Delta Bankruptcy Here it Comes

701EV

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NEW YORK (Reuters) - Delta Air Lines (NYSE:DAL - News) has begun arranging the financing it would need should it seek bankruptcy protection, The New York Times reported on Saturday.

Citing "people with direct knowledge of Delta's actions," the Times reported that Wall Street analysts, industry executives and finance experts said the troubled airline could seek the protection within weeks.

The Atlanta-based airline is holding the discussions with lenders including GE Commercial Finance, which provided restructuring money in 2004, the Times said, citing both airline employees and members of the financial community. It said GE Commercial declined to comment.

The No. 3 domestic airline is also exploring selling or refinancing its commuter lines, Comair and Atlantic Southeast Airlines, and is seeking more savings from employees, according to the report.

The Times also said that Delta officials had acknowledged that it needed to be financially prepared for a filing, which legal experts expected would occur in New York, although a final decision was not imminent.

Delta, like the rest of the industry, has been battered by skyrocketing oil prices.

On Aug. 29 the airline's credit card processing agreement, which covers critical MasterCard and Visa transactions, will expire. Delta said on Tuesday it was trying to lower the amount of money it needs to pay up front to secure a new credit card processor. People close to the talks say Delta is being asked to set aside $300 million to $800 million, but the airline did not comment on the figures, the Times said.

Here it comes!

701EV
 

viper548

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Meanwhile Smith Barney downgraded Delta's stock from "hold" to "cash out, and put it all on red"
 

VABB

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You sound too excited about this.

First, if Delta declares bankruptcy, they are going to say bye-bye to the ASA and Comair. And seeing how your monicker matches that of a CRJ at ASA, you will find yourself either on the street or stapled to the bottom of somebody else's seniority list.

Second, the more majors that fall means the worse off everyone will be.

I love how these commuter airline pilots get so giddy at the thought of a major airline going down the tubes. Congratulations, just when the bar could not go any lower, here you are digging out more ground so you can lower it even more.

But don't worry, there are going to be lots of airline pilot jobs available.!! Unfortunately, it will be all RJ's, starting pay will be $6.00/hr and 20 year captain pay will be $12.00/hr.

But what the heck, you will be flying a jet, so the pay really doesen't matter.

Let the whole industry go down the tubes, I really don't care anymore.
 

jehtplane

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VABB said:
You sound too excited about this.

First, if Delta declares bankruptcy, they are going to say bye-bye to the ASA and Comair. And seeing how your monicker matches that of a CRJ at ASA, you will find yourself either on the street or stapled to the bottom of somebody else's seniority list.

Second, the more majors that fall means the worse off everyone will be.

I love how these commuter airline pilots get so giddy at the thought of a major airline going down the tubes. Congratulations, just when the bar could not go any lower, here you are digging out more ground so you can lower it even more.

But don't worry, there are going to be lots of airline pilot jobs available.!! Unfortunately, it will be all RJ's, starting pay will be $6.00/hr and 20 year captain pay will be $12.00/hr.

But what the heck, you will be flying a jet, so the pay really doesen't matter.

Let the whole industry go down the tubes, I really don't care anymore.





Relax Francis!
 

Oakum_Boy

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VABB said:
You sound too excited about this.

First, if Delta declares bankruptcy, they are going to say bye-bye to the ASA and Comair. And seeing how your monicker matches that of a CRJ at ASA, you will find yourself either on the street or stapled to the bottom of somebody else's seniority list.

Second, the more majors that fall means the worse off everyone will be.

I love how these commuter airline pilots get so giddy at the thought of a major airline going down the tubes. Congratulations, just when the bar could not go any lower, here you are digging out more ground so you can lower it even more.

But don't worry, there are going to be lots of airline pilot jobs available.!! Unfortunately, it will be all RJ's, starting pay will be $6.00/hr and 20 year captain pay will be $12.00/hr.

But what the heck, you will be flying a jet, so the pay really doesen't matter.

Let the whole industry go down the tubes, I really don't care anymore.
You lower the bar every time you open your mouth...
 

VABB

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Oakum_Boy said:
You lower the bar every time you open your mouth...
But at least everytime I open my mouth, I'm not excited and giddy about a major airline going out of business. You guys need to realize and learn who buttering your bread. Delta goes, you go. And probably straight to Mesa.
 

Oakum_Boy

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VABB said:
But at least everytime I open my mouth, I'm not excited and giddy about a major airline going out of business. You guys need to realize and learn who buttering your bread. Delta goes, you go. And probably straight to Mesa.
No one is happy about it. Least of all the regional pilots. If ASA goes bankrupt, I get no contract and maybe a pay cut. Who is giddy about it?
 

viper548

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Delta's looking at a double mastectomy, I couldn't imagine any delta connection pilots being excited about this.
 

jehtplane

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VABB said:
But at least everytime I open my mouth, I'm not excited and giddy about a major airline going out of business. You guys need to realize and learn who buttering your bread. Delta goes, you go. And probably straight to Mesa.



