Delta's financial mess & pilot pay... Any thoughts?

[doh]

Publishers,

Again I ask how a pay cut will stave off bk. Have the banks said they will restructure the debt if the pilots take a cut? Management at DAL has not said that. Management has also NEVER accepted any blame for their mismanagement of the debt. In fact, Leo, who is most at fault for the debt structure, got about $20,000,000 as a thank for putting us in this position. It seems to me that if the banks and management were serios about avoiding bk, they would offer to restructure the debt simultaneously with a pay cut. That would go a long way to fostering trust.

 

[N2264J]

Re: Delta's financial mess...

Publishers, Again I ask how a pay cut will stave off bk. Have the banks said they will restructure the debt if the pilots take a cut?

As a practical matter, I can not imagine the creditors helping the company refinance the mortgage until their labor costs are in line with the other legacy carriers. The people with the money Delta wants to borrow will demand it.

You're not going to get a loan for the house you want to buy if you spend more than you take in. Delta's business model is no longer sustainable. The pilot's pay isn't the only problem but it's key to addressing the other problems in the world of finance.