Chapter 11 Soon?

found this on the Delta board, i think its worth a read.

Here is the text of an open letter sent to the pilots of Delta from an ex-EA pilot which I obtained. The uncertain situation at UA and US could not be any clearer regarding the risk DL pilots would take by not working with the company.

July 11, 2004
To: The Pilots of Delta Air Lines
From: Captain Robert G. Fuhrman
Airline Pilots Association: Inactive Member in Good Standing
International Association of Machinists: Inactive Member in Good Standing
Teamsters Union: Active Member in Good Standing

I am a Captain for a major cargo airline and a former pilot for Eastern Airlines. Through my personal experience, I have first hand knowledge with the bankruptcy process. During my career, I have watched Eastern, Discovery Airlines (Hawaii), and Midway Airlines file for bankruptcy protection under Chapter 11. None of these carriers were able to successfully re-organize under Chapter 11 Bankruptcy protection. In my career, I have started as a new hire at the bottom of the seniority list, on probation four times. When Eastern failed, my wife, and I were the parents of two young boys ages 6 and 5. To provide income and medical insurance for my family, I had no choice but to accept my circumstances, commute to wherever the work was and experience the separation
from my family for long periods of time. From the time Eastern failed until I was able to hold a line at my current airline was seven years.

During this time of reestablishing my aviation career I was a very active ALPA member fighting for our Eastern Airlines careers. I testified in the Department of Transportation competency hearings concerning Frank Lorenzo. Congressman Mac Collins took me to the White House to bring this matter before President Clinton. I have personal letters from Presidents George Bush and Bill Clinton concerning the plight of the families of Eastern Airlines. I have five three-inch notebooks full of letters from Congressmen and Senators; two letters in particular from Senator John McCain and Senator John Kerry are worth mentioning. In a letter to me dated April 11, 1997, Senator John McCain from Arizona, the Chairman of the Senate Commerce, Science and Transportation Committee, says “Nevertheless, if
there is some type of legislation proposal that addresses your concerns, I would gladly consider itâ€. On July 14, 1997, by Providence, I personally met Senator McCain in the halls of the Russell Senate Office Building. When I mentioned to Senator McCain that my issue was Eastern Airlines he looked at me and said abruptly, “That’s over my friend.â€

The letter from Senator John Kerry of Massachusetts dated October 28, 1996 is to the then Chairman of the Senate Science, and Transportation Committee, Senator Larry Pressler. Senator Kerry requests that hearings before this committee be scheduled “in order to address the grievance he and the families of Eastern Airlines have concerning the bankruptcy proceedings of the company.†As of this date, July 11, 2004, the Senate Commerce, Science, and Transportation Committee has not addressed the Eastern Airlines grievance.
The purpose of the Chapter 11 Bankruptcy Court is to allow an entity to restructure debt that has become unmanageable. Should a restructuring of the debt not be possible, then the entity will be liquidated in an attempt to repay creditors. Such was the case at Eastern, Midway, and Discovery.

Over the years numerous airlines have entered bankruptcy. Continental, and America West, are the only major airlines to emerge from Chapter 11 Bankruptcy Protection to become moderately successful. (Continental went into Chapter 11 Bankruptcy twice.) I have heard comments from Delta pilots saying “I’ll take my chances in bankruptcyâ€. From my experience, I would suggest that the Delta Pilot Group not to gamble your careers and the future of your families by journeying down the Bankruptcy Road. When you consider bankruptcy, just think of the term “The Debtor in Possessionâ€. In the Old Days, when a company was placed under bankruptcy protection the management of that company was immediately replaced with a Trustee. Today, the present management is kept in place and is given the title of “The Debtor in Possessionâ€. A Bankruptcy Judge is not a Tenured Federal Judge. A Bankruptcy Judge is appointed by the Executive Branch and serves a specified term in this position and he can do anything he deems necessary for the good of the Debtor in Possession.

You may ask “What about Section 1113 of the bankruptcy code?†Section 1113 allows a company two modify or reject a collective bargaining agreement under certain circumstances. I can tell you from my experience with Eastern Airlines; the non-tenured Bankruptcy Judge will do anything he deems necessary for the Debtor in Possession while you fight his decision for months and years in the Federal Court System.

In the fall of 1989 we continued our struggle against Continental Holdings Company and through the years we have won the majority of the court decisions. This has been accomplished through our own organization, the Eastern Pilots Merger Committee. 300 to 350 Eastern Pilots paying $50.00 per month to continue our legal struggle for these past 15 plus years. As Professional Airline Pilots, the Pilots of Eastern Airlines won a very significant struggle in the history of the American Labor Movement! Frank Lorenzo was deemed incompetent and removed from the American airline industry by the Department of Transportation. Today, 15 years after our fight began; there is a legal process to obtain an arbitrator to integrate Pilots of Eastern Airlines into the seniority list at Continental Airlines. (note that although there has been a ruling that an arbitrator be appointed,
Continental is challenging this in court. And so continues the never ending merry-goround ride. The pilot’s win a court decision, Continental challenges it, and so it goes, year after year after year).

Just as you have the ability to avoid a line of thunderstorms by planning conservatively, so you too can avoid bankruptcy by conservative planning. However, just as delaying the avoidance of thunderstorms for too long can take the situation out of your control, this also can be the situation when waiting too long to act to avoid bankruptcy. When Delta’s creditors start to demand cash for services, things may spiral out of control so rapidly that no corrective action will avoid Chapter 11. The bankruptcy court is stacked against you. But, if you choose to fly into this adverse weather you can fight the bankruptcy system with time, money and your careers. You will most certainly win many of the battles but you will most likely lose the war.

