How low can we go?

[Tim47SIP]

http://news.moneycentral.msn.com/ticker/article.asp?Feed=RTR&Date=20040512&ID=3693887&Symbol=US:DAL

I know that many of the mainline guys keep saying the analysts are saying BK is probably not going to happen and the Mainline guys should hold out for a plan that they want to approve of. I also understand that many of the mainline guys (mostly Delta) think that you can not file for BK with over a billion or so in the bank. My question is that if the stock continues to fall, even with over a billion in the bank, how can GG posibly not file. Not to sound like a mono toned record here, but how much will it take before the mainline guys capitulate. I hope that it does not come down to the complete folding of a great company or the BK filing comes to little, to late. I understand that they (DALPA) have been "trying" to negotiate. But with that first offer, what do you guys expect. GG said 30% and QOL issues (which will still put you well above industry average) over several months ago. If BK ocurrs, you will get way less than that. I wonder what those so called analysts that DALPA hired are thinking in respect to 14% is all Delta needs?

Not sure if I did the link correctly.

 

[TonyC]

http://news.moneycentral.msn.com/ticker/article.asp?Feed=RTR&Date=20040512&ID=3693887&Symbol=US:DAL


... , but how much will it take before the mainline guys capitulate. [?]

How do you define capitulate? Give up everything? Offer a 70% pay cut? Are you still wrapped up in the illusion that the salvation of Delta Airlines rests in the wallets of the pilots? I've said it before, I'll say it again: they could work for FREE, and it wouldn't matter.

I understand that they (DALPA) have been "trying" to negotiate.

Apparently you do NOT understand that, and you don't understand the significance of Delta's refusal to negotiate. REFUSAL TO NEGOTIATE! Don't you get it? If pay concessions are so critical to the survival of the company, what responsible human being would sit by and watch the company flush down the toilet because he was too arrogant to talk to the pilots?

Maybe I've used too many words already, and thereby clouded the issue. The issue is this: IF you want to blame the demise of the company on any single group, start looking at EXECUTIVE MANAGEMENT.

Not sure if I did the link correctly.

NO, you didn't. Try this:Money Central Article

 

[navyc9]

Any body down south here the Bell South commercials where all of the different companies and IRS are asking for 30% give backs and everyone tells them to go pack sand? I think it is pretty ironic and I get a laugh everytime I hear it here in Atlanta.

 

[Tim47SIP]

Tony

Thanks for fixing the link. You are the man!

Now, sorry to hit a nerve, but you didn't answer the question. I AM NOT CONDONING TOTAL GIVEBACKS for the Delta guys. I just think that what has been laid on the table is a little bit of a joke. But that being a seperate issue, how low can the stock go before BK has to be filed even with cash in the bank? That is the question. Can GG file with the 1.6 billion or does he have to wait untill that is gone. The reason that I am asking is that it seems to me if you file with the cash in he bank, the company can rebound earlier if at all than waiting untill all of the cash is gone or down to 1 billion.

P.S. No I do not believe at all that Deltas problems are the pilots fault. No capitulation does not mean give it all. But right now, DALPA is the primairy saving grace. Without help from DALPA, recovery will be difficult at best. And yes, if the pilots worked for free, Delta would be in the black but that is not the issue.

 

[Saabslime]

When you can no longer meet your debt obligations you can file for BK. I don't think it matters what the stock is down to or how much money is in the bank.

 

[TonyC]

Re: Tony

And yes, if the pilots worked for free, Delta would be in the black but that is not the issue.

No, if the pilots worked for free, Delta would still be in the red.


The pilots offered 15%

The Company demanded 30% "PLUS"

The pilots stand ready to negotiate.

The Company refuses to negotiate.


And you ask "when will the pilots capitulate?".

You ought to be asking about the other participant in the discussion, The Company.

 

[TheDogsBollocks]

Tim47SIP,

If you think that pilot wage concessions will save Delta, look at US Airways, wage cuts in excess of 30%, pilots of up to 15years seniority!!!!! (according to USA Today) being furloughed and the company is still in serious s**t.

I hope they all pull through on this one, I am personally sceptical that low fair airlines, currently the flavor of the month are the future for the US flying public, I think there is room for everyone- if they are managed well.

I think Tony C is on to something here.

 

[Heavy Set]

How about a PLAN from DAL management? Is that too much to ask for? Will they use a Siegel plan where they just cut costs to the bone?

Personally, I think the DAL pilots should hold out UNTIL A PLAN IS REVEALED. I guess Grinstein is waiting for McKinsey to finish another GRAND PLAN for the future...

 

[SKYW Pilot]

I agree wholeheartedly. I think the Delta pilots should hold out all the way until a plan is revealed. I wonder if somebody can run the numbers showing how Delta's bottom line would do with the pilots taking a 50% paycut. I'll bet the company would still lose money! The waste is everywhere else... not the pilots! When does the corporate greed end?

 

[FDJ2]

Re: Tony

how low can the stock go before BK has to be filed even with cash in the bank? That is the question.

It doesn't matter how low the stock goes. BK is not determined by the value of the stock. Having cash and being able to pay your debt obligations when they are due is what matters.