Delta's Retention Program isn't working

[~~~^~~~]

In information presented by Fred Reid last week at his Delta Pilot "Town Hall" meeting, he said his executives are paid about 10% of the industry average. He cited examples at the bankrupt carriers, like Tilton at UAL, who makes 200 million and Dave Siegal at US Air.

European airlines have been making them offers well in excess of what Delta is paying.

Kind of takes the wind out of the DMEC's arguement that these executives are overpaid, corrupt, fat cats who don't need retention bonuses because no one would hire them.

 

[surfnole]

In information presented by Fred Reid last week at his Delta Pilot "Town Hall" meeting, he said his executives are paid about 10% of the industry average. He cited examples at the bankrupt carriers, like Tilton at UAL, who makes 200 million and Dave Siegal at US Air.

I am by no means an expert on this industry. However, isn't Delta the most financially sound of all the majors? Perhaps one reason is because they hold down the salaries of their mgmt while everyone else chooses the path to bankruptcy.

Aren't European airlines subsidized by their government.

 

[jarhead]

I would submit that after 9-11, and the billions doled out to the major airlines by the tax payers in the U.S., that Europe does not have a monopoly on government subsidized carriers.

 

[FlyingSig]

In information presented by Fred Reid last week at his Delta Pilot "Town Hall" meeting, he said his executives are paid about 10% of the industry average. He cited examples at the bankrupt carriers, like Tilton at UAL, who makes 200 million and Dave Siegal at US Air.

European airlines have been making them offers well in excess of what Delta is paying.

Kind of takes the wind out of the DMEC's arguement that these executives are overpaid, corrupt, fat cats who don't need retention bonuses because no one would hire them.

Fins,

I addressed this misinformation that you also stated in another thread. You ignored it there, care to answer it here?

http://forums.flightinfo.com/showthread.php?s=&threadid=20996

 

[surplus1]

jarhead

I love it when you "wax sarcastic".

surfnole

Maybe they saw what you call "a ton of money" as a drop in the bucket.

Based on what "they" say the strike cost them ($680 millions) over 89 days and what I think in would have cost ($50 million over 5 years) to give the Comair pilots "everything they wanted" the net difference was a mere 630 millions of the shareholders money that was thrown away.

It's amazing how a ton of money can be seen as a pittance when its somebody else's money.

 

[jarhead]

Surplus1

I am glad you can see my sarcasim when I use it. It tends to be in my nature, but I sometimes worry afterwards, that it may not be picked up on by some, as to what it was

 

[Be200pilot]

a post regarding delta that lacks a response from general lee? weird.....

 

[skykid]

Do you really believe any airline executive makes 200 million a year? Bill Gates might make 200mil this year if you added up all his income, maybe.

 

[skykid]

We all know that executives get perks and signing bonuses - these will be hard to quantify on a yearly basis since their impact may span the whole time the CEO is at the helm. If you look at Tilton's base salary for 2003, the number quoted from whatever town hall meeting was off by 199,154,500.

 

[Birdstrike]

$5 Billion Short?

Posted from the referenced article:

"...Delta's employee-pension obligations are underfunded by about $4.9 billion..."

That is a significant chunk of change. Anybody know what percentage of the total obligation that is? If the paradigm truly shifts and and Delta's current furloughees end up returning to a job financially less lucrative than the one they left due to a permanent fall-off in revenues, how is that obligation ever going to be funded? If management can solve that one, then maybe they are worth something.