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DAL - Pilot showdown

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SWA/FO

5 Star Senior Member
Joined
Nov 26, 2001
Posts
3,520
AP
Pilot Showdown Looms for Bankrupt Delta
Sunday November 13, 2:15 pm ET
By Harry R. Weber, AP Business Writer Big Week Ahead for Delta As Showdown With Pilots Looms; Bankruptcy Hearing Set for Wednesday
ATLANTA (AP) -- A pivotal week is ahead for Delta Air Lines Inc. The struggling carrier may release more details about its finances in a regulatory filing Monday, its pilots plan a rally Tuesday to defend their contract and a bankruptcy hearing is set for Wednesday to discuss whether to void that contract and allow the company to impose deep pay and benefit cuts.
There's a lot at stake as the pilots have raise the prospect of a strike if the court rejects their contract. Whether they are able to do so legally, however, is a matter open for question.
"I tend to think they probably are," said William Rochelle, a bankruptcy lawyer in New York who represents a major creditor in the Delta case. "If not, I think there's a new form of slavery in the United States."
At Wednesday's hearing in New York, U.S. Bankruptcy Judge Prudence Carter Beatty is expected to hear arguments from lawyers for Delta and the Air Line Pilots Association, the union that represents the Atlanta-based company's 6,000 pilots.
The judge could decide immediately on the company's request to void the pilot contract, though most people connected to the case believe she will give the sides up to 30 more days to reach an agreement before deciding on her own.
The company wants $325 million in new concessions from its pilots, which would include a 19.5 percent pay cut. The pilots union has proposed $90.7 million in average annual concessions over four years, which would include a 9 percent pay cut effective Dec. 1 to last for seven months, followed by 7 percent for six months, then 5 percent thereafter.
The cuts would be on top of $1 billion in annual concessions the pilots agreed to in a five-year deal reached in 2004. That deal included a 32.5 percent pay cut.
Delta pilots currently earn an average of $169,393 a year, according to a company bankruptcy court filing. The document says the figure is a projection based on year-to-date actual earnings by people employed throughout last year and up to Sept. 16 of this year. It does not include proposed pilot pay rate reductions. Junior pilots make considerably less, while senior pilots in some cases make more. The type of aircraft a pilot flies also is a factor in the pay scale.
The company doesn't want a strike, and the pilots have made clear they don't want a judge throwing out their contract. But the pilots have pointed to their past sacrifices and argued that the new cuts they are offering are more than enough to help Delta become profitable again and compete with low-cost rivals.
If the decision gets to the judge, it's not a given how she would rule, though she indicated in an unrelated Delta bankruptcy hearing Thursday that she believes Delta's pilots are overpaid.
"The only people that make more money than Delta's pilots are you," Beatty told lawyers and company executives in the courtroom.
But Beatty also questioned the merits of Delta's business plan, specifically its decision to expand its international flights. "I don't think a business plan is one you just put down on paper," the judge said.
So, what will happen?
"That's a hard one," Rochelle said. "So far, the track record shows in the overwhelming number of cases the two sides agree without the court imposing new terms of employment. If you're a betting man, you follow the odds."
One thing that is clear is the pilots, the only major unionized group at Delta, have promised to fight to protect their contract. On the day before the bankruptcy hearing, the union has scheduled a rally at a suburban Atlanta convention center. Union officials are encouraging as many members and their spouses as possible to attend.
The airline's big week starts with the release of its quarterly report to the Securities and Exchange Commission. In the report, Delta could release more details about its financial condition.
The company said it delayed the filing until then in part because since its Sept. 14 bankruptcy petition it has been engaged in discussions with creditors, financial institutions, its employees and others regarding issues related to the Chapter 11 case.
Delta, the nation's third-largest carrier, has recorded losses of more than $11 billion since January 2001 and over that period has announced that it would cut up to 33,000 jobs. Its loss in the third quarter, reported Thursday, was $1.13 billion.
AP Business Writer Madlen Read contributed to this report from New York.
 
Thanks Upchuck for that great remark. Yeah, I remember being responsible for that fall from grace. I remember telling Leo Mullin to buy $2 billion worth of Delta stock (instead of paying off debt) a few months before 9-11, and then watching it vaporize after the stock tanked a few months later. I told him to do that......I should get a bonus!


As far as the court hearings, it will be interesting. This last quarter showed an apparent loss of $1.3 billion, even though most was charges due to bankruptcy (terminating leases etc), which really resulted in a loss of about $482 million I believe, and that was less than the $580 million during last year's same quarter, and that was because of high fuel. Without the fuel, we would have made a profit. So, if fuel does stay high at above $60 a barrel, then we should chip in a bit to help. If fuel stays below that mark, we should be ok. I hope Dalpa points that out, but the judge obviously has her own opinions.

I think we all know that there may be more pay cuts in our future, but the other stuff--sick leave, scope, 100 seat rate (needs to increase a bit), are the main things we are mad about. And, I don't really know what will happen if things go south. We shall see.


Bye Bye--General Lee
 
Chuck Yogourt said:
Oh how the mighty have fallen. Better start putting those vacation homes up for sale.


Kudos Chuck,

The professional in you has shown again.

AA
 
"Delta pilots currently earn an average of $169,393 a year, according to a company bankruptcy court filing. The document says the figure is a projection based on year-to-date actual earnings by people employed throughout last year and up to Sept. 16 of this year."


The problem with that statement is that this last year was great for many senior pilots. With the 2300 Captain retirements, many many captains did very well because crew scheduling always called them with Green Slips (double pay until last December, and then 1 1/2 pay), or they just pulled them from the jetways after their trips ended and gave them inverse assignments (double pay). This did not happen to hardly any FOs, unless there was a shortage on certain equipment due to training. So, all this means is that the $169,000 average is INFLATED due to most captains getting extra pay due to pilot (captain) shortages, and a lot of them are now gone. This inflated average is NOT THE NORM, but the judge may think it is. That needs to be pointed out too. We are parking some planes and many displacements will occur, so those inflated rates may not be seen again for a long time.


Bye Bye--General Lee
 
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Chuck Yogourt said:
Oh how the mighty have fallen. Better start putting those vacation homes up for sale.

Chuck:
I can only assume by your profile that you are an air midwest pilot. Quit talking out of your nut drainer, you're making air midwest pilots look like jerks.
737
 
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737 Pylt said:
Chuck:
I can only assume by your profile that you are an air midwest pilot. Quit talking out of your nut drainer, you're making air midwest pilots look like jerks.
737

You assumed wrong. Get ready to make Air Midwest wages though. You guys are going to take it in the shorts. Tooo bad. Whaaaa.
 
Chuck Yogourt said:
You assumed wrong. Get ready to make Air Midwest wages though. You guys are going to take it in the shorts. Tooo bad. Whaaaa.

350DRIVER is back

this username was obtained back in June huh 350?

must have a list of them on standby
 
satpak77 said:
350DRIVER is back

this username was obtained back in June huh 350?

must have a list of them on standby

Your wrong also. Why do you Delta boys get so uptight? You will survive. After your pensions are picked up by us tax payers that is. Before you spout off and take the high and mighty trail again, take a look at what got you to this point. AirTran looks better all the time.
 

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