FlyingDawg
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Deltas Largest Food Supplier Quits
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Freddie Spencer
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General Lee
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General Lee
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I was WRONG above, I think it was "Gate Gourmet" and supposedly our lawyers will be going to court tomorrow to show the judge the CONTRACT we have with them. Hey, "A Contract is a Contract"---right???? Thanks Leo!
Bye Bye--General Lee
PS--Those passengers going to Europe tonight from JFK, CVG, and ATL are going to love lots of pretzels!
Bye Bye--General Lee
PS--Those passengers going to Europe tonight from JFK, CVG, and ATL are going to love lots of pretzels!
Has anyone actually eaten that food? It BLOWS!!!!! Good riddence. Just do what good ole SWA does - serve peanuts and chex mix over the long haul.... Keep the costs lower because people don't want to pay an additional $400 over the LCC just for the crappy food.
Tell Gate Gourmet (an oxymoron) to kiss off because the model is changing...
Tell Gate Gourmet (an oxymoron) to kiss off because the model is changing...
lostplnetairman
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Caterer cuts off Delta in dispute
Nervous vendors uneasy with threat of bankruptcy, say industry experts
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 09/21/04
Delta Air Lines scrambled to get food and drinks aboard many of its flights late Tuesday after its primary supplier stopped service in a contract dispute.
The food and drink supplier, Gate Gourmet, shut down service to Delta on Tuesday afternoon, only days after the ailing airline resolved a similar dispute with another catering company.
"It's going to impact many . . . flights," Delta spokesman John Kennedy said. He declined to describe the nature of the dispute with Gate Gourmet, but said the Atlanta-based airline — struggling to avoid bankruptcy — was taking steps to resolve the matter.
A bankruptcy expert suggested that some Delta suppliers may be demanding prepayment for services to avoid the risk of losing money on outstanding bills if Delta files for Chapter 11 protection from creditors in coming weeks.
"It's good bankruptcy planning," said Darryl Laddin, an Atlanta attorney who represented Eastern Airlines' bankruptcy trustee about 15 years ago. Gate Gourmet provides food and drinks for flights at Delta's giant Atlanta hub and in about 50 other cities. The company, owned since 2003 by investment firm Texas Pacific Group, didn't respond to calls for comment.
"While Delta regrets any inconvenience to our customers, we are attempting to resolve the matter," Kennedy said.
The Delta spokesman declined to say how much notice Gate Gourmet was required to give before terminating service.
He said Delta gave vouchers to some passengers to buy meals before flights. And the airline turned to other vendors to provide meals, drinks or snacks on other flights, he said.
Kennedy declined to say how many Delta flights operated Tuesday without the usual beverage, snack or meal service, but he acknowledged the effect was widespread.
Delta's latest headache came a day after a rare bit of good news. On Monday, leaders of Delta's pilots union agreed to a plan to resolve staffing problems that could arise from an exodus of retiring pilots at the end of the month. Delta had said that could trigger a Chapter 11 filing.
The agreement with the pilots must be approved by union members. On Tuesday, John Malone, the chairman of the union's leadership council, issued a letter urging the pilots to vote in favor of the deal.
Delta and other financially strapped airlines greatly reduced meal service after the Sept. 11 terrorist attacks as a cost-saving measure. But Delta still serves meals to first-class passengers on flights longer than two hours and sells food to coach passengers on longer flights.
Delta faced a similar dispute last week with the industry's largest caterer, LSG Sky Chefs, which stocks flights at the airline's Salt Lake City hub and about 20 other cities. That dispute was resolved in a couple of days.
Together, LSG Sky Chefs and Gate Gourmet account for about half of the airline food business.
Laddin said a growing number of Delta's creditors may be demanding prepayment instead of billing Delta for payment 15 or 30 days later, as they normally would.
Suppliers generally don't want to run up huge bills because in a Chapter 11 case, a company can suspend certain debt payments while continuing operations.
Also, due to a quirk in bankruptcy law, if Delta files for bankruptcy, the judge could order creditors to refund payments they received up to 90 days before the filing, with the money to be divvied up among all creditors, Laddin said.
Vendors who demand prepayment don't face that risk.
"For someone who does a lot of business with Delta, like one of the food service companies, it's something they need to worry about," said Laddin.
Nervous vendors uneasy with threat of bankruptcy, say industry experts
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 09/21/04
Delta Air Lines scrambled to get food and drinks aboard many of its flights late Tuesday after its primary supplier stopped service in a contract dispute.
The food and drink supplier, Gate Gourmet, shut down service to Delta on Tuesday afternoon, only days after the ailing airline resolved a similar dispute with another catering company.
"It's going to impact many . . . flights," Delta spokesman John Kennedy said. He declined to describe the nature of the dispute with Gate Gourmet, but said the Atlanta-based airline — struggling to avoid bankruptcy — was taking steps to resolve the matter.
