherokee_Cruiser  | Not supporting the actions, but damn those planes look really nice.
*flame suit on*
__________________ Quote:
Originally Posted by Doug Taylor The quicker we realize that the world sees you as "American" no matter what color you are, the better off we'll be. | | |
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October 6th, 2006, 00:58
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#6 | | Old Skool
Join Date: May 2005 Location: BGR (Bangor, ME)
Posts: 2,763
| Re: NWA...Seeks Permission to buy 72 new jets
I could hve swore I have seen a clause in the NWA pilots contract that there could only be 3 airlink carriers.....or am I smoking some good stuff?
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October 6th, 2006, 01:00
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#7 | | Old Skool
Join Date: Jan 2006 Location: FTW
Posts: 3,845
| Re: NWA...Seeks Permission to buy 72 new jets
get these planes on mainline
destroy embraer and bombardier
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"There needs to be more drinking here on JC. We need more ******* partying!" -Doug Taylor
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October 6th, 2006, 01:20
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#8 | | Old Skool
Join Date: Dec 2005 Location: Winchestertonfieldville
Posts: 5,878
| Re: NWA...Seeks Permission to buy 72 new jets
frog, do you like Taco Bell when you're wasted? | |
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October 6th, 2006, 02:08
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#9 | | Old Skool
Join Date: Jan 2005 Location: Socal
Posts: 2,485
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by frog_flyer get these planes on mainline
destroy embraer and bombardier | Dont hate the player...hate the game!
__________________ Quote:
Originally Posted by Doug Taylor The quicker we realize that the world sees you as "American" no matter what color you are, the better off we'll be. | | |
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October 6th, 2006, 02:10
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#10 | | Old Skool
Join Date: Jan 2006 Location: FTW
Posts: 3,845
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by meritflyer frog, do you like Taco Bell when you're wasted? | I don't drink.
But yes, I heart taco bell. www.fuzzystacoshop.com open till 3am on weekends! we go 4+ times a week.
If anyone is ever in FW, go there. I live across the street and I'll let you buy me some nachos or something.
When ole bob comes out to tailgate one day we're gonna go there. shiner on tap beaches!
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Charter Member - JC Pilot Motion Picture Society (JC PiMPS)
"There needs to be more drinking here on JC. We need more ******* partying!" -Doug Taylor
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October 6th, 2006, 03:20
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#11 | | Senior Member
Join Date: Jan 2006 Location: KEWR (by way of Brooklyn, NY)
Posts: 843
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by Cherokee_Cruiser | That looks like FlightSim. 
__________________  God did not create aircraft pilots to be on the ground. | |
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October 6th, 2006, 03:26
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#12 | | Old Skool
Join Date: Nov 2003 Location: KPHX, KFFZ, KIWA
Posts: 18,200
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by Bigey Not supporting the actions, but damn those planes look really nice.
*flame suit on* | I'll take the heat off you Biggs....Time to update my resume! Quote: |
Originally Posted by Frog_Flyer get these planes on mainline
destroy embraer and bombardier | Well...Embraer & Bombardier aren't the issue. They just supply the aircraft,blame the CEO's and airline management! | |
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October 6th, 2006, 08:42
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#13 | | Old Skool
Join Date: Jul 2006 Location: Alpha Tango Lima
Posts: 7,809
| Re: NWA...Seeks Permission to buy 72 new jets
Yeah, I wanna fly a JET!!! And be Smoooooooooooooooth! 
I almost threw up in my mouth in the Mesa "Express" thread. . . but this time. . . it really happened.
