Dl Comments About Us In Bankruptcy Filing

[ringmaruf]

From Delta's informational brief with their Chapter 11 filing:

"In late May 2005, US Airways, struggling through its second bankruptcy in the past three years, announced that it had reached an agreement to merge with an LCC, America West Airlines ("America West"). Together, the two airlines will become the fifth-largest domestic carrier, and will have a combined $10 billion in annual revenue, 361 planes and 44,100 employees. The merger was enabled in part by US Airways ability to jettison its pension plans and renegotiate its labor contracts in bankruptcy so as to bring its labor costs to LCC levels.

Once the merger is consummated, US Airways will become "the first national low-cost hub-and-spoke network carrier." It will have a route network that heavily overlaps with Delta's system. In short, for the first time, a carrier with an LCC-cost structure will have both a nationwide domestic presence and a sizable international presence. US Airways has been Delta's biggest competitor. It just got bigger and more effective.

The significance of this development as a competitive threat to Delta is profound. A combined US Airways/America West will provide alternative low-cost service to more than 80 percent of Delta's domestic O&D passengers. In addition, the overwhelming majority of Delta's international passengers traveling to Europe, Canada and Mexico, Central America, or the Caribbean fly to destinations served by either US Airways or America West."

 

[livingontheedge]

Yeah isn't it great that USAirways lead the way for other airlines to strip away hard earned pensions, reduce employee salaries by up to 26%, take away and reduce retiree's pensions and medical benefits....etc....etc....etc....

Yup, we set a shining example all right........NOT! :down:

 

[KCFlyer]

Yeah isn't it great that USAirways lead the way for other airlines to strip away hard earned pensions, reduce employee salaries by up to 26%, take away and reduce retiree's pensions and medical benefits....etc....etc....etc....

Yup, we set a shining example all right........NOT! :down:

[post="301432"][/post]​

Don't forget the part about screwing shareholders...twice.

 

[a320av8r]

Yeah isn't it great that USAirways lead the way for other airlines to strip away hard earned pensions, reduce employee salaries by up to 26%, take away and reduce retiree's pensions and medical benefits....etc....etc....etc....

Yup, we set a shining example all right........NOT!  :down: 

[post="301432"][/post]​

We did all that???
I suppose economics, bad management, competition from JetBlue (JFK), Southwest (DFW,SLC,LAX), Airtran (ATL, MCO), high fuel costs, etc. had nothing to do with it.

I gave up my pension, pay (52%), position, vacation, off days, etc. just to hurt Delta?

The truth is Delta's "plan" was to push US Airways over the edge- it didn't work so now it's their turn. We figured out how to survive- will Delta? From what I'm hearing, not likely.

 

[PITbull]

I hate to break your daydreaming ..but DELTA went into BK in order to compete and shed some leases and debt; just like U.

U will not enjoy the lowest cost in Labor, pensions gone, and consolidation as THE ONLY PLAN in town. After all, they don't own the patent on BK as a business model.

Every single Legacy will adopt the exact same plan, same channel, same station.

Don't delude yourself.

 

[KCFlyer]

I hate to break your daydreaming ..but DELTA went into BK in order to compete and shed some leases and debt; just like U.

U will not enjoy the lowest cost in Labor, pensions gone, and consolidation as THE ONLY PLAN in town. After all, they don't own the patent on BK as a business model.

Every single Legacy will adopt the exact same plan, same channel, same station.

Don't delude yourself.

[post="301439"][/post]​

And the LCC's will follow...then, after the playing field is "leveled" once again, the game will start over.

 

[robbedagain]

Don't forget the part about screwing shareholders...twice.

[post="301433"][/post]​

"OH" Dont forget that the golden parachutes were built to handle the heavy loads of the green sticks and the straps strong enough to handle the top dudes while bailing out at 10000 feet from the courthouse!!!!!

 

[a320av8r]

Michael Boyd, an industry analyst near Denver, Colorado, is relatively optimistic that Northwest will emerge from bankruptcy as a stronger carrier.

