More Delta Trouble

[Dizel8]

Gen. Lee says: "I don't know, do you?"

Since you do not know, his assesment is as valid as yours and I got to say, for someone who doesn't know much, you sure act like you know better than every one.

It will be interesting to see how much is offered, if DAL tries to spin off DCI or better yet Song, the breadwinner in the family. Maybe then we WILL know!

 

[enigma]

There are still options DL can do, like selling DCI, pay cuts for the non-union employees (no negotiating necessary), etc. This is becoming old news. The fuel issues has been talked about before. We just added fuel surcharges, and Grinstein can't really jump up and down about them sticking because we are still lobbying Congress for pension help. All doom and gloom for the near term I am sure.

What is the burn rate per day after the fuel surcharges came into effect? I don't know, do you? No assets after that? How about that new $400 million BOS terminal we just paid for? How about JFK? How about those untapped non-union people that can be GIVEN pay cuts with no say----that is most of our employees? We don't have any room huh? We are on our way to cutting $5 billion A YEAR in savings, and we need the "room" to get there. We also will probably get pension savings from Congress---which could amount to hundreds of millions of dollars a year in savings---just around the corner or the PBGC will be slammed again. It is just a matter of time, and selling DCI will give us that time.


Anon,

What are you talking about? Another 30% to survive? What? I can't see it getting that high, no way. I can see the non-union people losing another 10-15%, and then heavy maintenance will be wiped away in favor of outsourcing (what everyone else is doing), and other major changes. If Congress doesn't help with the pensions, I think they will go away too, which is fine with me since I have 20 years to go. (age 60 retirement) I think most people can see that too. Also, if those pensions are a target, I can see many more pilots leaving.

General, this post disappoints me greatly. You are one of the last people that I would expect to be calling for employee pay cuts. And the last highlighted quote about pensions going away, ARE YOU SERIOUS? .....................I must be misunderstanding your words.

Help me out, are you advocating that DAL needs to cut pay and benefits to survive?

enigma

 

[Dizel8]

It appears, thast the General is indeed fine with anything that does mot affect him too badly. He mentions that non unions paycuts and the loss of the retirement is fine with him.

"How about those untapped non-union people that can be GIVEN pay cuts with no say?"

Spoken like true management!

Here I thought, that the General wanted the best for all, guess I was mistaken!

 

[climbhappy]

I'm no accountant, but if the company has 27 bil in debt, and the market capitalization is low, then maybe the debt to equity ratio is of concern. But Delta's brand, its INT'L routes and size don't make it a candidate for the scrap heap.

but rather Delta will refinance their way out of it, and when a few weaker rivals go under the fares will rise, profitibility returns and the market value will sky rocket back into the 20's and 30's. that 27 billion will be of no more significance.

 

[mnboyev]

I commend Delta !... They got rid of the Nice coffee cups in business for S-Foam, that will save em big dough... Oh... and the pillows are gone too... at least from what I hear. Saving big !!

You D boys have a good product... dont let em take it apart. You cant charge high Simpler fares and not give the folks some bones dude !!

Its sad... where is all this crap gonna end... And I dont want to hear its AirTran's fault... we only have 80 some jets... Comair, ASA are all larger airlines... so we are not the enemy with the Green penny pinchin tail.

Cut out the bureaucrats jobs !! Desk pushers.... NWA did it... NOW its big Deltas turn.... Dont let em run it to bankruptcy so they can put a big line through your contracts.

Cut the jobs from the Ivory tower Delta... Clean house and save big. Too much waste at the Legacy carriers.. Its finally catching up..

 

[Tim47SIP]

What a ride!

It seems clearly evident that Delta is going after two things. It needs relief from the pension fund which is huge, and additional employee cost cuts. Look for BK to do just that. Mainline guys will take it in the shorts again with the rest of us in the 10-15% area. Delta will make it, but it wont be Delta as we know it when it comes out the other end.

 

[skykid]

Its sad... where is all this crap gonna end...

My crystal ball says in 15 years LCCs will dominate domestic travel. A few, or one, Legacy carrier will survive, but international travel will be largely done by foreign carriers. Isn't that a great possibility?

 

[FlyBoeingJets]

My crystal ball says in 15 years LCCs will dominate domestic travel. A few, or one, Legacy carrier will survive, but international travel will be largely done by foreign carriers. Isn't that a great possibility?

My crystal ball--

There will be Legacies, or hub and spoke carriers, but they may be entirely new companies. Created with new capitol and possessing a fresh balance sheet. I envision GECAS getting involved in such a venture.

Or they may be supersized regionals or LCC's with a wholly owned mainline subsidiary.

 

[doh]

Skykid,

It certainly is possible. Didn't I say on another thread that Delta needs to clean house on VP's and the like. Thanks for agreeing with me climbhappy.

 

[On Your Six]

It seems clearly evident that Delta is going after two things. It needs relief from the pension fund which is huge, and additional employee cost cuts. Look for BK to do just that. Mainline guys will take it in the shorts again with the rest of us in the 10-15% area. Delta will make it, but it wont be Delta as we know it when it comes out the other end.

Do you know the Georgia lotto numbers too? What a joke. The only thing you are guaranteed is that you (along with most other regional pilots) will ultimately be making less thanks to the JetBlue 190 rates... That is a certainty.

The rest is uncertain. Don't you think Grinstein and Jack Smith (formerly GM CEO now Delta Chairman) would have already taken the Chapter 11 plunge if it were a better option for Delta? They have a fiduciary duty to look after shareholder interests and they can be sued directly if they do not. I am not pro-management by any means (I am ex UAL) but your prophecy is too definitive.

As far as pensions are concerned, Congress will either extend the payments or they will create a worse problem for the PBGC. The PBGC currently can't handle UAL's and USAirway's pensions.