__________________ AGI.MEI.CFI.CFII.FO.CRJ2 | Josh |The TRoP | ALPA | 
Where's YOUR DD-214, you conservative chickenhawk? | |
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October 6th, 2006, 09:54
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#14 | | Senior Member
Join Date: Mar 2005
Posts: 411
| Re: NWA...Seeks Permission to buy 72 new jets
pinnacle pay is already low, how do you negotiate to get lower | |
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October 6th, 2006, 10:04
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#15 | | Old Skool
Join Date: Jun 2003 Location: Memphis, TN
Posts: 12,802
| Re: NWA...Seeks Permission to buy 72 new jets
It's not just the pay, it's other things. Last I heard, PCL has the lowest CASM for a CRJ-200 in the industry. "Headquarters" is in a glorified wherehouse in a bad part of town, and they have really bad staffing for things like benefits and the pass bureau. I think benefits has like 3 people and the pass bureau is ONE person. The bad news is, it takes forever to get something done. The GOOD news is, it's less fat on the operation, so the overall cost is low. Scheduling can't keep people around b/c they keep them so strapped. Everytime I call crew scheduling, it seems I'm talking to a different person. That's bad considering the people that have been there a while (while=6 months) are the few that know what's going on.
The word from management was that someone underbid us for flying at NWA, but they won't say who. Mesaba I could see since they're hoping for a dirt cheap contract from the pilots (which I doubt they'll get at this point). CHQ was mentioned, but I don't see them bidding for flying and taking a loss.
When I was in IND yesterday, I had a mechanic getting all up in arms b/c I was gonna cost him his job. Seems the rumor there is that if the pilots don't sign a contract by next week, PCL's out and Compass is in. Rational thought has no place considering Compass has no trained pilots to speak of. The airplanes belong to NWA, so they COULD go to Compass, but I don't know who's gonna fly them. JetU grads in the left seat is WAAAY too scary.
Now, as far as contract negotations go, we're in NMB status right now. Already met with the mediator a couple of times, so he knows the goals of both sides. It's in the early stages of that, so I'm not looking for huge movement like next week or something. There was informational picketting in DTW the other day, and I heard we had a good turnout for that (I was flying back and forth b/w GRR-DTW-IND-BDL all day, otherwise I'd have been out there, too). Even some Mesaba guys were there showing some love for the Airlink brotherhood.
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October 6th, 2006, 10:10
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#16 | | Old Skool
Join Date: Apr 2005 Location: North East Ohio
Posts: 4,471
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by Kingairer More JetU grads may be able to get on this, sweeeet! |  I've got to get signed up with JetU! | |
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October 6th, 2006, 10:12
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#17 | | Moderator
Join Date: Jun 2003 Location: Eden Prairie, MN (KFCM) (KMSP)
Posts: 9,986
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by ComplexHiAv8r I've got to get signed up with JetU! |
No JetU in the Condo Club..... 
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October 6th, 2006, 10:12
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#18 | | Old Skool
Join Date: Jul 2006 Location: Austin, TX
Posts: 2,710
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by WestIndian425 That looks like FlightSim. | Flightsim...or photoshopped....they don't look 'right' to me... | |
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October 6th, 2006, 10:26
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#19 | | Old Skool
Join Date: Apr 2005 Location: North East Ohio
Posts: 4,471
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by JEP No JetU in the Condo Club..... | JEP, Come over to the DARK side!!!! I'll buy you a drink and tell you all about it....... | |
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October 6th, 2006, 11:40
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#20 | | Old Skool
Join Date: Mar 2004 Location: the Twin Cities of Minneapolis and St. Paul
Posts: 1,894
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by killbilly Flightsim...or photoshopped....they don't look 'right' to me... | Well, considering that there are, as far as I know, no Embraers in NWA livery . . .
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October 6th, 2006, 17:12
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#21 | | Old Skool
Join Date: Jun 2003 Location: Memphis, TN
Posts: 12,802
| Re: NWA...Seeks Permission to buy 72 new jets
Didn't get hardly any media attention from the other day in DTW, but it happened.... http://www.surpriseitsme.com/pinnaclepilots.html
Had not only Mesaba pilots supporting us, but also a couple of Spirit pilots. Nice to know we've got the support from them.
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October 6th, 2006, 17:30
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#22 | | Old Skool
Join Date: Sep 2003
Posts: 1,778
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by kellwolf . Everytime I call crew scheduling, it seems I'm talking to a different person. . | You call scheduling? Didn't someone teach you not to do that! | |
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October 6th, 2006, 17:39
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#23 | | Old Skool
Join Date: Jun 2003 Location: Memphis, TN
Posts: 12,802
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by B767Driver You call scheduling? Didn't someone teach you not to do that! | Well, when you're on your last leg of the day and get an ACARS message that says "FO call scheduling" you don't have much choice as a reserve slave.....
