Delta Pilots accept wage cut
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This buys a little time but the ship is sinking fast...
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Delta, pilot deal calls for 32.5% wage cut
CEO says company making 'progress' in recovery efforts
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 10/28/04
Negotiators for Delta Air Lines and its pilots union reached a tentative pay cut agreement Wednesday night that could divert the ailing Atlanta carrier from its course toward bankruptcy.
Early today, the union said its leadership council approved the deal, which will now go to the membership for a ratification vote to be completed by Nov. 11.
Highlights of the deal include:
—A 32.5 percent wage cut starting Dec. 1, with no raises scheduled during the 5-year agreement.
—The traditional pilot pension plan will be frozen and replaced with a less costly plan.
—Pilots will get options to buy 30 million shares of Delta stock, amounting to a 15 percent equity stake.
—Certain work rules will change to help the company lower costs.
The union said the deal provides the $1 billion in annual cost-savings that the company sought.
Union chief John Malone said, "It pained me to see such drastic changes made to almost every section of our contract," but he added that the deal is "our best alternative."
"While there are no guarantees that a bankruptcy filing will not occur at some point, this tentative agreement will hopefully buy Delta additional time to continue its out of court restructuring efforts," Malone said.
Delta CEO Gerald Grinstein, in a statement released this morning, called the tentative pact "an important step in our march toward viability."
Grinstein added that "although bankruptcy remains a possibility due to Delta's precarious financial situation, we are making significant progress" with recovery efforts.
The tentative agreement came after more than a year of on-again, off-again talks as Delta's three-year financial slide steadily worsened. Talks culminated this week with around-the-clock sessions at the Air Line Pilots Association's headquarters outside Washington.
Delta's board of directors, meeting in Atlanta this week, was thought to be on the verge of a decision to file for Chapter 11 bankruptcy protection as soon as today, had a pilot deal not come together.
If approved, the pact would help Delta hold together several other important deals with creditors in a bid to achieve an out-of-court financial restructuring. Most, if not all, of those agreements were conditioned on Delta's getting substantial concessions from its pilots, who are the highest paid in the industry.
Analysts believe that a combination of pilot and creditor deals will buy Delta perhaps several months of time to see if its broader turnaround plans can work, but that the airline could still face a bankruptcy case if a rebound doesn't materialize...
http://www.ajc.com/news/content/busi...deltadeal.html
_____________________________________________
Delta, pilot deal calls for 32.5% wage cut
CEO says company making 'progress' in recovery efforts
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 10/28/04
Negotiators for Delta Air Lines and its pilots union reached a tentative pay cut agreement Wednesday night that could divert the ailing Atlanta carrier from its course toward bankruptcy.
Early today, the union said its leadership council approved the deal, which will now go to the membership for a ratification vote to be completed by Nov. 11.
Highlights of the deal include:
—A 32.5 percent wage cut starting Dec. 1, with no raises scheduled during the 5-year agreement.
—The traditional pilot pension plan will be frozen and replaced with a less costly plan.
—Pilots will get options to buy 30 million shares of Delta stock, amounting to a 15 percent equity stake.
—Certain work rules will change to help the company lower costs.
The union said the deal provides the $1 billion in annual cost-savings that the company sought.
Union chief John Malone said, "It pained me to see such drastic changes made to almost every section of our contract," but he added that the deal is "our best alternative."
"While there are no guarantees that a bankruptcy filing will not occur at some point, this tentative agreement will hopefully buy Delta additional time to continue its out of court restructuring efforts," Malone said.
Delta CEO Gerald Grinstein, in a statement released this morning, called the tentative pact "an important step in our march toward viability."
Grinstein added that "although bankruptcy remains a possibility due to Delta's precarious financial situation, we are making significant progress" with recovery efforts.
The tentative agreement came after more than a year of on-again, off-again talks as Delta's three-year financial slide steadily worsened. Talks culminated this week with around-the-clock sessions at the Air Line Pilots Association's headquarters outside Washington.
