Major Rifs

[Buck]

NEW YORK (Reuters) - Delta Air Lines Inc. (DAL.N: Quote, Profile, Research) , the No. 3 U.S. carrier, said on Sunday it will cut 2,000 aircraft-maintenance jobs, up to 3,100 customer-service jobs, and between 1,600 and 1,800 supervisory and administrative personnel as part of a previously announced plan to cut total staffing by 7,000.

A company spokeswoman said the actual number of cuts will be about 100 below its initial forecast. Delta has more than 60,000 employees, according to its Web site.

Atlanta-based Delta has been searching for ways to cut costs to restructure its business in a fight to avoid bankruptcy. Like other airlines, it has been plagued by high costs, weak revenue, skyrocketing fuel prices and stiff competition from discount carriers.

The company last week said General Electric Co.'s (GE.N: Quote, Profile, Research) commercial finance unit agreed to provide $500 million of financing.

Delta's shares closed up 12 cents at $6.15 on the New York Stock Exchange on Friday.

 

[Nightwatch]

I wonder if they blame TWA?

 

[Decision 2004]

I wonder if they blame TWA?

[post="198845"][/post]​

Had TWA been allowed to go OUT OF BUSINESS then maybe things would be different. Fuel prices are only patially to blame. Too much capacity and too much debt are bigger issues, and you brought both of these problems along with your sorry ass to AA.




Ten Things That Will Ground Airlines
Mark Tatge, 11.08.04, 6:00 AM ET

NEW YORK - U.S. airlines are choking to death.

The industry will have losses of more than $4 billion for 2004, bringing total losses since the Sept. 11, 2001, terrorist attacks to a staggering $25 billion. High oil prices are only partially to blame.

Eleven of the 12 majors have junk-bond corporate ratings. The airlines have amassed more debt than some Third World countries: $100 billion. They can't pay it all back. Attempting to stay airborne, carriers have whacked $13 billion in costs by slashing pay, benefits, firing employees, dumping planes and cutting routes. All without much luck.



UAL (otc: UALAQ - news - people ), US Airways Group (otc: UAIRQ - news - people ) and ATA Holdings (nasdaq: ATAH - news - people ) are in bankruptcy. Delta Air Lines (nyse: DAL - news - people ) sits on the edge of Chapter 11. Continental Airlines (nyse: CAL - news - people ), American Airlines parent AMR (nyse: AMR - news - people ) and Northwest Airlines (nasdaq: NWAC - news - people ) are scrambling. If fuel stays at $50 per barrel, it won't be long before their cash runs low and they must restructure, or worse--stop flying.

What's the big problem? Too many planes chasing too few passengers.

Since 2001, the industry has lost $15 billion in revenue. Industry revenue stands at $91 billion per year. Competition for revenue is fiercer than ever. Low-cost carriers like Southwest Airlines (nyse: LUV - news - people ), JetBlue Airways (nasdaq: JBLU - news - people ) and AirTran Holdings (nyse: AAI - news - people ) rule. They make up 30% of the market, up from 9% in 1991.

Vaughn Cordle, a United Airlines pilot who runs Airline Forecasts, an economic forecasting service, says the biggest problem is that revenue per seat mile, or yield, is falling. Yields have dropped 17% to 18% in the past few years. In 2000, they stood at 13 cents per revenue passenger mile. Now they are at a weighted average of 11.25 cents.

Cordle recently talked to Forbes and came up with ten reasons why the airline situation will grow worse before it gets better.


SO YES NIGHTWATCH, TWA IS TO BLAME AND AMR FOR ASSUMING THAT DEBT AND KEEPING THOSE PLANES IN THE AIR!

UNTIL SOMEONE REDUCES THE PLANES THEN NOTHING WILL CHANGE. AND TWA WAS THE FIRST TO FILE CHAPTER 11.

WHY AMR TOOK ON YOUR DEBT AND YOUR SORRY ASSES WE MAY NEVER KNOW.

NOW GO POUND THAT IN YOUR SPHINCTER>>>>>>>>>>>>

 

[Nightwatch]

I brought? Sorry Dave, I did not bring as much as you sought me out. Now go cry to your midget, perhaps he'll splurge for you another dinner and charge it to local 12, after all, you are a VP worthy of a Happy Meal.

Is this pounding excersize you type of a local undertaking, or something done in private by crybabies, and does it hurt?

 

[Nightwatch]

News > Deals


AMR takes TWA aboard
January 10, 2001: 6:04 p.m. ET

AMR also to acquire $1.5B of US Airways assets, 49 percent stake in DC Air
By Staff Writers Tom Johnson and Kim Khan







NEW YORK (CNNfn) - American Airlines parent AMR Corp. unveiled several widely-expected acquisitions Wednesday, including an agreement to purchase most of the financially troubled Trans World Airlines Inc. assets for about $500 million cash. TWA, one of the oldest carriers in the United States, filed for bankruptcy as part of the arrangement.

