1st Quarter Results

[chucky]

Delta Air Lines Reports March 2008 Quarter Financial Results
Wednesday April 23, 7:30 am ET


ATLANTA, April 23, 2008 (PRIME NEWSWIRE) -- Delta Air Lines (NYSEAL - News) today reported results for the quarter ended March 31, 2008. Key points include:


* On April 14, 2008, Delta announced an agreement to merge with
Northwest; the transaction will create America's premier global
airline, which is expected to generate in excess of $1 billion in
annual revenue and cost synergies.
* Delta's net loss for the first quarter excluding special items was
$274 million, or $0.69 per diluted share, driven by a $585 million
year over year increase in the cost of fuel.(1, 2, 3)
* Delta's reported net loss for the March 2008 quarter was
$6.4 billion, or $16.15 per diluted share.
* Special items include a $6.1 billion non-cash goodwill impairment
charge from the decline in Delta's market capitalization due to
sustained record fuel prices.
* As of March 31, 2008, Delta had $3.6 billion in unrestricted
liquidity, including $1 billion available under its revolving
credit facility.

Link

 

[Yankeestu]

“Our need to respond to the pressures of dramatically rising fuel costs and a softening U.S. economy drove us to take a closer look at all options to protect Delta’s future,â€￾ said Richard Anderson. “The merger with Northwest will create an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace. I appreciate the hard work of the Delta people and their commitment to ensuring that Delta maintains its leadership position in the industry.â€￾

Do we want to want to gamble with this statement?

Come on my fellow FA's, the instructions for voting are being mailed today.
Please, help protect our jobs by voting for AFA.

 

[Ch. 12]

“Our need to respond to the pressures of dramatically rising fuel costs and a softening U.S. economy drove us to take a closer look at all options to protect Delta’s future,â€￾ said Richard Anderson. “The merger with Northwest will create an airline with the size, scale and global presence to weather economic downturns and compete long-term in the global marketplace. I appreciate the hard work of the Delta people and their commitment to ensuring that Delta maintains its leadership position in the industry.â€￾

Do we want to want to gamble with this statement?

Come on my fellow FA's, the instructions for voting are being mailed today.
Please, help protect our jobs by voting for AFA.

I'll vote AFA is that will make fuel prices go down 80% and the economy suddenly turn upward which would be the only two conditions that would make me feel 'warm and fuzzy' seeking more money. Get real people. Do you think it is mgmt making these two disastrous scenarios unfold at the same time?! Vote however you want...that's not what I'm posting for...but don't use the economic situation as your rallying cry. There are forces beyond mgmt decisions that are going to make everybody in the industry uncomfortable for some time to come. If the unions can't see that and only push for more, more, more, then we're all going down together. THAT's not what I had in mind when thinking of "unity".

 

[LukeAisleWalker]

I'll vote AFA is that will make fuel prices go down 80% and the economy suddenly turn upward which would be the only two conditions that would make me feel 'warm and fuzzy' seeking more money. Get real people. Do you think it is mgmt making these two disastrous scenarios unfold at the same time?! Vote however you want...that's not what I'm posting for...but don't use the economic situation as your rallying cry. There are forces beyond mgmt decisions that are going to make everybody in the industry uncomfortable for some time to come. If the unions can't see that and only push for more, more, more, then we're all going down together. THAT's not what I had in mind when thinking of "unity".

Ch 12--

I don't see anything in Yankee's post that says he (she) is blaming Delta for the economy or fuel prices. Nor is he saying voting in AFA will make fuel prices go down. Where do you draw these conclusions???
All he is saying is it's time for Delta FAs to have a VOICE in what our future is going to be in such chaotic times.
In other words, instead of just getting the email or seeing the front page of the DL Web announcing certain cuts, etc..We want to have a say such as "Yes, we will give up more "X" because "Y" is more important to us. or...if you must make cuts, we would like equal parts of X and Y cut rather than mostly X as X is important for us and our families,etc..or most importantly; "OK, you're in trouble..can you please show us the books to justify cutting this deeply?"
It has NOTHING to do with trying to get more money when the economy is in trouble.
However, it will send a strong message (if we win it will be the largest successful union organizing in US history) that labor, especially labor in the airline industry, is on the rise again. Meaning: it is time for these outrageous Executive Compensation packages to end. (Why is Steenland getting $11 MILLION to stay through the merger?--that is RIDICULOUS, don't you think??).

 

[NewHampshire Black Bears]

Luke,

You'll Probably view my post (to you) as being disingenuous, but "here goes" any way.

Your 1000% correct in what your urging your fellow F/A's to do, because (as you say) Things are very volatile now,...and..VERY MUCH SO, if this "takeover" doesn't go through.