Delta's board of directors, meeting in Atlanta this week, was thought to be on the verge of a decision to file for Chapter 11 bankruptcy protection as soon as today, had a pilot deal not come together.
If approved, the pact would help Delta hold together several other important deals with creditors in a bid to achieve an out-of-court financial restructuring. Most, if not all, of those agreements were conditioned on Delta's getting substantial concessions from its pilots, who are the highest paid in the industry.
Analysts believe that a combination of pilot and creditor deals will buy Delta perhaps several months of time to see if its broader turnaround plans can work, but that the airline could still face a bankruptcy case if a rebound doesn't materialize...
http://www.ajc.com/news/content/busi...deltadeal.html
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Looks like the 12 year 777 captains (all of them in other words) are now only going to make $216 an hour (plus night and international overrides). Lousy pay for an international widebody airline captain, until you look at places like SQ and EK...
http://www.airlinepilotpay.com/dal/dal.htm
Maybe, just maybe, the wheels will stay on until things pick up and oil prices subside.
http://www.airlinepilotpay.com/dal/dal.htm
Maybe, just maybe, the wheels will stay on until things pick up and oil prices subside.
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Because everyone is not losing as much money- a true example of capitalist survival of the fittest.
Not that I won't be sorry, I'v'e flown a million miles on Delta, at least that's what is says on the card they just sent me.
The airlines that are on the bubble will sure leave some gaps if they fail (one comes to mind, but out of general courtesy I won't name- and will hope for different), especially at the smaller towns and cities. However, if money can be made (or operations will be subsidized enough) another airline will step in.
Not that I won't be sorry, I'v'e flown a million miles on Delta, at least that's what is says on the card they just sent me.
The airlines that are on the bubble will sure leave some gaps if they fail (one comes to mind, but out of general courtesy I won't name- and will hope for different), especially at the smaller towns and cities. However, if money can be made (or operations will be subsidized enough) another airline will step in.
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Delta Pilots to Vote on Pay Cut Agreement
By DANIEL YEE(AP) _
Associated Press Writer
ATLANTA - Delta Air Lines Inc. is hoping its pilots' union will approve a steep pay cut to help the company avoid bankruptcy.
Delta pilots, currently among the highest paid in the nation with salaries that average between $100,000 and $300,000 a year, were expected to begin voting on the contract proposal Monday.
The agreement would cut their salaries by nearly a third and would provide no raises for the remainder of the five-year pact.
Company officials say the pilots' potential $1 billion in concessions would give the nation's third-largest carrier some much-needed breathing room in its attempt to restructure its financial problems.
"The pilot membership will be provided with detailed information about the tentative agreement so they can make an informed decision," said pilots' union spokeswoman Karen Miller in a statement on Friday.
The voting is expected to close on Nov. 11. A simple majority vote is needed to ratify the tentative agreement, which the pilot's union leadership approved late Wednesday.
If ratified by the pilots, the agreement would call for a 32.5 percent wage cut effective Dec. 1. Other pilots' concessions include revisions in the pension plan and work rules. In return, pilots would get options to purchase up to 15 percent of the company's stock.
Even if the agreement is approved, company officials say bankruptcy remains a possibility. Delta still has to convince the holders of its $20.6 billion in debt to restructure the repayment terms for all the pieces of its transformation puzzle to fall into place.
Delta's other major work groups, including flight attendants and gate and ticket agents, are not unionized. The company has cut the pay of its other employees, including executives' salaries.
Delta has lost more than $6 billion since 2001, during which time it has also cut 16,000 jobs. Delta plans to cut up to another 7,000 jobs in the next 18 months. Last week, the struggling airline reported a $651 million loss in the third-quarter. Delta had only $1.45 billion left in cash at the end of the quarter.
Delta has already secured a commitment of up to $600 million in new financing from a unit of American Express Co. and an agreement to defer $135 million of its debt for two years, but those deals are conditioned on Delta achieving all of its cost-cutting targets.
