Delta Air Lines Announces $549 Million Profit Excluding Special Items

[Mach 80]

Must be nice to have shed > $20 billion in debt thru bankruptcy and then cheer profits a few years later. Nice way to run a business and screw your debt holders and creditors.

 

[BILL LUMBERG]

Must be nice to have shed > $20 billion in debt thru bankruptcy and then cheer profits a few years later. Nice way to run a business and screw your debt holders and creditors.

Do we owe you money or something?

 

[Mach 80]

In a way you do. When a company who doesn't use bankruptcy as a way to compete has to compete with companies who do, it costs money for the non-bankrupt airline be it from employees who now have to negotiate their contract with the comparative effect of shredded contracts with employees from airlines who went thru bankruptcy or the more difficult position of having to compete with a competitor who was able to blissfully dump debt from the mismanagement of carrying too much debt or operating costs. The U.S. bankruptcy laws have destroyed the concept of Darwinism within business. To celebrate profits after dumping huge debt loads and shredding contracts and retirements is almost ludicrus and yes, it does harm to employees at truly succesful airlines.

 

[ACL65PILOT]

Ch11 ended three years ago, and except for the first two quarters after DAL's exit they have failed to turn a profit.

Also, creditors like Boeing were payed 100 cents on a dollar for their debt, and others were paid quite well. It is the whole point behind changing interest. The banks know it is risk, and they assign an interest rate for the given risk.

 

[DTW320]

Excellent answer ACL. Mach80, welcome to Corporate America.....everything you describe is not limited to the airline industry by a long shot. In fact, in terms of creditors vs the airlines in BK, those $$ pale in comparison to most other Fortune 500 BK's through history.

 

[Mach 80]

Thanks but I stand by my post.

 

[The Prussian]

So what you two guys are telling Mach is that corporate America is better off using the government's "crutches". I don't buy that either. The sooner you take government meddling out of the equation, the sooner you'd see a healthy corporate America. All I see is this industry sinking into a morass of quick sand. Mach...thanks for the clarity...someone has to have the guts to say it.

 

[jonjuan]

it does harm to employees at truly succesful airlines.

OK, let's start with this. Give us two examples of "truly successful airlines" and we'll then debate. However, keep in mind that we'll be looking at your examples from birth to current state and how they became truly successful and how they were/are able to and continue to maintain their "true success."
Waiting with baited breath for just two examples.........(bonus points for each example greater than two)....

 

[The Prussian]

OK, let's start with this. Give us two examples of "truly successful airlines" and we'll then debate. However, keep in mind that we'll be looking at your examples from birth to current state and how they became truly successful and how they were/are able to and continue to maintain their "true success."
Waiting with baited breath for just two examples.........(bonus points for each example greater than two)....

Hmmm...with this industry doing so well (with the aid of government intervention)...I know there's got to be more than one good example...hmm... Can I call a friend???

 

[BILL LUMBERG]

In a way you do. When a company who doesn't use bankruptcy as a way to compete has to compete with companies who do, it costs money for the non-bankrupt airline be it from employees who now have to negotiate their contract with the comparative effect of shredded contracts with employees from airlines who went thru bankruptcy or the more difficult position of having to compete with a competitor who was able to blissfully dump debt from the mismanagement of carrying too much debt or operating costs. The U.S. bankruptcy laws have destroyed the concept of Darwinism within business. To celebrate profits after dumping huge debt loads and shredding contracts and retirements is almost ludicrus and yes, it does harm to employees at truly succesful airlines.

mmmmkayyy,

Please do tell what successful airline you work for so I may structure a targeted answer.