Q: Continental Airlines CEO Larry Kellner recently complained about Delta's competitive advantages from bankruptcy. What are those advantages?
A: [Laughs] The advantages of bankruptcy are the same ones that Kellner's company took advantage of. [Continental made two trips through Chapter 11.] They got rid of their pension costs. Scrubbed all of their labor costs down. ...
Q: When will Delta make a decision on whether to terminate the pensions?
A: Well, I don't know whether Delta would ever make a decision on that. If I recall correctly at United, it was the [Pension Benefit Guaranty Corp.] that made the decision to terminate the pension plan.
Q: But do you still hold out hope for any legislative relief from Washington [where Congress is considering measures to allow Delta to stretch out payments into its pension funds and ease the cost of keeping them]?
A: Well I don't want to say that I think Washington is going to be the end all, be all, but I do think I'd like to see what the legislation is. ... We don't have a plan to ask the court to terminate their pension.
Q: Do you think companies have a moral obligation to fulfill their pension obligations and to pay them?
A: Sure, but I want to balance that against the moral obligation that I think companies have to try and preserve as many jobs as they possibly can. ... If what you're looking at is a world where you're canceling their pensions and it's going in my pocket, then it's a pretty clear moral situation. But the contrast is, between trying to preserve, as we are at Delta ... 50,000 careers, and we can't do it if we have to pay those [pension plan contributions]. Then you've got two moral issues right in square conflict with each other.
Lots to worry about with what Grinstein said in this Atlanta Journal interview, but with out coming out and saying he is going to shell pensions, he doesn't make it too hard to read between the lines. He also made it pretty clear he would not be around when Delta clears Chapter 11. Does he have a golden-parachute an how much is it worth?
I am tired of this dirty business.....
A: [Laughs] The advantages of bankruptcy are the same ones that Kellner's company took advantage of. [Continental made two trips through Chapter 11.] They got rid of their pension costs. Scrubbed all of their labor costs down. ...
Q: When will Delta make a decision on whether to terminate the pensions?
A: Well, I don't know whether Delta would ever make a decision on that. If I recall correctly at United, it was the [Pension Benefit Guaranty Corp.] that made the decision to terminate the pension plan.
Q: But do you still hold out hope for any legislative relief from Washington [where Congress is considering measures to allow Delta to stretch out payments into its pension funds and ease the cost of keeping them]?
A: Well I don't want to say that I think Washington is going to be the end all, be all, but I do think I'd like to see what the legislation is. ... We don't have a plan to ask the court to terminate their pension.
Q: Do you think companies have a moral obligation to fulfill their pension obligations and to pay them?
A: Sure, but I want to balance that against the moral obligation that I think companies have to try and preserve as many jobs as they possibly can. ... If what you're looking at is a world where you're canceling their pensions and it's going in my pocket, then it's a pretty clear moral situation. But the contrast is, between trying to preserve, as we are at Delta ... 50,000 careers, and we can't do it if we have to pay those [pension plan contributions]. Then you've got two moral issues right in square conflict with each other.
Lots to worry about with what Grinstein said in this Atlanta Journal interview, but with out coming out and saying he is going to shell pensions, he doesn't make it too hard to read between the lines. He also made it pretty clear he would not be around when Delta clears Chapter 11. Does he have a golden-parachute an how much is it worth?
I am tired of this dirty business.....