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Delta CEO Says Transformation Plan Not Enough

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DL_Infidel said:
My favorite quote:

''What's going on?'' Grinstein said. ''Simply put, it is in large part a matter of timing and competitive market challenges unique to Delta.''

How about: "Simply put, we're pricing our product well below what it costs to produce it."

I'm sorry, but blame fuel, security costs, labor costs, LCC competition, internet pricing etc. (BTW, these things are not unique to DL, nor is inept management) all you want GG, but that fact of the matter is that you're in a lose-lose situation if you don't even attempt to make a profit or break-even. If you're going to lose your ar$e you might as well lose it trying to price your product so you can, at a minimum, cover your costs. Rant over...g'nite all.

chperplt...congrats on Allegiant, lets do lunch soon.

You're right 737pylt. Don't you wish you were flying 737's for Southwest?
 
Boeingman said:
The pilots should consider this before they give up another nickel.

RONALD ALLEN'S 'GOLDEN PARACHUTE'

Elements of the 1997 severance package:

• $500,000-per-year consulting contract for up to eight years, paid quarterly in advance ($4 million total).

• $4,586,515 lump-sum cash for severance payment, health benefits and incentive awards that were to be paid for 1997.

• $765,600-per-year pension, starting in 1997.

• Vesting of 298,000 stock options and restricted stock. He netted $6.3 million in the 1997 fiscal year after acquiring 89,000 shares, with remaining stock options then valued at $13 million.

• $210,000 in legal fees to prepare his retirement agreement.

• $25,000 per year fee as "advisory director" on Delta's board.

• Flight privileges for life for Allen and his family.

• An office and a full-time secretary in Buckhead's 24-floor Monarch Tower for 10 years. First-year cost was $91,099.

• $408,766 initial cost to design, construct and furnish the office.

• Membership for 10 years in the Commerce Club of Atlanta.

• Membership for 10 years in the East Lake Golf Club, as long as Delta maintains a corporate membership.

• Company car.

• $25,565 for residential security systems

What a pimp.

All this to "attract top talent"??? There is no incentive for a CEO to see the company prosper when they know they'll get the golden parachute.

GP
 
Boeingman said:
RONALD ALLEN'S 'GOLDEN PARACHUTE'

Elements of the 1997 severance package:

• $500,000-per-year consulting contract for up to eight years, paid quarterly in advance ($4 million total).

• $4,586,515 lump-sum cash for severance payment, health benefits and incentive awards that were to be paid for 1997.

• $765,600-per-year pension, starting in 1997.

• Vesting of 298,000 stock options and restricted stock. He netted $6.3 million in the 1997 fiscal year after acquiring 89,000 shares, with remaining stock options then valued at $13 million.

• $210,000 in legal fees to prepare his retirement agreement.

• $25,000 per year fee as "advisory director" on Delta's board.

• Flight privileges for life for Allen and his family.

• An office and a full-time secretary in Buckhead's 24-floor Monarch Tower for 10 years. First-year cost was $91,099.

• $408,766 initial cost to design, construct and furnish the office.

• Membership for 10 years in the Commerce Club of Atlanta.

• Membership for 10 years in the East Lake Golf Club, as long as Delta maintains a corporate membership.

• Company car.

• $25,565 for residential security systems

This is just a form of corruption.

Corruption is the flaw of capitalism, according to Karl Marx.

Corruption eventually puts such a load on the economy as to make businesses fail.

Then the government steps in to support/regulate critical industries.

Eventually we have a socialist society.

Isn't this where this is all going?

In Capitalism, if an airline cannot survive by charging $79 for a ticket, then it should fail. If subsidies keep the prices low (United and USAir are now basically government subsidies) so that air travel is priced lower than cost, then we are NOT a capitalist society.

The government has determined by its behavior that it considers air travel a staple like bread, milk, and eggs.
 
GG played poker with the pilots last year and won ...

Maybe his next / current opponent is the creditors ... and he just declared "all in."
 
~~~^~~~ said:
True....

There are no buyers for ASA / Comair. Delta shot themselves in the foot here also. After spending 3 Billion dollars to buy & modernize Comair and ASA, Delta then awarded the growth aircraft type to Chautauqua. If ASA and Comair were getting E170's and growing it would be fairly easy to attract cash on Wall Street ( just like Republic / Chautauqua is doing ) but with a bunch of 50 seat RJ's approaching their first C checks the investors are a lot less likely to get excited.

If Delta is going to spin off ASA & Comair they have to make them sexy. But, thanks to poor management and ALPA, the "sexy" airplanes are going outside the Delta family to be operated by non-ALPA pilots.

Oh well, plan "B" has been up and running for two years now, but like most of you, "I would rather be Flying." I still look up and see airplanes flying overhead. Maybe "plan B" will continue to grow and a few of the great guys over at Delta would want to come work for our little company.

Investors don't give a crap what you look like as long as you are making money. Methinks that Comair and ASA are not "sexy" because the investors see how much ASA and Comair's "profitability" is propped up by the Delta operation.

Of course I could be wrong, but I doubt it. To think that some people actually would sue to increase the unprofitable flying.

--glad to be gone
 
Boeingman said:
• $500,000-per-year consulting contract for up to eight years, paid quarterly in advance ($4 million total).

• $4,586,515 lump-sum cash for severance payment, health benefits and incentive awards that were to be paid for 1997.

• $765,600-per-year pension, starting in 1997.

• Vesting of 298,000 stock options and restricted stock. He netted $6.3 million in the 1997 fiscal year after acquiring 89,000 shares, with remaining stock options then valued at $13 million.

• $210,000 in legal fees to prepare his retirement agreement.



• $25,565 for residential security systems

Consulting of what? To tell management to force paycuts on workers? That seems to be the only answer management has to stop the bleeding.

$210,000 legal fees? That is FUBAR

A security system for what? So someone that got hosed by these s doesn't break into his house and go postal?

Unreal.
 
They say BK is not the solution, I bet BK has been in the plans from the beginning, they're just waiting for the right time

Forgive me for being ignorant.. If the right time to file BK wasn't sometime over the last 3+ years to today, what/when will be the right time?
 
I'm not an accountant, but it may be they think they'll get more for their assets, ie ASA/CA if they're not in BK. Who would want to buy a regional contractually locked to another carrier in a bad position. If we do get sold I think they will file pretty quick. They would also get more money for us outside of a fire sale. I think BK would have been a better help long ago, but like I said, I'm not an accountant.
 
Buckaroo said:
You're right 737pylt. Don't you wish you were flying 737's for Southwest?

I think you were addressing me. No, not really. I enjoy flying wide bodies...but that's just me.
 

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