Delta has a TA

[FDJ2]

Delta MEC Communications is announcing that a TA has been reached late this afternoon. No details will be announced until the MEC has reviewed and debated the TA.

 

[michael707767]

Delta MEC Communications is announcing that a TA has been reached late this afternoon. No details will be announced until the MEC has reviewed and debated the TA.

Frankly, I think this is bulls**t. How can the MEC debate the merits of the TA if they don't get feedback from the pilots they represent. And how can the pilots give feedback without details.

 

[General Lee]

I am sure we will have at least one week to debate the merrits and VOTE. It sure seemed to me that they were debating this for awhile between Dalpa and the company. We'll just have to wait and see what the details are.........



Bye Bye--General Lee

 

[CSY Mon]

Hmm, 23 %...?

Or more?

Either way, glad ya guys are keeping the bar up and off the ground.

 

[DDpaysoff]

.....

 

[CarjCapt]

bumps

 

[Vortilon]

Michael,

I think the MEC has had about 10 months or more of input. You'll get your vote.

 

[FDJ2]

This is Chris Renkel, MEC Communications Committee Chairman on Wednesday, October 27, at 7:40 p.m. with a special update.

Late this afternoon, your Negotiating Committee reached a tentative agreement with Delta management on a pilot costs savings package.

The MEC will review this document tonight. We will not release any details until the MEC has completed its deliberations.

That is all.

 

[jrav8tor]

Atlanta Journal Constitution

.....

 

[jrav8tor]

Atlanta Journal Constitution

Here's an article I just read on AJC.com:


Delta strikes tentative deal struck with pilots

By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 10/27/04


Negotiators for Delta Air Lines and its pilots union shook hands on a tentative pay-cut agreement Wednesday night that could divert the ailing Atlanta carrier from its course toward bankruptcy.

The union said its leadership council still had to review and sign off on the deal, which would then be voted on by rank-and-file pilots.

[url="http://img.coxnewsweb.com/C/08/26/62/image_262268.gif"]http://img.coxnewsweb.com/C/08/26/62/image_262268.gif[font=arial, helvetica]EMAIL THIS[/font][/url]
[url="http://img.coxnewsweb.com/C/03/27/62/image_262273.gif"]http://img.coxnewsweb.com/C/03/27/62/image_262273.gif[font=arial, helvetica]PRINT THIS[/font][/url]
[url="http://img.coxnewsweb.com/C/04/27/62/image_262274.gif"]http://img.coxnewsweb.com/C/04/27/62/image_262274.gif[font=arial, helvetica]MOST POPULAR[/font][/url]
http://www.ajc.com/shared-local/images/1pix_trans.gif
The tentative agreement came after more than a year of on-again, off-again talks as Delta's three-year financial slide steadily worsened. Talks culminated this week with around-the-clock sessions at the Air Line Pilots Association's headquarters near Washington.

Delta was thought to be on the verge of a Chapter 11 bankruptcy filing as soon as today had a pilot deal not come together.

If approved, the pact will help Delta hold together several other important deals withcreditors to achieve an out-of-court financial restructuring. Most, if not all, of those agreements were conditional on Delta getting substantial concessions from its pilots, who are the highest-paid in the industry.

A Delta spokesman said the airline had no immediate comment on the tentative agreement.

The union said no details of the pact will be disclosed until union leaders finish their review, which was continuing late Wednesday night.

Since summer, Delta has been standing firm with demands that it needed at least $1 billion in pay cuts and other concessions from pilots, which would cut the airline's total pilot-related costs in half.

Whatever the details, the givebacks are likely to hit pilots hard. Delta had been seeking a 35 percent pay cut, slashed benefits and work rule changes that would mean hundreds of pilots will lose their jobs and the survivors will work longer hours.

If the company stuck to its 35 percent pay-cut demand, that would reduce annual pay for a midcareer captain making $225,000 a year to about $146,000. Delta pilots would join pilots at several other airlines, including American, United and US Airways, who have taken deep cuts to help their companies survive financial slumps since 2001.

Key issues during the negotiations, according to some Delta watchers, included haggling over the pilots' pension plan, which Delta wanted to freeze and replace with a less costly plan. Another issue was the amount of stock and other incentives that pilots should get for giving concessions.

Meanwhile, Delta has been juggling negotiations with numerous creditors and bondholders to free up cash by deferring debt payments or acquiring new financing.

People familiar with those negotiations say Delta reached a financing deal Tuesday with General Electric's aircraft leasing firm, GE Capital Aviation Services, and got a strong response on a separate debt-exchange offer before a midnight deadline on Tuesday. That offer sought to get bondholders to turn in their notes for new ones with better terms for the company.

But, as with other recently announced deals, the creditors or Delta conditioned the agreements on getting at least $1 billion in cost concessions from pilots.

On Monday, Delta announced a deal with American Express for up to $600 million in new financing — also contingent on a pilot deal — and a separate agreement to defer $135 million in debt payments.

Optimism about a pilot deal has driven Delta stock up sharply this week in heavy trading, with shares closing Wednesday at $4.94, up 31 cents. Shares are up 68 percent in the last five trading days.

At Hartsfield-Jackson International Airport on Wednesday night, several employees were seen high-fiving in the Atlanta terminal.