In separate arrangements, AMR (AMR: Research, Estimates) also agreed to acquire certain assets from US Airways for approximately $1.2 billion, and to purchase a 49 percent stake in the start-up DC Air for approximately $82 million.


VIDEO
TWA bankruptcy sets stage for American buyout.
Real 28K 80K
Windows Media 28K 80K

Those deals, if approved, are designed to ease regulatory concerns that have thus far stalled UAL Corp.'s $4.3 billion planned purchase of US Airways (U: Research, Estimates), and will effectively create two dominant airlines in the U.S. air travel industry in UAL (UAL: Research, Estimates), the parent company of United Airlines, and American, currently the No. 2 U.S. carrier.

But the transactions have already sparked strong opposition from some regulators and consumer groups concerned about rapid industry consolidation and the possibility of higher air fares for consumers -- setting the stage for a vigorous regulatory review on Capitol Hill.

"Losing competitors in this highly-concentrated industry is disastrous," said Mark Cooper, research director for the Consumer Federation of America, one of several consumer groups already on record opposing the transactions.

MORE ON AMR AND TWA
Special Report: Change in the air
End of an era for TWA
AMR, UAL deals criticized
Delta flies distant third

"We've gotten to the point where the number of national carriers is so small, it's impossible to have competition," he said.

The expected opposition to the agreements announced Wednesday helped push shares of AMR down for the third consecutive day. AMR shares closed down 25 cents to $38.69, although that was well above the stock's lows of the day.

Some analysts, however, expressed optimism that the transactions would be approved.

"The original US Airways/United proposal was almost dead on arrival," said Ray Neidl, an airline analyst with ING Barings. "I don't think regulators would have ever approved that. But by allowing a powerful company like American to come into many Eastern markets ... I think that will make regulators feel a little better."


--------------------------------------------------------------------------------

So who's next? See what analysts are saying about Delta Airlines' future


--------------------------------------------------------------------------------
Renewed optimism about the United/US Airways union helped push US Airways up $1.69 to $44.38 in mid-afternoon trading, while UAL shares shed 13 cents to $41.88.

AMR Chairman and CEO Donald Carty Wednesday expressed few concerns about the expected opposition to the deals, stressing that he believes competition in the airline industry will remain vigorous even after the transactions are completed. He said if the review and bankruptcy approval processes run smoothly, the transactions could be completed by late April.

"This is an enormously competitive business, including intense competition between American and United," Carty told CNNfn. "What these deals this week represent, however, is an attempt to deal with that issue. By United divesting themselves of some of the assets that are of concern to the Justice Department and other regulators, I think they've gone a long way to curing the kinds of concerns that [have been] raised.

"The TWA transaction is quite different. TWA is one way or another going to disappear as a corporate entity. So what we're doing by acquiring TWA is simply preserving 21,000 jobs and a very important and vital hub operation in St. Louis," Carty said.

 

[Nightwatch]

September 5, 2001
After September 11, 2001 the American Airline industry went into an absolute tailspin with American and United leading the way down. This combined TWA/American schedule published 6 days before that dreadful day would be one of the Airline’s last published paper schedule with necessary cost-cutting, constant schedule changes, and the internet being the principal culprits. TWA would be completely merged into American in December 2001 making American the world's largest airline. The venerable 727's were retired in April 2002. The MD-11's were gone by the end of 2001, sold to Fed-X. MD-80s and Fokker 100s would begin to be retired.

 

[Decision 2004]

And if AA had not purchased TWA and acquired all of their debt, then AA would be much better off today !!!

The many employees of AA have suffered greatly since the executed debacle commonly known as the purchase of the failed carrier TWA.

 

[Nightwatch]

July 1, 2003
American sells stake in Worldspan for $219M
American Airlines Inc. has sold its 26 percent stake in Atlanta-based Worldspan L.P. that it acquired when it bought St. Louis-based TWA out of bankruptcy in 2001.


Fort Worth-based American sold its stake for $180 million in cash and a $39 million promissory note to Travel Transaction Processing Corp., owned by Citigroup Venture Capital Equity Partners and Teachers' Merchant Bank.

Worldspan, a computer reservations system for airlines, is jointly owned by American, Northwest Airlines Corp. and Delta Air Lines Inc., all who announced in March their intent to sell their stakes in the company.

St. Paul, Minn.-based Northwest Airlines also sold its stake Tuesday to Travel Transaction Processing for $280 million in cash, plus additional credits for future services. Atlanta-based Delta received $285 million in cash, credits for $125 million over nine years for future Worldspan services and a $45 million promissory note maturing in 2012.

American said the payment would help its cash position but would not alter its need to implement its turnaround plan.