GOOD LUCK on your AFA Drive !!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[LukeAisleWalker]

Luke,

You'll Probably view my post (to you) as being disingenuous, but "here goes" any way.

Your 1000% correct in what your urging your fellow F/A's to do, because (as you say) Things are very volatile now,...and..VERY MUCH SO, if this "takeover" doesn't go through.

GOOD LUCK on your AFA Drive !!!!!!!!!!!!!!!!!!!!!!!!!!!

No, NHBB, I know you mean it and I appreciate your best wishes.
Thanks for your support.

Luke

 

[Ch. 12]

Ch 12--

I don't see anything in Yankee's post that says he (she) is blaming Delta for the economy or fuel prices. Nor is he saying voting in AFA will make fuel prices go down. Where do you draw these conclusions???
All he is saying is it's time for Delta FAs to have a VOICE in what our future is going to be in such chaotic times.
In other words, instead of just getting the email or seeing the front page of the DL Web announcing certain cuts, etc..We want to have a say such as "Yes, we will give up more "X" because "Y" is more important to us. or...if you must make cuts, we would like equal parts of X and Y cut rather than mostly X as X is important for us and our families,etc..or most importantly; "OK, you're in trouble..can you please show us the books to justify cutting this deeply?"
It has NOTHING to do with trying to get more money when the economy is in trouble.
However, it will send a strong message (if we win it will be the largest successful union organizing in US history) that labor, especially labor in the airline industry, is on the rise again. Meaning: it is time for these outrageous Executive Compensation packages to end. (Why is Steenland getting $11 MILLION to stay through the merger?--that is RIDICULOUS, don't you think??).

Luke-

Yankee asked if we wanted to "gamble" with the statement made by Anderson regarding the economy. No gambling. It is fact. It is also fact that taking a me-first stance in an economic downturn of this magnitude (I would say that this...economy + fuel prices that have tripled in a VERY short time...is the most significan threat that this industry...especially in the US...has ever faced) is only going to sink more airlines. Individuals like Danny have come to these boards using fear-mongering tactics and opportunistic merger-profiteering. Fact is that we are faced with SIGNIFICANT obstacles now and for who knows how long. I am tired of the union rhetoric that whenever there is a loss, it is mgmt's fault. I agree that paying anything in addition to regular salary to Steenland during this period is ridiculous. I think that exec bonuses are absurd. But for Danny and other NWers to try to say that your DL culture will change even though it will be majority-DL people at the helm is a bold-faced lie. They are claiming WMDs in Iraq just to get the war that they want. And they are campaigning using exotic hypotheticals and FEAR. Yes...outrageous compensation for execs (ala steenland...most of DL's execs are paid quite dismally compared to other carriers and other industries) is a huge problem in this country. I hope that something can be done about it. The answer isn't to run like AA's APA and demand an 80% pay raise in the face of the situation today. Through Danny's fear campaign, he has failed to answer questions that aren't scripted towards an AFA-friendly response and he has failed very largely in identifying that there is an economic disaster set upon this industry right now. He is looking out for his NW seniority and his pay and has already alluded to that. Take a look to see who you are benefitting. And take a look to see what is practical in this climate. Hell...this industry isn't even practical anymore.

 

[Come Fly with Me]

Luke-

Yankee asked if we wanted to "gamble" with the statement made by Anderson regarding the economy. No gambling. It is fact. It is also fact that taking a me-first stance in an economic downturn of this magnitude (I would say that this...economy + fuel prices that have tripled in a VERY short time...is the most significan threat that this industry...especially in the US...has ever faced) is only going to sink more airlines. Individuals like Danny have come to these boards using fear-mongering tactics and opportunistic merger-profiteering. Fact is that we are faced with SIGNIFICANT obstacles now and for who knows how long. I am tired of the union rhetoric that whenever there is a loss, it is mgmt's fault. I agree that paying anything in addition to regular salary to Steenland during this period is ridiculous. I think that exec bonuses are absurd. But for Danny and other NWers to try to say that your DL culture will change even though it will be majority-DL people at the helm is a bold-faced lie. They are claiming WMDs in Iraq just to get the war that they want. And they are campaigning using exotic hypotheticals and FEAR. Yes...outrageous compensation for execs (ala steenland...most of DL's execs are paid quite dismally compared to other carriers and other industries) is a huge problem in this country. I hope that something can be done about it. The answer isn't to run like AA's APA and demand an 80% pay raise in the face of the situation today. Through Danny's fear campaign, he has failed to answer questions that aren't scripted towards an AFA-friendly response and he has failed very largely in identifying that there is an economic disaster set upon this industry right now. He is looking out for his NW seniority and his pay and has already alluded to that. Take a look to see who you are benefitting. And take a look to see what is practical in this climate. Hell...this industry isn't even practical anymore.

