From the IAG Website:
Thursday, November 30, 2006
Delta's management blinks
We have said that watching Delta carefully will be necessary to see how they really feel about the US Airways offer. We think we see enough to bet they are nervous, very nervous.
Take a look at this story. ( http://biz.yahoo.com/ap/061129/delta_labor.html?.v=1 ) This gift could add up to ~$26.5m. Lets say we read Mr. Kolshack's words correctly and employees got a total of $475, that would not be a very exciting payout, would it? The maximum possible payment (for meeting all goals) was $75 per employee per month. So $475 split over 14 months would be $33.93 per month.
But, wait there's more - Delta Air Lines said it is recalling an additional 200 furloughed pilots in 2007 for its international route expansion. The airline already recalled about 130 pilots this year and brought back 700 maintenance workers and 1,000 flight attendants earlier this month.
And there is even more; how about this? Delta Air Lines said today it made a net loss ($88m) for the month of October, but the loss was narrower than the same month last year as it managed to lower its costs. No credit is given to exogenous factors like higher fares and lower fuel costs. Its all about the internal savings put into play a while back.
We said the managers were going to buy off anyone they could - starting with pilots and now you see they are trying to sweeten employees whose morale is in the tank. But the news seems to be saying something else. When the people in Phoenix read this they are going to giggle like hunters do when their prey walks into the sights and then stands still.
Reuters reports some bondholders and smaller Delta creditors plan meetings with the airline and US Airways, a lawyer for the informal group said on Thursday. The ad hoc group of creditors -- which is not taking part in a meeting on Thursday with Delta, US Airways and the official Delta creditors group -- began organizing last week. This group aims to put pressure on Delta to fully consider the US Airways bid as an alternative to its standalone strategy.
Standing alone in US Airways' sights, defiant, with a "My Delta" button and a wristband.
<<< Standing alone in US Airways' sights, defiant, with a "My Delta" button and a wristband. >>>
Why do I get the feeling the author is referring to WorldTraveler?
Thursday, November 30, 2006
Delta's management blinks
We have said that watching Delta carefully will be necessary to see how they really feel about the US Airways offer. We think we see enough to bet they are nervous, very nervous.
Take a look at this story. ( http://biz.yahoo.com/ap/061129/delta_labor.html?.v=1 ) This gift could add up to ~$26.5m. Lets say we read Mr. Kolshack's words correctly and employees got a total of $475, that would not be a very exciting payout, would it? The maximum possible payment (for meeting all goals) was $75 per employee per month. So $475 split over 14 months would be $33.93 per month.
But, wait there's more - Delta Air Lines said it is recalling an additional 200 furloughed pilots in 2007 for its international route expansion. The airline already recalled about 130 pilots this year and brought back 700 maintenance workers and 1,000 flight attendants earlier this month.
And there is even more; how about this? Delta Air Lines said today it made a net loss ($88m) for the month of October, but the loss was narrower than the same month last year as it managed to lower its costs. No credit is given to exogenous factors like higher fares and lower fuel costs. Its all about the internal savings put into play a while back.
We said the managers were going to buy off anyone they could - starting with pilots and now you see they are trying to sweeten employees whose morale is in the tank. But the news seems to be saying something else. When the people in Phoenix read this they are going to giggle like hunters do when their prey walks into the sights and then stands still.
Reuters reports some bondholders and smaller Delta creditors plan meetings with the airline and US Airways, a lawyer for the informal group said on Thursday. The ad hoc group of creditors -- which is not taking part in a meeting on Thursday with Delta, US Airways and the official Delta creditors group -- began organizing last week. This group aims to put pressure on Delta to fully consider the US Airways bid as an alternative to its standalone strategy.
Standing alone in US Airways' sights, defiant, with a "My Delta" button and a wristband.
<<< Standing alone in US Airways' sights, defiant, with a "My Delta" button and a wristband. >>>
Why do I get the feeling the author is referring to WorldTraveler?