Did you ever hear of sarcasm? I sincerely doubt 701 is excited about bankruptcy. I know I am not, and the thought of it does bother me because it is unknown what will happen to ANY OF US! I CERTAINLY DO NOT WANT TO SEE DELTA OR ANY OTHER AIRLINE GO BY THE WAYSIDE. We have all worked very hard to get where we are. So relax a bit.
 

jehtplane

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viper548 said:
Delta's looking at a double mastectomy, I couldn't imagine any delta connection pilots being excited about this.




I don't think any pilot should be excited about this , you know what they say sh!t rolls down hill!
 

SKYWRJGUY

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I cannot imagine another major in bankrupcy would be good for the public or the employees, save a couple of things: 1) bring into parity the legacy carrier costs (whether high or low), which would ultimately (long-term [for this industry, <10 years]) benefit the consumer and let airlines compete on service, just like pre-1978; 2) give a NWA/DL merger a better chance though it would have questionable benefits and obstables to both parties and consumers; 3) allow carriers to seek better terms from creditors without having to resort to more financial shenanigans on employees or their benefits.

On the whole, no more bankrupcies would be preferable, as would the the passing of the pension funding bill proposed in Congress (extends catch-up payments), lessening fuel and user taxes on carriers (as passed thru expenses to consumers), streamlining the TSA and using the tax dollars for increasing ATC and airport capacity (better use of trust fund), and closing loop holes or questionable provisions in the GAAP that allow for so much financial maneuvering that does nothing but hurt all stakeholders in times of retricted business capital.
 

701EV

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I'm not excited about this!

I found the the info on yahoo airline news.

Hell I've been here 7.5 years and have 16 left until I have to retire. I thought ASA was my last stop. This weekend I updated my resume and filled out the Continental app. I'm looking for a place to go!

701EV
 
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SkyBoy1981

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VABB said:
But at least everytime I open my mouth, I'm not excited and giddy about a major airline going out of business. You guys need to realize and learn who buttering your bread. Delta goes, you go. And probably straight to Mesa.
So can you quote one line or even a word in this thread that hints that anyone is actually looking forward to or is excited about Delta going bankrupt? Or was this just something you pulled out of your @ss?
 
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Bankruptcy

I can remember when Delta, United, American, NWA etc. pilots demeaned us @ TWA for taking pay cuts...guess what!!!!!!
 

79%N1

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Just because an airline goes bankrupt does NOT mean doom for that airline or its regional affiliates!!! It is a way to reorganize your finances - PERIOD! There will, of course, be changes. If a carrier comes through in better shape, then there is more hope for the future. However, regional pilots are already affordable due to our already low C-scale wages, and our companies still provide an absolute necessary service to our mainline partner. Everyone needs to stop getting their undies in a bundle!
 

General Lee

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That is true. IF IT HAPPENS,(I have to put that in there) sure, there will be some pay cuts and parking of unprofitable or gas guzzler airplanes, but there will also finally be some lease renegotiations and some creditor concessions. The employees have given $2.3 billion so far, and the creditors have given $100 million. The pension problem will either go away (gone) or we will get an extension from Congress. That will be an elephant off of our back. The debt will be trimmed, and ASA/Comair will be sold, but retained as lift. The debt associated with all of the RJs will be gone. Management will be held accountable to the judge. And, it will give us time to pay off some bills (credit card companies etc). But, again, I will see another pay cut, and that is the way it is.


Bye Bye--General Lee
 

TonyC

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79%N1 said:
It is a way to reorganize your finances - PERIOD!
"reorganize" is a fancy word for "go back on your word to creditors." Sure, I told you'd I'd pay you that much every so-and-so, but I've changed my mind. It's too hard now. From now on, I'm only gonna pay you this much, and only every this-and-so often.

Oh, really? You mean if I cut my payments to you, you won't be able to meet your obligations? Well, let me tell you about this "reorganize" trick. :rolleyes:






.
 

Oakum_Boy

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It's an excuse for airline managements to extract as much from the pilots and others as possible. If they really wanted to avoid bankruptcy, they would raise fares. It is informal collusion between all the managements, and as soon as they have what they want- wham- they're raising fares, and making money. The pilots won't see what they lost for many years. ALPA should strike now. All of us. Peace out-
 

Tomct

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;)I think that VABB only comes out to play when he forgets to take his MEDS! What a jack@ss!
 

737 Pylt

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Oakum_Boy said:
It's an excuse for airline managements to extract as much from the pilots and others as possible. If they really wanted to avoid bankruptcy, they would raise fares. It is informal collusion between all the managements, and as soon as they have what they want- wham- they're raising fares, and making money. The pilots won't see what they lost for many years. ALPA should strike now. All of us. Peace out-
That's exactly right. Don't forget to mention the round of bonuses and pats on the behinds they'll all get!
737 out!
 
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