Fear works just ask George Bush............

 

[jimntx]

Luke-

Yankee asked if we wanted to "gamble" with the statement made by Anderson regarding the economy. No gambling. It is fact. It is also fact that taking a me-first stance in an economic downturn of this magnitude (I would say that this...economy + fuel prices that have tripled in a VERY short time...is the most significan threat that this industry...especially in the US...has ever faced) is only going to sink more airlines.

Ch12, I agree with just about everything you said about the parlous state of affairs in the airline business. Good, dispassionate analysis. Especially about the foolishness of demanding huge raises right now by any union at any airline.

However, I don't think that DL f/as voting for/against representation is a corporate economic issue as much as it is a survival issue--for the f/as, not the company. In a merger, I would much rather be represented than not. Granted in the past combinations, the unions have been less than stellar in protecting their members, but not being represented puts you at the mercy of management whim.

It's all well and fine to say that DL's management has promised to protect DL employee interests in the merger. But, let's not forget that it was not very many days ago that they also said there would be no merger unless the DL and NW pilots could come to a seniority integration agreement. Well, those two groups didn't even come close to an agreement, but the merger is going ahead.

 

[southwind]

Actually, from what I've read and heard they did come close to an agreement. On everything but seniority. Guess a 30 % pay increase was not good enough for some of them! Some people need to learn to "Have their cake and share it too' !

BTW...........theres a new law passed by congress ,that seniority at a company during a merger ,will be protected, "WITH OR WITHOUT A UNION" !

 

[Ch. 12]

BTW...........theres a new law passed by congress ,that seniority at a company during a merger ,will be protected, "WITH OR WITHOUT A UNION" !

Shhhhh! Don't deflate the AFA propaganda wagon! Next thing you know, you'll be saying that the "outsourcing 75% of international FAs" has NOTHING to do with DL and the DL mgmt going forward. Don't get crazy. If you take away too many talking points, they will have to answer to their finances, etc.

 

[jimntx]

BTW...........theres a new law passed by congress ,that seniority at a company during a merger ,will be protected, "WITH OR WITHOUT A UNION" !

I guess it's just my lot in life to keep trying to correct this misconception (or baldface lie depending on the poster's motives) about the McCaskill AMENDMENT passed by Congress.

First off, there is no new LAW. It was an amendment to an appropriations bill IIRC.
Second, it does NOT protect seniority in a merger. What the amendment says is that the two merging workgroups must negotiate in good faith to reach an agreement regarding the merger of the two seniority lists. If the groups are unable to come to an agreement, then the issue will be subject to binding arbitration.

The important point to remember if you are affected is that there is not one word in the amendment which requires the arbitrator to do anything other than what arbitrators have always done. Reach a decision which is binding on both groups. Though highly unlikely, the arbitrator could legally staple one group to the bottom of the other's seniority list and it would be binding on both groups.

If for no other reasons, this is why the DL f/as should vote for APA representation. Then the issue is straight DOH between two AFA represented groups. In arbitration there is always risk for both sides. (See also the binding arbitration demanded by the US East pilots regarding US East/West seniority.)

 

[citrus jock]

Actually, from what I've read and heard they did come close to an agreement. On everything but seniority. Guess a 30 % pay increase was not good enough for some of them! Some people need to learn to "Have their cake and share it too' !

A First Officer, given a 30% pay raise, who's kept from upgrading to Captain on a larger jet (more than a 30% pay raise from F/O on a smaller jet to Captain on a larger jet) due to less seniority at the merged airline, won't be better off accepting the original 30% offer. Some pilots might have said "No" to the raise due to fears of being bumped out of a base (and having to commute) due to lower seniority. For them, it's really not about the money. If this merger goes through (and I think it will), I don't think there will be any immediate base closings or pilots able to change equipment (seat locked for a certain period) for a while. But 5,10, or more years from now, that seniority will mean everything (equipment, pay rate, base, schedule, etc.).

 

[Come Fly with Me]

AP
Delta CEO received pay package of $11.3M for 4 months in '07
Thursday April 24, 6:09 pm ET
By Harry R. Weber, AP Business Writer
Delta CEO received pay package of $11.3 million for 4 months in 2007, proxy shows


To all you anti-union peeps..........you still don't want a contract.

 

[QA4Jet-A]

AP
Delta CEO received pay package of $11.3M for 4 months in '07
Thursday April 24, 6:09 pm ET
By Harry R. Weber, AP Business Writer
Delta CEO received pay package of $11.3 million for 4 months in 2007, proxy shows


To all you anti-union peeps..........you still don't want a contract.

What does the CEO's pay have to do with having a contract? B)