Delta may have to file for BK

[FDJ2]

Re: Delta Pilots

F9fdriver, thanks for your perspective. $100,000/year was a great deal of money back in 1969. Much more than $250,000 today for a senior airline pilot in 2004 dollars. Was Pan Am pay that much out of the norm with the rest of the industry when Pan AM went under? What role do you feel Pan Am's domestic structure played in the ultimate demise? Thanks again for your response.

 

[N2264J]

At the end of the day, the same capital any pilot group has when it seeks self help.

Self help during bankruptcy? That should tear the pilot group apart.

 

[skykid]

FDJ2, obviously you are correct about negiotations in CH11. Sure there are provisions for imposing work rules and compensation, but that would be a disaster for Delta or any other mgt and they would (one would hope) avoid that at all costs. I believe the parties here will come to terms before Ch11. Isn't it interesting how every article on this subject makes it appear the pilots are not willing to give up any pay?

 

[FDJ2]

Isn't it interesting how every article on this subject makes it appear the pilots are not willing to give up any pay?

How true. Also, few articles publish the fact that DAL doesn't have a negotiator. Now that Terry Erskine, Labor Relations, retired and Coleman, head of HR retired, who exactly is the company negotiator. For over a year the Delta pilots have been willing to negotiate reasonable voluntary concessions. The companies all or nothing approach to demanding BK concessions does not provide a framework for negotiations. Even in BK, if it were to happen and right now few see it as probable in the near future, the parties must engage in good faith negotiations.

 

[f9driver]

Delta Paycuts

FDJ2,

There were many problems including the lack of domestic route structure you mention. The merger with National to get them required raises for all their employees and the DC-10's were a bad fit. With all the other things that could and did go wrong the 747 IMO accelerated the process the most..... bad engines, low traffic, huge plane mile costs, etc. With imperfect management..... and most of them are.... I don't think any airline can tolerate, for very long, wages that aren't being recouped by cash flow. By the time we went bankrupt the wages had dropped well below industry standard but the damage started long ago made it impossible to recover.
IMO the sooner Delta gives back the less the balance sheet damage. A stronge balance sheet is going to be required to compete against LCC's with low debt, low wages, young employeees with low medical costs etc. etc.

 

[FDJ2]

F9driver, thanks again for your response.

Take care.