Delta Hires Blackstone Group
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WNrforlife
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Tick Tock....Tick Tock.......
TheDog2004
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<DALPA>
Pay no attention to the news. It's all posturing to get more money out of us. We're making tons of money really. It's just evil management trying to con us!
</DALPA>
Pay no attention to the news. It's all posturing to get more money out of us. We're making tons of money really. It's just evil management trying to con us!
</DALPA>
TheDog2004
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bobofly777 posts on USAviation now?
NewHampshire Black Bears
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"DAL has had to over pay its GOOD OLD BOYS"JFK777 said:
The reason DAL is "paying", IS BECAUSE THEY PUT THEIR "JOHN HENRY" ON AN AGREED UPON C O N T R A C T !!!!!!!!!!!!!!!!!!!!!!!!
(I don't have my dictionary handy, could someone look up the word "MORON" for me plz.) ?
NH/BB's
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If I'm a 777 captain, I'm pondering WHICH choice I will make ?luv2fly said:
A. Give DL 30+%,with NO guarantee that DL wont go BK-11 afterwards, and then cut my pay AGAIN,
or,
B. KEEP getting paid top dollar until DL makes their move.
ANSWER, "B".
NH/BB's
WorldTraveler
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Seems might risky, NHBB. Delta has said they could get about $200 million in savings through aircraft lease renegotiations and would like to push back some of their debt due next year but other than that there is no other reason for them to file bankruptcy. If DL files for bankruptcy, it will be almost exclusively to restructure the pilot agreement; as such you will pay mightily for forcing them into bankruptcy - far, far, far more than you would have to give up under a voluntary restructuring. The comparison for pilot costs now is UA and AA; if DL goes in bankruptcy, they could change their business plan, making the comparison B6 and FL. At that rate, you'll be flying a 777 for not much more than one and a quarter per year.
Thankfully, lots of other stuff I'm reading says the vast majority of DL pilots recognize its time to give while they have some control over the outcome. Delta is too great of a company to end up on the ash heap of the industry - which is likely what will happen if DL files for bankruptcy. Remember, there is no ATSB loan opportunity for DL which is the only hope UAL has of pulling out of its nosedive.
Thankfully, lots of other stuff I'm reading says the vast majority of DL pilots recognize its time to give while they have some control over the outcome. Delta is too great of a company to end up on the ash heap of the industry - which is likely what will happen if DL files for bankruptcy. Remember, there is no ATSB loan opportunity for DL which is the only hope UAL has of pulling out of its nosedive.
WorldTraveler
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Another point, NHBB:
There is no reason to think Delta would pursue chapter 11 if they got a reasonable pilot agreement, and there is no reason to think they would sign a pilot agreement outside of BK and then turn around and go into bankruptcy to get more from the pilots. If the entire legacy airline industry goes into bankruptcy, then that's another story but that would likely only happen if a major terrorist event occurs or some major economic event occurs - at which point the airlines are just a small part of a much bigger problem. As long as Delta gets costs similar to the best in class legacy airlines - currently set by AA and CO, there is little risk of DL going to BK. Since DL can control far more costs than other legacy carriers and has already stated that all of their non-pilot costs are in-line with the rest of the industry, there is little risk that DAL would pursue bankruptcy.
Do not underestimate the risk of filing for chapter 11. There are precious few examples of companies that have successfully restructured and returned to become viable enterprises. Despite UA employees' boastings, I am highly skeptical that United will ever be the grand dame she once was. US is plain for all the world to see as is all the case studies in history.
Tell me, NHBB, what you think Delta would gain by filing for bankruptcy and then weigh that against the costs and risks involved.
tpd
There is no reason to think Delta would pursue chapter 11 if they got a reasonable pilot agreement, and there is no reason to think they would sign a pilot agreement outside of BK and then turn around and go into bankruptcy to get more from the pilots. If the entire legacy airline industry goes into bankruptcy, then that's another story but that would likely only happen if a major terrorist event occurs or some major economic event occurs - at which point the airlines are just a small part of a much bigger problem. As long as Delta gets costs similar to the best in class legacy airlines - currently set by AA and CO, there is little risk of DL going to BK. Since DL can control far more costs than other legacy carriers and has already stated that all of their non-pilot costs are in-line with the rest of the industry, there is little risk that DAL would pursue bankruptcy.
Do not underestimate the risk of filing for chapter 11. There are precious few examples of companies that have successfully restructured and returned to become viable enterprises. Despite UA employees' boastings, I am highly skeptical that United will ever be the grand dame she once was. US is plain for all the world to see as is all the case studies in history.
Tell me, NHBB, what you think Delta would gain by filing for bankruptcy and then weigh that against the costs and risks involved.
tpd
Worldtraveler hits the nail on the head. Jerry has said that if it goes too long, 30% will increase to a much higher number to make up for "lost time" in negotiating. If you exclude pilot pay, DL has one of the lowest CASM figures among network carriers. Add in pilot pay and they fall only under US...a soon to be failed entity. While the network carriers are still loosing money, with a CASM rate near the lowest among network carriers, DL would be able to restructure non-labor/worker benefits & pay agreements similar to what AA did to avoid bankruptcy thus putting DL in a much stronger position allowing for growth. While in the short term, a new pilot agreement would cause furloughs, improved agreements, and thus lower costs, make for more flying opportunities once the company is righted in short order. I just went to a town-hall meeting of Jerry's and while I didn't like everything he had to say...at least he's honest.
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