More Delta comments....

[rjcap]

Well, $325 million was voluntarily used to pre-pay the employee pension fund (not pilots') EARLY

Question for all.

Wasn't this 300 + million derived from a Morgan Stanley Bond offering ? If so it was not a source of cash from operations. It was more debt.

Also, How underfunded is the total company pension at this time ??

 

[Heavy Set]

Hey Medflyer,

How about you guys take one for the team and give up a bunch of RJs next year - say $500 million worth. That will really help DAL with liquidity. You sound like a team player...

 

[General Lee]

First of all, I am very impressed that Xream-me did not slam Heavy Set on his last post. Maybe he has promise yet.....to be a contributor.

My response to him would be that if his team (part of our whole team.....) took some sort of concessions (I am not saying how much)---maybe they would not be outsourced as much.....Does that not make sense? I think one of the main reasons Comair (and ASA to an extent) is losing out on new flying is the cost issue, and the whipsaw issue also. That just seems obvious---but do you guys trust that management would give you MORE flying if you did cut your pay? They may not, and they are the same people we are negotiating with.....


RJCAP,

I think another $300 million was paid to the NY Port Authority for JFK reconstruction. Apparently the Port Authority had a "contract" for reconstruction that we signed a few years ago, and they started pushing for payment.....

I don't know how much total the pension is under funded, but apparently it isn't as bad as it was 2 years ago when everything tanked because stocks have risen since then.

Bye Bye--General Lee

 

[FDJ2]

Question for all.

Wasn't this 300 + million derived from a Morgan Stanley Bond offering ? If so it was not a source of cash from operations. It was more debt.

It was added in as an expense, if the company had not voluntarily prefunded the non contract employee pension, DAL would have been over $100M cash flow positive for the 1st quarter. Considering that the 1st quarter is a relatively weak quarter to begin with, being cash flow positive would not have looked good when you are seeking large concessions from the 15% of employees who have a contract. All the other indicators at DAL are improving, revenue is up, capacity is up, load factors are up, the operating margin is improving and costs are down.

 

[Pez D. Spencer]

Heavy Set,
Liquidity refers to items that are "capable of ready conversion into cash." If Delta is opening up a used plane lot, then they have far more liquidity parked in the desert. If this brainchild of your's is such a winner, then why did Delta just announce 45 more? And, since you don't work for Delta, why do you even care?

Re-read Medflyer's post in slow motion -- maybe you'll get it. He's got a point. Even the General says they will likely give more, if asked.

All along I have taken the view that it is the Delta pilot's perogitive on pay cuts. I still maintain that view. I like reading General Lee's and FDJ2's posts also. They work for Delta. Your posts are becoming more and more vindictive, without any sensible cause.

 

[rjcap]

How about you guys take one for the team and give up a bunch of RJs next year

Heavy,

We're not on the "team." We are seperate wholly owned subs who are whipsawed against each other and the entire DCI network.

Bascially ASA, Comair compete against Mainline and all other fragmented DCI carriers.

Its a dog eat dog world.

 

[XRMEFLYER]

Maybe he has promise yet.....to be a contributor.

Gee private do you think I could maybe one day be as productive as you Delta pilots? That is a lofty goal indeed.

My response to him would be that if his team (part of our whole team.....) took some sort of concessions (I am not saying how much)---maybe they would not be outsourced as much.....Does that not make sense?

A preemptive attack! I like it!
Lets say for the sake of the argument that we did just what you propose. Then I put it to you, would that not make us a more desirable alternative for "your" flying? And would that not put continued downward pressure on you for further cost reductions down the line? And so on and so on....

 

[wil]

General- I hope the numbers improve. But, Mainline's problem is not going to be solved with International flights. Reminds me of Hoover to Dean Wormer- "we are really hoping our Mid-terms helps us out". It is double-secret probation at Mainline. We are all in this together. Hopefully, we can find a way out. Cheers

 

[General Lee]

Wil,

I never said INTL flights were the "cure all." I did say that the lack of LCCs on INTL flight helps keep fares higher, and we do generate a lot of revenue on them, especially over the Summer. Hey, I really do hope we negotiate something that will help the company out and get us going forward again----I really do. I am not trying to be obstinate here, I want to help. But, I don't want to get "taken" in the process....

Bye Bye--General Lee

 

[jetflyer]

What if 3 years from now Delta files Chapter 7 bankruptcy and closes their doors for good?

I bet there will be an article written in some newspaper somewhere saying that it was because of the Delta pilots' stubborness led by GENERAL LEE from the flightifo.com board. It will say General Lee continued to rally his fellow pilots to resist big cost savings and taking the NECESSARY, not 10-15 percent, cuts the company needed.

