Delta

[roz]

Preliminary news is a 32.5% cut from May 1st rates, freezing the DB plan and moving to a 401(k) only, work rules concessions and PB. Yikes. It still has to be ratified by the MEC and then go to the pilots for a vote. All has to be ratified prior to Nov 18th or the financing and bond swap deals are off.

[lucky81698]

The PBS (preferential bidding system) is not good to hear. I have heard nothing but bad things (from a pilot's point of view of course) about this thing. I wonder if DL will furlough pilots due to this. Or did they secure a no furlough clause in their TA? I have heard that once UA finally puts their's in, they will have about 1500 pilots too many. I know CALEX has fought to keep this program out. Has anyone's D/H ever worked for a company that used it? Supposedly, if the company already has it (I think TWA had it) then it's okay, but if your company gets it in one of these types of situations, it is not good. Any thoughts or more info?

[Kristie]

I was gonna ask someone what PBS stands for! thanks a ton for answering one question before asking it! haha

There's word out that there could be as many as 300-500 or more retirees by the end of october if this TA goes through...from what i've heard, there's plans to freeze the pension and move to a 401(k), a 32.5% paycut, major health insurance changes..

because of the possibly HIGH amount of retirees, i don't think they'll furlough.. but then again, i've also heard someone say that they might have to furlough, i just don't see how that would work though...

but yeah.. the PBS isn't necessarily good news and the FAE sounds even worse!

there's no word as to whether or not they've secured a no-furlough clause.. i just want to hear if they secured a "cutbacks" clause this time around.. so when DAL starts making money hands over fist again, the pilots are allowed a chunk of it.

[roz]

I wonder if the genius that thought this up is still employed???? Us Delta SkyMiles members get emails from Delta announcing weekly specials. This week's Fan Fare special gave many a chuckle.

startribune.com traveler:
Not even a lockout will stop this weekend's Delta 'fan fare'
Troy Melhus, startribune.com
October 28, 2004

Obviously they're not hockey fans.
The robots at Delta Airlines apparently didn't get the memo last month -- or haven't consulted a sports section in the last several -- to get this newsflash: hockey is officially "locked out."
That's management speak for the cancellation of all NHL games -- essentially management taking their ball and going home -- until the players and league reach a new deal on paychecks. The lockout began Sept. 15 -- last month.
Yet a glance at this weekend's Fan Fares from Delta Airlines suggests something a bit different:
"Hockey action is back," the site reports. "Catch a game and support your hometown team in one of these great hockey towns."
Seven last-minute flight deals are then listed, including a $158 roundtrip flight from Minneapolis to Dallas, for the scheduled matchup between the Stars and Wild on Monday, Nov. 1.
At first I rubbed my eyes: Did the html code monkeys at Delta know something that the rest of us did not?
Not likely. More likely -- and all the more worth a chuckle, then -- is that someone or something obviously isn't on top of the not-so-latest NHL news. (Hockey fans have been fretting about this since well before the end of last season and, as of this writing, games are officially cancelled through Sat., Nov. 13).

[MQAAord]

A Pref bidding system CAN be a good thing, or it can be a bad thing, depending on how the system is implemented.

Bill worked for TWA under a pref bidding system for several years and it was GREAT, he got trips he liked, commutable when he needed them to be, and even on reserve he still made out okay. Delta tried a pref bidding system years ago that they just used as an out-of-the-box program and didn't bother to tailor it in any way to work for them, and it turned out HORRIBLY.

A PBS can and probably will mean a need for less staffing, however in light of the current situation I think the number of retirements will (hopefully) mitigate any possible additional furloughs.

The furlough recall schedule was suspended. (No surprise) And no furlough protection is provided in the TA.

[roz]

OK their annual report is out. Expect more annual reports in the coming days. Look at the losses. Look at the cash flow and see where it's going (operating expenses) and where it's not going (investment in the future).

With regard to this specific report and the recent rumor of talks to sell ASA/Comair, how much would they actually realize in cash since there is a lot of debt associated with the RJ purchases and over $500MM expected for 2005? They state that all of their assets except ASA and Comair are pledged. They are saying that they need to raise cash because they have a liquidity problem. But all their assets were pledged in the fall. So, they are saying that they must sell assets and that fuel must stay at $1.22 per gallon or less (it's higher than that now). It's also interesting to note that with LIBOR at 3.5%, they are paying so much more on SECURED loans--as much as 15.46% as an interest rate.

I hope the Board doesn't vote any bonuses!

http://investor.delta.com/EdgarDetail.cf...8&SID=05-00

[Kristie]

I don't think they can vote on any bonus's.. just heard that somewhere in the not to distant future.. they've stopped all bonus's, raises and so forth.. so hopefully they'll stick to their tune!

otherwise all hell will break loose! It might already go there since mgmt isn't taking care of bidness fast enough...as soon as they start talking more concessions - fits going to hit the shan!

I heard just a few days ago that operation clockwork (the *new* program they're using now) is not working.. it makes life a bit easier for the pilots by being on-time, but it seems to be causing all sort of passenger distress because people's bags aren't making it on the planes (therefore causing the company to have to pay out more $$ to get their bags to them).