Goodbye pension, here comes next pay cut

[f9driver]

General, General!

Slow down and make sure you are taking your meds. 15 posts in 15 minutes.... Even for you that must be a new record. You are like a little kid who is afraid Mommy is going to take your lollipop away but once in a while you see a bigger lollipop... like 777 Capt. In the end if you lose it it won't be the end of the world. It's only money and many have gone before you. I might add, most of them with a lot more class

 

[chazman]

Time is what we need....

Unfortunately, this has been the strategy of most of the major carriers in this downturn. With oil at these levels, revenue as low as it has been due to internet based fare elasticity, changes need to be made that don't involve waiting on capacity to go down.

My $0.02,

Chaz

 

[General Lee]

Unfortunately, this has been the strategy of most of the major carriers in this downturn. With oil at these levels, revenue as low as it has been due to internet based fare elasticity, changes need to be made that don't involve waiting on capacity to go down.

My $0.02,

Chaz

You can't downsize, because the LCCs will fill in behind. Leo Mullin parked a bunch of our planes, and then Airtran expanded. Then, the government likes to give everyone too much time in Chap 11, and then that pulls the rest of the legacy carriers down too. LCCs have an advantage because of longevity. Most of the stews for example at the LCCs have a few years with the company, and therefore are paid at a lower rate. Most of the remaining stews at the legacies have 30 plus years, and they are paid at top rate, for substandard service compared to perky newhires at the LCCs. That is just one example. Some jobs do require more experience. Some do not.


It is frustrating.


Bye Bye---General Lee

 

[BID]

Posted by the General:

Delta, with a $2.2 billion loss in the fourth quarter alone, said it expected to meet its liquidity needs from cash flows from operations, available cash, aircraft financing and funding from a loan deal with American Express.
"Overall, this is pretty much in line with what they've been saying," said Susan Donofrio, an analyst at Fulcrum Global Partners who has a "buy" recommendation on Delta shares.

Delta could raise some $1 billion by selling its regional airline

When was this statement made? Did DAL assume the price of oil at approx. $40.00 per barrel? I recall reading an article that DAL had assumed its financial obligations would be met, but only at a oil price of approx. $40. per barrel. Regarding the $1 billion for its regional airline, was this before the accounting charge of 2004? It turns out the market value for the regional airlines was substantially lower than previously reported.

Some one posted, "Time is what we need" That's what your CFO "bought" and "thought" shortly after 9-11. DAL had one of the best balance sheets out there, but your managment thought buying time would be the answer. Now DAL is so heavily in debt that even Chapter 11 will be very difficult.

Will DAL benefit at the expense of US Air? I don't know, we all know there is too much capacity, but I think any benefit would be slow and too late. Plus, you know the LCC airlines are ready to move in.

Look, I am not an expert in this industry, no analyst here. I learn from the articles I read. I sincerely hope your managment finds a way out and if there is another round of labor cuts, I hope they are a minimum. Heck, we are tied at the hip.

(Yes, it is frustrating.)

 

[737 Pylt]

If only "FlyDeltasJets" were on the board now. If you're lurking Patrick all I can say is "I told you so".

Arrogance is a thin shield in this industry. Perhaps you have learned that simple fact out on the street these last couple of years?

If you're poking fun at someone who is on the street, then you better remember the old saying about "glass houses." Funny how you write about arrogance!
737

 

[Boeingman]

If you're poking fun at someone who is on the street, then you better remember the old saying about "glass houses." Funny how you write about arrogance!
737

The comment was based on some very heated exchanges initiated by this DBA and his continued knocking of CAL from his (and always gloated about) lofty position at DAL. This occured some time ago before the Delta financial implosion and long before your arrival on the forum.

Your perceived inflection of "arrogance" was nothing more than a reminder that his mud slinging originated from that same "glass house" you speak of. My predictions that he scoffed at have come home to roost.

I'm not sure how you considered my comment as poking fun at him. I thought of it as a reality check. If I wanted to poke fun at him, I could of said some much more pointed comments.

 

[skykid]

Then, the government likes to give everyone too much time in Chap 11, and then that pulls the rest of the legacy carriers down too.

GL, I'm afraid you will have a different perspective shortly.

Has anyone pointed out the irony of the big "paper loss" (which is correct if you look at the low amount of cash Delta burned through) was essentially the downgrading of the very assets they now want to sell?

 

[rjcap]

GL, I'm afraid you will have a different perspective shortly.

Has anyone pointed out the irony of the big "paper loss" (which is correct if you look at the low amount of cash Delta burned through) was essentially the downgrading of the very assets they now want to sell?

I guess that would make it a "realized" paper loss ???

 

[Flying Freddie]

OK, so it is only a "paper" loss. What happens when you are sitting there and have no more paper left?

 

[skykid]

Yeah, if they have devalued the price so low that they have to sell for a fraction of what it would have been worth, there went the "paper loss."

 

[scopeCMRandASA]

Those of you salivating over Delta going ch11 better check your backyard. United and USAirways are going nowhere. Delta will not either. They will simply hack at labor and drag the industry down even further. Other carriers will follow in step. My guess is that CAl would be next, then NWA, Jblu, and Airtran in some order. I think we are back to reregulation again very soon--if we are not in a severe recession. If oil does not go down, the airline industry WILL tank in its present state of competition. That includes SWA.

 

[AA717driver]

Someone made the astute observation the other day that if the legacies are having this much trouble in the middle of the economic recovery, how will they do when we have another downturn?

A "life or death" struggle during the good times is not very comforting.TC

 

[skykid]

Those of you salivating over Delta going ch11 better check your backyard. United and USAirways are going nowhere. Delta will not either. They will simply hack at labor and drag the industry down even further.

Don't include me in salivating for them to go Ch11. As for Delta dragging the industry down, that is an interesting perspective you have. They have dropped salary and benefits to match their competition, and they are going to have to dump their pensions to match the competition. What they can't do is match the younger employees and less complicated operation of only flying small planes domestically. There is a lot of anomosity in this board when the "legacy" airlines struggle to adapt to the current situation.

 

[9rj9]

Blast from the past

Don't include me in salivating for them to go Ch11. As for Delta dragging the industry down, that is an interesting perspective you have. They have dropped salary and benefits to match their competition, and they are going to have to dump their pensions to match the competition. What they can't do is match the younger employees and less complicated operation of only flying small planes domestically. There is a lot of anomosity in this board when the "legacy" airlines struggle to adapt to the current situation.

Where re did everyone go, wonder if that Genlee dude is still here?

 

[ReportsSky]

Great information! But this is sad.