"Northwest is very well positioned because it is in the right kind of markets to access what we call Sino-centric growth which is in the American south and Midwest and in China," said Mr. Boyd on Bloomberg Television. "But if they get their costs down their revenue stream is what saves them. Delta, I'm not really sure. They're over-invested in 50 seat jets, their route system is weak, and they're not big in Asia where they need to be. So they're going to have a much harder time getting through this."

 

[US1YFARE]

Delta, I'm not really sure.[/b] They're over-invested in 50 seat jets, their route system is weak, and they're not big in Asia where they need to be. So they're going to have a much harder time getting through this."

[post="301550"][/post]​

and, delta may have waited a bit too long to enter

 

[luvthe9]

Yeah isn't it great that USAirways lead the way for other airlines to strip away hard earned pensions, reduce employee salaries by up to 26%, take away and reduce retiree's pensions and medical benefits....etc....etc....etc....

Yup, we set a shining example all right........NOT! :down:

[post="301432"][/post]​

You are an idiot !!! It was southwest, airtran and jet blue that started the downward sprial for all of us.,

 

[usair_begins_with_u]

I hate to break your daydreaming ..but DELTA went into BK in order to compete and shed some leases and debt; just like U.

U will not enjoy the lowest cost in Labor, pensions gone, and consolidation as THE ONLY PLAN in town. After all, they don't own the patent on BK as a business model.

Every single Legacy will adopt the exact same plan, same channel, same station.

Don't delude yourself.

WORD!!!!

 

[WorldTraveler]

Michael Boyd, an industry analyst near Denver, Colorado, is relatively optimistic that Northwest will emerge from bankruptcy as a stronger carrier.

"Northwest is very well positioned because it is in the right kind of markets to access what we call Sino-centric growth which is in the American south and Midwest and in China," said Mr. Boyd on Bloomberg Television. "But if they get their costs down their revenue stream is what saves them. Delta, I'm not really sure. They're over-invested in 50 seat jets, their route system is weak, and they're not big in Asia where they need to be. So they're going to have a much harder time getting through this."

[post="301550"][/post]​

Since everyone is an expert on the airlines, now, I'm as qualified as any.

NW can't even fly their current international route system because of a shortage of long range aircraft, let alone expand into China. Case in point: NW just dumped JFK-NRT to replace a 25 year old fuel-guzzling 747-200 on the LAXNRT run. Doesn't exactly look like NW has a whole lot of resources available to expand into China, does it? Oh, and United has four widebody nonstops to the US from China; NW has 3 flights to China and they are all to Tokyo - and they are not even all on widebody aircraft!

DL on the other hand has dozens of 767s that are actually flying on the domestic system in domestic configuation but are international capable. DL has already said those planes will be reconfigured and moved to the international operation. Further, DL can reduce leases on the hundreds of RJs in their fleet in order to get rid of those pesky 50 seaters. They will keep Comair intact through bankruptcy since they are serving as collateral for their DIP financing but then dump a bunch of those CRJs as part of their plan to exit from bankruptcy - not unlike US rejected their PIT lease on the final day of BK #1.

 

[USFlyer]

I'm fairly certain, too, that if NW and DL merge, CVG will be dropped as a hub in favor of DTW.

 

[USA320Pilot]

Delta officials: Layoffs 'will not be small'

ATLANTA (Triangle Business Journal) - Delta CEO Jerry Grinstein presented a guardedly optimistic view of the airline's future at a hastily called meeting of the Georgia Senate Finance Committee at the Capitol in Atlanta to explore what Delta's bankruptcy has in store.

"One of the reasons we tried so hard to avoid going in [to bankruptcy] is because there's not a good track record for it," said Grinstein. He said 160 airlines have gone into bankruptcy, with 20 emerging.

While Grinstein said he doesn't plan for a merger with another airline -- Delta presented a three-year plan to its lenders that "envisions a stand alone airline" -- he also wouldn't rule it out.

See Story

Regards,

USA320Pilot

 

[mwa]

mr boyd has been playing the rj melody for a long time. he is a hired gun for scope protection. it's like writing a book and then spending the rest of your life defending it.