You absolutely must maintain your focus on your family and your career. Your goal is not to have a strong ALPA, not to take a strong stand, and not to make a statement. Your goal, for each of you individually, is to assure the best career for your families future. This is an absolute, and it must be undertaken within the context of today’s airline environment. If you as members of the Airline Pilots Association disagree with the present course of your MEC let your voices be heard. Replacement of your MEC is in your control as the membership of this body politic.
I assure you that the emotional sentiments that emanate from LEC meetings, MEC
meetings, and on your forum will ring very hollow if Delta files for Bankruptcy
Protection. Your young sons and daughters look to you for their security. If you awaken to headlines that say “Delta Files Bankruptcy and your children ask you “daddy, what’s going to happen,†you will wish from the depths of your soul, as I experienced, that you had done everything in your power to help Delta avoid bankruptcy. Bankruptcy is truly an emotional Black Hole!

I urge you, as members of the Delta Pilot Group to exhort your ALPA MEC to work with Delta’s management to avoid Chapter 11 Bankruptcy Protection at all costs.†Do what needs to be done at this time to help Delta Air Lines achieve a successful and proserous future.

Above all, Take Care of Your Families!!!
Respectfully,
Captain Robert G. Fuhrman
July 4, 2004
 
An introspective point of view is a good thing. However, let it be said that Captain Robert G. Fuhrman is now flying boxes around at the highest rates in the aviation industry and is the envy of every commercial pilot. Not bad for ex-EAL, good comeback! Success is defined by many things; however, I've never met a successful person that has sold themselves short.


demotivators_1805_8520436.jpg
 
PITBUll:

I didn't say I liked what could occur in Chapter 11, but what I reported is how I understand the filing will occur. We have about 5 to 8 weeks to obtain new labor accords and S.1113 letters, if we desire, to save as much as we can.

Regards,

USA320Pilot
 
USA320Pilot, you can negotiate til the cows come home. Fact is, they will file anyway. And, I think you're right -- they will file on a Sunday given their past history. Lastly, to do it near Sept. 11 is completely sick, which is exactly their style. God bless us all man.
 
USA320PILOT:
all this prepackaged booga booga don't need no DIP financer talk has led me to one startling conclusion.
if ahab decides to take out some refinery capacity anywhere in the world it will skyrocket oil prices and in the blink of an eye old U will be in one of its biggest dilema's.
duh......
 
USA320Pilot said:
PITBUll:

I didn't say I liked what could occur in Chapter 11, but what I reported is how I understand the filing will occur. We have about 5 to 8 weeks to obtain new labor accords and S.1113 letters, if we desire, to save as much as we can.

Regards,

USA320Pilot
[post="167101"][/post]​


perhaps you missed the section in the previous post.................................

......."You may ask “What about Section 1113 of the bankruptcy code?â€￾ Section 1113 allows a company two modify or reject a collective bargaining agreement under certain circumstances. I can tell you from my experience with Eastern Airlines; the non-tenured Bankruptcy Judge will do anything he deems necessary for the Debtor in Possession while you fight his decision for months and years in the Federal Court System. ".................................................................
....


i wouldnt bet it all on the 1113 letter.

:shock:
 
how is an s 1113 letter going to help the labors with agreements when the last round of ch11 costed the pilots their pension plane and got a reduced one in return? and that was even with a 1113 letter
 
PITbull said:
They profited $34 million this past quarter which adds to their cash.
[post="166831"][/post]​
They profited $34M, but that doesn't necessarily add to cash. Remember what you learned in your accounting classes. Lack of cash causes bankruptcy, and a profitable company can suffer from lack of cash.

BUT, ITS A DAMN ELELCTION YEAR! You know as sure as we both are sitting here the "controling Republicans" will bring those fuel prices down starting in October.
They sure want to, but it may be out of their hands. Lukos is a major issue, and Putin is far more concerned with maintaining his power in Russia than in making Bush happy.

Our loads are breaking historical records...where's the 9/11 effect, huh?
Mostly gone, though the load factors aren't the way to tell, since they're affected by capacity.
 
700UW said:
Dell computer shut down their India based tech support, it was not customer service and moved it back to the US.
[post="166869"][/post]​
True, but that's unfortunately a temporary issue. We're seeing the very early days of India-based telephone service.

Look at what Japan did with automobiles. In the 1960s, they were pretty bad. Now, they're considered by many to be the best in the world. All it takes is perseverence, focus, and time. I give it about a decade before India's telephone support is virtually indistinguishable from their domestic counterparts.
 
mweiss said:
They profited $34M, but that doesn't necessarily add to cash. Remember what you learned in your accounting classes. Lack of cash causes bankruptcy, and a profitable company can suffer from lack of cash.

They sure want to, but it may be out of their hands. Lukos is a major issue, and Putin is far more concerned with maintaining his power in Russia than in making Bush happy.

Mostly gone, though the load factors aren't the way to tell, since they're affected by capacity.
[post="167691"][/post]​


What exactly do you do here, post, just for the sake of commenting and seeing your posts? That's not even worthy of a rebuttle. :down:
 
PITbull said:
What exactly do you do here, post, just for the sake of commenting and seeing your posts? That's not even worthy of a rebuttle. :down:
[post="167702"][/post]​


GEEEEEEZ pitbull, it's the internet...... take a hike....


oh, I'll just ignore.