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October 6th, 2006, 23:27
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#24 | | Old Skool
Join Date: Oct 2002 Location: lower canada
Posts: 1,524
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by kellwolf It's not just the pay, it's other things. Last I heard, PCL has the lowest CASM for a CRJ-200 in the industry. | Everyone seems to think they are the cheapers operator. I had a buddy at ASA who swore they were the cheapest CRJ operators. Just because we are the lowest paid doesnt mean we are the cheapers. Pilot pay is only 4% of operating costs. Quote:
Originally Posted by kellwolf When I was in IND yesterday, I had a mechanic getting all up in arms b/c I was gonna cost him his job. Seems the rumor there is that if the pilots don't sign a contract by next week, PCL's out and Compass is in. Rational thought has no place considering Compass has no trained pilots to speak of. The airplanes belong to NWA, so they COULD go to Compass, but I don't know who's gonna fly them. JetU grads in the left seat is WAAAY too scary. | I dont know who is gonna fly compass airplanes. Everyone says "its gonna be mainline furloughs"....yeah right. They only have about 700 on the street and they have already started recalling. I think about 1 out of every 4 are bypassing for MAINLINE, what would make you think they would take a job with a regional subsidiary? My guess is that NW will call everyone back by end of 07. I still kinda think Compass is a negotiation tool.
here is my "oliver stone" conspiracy theory outcome.....
the 15 CRJs and 36 900s will come to pinnacle, the 36 Embraers will go to Mesaba.
Compass' certificate will be sold to pinnacle at a large profit by NW.
pretty outrageous, huh? but in one year you guys will all be calling me nostradamus (sp?) hahaha......LOL!!
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October 7th, 2006, 17:05
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#25 | | Old Skool
Join Date: Jun 2003 Location: Memphis, TN
Posts: 12,802
| Re: NWA...Seeks Permission to buy 72 new jets
Quote:
Originally Posted by blee256 Everyone seems to think they are the cheapers operator. I had a buddy at ASA who swore they were the cheapest CRJ operators. Just because we are the lowest paid doesnt mean we are the cheapers. Pilot pay is only 4% of operating costs.
| Wasn't going on our pay, but more on our overhead costs. Put the two together, and we're kinda hard to race to the bottom..... Quote: |
I dont know who is gonna fly compass airplanes. Everyone says "its gonna be mainline furloughs"....yeah right. They only have about 700 on the street and they have already started recalling. I think about 1 out of every 4 are bypassing for MAINLINE, what would make you think they would take a job with a regional subsidiary? My guess is that NW will call everyone back by end of 07. I still kinda think Compass is a negotiation tool.
| I think NWA's original plan was to staff Compass with furloughees, but the extreme slow start Compass is getting along with the people jumping ship at NWA (thus speeding up recalls and aiding in people bypassing those recalls) kinda throws their plan off. I think originally they had planned to start another regional and spin it off later to get some $$$ like they did with Pinnacle. Now, I agree with you. It's a negotiating tool first for mainline, and now to help the management at Mesaba and PCL get what they want. Quote: |
the 15 CRJs and 36 900s will come to pinnacle, the 36 Embraers will go to Mesaba.
| I'd agree, IF Mesaba sticks around. If management there is actually crazy enough to enforce their wage cut plan, that place will get burned to the ground with a mass walk out. Either way, I don't see the Embraers coming to our side of the fence. Quote: |
Compass' certificate will be sold to pinnacle at a large profit by NW.
| Why? As far as I know, we've already got the 2nd cert. Why would we need to buy a third? Even if we don't, we're probably far enough along that it makes no sense to spend $$$ to buy the Compass cert. It would cost less to finish what was started. Then again, if NWA provides an "incentive" like making the $$$ PCL owes them magically go away, then all bets are off.
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