___
By DANIEL YEE(AP) _
Associated Press Writer
ATLANTA - Delta Air Lines Inc. is hoping its pilots' union will approve a steep pay cut to help the company avoid bankruptcy.
Delta pilots, currently among the highest paid in the nation with salaries that average between $100,000 and $300,000 a year, were expected to begin voting on the contract proposal Monday.
The agreement would cut their salaries by nearly a third and would provide no raises for the remainder of the five-year pact.
Company officials say the pilots' potential $1 billion in concessions would give the nation's third-largest carrier some much-needed breathing room in its attempt to restructure its financial problems.
"The pilot membership will be provided with detailed information about the tentative agreement so they can make an informed decision," said pilots' union spokeswoman Karen Miller in a statement on Friday.
The voting is expected to close on Nov. 11. A simple majority vote is needed to ratify the tentative agreement, which the pilot's union leadership approved late Wednesday.
If ratified by the pilots, the agreement would call for a 32.5 percent wage cut effective Dec. 1. Other pilots' concessions include revisions in the pension plan and work rules. In return, pilots would get options to purchase up to 15 percent of the company's stock.
Even if the agreement is approved, company officials say bankruptcy remains a possibility. Delta still has to convince the holders of its $20.6 billion in debt to restructure the repayment terms for all the pieces of its transformation puzzle to fall into place.
Delta's other major work groups, including flight attendants and gate and ticket agents, are not unionized. The company has cut the pay of its other employees, including executives' salaries.
Delta has lost more than $6 billion since 2001, during which time it has also cut 16,000 jobs. Delta plans to cut up to another 7,000 jobs in the next 18 months. Last week, the struggling airline reported a $651 million loss in the third-quarter. Delta had only $1.45 billion left in cash at the end of the quarter.
Delta has already secured a commitment of up to $600 million in new financing from a unit of American Express Co. and an agreement to defer $135 million of its debt for two years, but those deals are conditioned on Delta achieving all of its cost-cutting targets.
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Delta announce 6900 lay-offs.
CHICAGO — Delta Air Lines (DAL) said Wednesday it plans to eliminate between 6,000 and 6,900 jobs during the next 18 months, implement a 10% across-the-board pay reduction and reduce employee benefits.
Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Delta's board also approved using an exception to the New York Stock Exchange's shareowner approval policy in order for the carrier to give stock to employees and creditors in exchange for concessions meant to avoid a bankruptcy filing.
Delta said its audit committee determined the delay necessary to obtain shareowner approval of the issue would "seriously jeopardize the financial viability of the company."
The NYSE has accepted Delta's use of the exception.
The 75-million share issuance — which the company has said could dilute current shareholders' equity stake by about a third — is part of Delta's restructuring plan that aims to provide $5 billion in annual benefits by 2006.
The options will become exercisable in three equal installments on the first, second and third anniversaries of the grant date. Unexercised options will expire at the sixth anniversary of the grant date. Delta board members and officers won't participate in the programs.
The company also plans to issue up to 12 million common shares to certain debt holders and aircraft lessors.
These shares will be issued on or after Nov. 23.
The stock options for as many as 63 million shares that Delta has pledged to its 57,000 employees include 30 million options promised to the pilots in exchange for their negotiated concessions.
The company's restructuring plans originally called for the 7,000 pilots to get just under 13 million shares, while 50,000 nonunion employees were to receive roughly 25 million shares. But the pilots successfully bargained for non-union workers to get more stock options.
CHICAGO — Delta Air Lines (DAL) said Wednesday it plans to eliminate between 6,000 and 6,900 jobs during the next 18 months, implement a 10% across-the-board pay reduction and reduce employee benefits.
Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Delta's board also approved using an exception to the New York Stock Exchange's shareowner approval policy in order for the carrier to give stock to employees and creditors in exchange for concessions meant to avoid a bankruptcy filing.