Web sites: AMR Corp. (NYSE: AMR), Delta Air Lines Inc. (NYSE: DAL), Northwest Airlines Corp. (Nasdaq: NWAC)

 

[Decision 2004]

Sorry Pal,

But $180 Million doesn't even begin to cover the $700+ Million purchase price of TWA, and there isn't enough cash to cover the over capacity, and debt problems.

You still don't get it.

Over Capacity + Huge Debt + Falling Revenues = TWA PURCAHSE A HUGE MISTAKE AND HAS DAMAGED THE AA EMPLOYEE.

 

[Nightwatch]

And if AA had not purchased TWA and acquired all of their debt, then AA would be much better off today !!!

The many employees of AA have suffered greatly since the executed debacle commonly known as the purchase of the failed carrier TWA.

[post="198884"][/post]​

Are you really that ignorant? "The many employees of AA have suffered greatly ", you have never been furloughed, 100% of our stews and approx. 85% of our pilots, and now the rest of TWA's workforce to be gone...and you suffered?

I'd say missing the chance to supersize your lunch would be suffering in your eyes. You're quite the AMFA rep.

AA has approx 200M in that acquisition, I guess that broke them.

 

[Decision 2004]

Are you really that ignorant? "The many employees of AA have suffered greatly ", you have never been furloughed, 100% of our stews and approx. 85% of our pilots, and now the rest of TWA's workforce to be gone...and you suffered?

I'd say missing the chance to supersize your lunch would be suffering in your eyes. You're quite the AMFA rep.

AA has approx 200M in that acquisition, I guess that broke them.

[post="198892"][/post]​

That's right dipshit, now you get it. And apparrently many were hoodwinked into believing that the Jim Little Industry Leading Without Further Ratification Concessions were to pay to keep you employed.

Now we not only have lost our pay and benefits to save your sorry ass, you are still going to be gone.

I think you're about the see the big picture, keep trying, you'll get it.

 

[Hopeful]

Hey Nightwatch,
The MCI and STL layoffs are the tip of the iceberg. A buddy of mine in EWR said that his station is possibly being slated to go from Class II to Class III. There will only be a skeleton crew on midnights with contract on call maintenance during the day. This is true of most Class II stations. Some Class II's will close completely.

Does this make you feel better to know that original AAers are getting a**fucked as well?

Enough with the poor TWA "woe is us" mantra. We are all f***ed in this industry. TWA people do not have the lock on that honor. Be happy your jobs were perserved for another 3 -4 years with a nice raise to boot,. Be happy you guys get to pick vacation before the rest of us with just your 3 years at AA.

The best part of this is that when the STL boys bump to JFK/LGA, they will not have to unpack their bags because the Class II folks will bump them right out.

YOUR EMPLOYMENT WITH AA BEGIN APRIL 10, 2001. YOU WENT TO TOP PAY, MAX VACATION AND SICK TIME AND FIRST CHOICE IN VACATION PICK.

NOT BAD, EH NIGHTWATCH?

 

[Buck]

Hey Nightwatch,
The MCI and STL layoffs are the tip of the iceberg. A buddy of mine in EWR said that his station is possibly being slated to go from Class II to Class III. There will only be a skeleton crew on midnights with contract on call maintenance during the day. This is true of most Class II stations. Some Class II's will close completely.

Does this make you feel better to know that original AAers are getting a**fucked as well?

Enough with the poor TWA "woe is us" mantra. We are all f***ed in this industry. TWA people do not have the lock on that honor. Be happy your jobs were perserved for another 3 -4 years with a nice raise to boot,. Be happy you guys get to pick vacation before the rest of us with just your 3 years at AA.

The best part of this is that when the STL boys bump to JFK/LGA, they will not have to unpack their bags because the Class II folks will bump them right out.

YOUR EMPLOYMENT WITH AA BEGIN APRIL 10, 2001. YOU WENT TO TOP PAY, MAX VACATION AND SICK TIME AND FIRST CHOICE IN VACATION PICK.

NOT BAD, EH NIGHTWATCH?

[post="198900"][/post]​

I understand that beyond the Class II closing, that the B-Checks are going to 750 hours? I believe this will cause some movement within the Class I stations concerning shift and seniority?

 

[Bob Owens]

So what we're doing by acquiring TWA is simply preserving 21,000 jobs ," Carty said.

Doesnt that sound like the TWU? Funny how its hard to tell the difference between the two.

 

[Bob Owens]

So what we're doing by acquiring TWA is simply preserving 21,000 jobs ," Carty said.

Doesnt that sound like the TWU? Funny how its hard to tell the difference between the two.

The fact is we are all screwed. The TWU is roaring ahead with its plans to "represent" most of the airline industry. Following its "loaf of bread" ideology we are all headed to that shining example of TWU success "Triangle Aviation. If minimum wage and $10/hr top out is good for them, its good for you. If you want to make more money get involved in the union, not to bring members wages up but to get a union position.

Yes twice as many dues payers who work half as many hours! The TWU loves part timers, thats the way for a business union to go.

[post="199065"][/post]​