Delta to end pilot pension plan
- Thread starter BillLumbergh
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WorldTraveler
Corn Field
- Dec 5, 2003
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World,
I wouldn't say that at. This only sets in motion a variety of other things that can now be renegotiated because this big issues has been taken care of. Most importantly, they then have to spend a lot of time lining up lenders to recapitalize the business with exit financing. I would bet that there are still a lot of lease issues with various cities on facilities and contracts with parts suppliers that still have a lot of room for renegotiating, but were dependant upon this news. A lot of creditors don't want to give up the opportunity to colloct now unless they truly believe that the problems are fixed and that all that remains is them losing some money in the short term.
I wouldn't say that at. This only sets in motion a variety of other things that can now be renegotiated because this big issues has been taken care of. Most importantly, they then have to spend a lot of time lining up lenders to recapitalize the business with exit financing. I would bet that there are still a lot of lease issues with various cities on facilities and contracts with parts suppliers that still have a lot of room for renegotiating, but were dependant upon this news. A lot of creditors don't want to give up the opportunity to colloct now unless they truly believe that the problems are fixed and that all that remains is them losing some money in the short term.
Wow -- eleven whole minutes to get the spin in on how this is actually a good thing.
You're slipping, WT!
Always interesting that WT and Artie post within a few minutes of each other. Perhaps they exchanged phone numbers so they can spin their ideas together.
WorldTraveler
Corn Field
- Dec 5, 2003
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I suppose I called Mike Boyd and several other industry analysts since they also said by yesterday evening that this was the last major obstacle for DL to overcome in order to get out of BK. It just pains you that I can read this industry as good as any "professional" analyst and find absolutely no trouble finding analysts that agree with me... just as I have said about UA for years.
Indications are that DL has settled most of the facility and aircraft lease issues... the buildup at LAX is undoubtedly due to the requirement LAX is imposing regarding increased facility usage. BOS is rumored to be concluded also with several gates being given back - DL didn't need them to begin with. CVG is the only facility that hasn't been finalized so far as I know but there isn't exactly a line of carriers ready to take over DL's 75+ mainline and RJ gates.
The only major fleet issue to be resolved is the CRJs and that is dependent on Comair. Right now, the lessors keep extending DL's right to accept/reject the leases since they know there is a pretty good likelihood that DL will eventually reject some of them anyway.
As much as it absolutely kills most of you to admit it, DL is executing the dramatic turnaround that I predicted for years they would do and they are doing it faster and better than other airlines that went before them.
And the good news at DL WILL keep coming.
Indications are that DL has settled most of the facility and aircraft lease issues... the buildup at LAX is undoubtedly due to the requirement LAX is imposing regarding increased facility usage. BOS is rumored to be concluded also with several gates being given back - DL didn't need them to begin with. CVG is the only facility that hasn't been finalized so far as I know but there isn't exactly a line of carriers ready to take over DL's 75+ mainline and RJ gates.
The only major fleet issue to be resolved is the CRJs and that is dependent on Comair. Right now, the lessors keep extending DL's right to accept/reject the leases since they know there is a pretty good likelihood that DL will eventually reject some of them anyway.
As much as it absolutely kills most of you to admit it, DL is executing the dramatic turnaround that I predicted for years they would do and they are doing it faster and better than other airlines that went before them.
And the good news at DL WILL keep coming.
WorldTraveler
Corn Field
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Hey, that's just great!
So DL will be emerging, when, by the end of the week at the latest?
WorldTraveler
Corn Field
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But I thought the pilot's pension was the last hurdle they had to cross, no?
And they have always consistently said they would emerge in 2Q07? But I thought they had to ask for an extension at least once so far, no?
Define "axe to grind"? I could care less when DL emerges, or who is "beating" whom at whatever game you think is being played. I am just amused at your spinning, so I like to point out the myriad inconsistencies and endless hypocrisy that keeps coming up.
WorldTraveler
Corn Field
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I spin nothing… I have always believed DL had a very good chance of restructuring but needed to have the right tools to restructure. BK is a powerful tool and DL is using it very well. There is no spin in being able to keep the faith during the darkest days for DL and now being able to celebrate their turnaround now that it is happening just as expected.
Perhaps you underestimate the BK process but it takes months to come up with the financing and write a POR. Also, the PBGC has not taken over the DL pilot plan although they certainly will. While DL is moving through the process, I’m sure it doesn’t hurt that they are targeting getting out of BK just a few months before summer when they have a chance to build cash. If by chance the industry falls apart and the summer doesn’t materialize, DL has the opportunity to remain in BK until they rework the business. But if next year’s summer falls apart to the point of keeping DL in BK, it is rather certain that other airlines will be joining DL in BK by fall and winter of 2007. As for extensions, I do not know of any airline or any multibillion dollar corporation that has been able to NOT ask for extensions in its time to file a POR. It’s rather obvious that the POR timelines are not realistic for companies of the size of large US airlines.
DL will have moved through its bankruptcy in about 18 months which is very much on the fast track compared with other airlines, esp. if DL remains independent and performs at the top of the industry. There are precious few airlines that have been through BK just one time and ended up as a leader in the industry. If DL can do that, and indications are very strong that they will, they will have accomplished something few if any other airlines have done.
Perhaps you underestimate the BK process but it takes months to come up with the financing and write a POR. Also, the PBGC has not taken over the DL pilot plan although they certainly will. While DL is moving through the process, I’m sure it doesn’t hurt that they are targeting getting out of BK just a few months before summer when they have a chance to build cash. If by chance the industry falls apart and the summer doesn’t materialize, DL has the opportunity to remain in BK until they rework the business. But if next year’s summer falls apart to the point of keeping DL in BK, it is rather certain that other airlines will be joining DL in BK by fall and winter of 2007. As for extensions, I do not know of any airline or any multibillion dollar corporation that has been able to NOT ask for extensions in its time to file a POR. It’s rather obvious that the POR timelines are not realistic for companies of the size of large US airlines.
DL will have moved through its bankruptcy in about 18 months which is very much on the fast track compared with other airlines, esp. if DL remains independent and performs at the top of the industry. There are precious few airlines that have been through BK just one time and ended up as a leader in the industry. If DL can do that, and indications are very strong that they will, they will have accomplished something few if any other airlines have done.
