ASA Pilots Overpaid ?

CTS

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Chance Of Delta Ch. 11 Grows As Cash Balance Falls Aviation Daily 08/10/2005, page 04
Steven Lott


Delta's stock price took another dive yesterday to close below $2 per share after two analysts predicted that a bankruptcy filing is almost inevitable if the airline doesn't boost liquidity or win major concessions in the near future.

Merrill Lynch issued a "sell" rating on Delta's stock as record fuel prices "greatly increase the likelihood of a bankruptcy filing within the next two months." Delta has been in talks with several creditors about additional funding for months, and GE and American Express have been mentioned as possible sources. "However, during that same period, we have seen a surge in oil prices, a concern that could keep lenders on the sidelines, at least until after a bankruptcy filing," said analyst Michael Linenberg.

Linenberg estimates that every $1 increase in the price of a barrel of oil costs Delta $60 million per year. With prices continuing to rise, Delta's fuel bill could jump by more than $1 billion, completely offsetting the $1 billion cost concession the airline won from its pilots last year. In the three weeks since Delta reported a second-quarter loss, Linenberg calculates that the jump in fuel prices cost the company $400 million.

Credit Card Contracts Expiring
The Atlanta carrier finished the second quarter with $1.7 billion in cash, but Linenberg feels a drop to about $1.3 billion could trigger a Chapter 11 filing. If fuel didn't provide a large enough problem, Delta faces the expiration of its Visa and MasterCard processing contracts this month. "A renewal or replacement contract could stipulate a large cash holdback to cover the processor's exposure to tickets sold but not yet flown," Linenberg said, and the holdback could be as much as $400 million.

Delta was expected to file its full quarterly report yesterday with the Securities & Exchange Commission but told the SEC it has delayed the filing as it is in negotiations with a third party to serve as its new credit card processor. The current contract expires Aug. 29. "The potential Visa/MasterCard processor has advised [Delta] that it will require a significant cash reserve, deposited with the processor immediately upon start of the new contract, for tickets purchased using Visa or MasterCard but not yet flown." The airline is "exploring alternatives to offset a portion of the cash reserve, but there can be no assurance whether or when it can implement any such alternative."

Delta is still looking at selling one of its regional subsidiaries, with Atlantic Southeast the most likely candidate. The airline also will likely go after more labor concessions to save money. JP Morgan analyst Jamie Baker predicts the airline will ask for $225 million more from pilots and $175 million from all management and other employee groups. "We know the pilots are overpaid to the tune of 10%-15% relative to the low end of the pilot-pay spectrum, equating to about $225 million according to our calculations," he said.

In another surprising move, Scott Yohe, Delta's long-time head of government affairs quietly retired Aug. 1. Yohe has been with Delta for 26 years and is in the middle of a fight to win pension reform from Congress. Even though he officially retired, Yohe has been retained as a consultant and still leads Delta's Washington office. Delta does not expect to replace Yohe in the near future. -SL


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I hope this is a poorly written article. I think there should be a new paragraph after the ASA comment. I don't think they can get 225million from ASA pilots even if we worked for free.




CTS
 
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Medeco

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They put that in the same paragraph but they mean the mainline pilots.

There is a new article in the wall street journal saying that the pilots are considering another round of consessions.

Maybe someone could post it here.

I know this dweeb didnt mean ASA pilots were over paid.

Medeco
 

Long Time Gone

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The meaning of the article is not that ASA pilots are being overpaid. RTFQ before you answer.
 
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Mikes Apartment

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Time for everyone to share in the pain. Why can't the ASA and Comair pilots see that? If the company as a whole is doing bad, then everyone has to take a hit. Try not to think your poop doesn't stink. Peace out.
 
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uncle

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The article only mentions the sale of ASA. The article is all about Delta and its shaky future.
 