Asked if they were reacting to news of the pilot deal that might keep the company out of bankruptcy, one said, "We can't talk about it but, yeah, we are."

A Delta flight attendant, told of the deal with the pilots, said, "That's great."

"It's a scary time in the aviation industry," she added. "But it has to get bad before it can get better. Hopefully that's it."

— Staff writer Renee DeGross contributed to this article.

 

[Yahtzee]

Delta, pilots union reach pact on concessions
Tentative accord may stave off bankruptcy for beleaguered carrier

The Associated Press
Updated: 8:22 p.m. ET Oct. 27, 2004


ATLANTA - Delta Air Lines’ pilots union said late Wednesday it had reached a tentative agreement on concessions that could save the struggling carrier from bankruptcy.

Union spokeswoman Karen Miller said the deal came after 15 months of negotiations that have intensified in recent days. She said the union would review the agreement but would not provide details for now.

Atlanta-based Delta had said it would have to seek bankruptcy protection if it didn’t get $1 billion in concessions from its 7,000 pilots. Miller would not say if the tentative agreement covered $1 billion.

The nation’s third-largest airline was expected to decide by Wednesday whether to seek Chapter 11 protection from creditors. It said that could be delayed if the airline and pilots union reached an agreement. A company spokeswoman said Wednesday night no decision had been made. She declined to elaborate.

The deal must be ratified by rank-and-file pilots, which could take several days.

Tuesday was Delta’s self-imposed deadline for debtholders to respond early to an exchange offer intended to give the airline breathing room. The deadline came and went without any word from Delta on its progress.

Delta had offered to exchange $680 million of its debt with new notes secured by $1.2 billion worth of debt-free aircraft, flight simulators and flight training equipment. The offer was made to holders of $2.6 billion in various forms of Delta debt.

Earlier this month, Delta extended a debt exchange offer to Nov. 18 but said it would give some creditors a better deal if they agreed to the terms by Tuesday. There was no word about what the creditors’ response has been.

Earlier pilots offer: $705 million in concessions
Delta has warned that its debts could force it into bankruptcy, even if its unions agree to big concessions.

The pilots have publicly offered up to $705 million in savings but have not released details of subsequent offers.

In a regulatory filing made earlier this month, Delta said that to date the union’s “counterproposals have been for substantially less than $1 billion.” The company also said in the filing that the union was requesting for pilots a stock option program that involves “substantially more equity” than management’s proposal.

Delta has lost more than $6 billion since early 2001, during which time it has also cut 16,000 jobs. Delta plans to cut up to 7,000 more jobs in the next 18 months. On Wednesday, the struggling airline reported a $651 million loss in the third quarter.

© 2004 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.msnbc.msn.com/id/6349091/

 

[SWA/FO]

I thought the Delta folks were on a mission to "save" the industry? Hold the line and save the profession for everyone?

 

[NYRANGERS]

I thought the Delta folks were on a mission to "save" the industry? Hold the line and save the profession for everyone?

I guess we couldn't do it. Too many airlines like yours.

 

[General Lee]

SWA F/O,


Man alive, you really are cocky. I want to see you guys get the same 737 rates we used to have. We did raise the bar, but then were dealt with other problems that were beyond our control.



Bye Bye--General Lee

 

[~~~^~~~]

Any prognostications?

I'm guessing wage and work rules changes near what Delta's table position was, no agreement on scope / RJ's with many issues left open for resolution at a later date when there is time for ALPA to put together a more deliberate and coherent plan. This is good and not so good. It is good because the scope issues are complex and should involve the "stakeholders." It is not so good because Delta could use CRJ-700's instead of the -200's coming next year. 40% more revenues with the same cost is always a good thing. The airplanes have a 13 month lead time and any changes have to be made now.

It will be very interesting to see how ALPA made this agreement bankruptcy proof ( if that is even possible ). With the Dornier Jets and other obligations Delta would like to avoid, bankruptcy may still be appealing.

In any event congratulations to the folks who put in all the hard work on these negotiations, it was surely a difficult job and by getting it accomplished they have shown leadership.

 

[SWA/FO]

Actually, there are not too many airlines like ours (mine).

 

[furloughed dude]

Man SWA/FO,

Did you constantly get your butt kicked as a kid?

Or is it that you have a small noodle?

My guess is both..

 

[MadDogMike]

I thought the Delta folks were on a mission to "save" the industry? Hold the line and save the profession for everyone?

Considering that it would take a 30% cut to bring our 737 pay down to yours, your "line" will be held just fine, thank you.

 

[BSkin]

.....

Hey tool boy, get your own avatar!

 

[No Delay]

I know this is going to hurt a lot of folks. I hope for the best for your families and I hope you guys will be able to recover (financially) or at least adjust without too much hardship.

I know someone made a crack about Delta raising the bar. You guys definately raised the bar. The industry was just dealt some tough blows. I think the glory days are over...but I do believe you guys will be getting some of your money back on your next contract.

I work for ASA (I know some think we are part of the problem - but that aside), I want you guys to know I am proud of what you guys accomplished and I am proud of you guys for taking it into overtime and going down swinging.

I hope this will be the turning point and things will get better from here.