Direct quote from Delta MEC to CEO on Stand

[General Lee]

"I'm going to tell you right now, Gerry, the deal is simply this. I'm up to the edge of the cliff, I'm looking over, I'm not blinking. This contract is rejected. We're striking. The Delta pilots will strike. We'll deal with you in a business manner. We will not deal with you under pressure. We will not blink. I do not blink."



This was at the hearing a couple days ago. Our MEC chair was on the stand and the CEO in the audience. It will get interesting.



Bye Bye--General Lee

 

[3BCat]

...and the other side of the story.

http://www.atwonline.com/news/story.html?storyID=4428

 

[On Your Six]

http://www.atwonline.com/news/story.html?storyID=4428

Again, nothing new here. Management refuses to negotiate. If they so desparately want a deal, they should negotiate one. Management is exploiting the pilot group and everyone knows it. Of course management will paint the bleakest picture possible to convince the uninformed - that's their job and they will be bonused against it. I just heard a news story that stated that the airline business could actually profit considerably in the next year or two due to lower capacity (more high yield seats) and expected pension liability reductions. Never any mention of those positive forecasts...



Delta needs pilot deal, won't survive strike, Grinstein emphasizes

Tuesday March 21, 2006
Delta Air Lines needs to have a cost-saving agreement with its pilots soon, CEO Gerald Grinstein said yesterday."They have to reach that agreement. We have got to get that done by late spring," he told ATWOnline in Atlanta. Delta wants pay and benefit reductions and efficiency improvements valued in excess of $315 million per year from its Air Line Pilots Assn. unit, which has offered $115 million on top of $1 billion in givebacks provided in 2004 (ATWOnline, Feb. 13).
The carrier is seeking to have the current pilot contract thrown out under Section 1113 of the US Bankruptcy Code. The two sides agreed to arbitrate the company's motion but the pilots have threatened to strike if the arbitrator sides with management and the airline imposes a new contract.
On Monday, Grinstein warned that Delta "will not survive a 24-hour pilot strike." He also said concern over a strike already has had a negative effect on forward bookings but declined to quantify the impact. The arbitrator's decision is expected on or before April 15.
Assuming Delta and its pilots are able to reach agreement, Grinstein expects the company to emerge from bankruptcy "by summer 2007, 14 months from now." Around 70% of its $3 billion turnaround plan should be in place by year end, with some $1 billion coming from improvements on the network and management side. "Delta redeployed assets where it makes more sense," he said. For example, it is strengthening its position over the Atlantic with 50 daily flights this summer. International revenues as a share of total revenues should increase from 20% to around 35% by September.
Some $1 billion of savings are expected to come through new contracts with airports, suppliers, caterers and other vendors. The remaining $1 billion will be achieved through employee concessions and takeaways.

by Kurt Hofmann

 

[General Lee]

And again, another side of the story

http://www.atwonline.com/news/story.html?storyID=4428

Delta May Be In Better Shape Then Projected

Delta's five year plan starting in has already significantly reduced costs.
By Associated Press
Wednesday, March 22, 2006
(AP) _ A pilots union economic expert says Delta Air Lines is in better competitive shape than its executives portray.
The expert testified in an arbitration hearing yesterday that Delta has performed so well recently that it doesn't need any of the 325 (m) million dollars in cuts it is seeking from its pilots.



Do you think the creditors would allow liquidation before they could get a bundle on new stock? Ever see what happened to United? Their stock is over $40 right now. Ever thought of that? Management at UAL got 8% of the stock.


Bye Bye--General Lee

 

[On Your Six]

Delta May Be In Better Shape Then Projected

Delta's five year plan starting in has already significantly reduced costs.
By Associated Press
Wednesday, March 22, 2006
(AP) _ A pilots union economic expert says Delta Air Lines is in better competitive shape than its executives portray.
The expert testified in an arbitration hearing yesterday that Delta has performed so well recently that it doesn't need any of the 325 (m) million dollars in cuts it is seeking from its pilots.



Do you think the creditors would allow liquidation before they could get a bundle on new stock? Ever see what happened to United? Their stock is over $40 right now. Ever thought of that? Management at UAL got 8% of the stock.


Bye Bye--General Lee

Do you think the DAL management has bonuses tied to cost reductions? Yeah, I bet they do...

 

[Draginass]

The strategic plan is to make everything look as bleak as possible, yet paint a rosy future, if only the pilots would stop being obstructionists and eat the sh*t sandwich like they're told to do.

This is all a setup to blame the pilots for the ultimate failure of Delta in the court of public opinion.

In the end, we know DALPA will settle and mangement will give them a good cover story. No way will they strike.

This is the same tired Kabuki Dance that's already been played out at US Air, UAL, and NWA.

 

[tuna pimp]

Delta May Be In Better Shape Then Projected

Delta's five year plan starting in has already significantly reduced costs.
By Associated Press
Wednesday, March 22, 2006
(AP) _ A pilots union economic expert says Delta Air Lines is in better competitive shape than its executives portray.
The expert testified in an arbitration hearing yesterday that Delta has performed so well recently that it doesn't need any of the 325 (m) million dollars in cuts it is seeking from its pilots.

Any mention of what facts he's basing this assertion on?

 

[Boeingman]

Do you think the DAL management has bonuses tied to cost reductions? Yeah, I bet they do...

I'll also bet they are buried in there somewhere. ALPA's problem is they never uncover any of this stuff until after the fact.

 

[On Your Six]

The strategic plan is to make everything look as bleak as possible, yet paint a rosy future, if only the pilots would stop being obstructionists and eat the sh*t sandwich like they're told to do.

This is all a setup to blame the pilots for the ultimate failure of Delta in the court of public opinion.

In the end, we know DALPA will settle and mangement will give them a good cover story. No way will they strike.

This is the same tired Kabuki Dance that's already been played out at US Air, UAL, and NWA.

How can you be so sure? DAL management has not been willing to negotiate. If the contract is actually thrown out - all bets are off. Clearly the two parties need to get back to the table and look for a compromise. I wouldn't expect too much in terms of wage concessions without significant scope protection. This won't be a free ride for DAL management...

 

[Green]

I wouldn't expect too much in terms of wage concessions without significant scope protection. This won't be a free ride for DAL management...

Oh yeah it will. They are most likely going to walk away with hundreds of millions of dollars in bonuses and stock options after the dust settles. Do you think they, as individuals, give a hoot about scope? I don't. These guys are corporate raiders, here for a couple years to loot the company and walk on to the next venture. I don't think any of these managers will even be around to see the first 190 delivery. They just want you to think it's crucial to have them at the express division so you will trade hard earned dollars to "secure" them at mainline. More cost savings for them mean more bonuses/options on the backside of CH 11.