Whether you intend it or not General your rallying for Delta is influencing your fellow Delta pilots. You are making everyone think things are better than they are. People hear what you say and think, "Oh things aren't that bad, why should we give up 25-40% of our pay?? We should give up no less than the 10-15%!! Screww Delta!!" You are very charasmatic and a lot of people listen to you on here, which is dangerous.

General Lee you have backpeddled for the last 2 1/2 years continuously. At first it was that Delta was the strongest of the mainline carriers and we'll never need pay cuts. We'll be strong, profitable any day now.

Now it's that: OK we're in a weak position but we don't need to take that big of cuts, etc. etc.

3 YEARS FROM NOW let's hope these are not your words:
"Delta didn't have to file Chapter 7, they were in better shape than they were letting on! The company was going to begin turning around any day!! They had it in for us pilots! They took their bonuses and shut the doors of the company, just to stick it to us pilots so we'd lose our jobs and pensions!!!!"

OH I COULD SEE YOU SAYING THOSE VERY WORDS!

Let's all wake up and smell the coffee, before this company spins into a downward spiral of debt that it can not recover from.

Jet

 

[XRMEFLYER]

Lets say for the sake of the argument that we did just what you propose. Then I put it to you, would that not make us a more desirable alternative for "your" flying? And would that not put continued downward pressure on you for further cost reductions down the line? And so on and so on....

This is what you wanted isn't it private, a "substantive" issue from me? Well there you have it. What say you?

 

[Delta Po Boy]

Whether you intend it or not General your rallying for Delta is influencing your fellow Delta pilots. You are making everyone think things are better than they are. People hear what you say and think, "Oh things aren't that bad, why should we give up 25-40% of our pay?? We should give up no less than the 10-15%!! Screww Delta!!" You are very charasmatic and a lot of people listen to you on here, which is dangerous.

JetFlyer,

Although I enjoy reading General Lee's posts and the constant WWF style cage match between him and XRMEFLYER, I think for myself. Most of the mainline pilots agree with General's thinking that Management needs to show a plan before Delta pilots open their wallets. Do I agree with everything General Lee posts? Of course not. I do, however, agree with him in principle on most of the issues.

Most people who read/post on FlightInfo.com have already formed their ideals, viewpoints, and stances. This forum allows people to access various information sources via one site, participate in debates on numerous issues, and become educated on the other folks' perspectives.

I agree that the General is very charismatic and a lot of people listen to him. FWIW, I found out General Lee's real name is Jim Jones. He sent me a private message asking me, and all the other members of the Delta family that frequent this website, if I wanted to join his "church" and head to Africa with him. I told him no problem - I'm sure we have a codeshare with someone who flies there...

 

[9rj9]

who needs a pay cut, things are improvin

Prudential Equity Group analyst Daniel Hemme cut the rating on Delta stock to "underweight" from "neutral weight" and slashed his price target to $7, down from $11.

"We believe the airline faces significant challenges with the uncertainty of market pricing, a noncompetitive cost structure, the possibility of sustained fuel prices amidst an absent [fuel] hedge position, and continued unsustainable losses," he wrote in a Thursday research note

 

[General Lee]

I have a feeling those ratings would go STRAIGHT UP with a pilot concession---and we are waiting to give him one if he negotiates....

Bye Bye--General Lee

 

[FDJ2]

Re: who needs a pay cut, things are improvin

Prudential Equity Group analyst Daniel Hemme cut the rating on Delta stock to "underweight" from "neutral weight" and slashed his price target to $7, down from $11.

"We believe the airline faces significant challenges with the uncertainty of market pricing, a noncompetitive cost structure, the possibility of sustained fuel prices amidst an absent [fuel] hedge position, and continued unsustainable losses," he wrote in a Thursday research note

http://www.thestreet.com/_yahoo/markets/ericgillin/10
154235_3.html
Brain Drain Hobbling Delta Air

"Furthermore, Delta's situation is improving on some
fronts. The company is making strong progress in
cutting other costs and pension issues may be
easing. Excluding pilots, analysts note Delta has the
lowest costs of any of the legacy carriers, thanks in
part to efficient use of planes and the fact none of its
other work groups are unionized. All in all, CASM fell
by 3.6% in the first quarter, despite a 12.3% rise in
fuel costs."



Just to add a little historical perspective here, last Apr DAL had $1.9B in unrestricted cash, operating expenses had increased 4.3% and unit costs had increased 5.9% year over year.

This April DAL reported $2.2B in unrestricted cash($300M more than in 2003), unit costs were down 3.6% despite a 12.3% rise in fuel costs ,operating expenses remained flat despite a capacity increase of 3.5% and operating revenue increased 4.3%. Except for voluntarily prefunding the non contract employees pension fund, DAL would have seen an operational profit of over $100M in the historically weak 1st quarter.