Long Time Gone

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Mikes Apartment said:
Time for everyone to share in the pain. Why can't the ASA and Comair pilots see that? If the company as a whole is doing bad, then everyone has to take a hit. Try not to think your poop doesn't stink. Peace out.
Comair and ASA pilots have been "sharing in the pain". Comair pilots voluntarily voted on and signed off on a one year concessionary pay freeze as long as the terms of the LOA are met by the company as agreed to. ASA pilots have been forced into a 3 year involuntary concessionary pay freeze in the form of the intentional stalling of the contract talks by the company. During this time, the company has purposely violated the terms of the current Work Agreement, and re-interpreted it at will for their own benefit. The MEC currently has numerous 3 inch binders full of Grievences from the current situation. Which, BTW, the 3 year anniversary of the opening of those talks is Sept 15th of this year.

And this from a bonehead who doesn't even fly for us or DAL. Worry about what's in your own soup; unless, of course, you're willing to give up some of YOUR PAY to help DAL survive..........It's no one else's fault but your own that you bent over during your last contract talks.

If my wife didn't work, my son would qualify for reduced cost lunches at his school. And all that because of my $70,000 education, which is not PFT, or Riddle, or anything else you can come up with; it is a real education plus flight training and suffering, like it should be. No, I dont' have any regrets on my career choice, since that is probably your next comment.

"Peace out" on this.

Just a thought.
 
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puddlejumper101

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Mikes Apartment said:
Time for everyone to share in the pain. Why can't the ASA and Comair pilots see that? If the company as a whole is doing bad, then everyone has to take a hit. Try not to think your poop doesn't stink. Peace out.
dude...what on earth are you smoking. Do you realize our first year F/O is making less than McDonalds managers? Yeah sure...ask him to take a pay cut. Do you work for our management?
 

Smacktard

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CTS said:
The airline also will likely go after more labor concessions to save money. JP Morgan analyst Jamie Baker predicts the airline will ask for $225 million more from pilots and $175 million from all management and other employee groups. "We know the pilots are overpaid to the tune of 10%-15% relative to the low end of the pilot-pay spectrum, equating to about $225 million according to our calculations," he said.


CTS
Do the math 'tard. That'd be like a 200% cut. We'd have to pay them our salary for them to save that much on us. Wait a minute. Maybe that's what they're getting at. We pay them to fly the planes, just like we did when we were renting the 172's...
 

jetflyer

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Smacktard,

Good point. I think the Comair Pilot's pay freeze only saves the company like $15 million over the several years?? I think that's right.

Let's say every Comair Pilot took a $10,000 pay cut. So a Captain would go from $65,000 to $55,000 and an F.O. from 37,000 to 27,000.

THIS WOULD SAVE THE COMPANY LESS THAN $20 MILLION A YEAR!!

A pay cut by us won't help at all. We probably won't have a choice but take a pay cut in Ch 11 though. We'll see.

Jet
 

Doo Doo Brown

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Less than Micky D managers? Try less than the cashiers, the fry boys and the wrap the sandwich uppers! News flash...there are not many jobs that pay less than 1st year FO's!
flyhigh2610 said:
dude...what on earth are you smoking. Do you realize our first year F/O is making less than McDonalds managers? Yeah sure...ask him to take a pay cut. Do you work for our management?
 

puddlejumper101

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Doo Doo Brown said:
Less than Micky D managers? Try less than the cashiers, the fry boys and the wrap the sandwich uppers! News flash...there are not many jobs that pay less than 1st year FO's!
yeah i forgot, the manager makes what I make on my 5th year
 

Doo Doo Brown

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I worked at BK in high school which was about 14 years ago and I think I made more then I do now.
 

jrav8tor

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Mikes Apartment said:
Time for everyone to share in the pain. Why can't the ASA and Comair pilots see that? If the company as a whole is doing bad, then everyone has to take a hit. Try not to think your poop doesn't stink. Peace out.

Mike must be in mgmt! What a moronic statement! With 10,000 hrs. you think you would understand no matter how much pilots, flight attendants, mechanics give back, it ain't going to help. Like someone mentioned aboved... Comair pilots gave concessions and the company is saving like 15-20 million a year??? That basically pays the severance bonus to the CEO thanking him for f#cking up the company!!!

Wake up dude!
 
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