Delta said its audit committee determined the delay necessary to obtain shareowner approval of the issue would "seriously jeopardize the financial viability of the company."
The NYSE has accepted Delta's use of the exception.
The 75-million share issuance — which the company has said could dilute current shareholders' equity stake by about a third — is part of Delta's restructuring plan that aims to provide $5 billion in annual benefits by 2006.
The options will become exercisable in three equal installments on the first, second and third anniversaries of the grant date. Unexercised options will expire at the sixth anniversary of the grant date. Delta board members and officers won't participate in the programs.
The company also plans to issue up to 12 million common shares to certain debt holders and aircraft lessors.
These shares will be issued on or after Nov. 23.
The stock options for as many as 63 million shares that Delta has pledged to its 57,000 employees include 30 million options promised to the pilots in exchange for their negotiated concessions.
The company's restructuring plans originally called for the 7,000 pilots to get just under 13 million shares, while 50,000 nonunion employees were to receive roughly 25 million shares. But the pilots successfully bargained for non-union workers to get more stock options.
Delta announce 6900 job losses
CHICAGO — Delta Air Lines (DAL) said Wednesday it plans to eliminate between 6,000 and 6,900 jobs during the next 18 months, implement a 10% across-the-board pay reduction and reduce employee benefits.
Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Delta's board also approved using an exception to the New York Stock Exchange's shareowner approval policy in order for the carrier to give stock to employees and creditors in exchange for concessions meant to avoid a bankruptcy filing.
Delta said its audit committee determined the delay necessary to obtain shareowner approval of the issue would "seriously jeopardize the financial viability of the company."
The NYSE has accepted Delta's use of the exception.
The 75-million share issuance — which the company has said could dilute current shareholders' equity stake by about a third — is part of Delta's restructuring plan that aims to provide $5 billion in annual benefits by 2006.
The options will become exercisable in three equal installments on the first, second and third anniversaries of the grant date. Unexercised options will expire at the sixth anniversary of the grant date. Delta board members and officers won't participate in the programs.
The company also plans to issue up to 12 million common shares to certain debt holders and aircraft lessors.
These shares will be issued on or after Nov. 23.
The stock options for as many as 63 million shares that Delta has pledged to its 57,000 employees include 30 million options promised to the pilots in exchange for their negotiated concessions.
The company's restructuring plans originally called for the 7,000 pilots to get just under 13 million shares, while 50,000 nonunion employees were to receive roughly 25 million shares. But the pilots successfully bargained for non-union workers to get more stock options.
CHICAGO — Delta Air Lines (DAL) said Wednesday it plans to eliminate between 6,000 and 6,900 jobs during the next 18 months, implement a 10% across-the-board pay reduction and reduce employee benefits.
Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Delta's board also approved using an exception to the New York Stock Exchange's shareowner approval policy in order for the carrier to give stock to employees and creditors in exchange for concessions meant to avoid a bankruptcy filing.
Delta said its audit committee determined the delay necessary to obtain shareowner approval of the issue would "seriously jeopardize the financial viability of the company."
The NYSE has accepted Delta's use of the exception.
The 75-million share issuance — which the company has said could dilute current shareholders' equity stake by about a third — is part of Delta's restructuring plan that aims to provide $5 billion in annual benefits by 2006.
The options will become exercisable in three equal installments on the first, second and third anniversaries of the grant date. Unexercised options will expire at the sixth anniversary of the grant date. Delta board members and officers won't participate in the programs.
The company also plans to issue up to 12 million common shares to certain debt holders and aircraft lessors.
These shares will be issued on or after Nov. 23.
The stock options for as many as 63 million shares that Delta has pledged to its 57,000 employees include 30 million options promised to the pilots in exchange for their negotiated concessions.
The company's restructuring plans originally called for the 7,000 pilots to get just under 13 million shares, while 50,000 nonunion employees were to receive roughly 25 million shares. But the pilots successfully bargained for non-union workers to get more stock options.
Delta announce 6900 job losses
