DAL may offer pilots equity stake for concessions

[FDJ2]

Market Report -- In Play (DAL)
August 18, 2004 09:45:00 AM ET


"Delta Air Lines may offer pilots equity stake to get cuts-- Washington Post (DAL) 3.64 +0.05: The Washington Post is reporting that DAL, in an effort to avoid bankruptcy, is considering offering pilots an equity stake in co in exchange for pay and benefits. Co is hoping to get concessions of about $1 bln a year in exchange for the equity offering plan. Details of the proposal are expected to be released later today at a meeting between the airline executives and union negotiators."

 

[General Lee]

It will be interesting to see how all of this plays out.....


Bye Bye--General Lee

 

[DDpaysoff]

What a surprise. Not. Posturing anyone?

 

[thesource]

I remember the last time I thought about this pilot equity thing.
My dad and I were talking about the United thing back in the 80's and I remember him shaking his head and saying, 50% of nothing is still nothing. I think it was a 50% stake the pilots got but I can't remember.
Anyway, ask them how it worked for them. I think I would rather get something more concrete for my concessions.

 

[General Lee]

A lot of guys who left United before 9-11 made a bundle of money.



Bye Bye--General Lee

 

[BlackCoffee]

Everyone at UAL after 9-11 lost a bundle! UAL does not offer a lump sum payout like Delta on early outs either. Those poor guys got it bad. I hope things work better for DAL.

 

[General Lee]

This industry is all about timing. The guys who retired at United on 9-10 got a bundle.


Bye Bye--General Lee

 

[wrigley23]

This industry is all about timing. The guys who retired at United on 9-10 got a bundle.


Bye Bye--General Lee

Come on man, who retired on 9-10? Either you're smarter than Notradamus, or in cohoots with the enemy! If you had said, "the guys who retired at United in the spring/summer of 2001 got a bundle," then I'd agree, it was good timing.

Just picking on ya. You probably meant "before" instead of "on".

And I don't mean "you" General, just anyone who retired on 9-10-01, (lucky bastards, have a drink on me!)

 

[General Lee]

That's what I meant. But, if they actually did retire on 9-10, they were lucky too.


Bye Bye--General Lee

 

[wrigley23]

Just a little humor in tough times.....glad you can smile a little

 

[General Lee]

These times are rough. I never thought it would be like this.....Amazing.


Bye Bye--General Lee

 

[~~~^~~~]

General :

It was forecast if you can find my old posts under Proflig8tor. When I wrote that the Delta pilots would never see their fourth year pay figures the replies were hoots of derision. When bankruptcy was forecast between October 04 and February 05 folks called me "Chicken Little" crying that the sky was falling.

Back when the contract 2000 deal was signed there just wasn't the money to pay for it. A lot of the harm of 9/11 was repaid by the taxpayers. This is not related to 9/11, it is in large part the direct result of your MEC's predatory negotiations.

This is not a surprise to anyone who bothers to read Delta's quarterly reports. Unfortunately this is about as far as I have it figured out. Paying back the debt will be harder ( not easier ) with a smaller airline ( less revenue & more senior employees ) and there is still the Jihad over who will do the flying. I know objectively that the signs are Delta is one of the majors that will not survive, but my heart just will not go along with that conclusion. Anyone else see what Paul Hamm accomplished tonight - maybe there is hope for Delta.

~~~^~~~

 

[wrigley23]

General :

It was forecast if you can find my old posts under Proflig8tor. When I wrote that the Delta pilots would never see their fourth year pay figures the replies were hoots of derision. When bankruptcy was forecast between October 04 and February 05 folks called me "Chicken Little" crying that the sky was falling.

Back when the contract 2000 deal was signed there just wasn't the money to pay for it. A lot of the harm of 9/11 was repaid by the taxpayers. This is not related to 9/11, it is in large part the direct result of your MEC's predatory negotiations.

This is not a surprise to anyone who bothers to read Delta's quarterly reports. Unfortunately this is about as far as I have it figured out. Paying back the debt will be harder ( not easier ) with a smaller airline ( less revenue & more senior employees ) and there is still the Jihad over who will do the flying. I know objectively that the signs are Delta is one of the majors that will not survive, but my heart just will not go along with that conclusion. Anyone else see what Paul Hamm accomplished tonight - maybe there is hope for Delta.

~~~^~~~

Dude, why are you watching male gymnastics? I heard via ESPN that the American dude kicked two South Korean's little asses? And they had the audacity to accuse the judges of favoring the American. Well, we protect your sorry ass little country for 50 years, and maybe we should receive something in return. Wow, this is way off topic, Nevermind.

 

[General Lee]

Fins,


There is a lot in play right now that neither you nor I know about. Let's leave it to the professionals. You know, the guys with the books who do the talking and negotiating. Leo Mullin signed the contract in early 2001, and he didn't seem to mind. But then again, it is ALL OUR FAULT. Come on dude. Did you know in advance about the 9-11 terror plot? If you did, why didn't you tell anyone????



But don't worry, all of our "bonuses" from that contract will be gone, along with Comair's new contract. Just watch. They will come after them too....

And, I prefer to watch women's beach volleyball. Those girls are "TIGHT."


Bye Bye--General Lee

 

[DDpaysoff]

Fins,





But don't worry, all of our "bonuses" from that contract will be gone, along with Comair's new contract. Just watch. They will come after them too....

Bye Bye--General Lee

Yes, they will.

 

[FN FAL]

Isn't this repayment of equity in exchange for concessions thing, a little like giving someone a lottery ticket for a birthday present?

 

[DDpaysoff]

Delta pilots deserve an equity swap for cuts. Actually give somobody incentive to do well. This is rare in this industry where standard business practices in every other industry to not exist. You can bet when Dal asks comair to take a cut there will be no equity offer. Even if there was, the shares will be diluted after the offering to the pilots and debt is renegotiated with bondholders. This situation looks horrible for Comair and ASA pilots. An equity offer in the future is worthless to us with dilution and higher share prices. Now, at 4.00 a share, that is a different story. I would much rather be at the table right now, than in six months. But, again we are not invited to the dance. Career airline?