A bankruptcy expert suggested that some Delta suppliers may be demanding prepayment for services to avoid the risk of losing money on outstanding bills if Delta files for Chapter 11 protection from creditors in coming weeks.
"It's good bankruptcy planning," said Darryl Laddin, an Atlanta attorney who represented Eastern Airlines' bankruptcy trustee about 15 years ago. Gate Gourmet provides food and drinks for flights at Delta's giant Atlanta hub and in about 50 other cities. The company, owned since 2003 by investment firm Texas Pacific Group, didn't respond to calls for comment.
"While Delta regrets any inconvenience to our customers, we are attempting to resolve the matter," Kennedy said.
The Delta spokesman declined to say how much notice Gate Gourmet was required to give before terminating service.
He said Delta gave vouchers to some passengers to buy meals before flights. And the airline turned to other vendors to provide meals, drinks or snacks on other flights, he said.
Kennedy declined to say how many Delta flights operated Tuesday without the usual beverage, snack or meal service, but he acknowledged the effect was widespread.
Delta's latest headache came a day after a rare bit of good news. On Monday, leaders of Delta's pilots union agreed to a plan to resolve staffing problems that could arise from an exodus of retiring pilots at the end of the month. Delta had said that could trigger a Chapter 11 filing.
The agreement with the pilots must be approved by union members. On Tuesday, John Malone, the chairman of the union's leadership council, issued a letter urging the pilots to vote in favor of the deal.
Delta and other financially strapped airlines greatly reduced meal service after the Sept. 11 terrorist attacks as a cost-saving measure. But Delta still serves meals to first-class passengers on flights longer than two hours and sells food to coach passengers on longer flights.
Delta faced a similar dispute last week with the industry's largest caterer, LSG Sky Chefs, which stocks flights at the airline's Salt Lake City hub and about 20 other cities. That dispute was resolved in a couple of days.
Together, LSG Sky Chefs and Gate Gourmet account for about half of the airline food business.
Laddin said a growing number of Delta's creditors may be demanding prepayment instead of billing Delta for payment 15 or 30 days later, as they normally would.
Suppliers generally don't want to run up huge bills because in a Chapter 11 case, a company can suspend certain debt payments while continuing operations.
Also, due to a quirk in bankruptcy law, if Delta files for bankruptcy, the judge could order creditors to refund payments they received up to 90 days before the filing, with the money to be divvied up among all creditors, Laddin said.
Vendors who demand prepayment don't face that risk.
"For someone who does a lot of business with Delta, like one of the food service companies, it's something they need to worry about," said Laddin.
My sister caught the 7p ATL-DUB flight last night and her flight was affected. She said they were handing out vouchers like the above article mentioned, but you could hardly spend the time to wait in line at the food court without missing your flight because it was such a madhouse in Terminal E. She said the gate told everyone they didn't even know if they'd be able to provide water. That's not a good thing when they're running 8+ hour flights. I don't know how many flights it affected, but she said she heard the same thing from all the neighboring gates on international flights.
miles otoole
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NYRANGERS
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Delta Gate
Delta Air Lines to Resume Full Food and Beverage Service on Impacted Flights
September 22, 2004 4:59:00 PM ET
ATLANTA, Sept. 22 /PRNewswire-FirstCall/ -- Fulton County Superior Court Judge Stephanie Manis today ordered Gate Gourmet to resume catering services on Delta Air Lines flights, effective immediately.
Onboard service was impacted on some flights catered by Gate Gourmet yesterday afternoon and today. In the interim, Delta used other suppliers for food and beverage service on these specific flights during this time in order to minimize inconvenience to our customers.
Delta's other caterers continued to service all other flights uninterrupted.
"Delta regrets any inconvenience caused to our customers for this service interruption while we were attempting to resolve this matter," said Paulette Corbin, Delta's senior vice president of In-Flight Service. © 2004 PRNewswire
Delta Air Lines to Resume Full Food and Beverage Service on Impacted Flights
September 22, 2004 4:59:00 PM ET
ATLANTA, Sept. 22 /PRNewswire-FirstCall/ -- Fulton County Superior Court Judge Stephanie Manis today ordered Gate Gourmet to resume catering services on Delta Air Lines flights, effective immediately.
Onboard service was impacted on some flights catered by Gate Gourmet yesterday afternoon and today. In the interim, Delta used other suppliers for food and beverage service on these specific flights during this time in order to minimize inconvenience to our customers.
Delta's other caterers continued to service all other flights uninterrupted.
"Delta regrets any inconvenience caused to our customers for this service interruption while we were attempting to resolve this matter," said Paulette Corbin, Delta's senior vice president of In-Flight Service. © 2004 PRNewswire
General Lee
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