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Washington Post: DL & NWA to file by Sept

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lowecur

Well-known member
Joined
Sep 14, 2003
Posts
2,317
I mentioned a while back that the new BK law to take effect on Oct 17th would force both of these carriers into Chapt 11. Looks like that may happen. DL needs to unload the twin sisters as the RJ is killing them, and NWA just has too many hard nosed employees to settle out of court.


2 airlines likely to file Chap. 11 in September

By The Washington Post | August 2, 2005

WASHINGTON -- Northwest and Delta Air Lines are likely to file for Chapter 11 bankruptcy protection in mid-September, a month before a more restrictive bankruptcy law goes into effect, bankruptcy experts and airline insiders say.

The airlines are expected to delay any action until around the Labor Day weekend to avoid distressing employees during the busy summer travel period.

Last week, Northwest reported a second-quarter loss of $225 million, compared with a loss of $182 million for the same quarter in 2004. The airline is trying to get its employees to agree to $1.1 billion in pay and benefit cuts. So far, it has secured cuts of about $265 million from its pilots and $35 million from its management and salaried workers. The carrier is losing about $4 million a day.

Douglas Steenland, Northwest's chief executive, has refused to speculate whether or when the airline would file for bankruptcy. But he said the new law taking effect Oct. 17 would be ''one of the factors" in the decision-making.

Delta chief executive Gerald Grinstein last week told employees the airline's efforts to cut about $5 billion were not enough. Delta posted a $382 million second-quarter loss. Delta was preparing to file for bankruptcy in October when pilots agreed to wage and benefit cuts of about $1 billion a year.

Congress passed the new bankruptcy law in April, in part to force companies to reorganize quicker and to bar them from paying retention bonuses, except if executives have proved they have job offers. ''Very often the same managers who got the company in trouble were . . . getting retention bonuses
 
lowecur said:
The human eye cannot see the direction of the wind, but when the branches are bending and the leaves are whistling...........the wind is passing by.

The line pilot cannot see the direction of the company, but when the mortgage is due and the paycheck is dwindling...........the executives are taking their bonus.
 
It's in print....it must be true.
 
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lowecur said:
...and NWA just has too many hard nosed employees to settle out of court.
Darn those "hard-nosed" employees ruining this industry. How dare they demand accountability and contract compliance from management.
 
TWA Dude said:
Darn those "hard-nosed" employees ruining this industry. How dare they demand accountability and contract compliance from management.

No sh_t! I hope the NWA Mechanics and the FA's stick to their guns till the bitter end. Obviously they have no support from their pilots who folded like a deck of cards for management.
 
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The pilots still have something worth keeping--a pension and scope. Something almost everyone else has pi$$ed away.

The mechs and FAs are both rocking some very weak, relatively new unions--both of which have eaten their young in the past four years. AMFA had been fighting for legitimacy until settling in 2001 and the FA union is only a few years old after voting out the teamsters. Both of these groups have given up work rules and protections in exchange for $$$ over the years. NWA pilots (in 2000) may not have been the best paid but certainly have had their six covered. Five years later, they aren't doing too bad by comparison.
 
You are right in saying the the pilots at NWA still have Pensions and Scope. Why else would NWA Managment be going into Ch. 11? That is EXACTLY what they will be targeting.
 
WillowRunVortex said:
Obviously they have no support from their pilots who folded like a deck of cards for management.

Stupid pilots-

They should have held out for a 50% raise.

Retards.
 
Pilottodd2 said:
You are right in saying the the pilots at NWA still have Pensions and Scope. Why else would NWA Managment be going into Ch. 11? That is EXACTLY what they will be targeting.

Keep in mind that the pilots WILL NOT be the only group affected by this. The mechanics and FA's also have pensions. They stand to lose a lot in bankruptcy as do the pilots. However, it is extremetly short sighted to say that the penion and scope are the sole reasons that Chap 11 is in the future. That would be the case if you threw out fuel costs and the constant race to the bottom with fare structrues between the airlines.
 
320AV8R said:
Stupid pilots-

They should have held out for a 50% raise.

Retards.

No,,,not a raise, but they didnt have to take the opposite line and say to management "what ever you say boss". You watch, management has them in check now. When they'r done with the other two groups they will go back to the pilots for some-more pillaging.
 

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