Delta pilots highlight US Airs' abandonment of former HQ

[flyingcat]

Delta pilots highlight US Airs' abandonment of former HQ

By DAVE HIRSCHMAN
The Atlanta Journal-Constitution

Published on: 12/05/06

In an attempt to bring attention to what could become Atlanta's fate, Delta Air Lines pilots are taking their opposition to a US Airways takeover to the latter's abandoned former headquarters in Arlington, Va.

Capt. Lee Moak, chairman of the union representing Delta pilots, is scheduled to hold a press conference near the former US Airways headquarters building vacated a year ago after the airline was purchased in bankruptcy court by America West. American West, now flying under the US Airways banner, remains headquartered in Tempe, Ariz.

Top US Airways executives met with Delta officials and airline creditors last week to present their merger plans.

"Initial analysis of the US Airways presentation reveals several significant conflicts with the Delta pilots' contract which would dramatically impact the viability of a merger," Delta pilots said late Tuesday in statement announcing the press conference.

US Airways officials haven't said whether they will move Delta's headquarters if successful in their $8.6 billion hostile takeover. But industry officials said it's highly likely the company's center of gravity would shift to Arizona.

Delta was founded in Monroe, La., and moved to Atlanta in 1941.


Talk about a dig against America West. Calling them AmericaN west and calling US Airways, USAIR. Classic mistake but real odd after stating it correctly the first time.

 

[Flufdriver]

Delta pilots highlight US Airs' abandonment of former HQ

By DAVE HIRSCHMAN
The Atlanta Journal-Constitution

Published on: 12/05/06

In an attempt to bring attention to what could become Atlanta's fate, Delta Air Lines pilots are taking their opposition to a US Airways takeover to the latter's abandoned former headquarters in Arlington, Va.

Capt. Lee Moak, chairman of the union representing Delta pilots, is scheduled to hold a press conference near the former US Airways headquarters building vacated a year ago after the airline was purchased in bankruptcy court by America West. American West, now flying under the US Airways banner, remains headquartered in Tempe, Ariz.

Top US Airways executives met with Delta officials and airline creditors last week to present their merger plans.

"Initial analysis of the US Airways presentation reveals several significant conflicts with the Delta pilots' contract which would dramatically impact the viability of a merger," Delta pilots said late Tuesday in statement announcing the press conference.

US Airways officials haven't said whether they will move Delta's headquarters if successful in their $8.6 billion hostile takeover. But industry officials said it's highly likely the company's center of gravity would shift to Arizona.

Delta was founded in Monroe, La., and moved to Atlanta in 1941.
Talk about a dig against America West. Calling them AmericaN west and calling US Airways, USAIR. Classic mistake but real odd after stating it correctly the first time.

This is almost pathetic...this guy's leading the troops out into deep water without paddles...and he's the union leader. This guy can't see the forest because of the trees. Forgot, we're talking Delta here.

Next command...order more buttons...bigger ones this time!! Hey guys, lets take a look and see how the old Western HQ is doing! The "Dixie Darlings" took care of that! Sorry that slipped out, forgive me....

 

[abe]

Here's another good article that talks about the Delta pilot's contract and what it would mean for a post-merger Delta/USAirways/AWA:



Transportation
Roadblock for US Air
By Ted Reed
TheStreet.com Staff Reporter
12/6/2006 5:20 PM EST
URL: http://www.thestreet.com/newsanalysis/tran...n/10326344.html

Updated from 3:47 p.m. EST


Pilots at Delta Air Lines (DALRQ) have stipulations in their contract that would prevent a merger with US Airways (LCC) from taking place, the chairman of the pilots union said Wednesday.

The labor pact, which has been approved by the bankruptcy court, "is a controlling agreement in this merger, and it has several provisions that prevent [US] Airways from merging with Delta," said Lee Moak, in an interview.

The contract sets a minimum for block hours flown by Delta pilots, strictly controls the use of regional jets and gives Delta pilots a say over code-share agreements.

Last month, US Airways mounted an $8 billion hostile takeover bid for Delta. The acquisition offer came barely a year after a 2005 merger in which America West Airlines took over the former US Airways and assumed its name. Delta sought bankruptcy protection in September last year.

Moak spoke by phone from Crystal City, Va., site of the one-time headquarters of the former US Airways. That facility has since been shut down, idling several hundred workers.

"This is the definition of synergies," he said. "We will keep your name but close down your facilities, terminate, furlough and use attrition to get rid of your employees, and somehow that's best for the airline industry." He said several thousand Delta employees, including some pilots, would lose their jobs in a merger with US Airways.

Moak said he had questioned US Airways executives about their knowledge of pilot contract provisions. "They said they were 'technicalities,' at first, and now it's 'items not anticipated,'" he said. "They really have underestimated the labor component of this merger."

US Airways spokesman Phil Gee said the airline has no plans to reduce the number of Delta pilots. "We didn't furlough one pilot, or any other represented employee, with the America West-US Airways merger, and we have stated from the get-go that we believe the same will hold true [in this case] ," he said.

Pilots are in a position to influence the outcome of the merger effort not only because of their contract but also because they are members of the Delta creditors committee and hold $2.1 billion worth of unsecured debt. That's about a one-eighth share of the total, Moak said. The creditors must approve whatever plan of reorganization is to emerge from the bankruptcy court.

The Delta pilots' contract was negotiated under difficult conditions in court, Moak said. While salaries and benefits were reduced, the pilots gained iron-clad assurances that their remaining jobs would be protected. Delta has about 6,500 pilots, down from roughly 10,000 in 2001.

One contract provision sets a floor for block hours flown by Delta pilots. Another says that if a single Delta pilot is furloughed, the airline must not operate regional jets with more than 70 seats. The provision could impact not only Delta's 76-seat regional jets but also 90-seat planes flown by US Airways.

A third provision gives pilots a say over code-share agreements. "We will not approve any code shares with US Airways or America West," Moak said. In the US Airways and America West merger, the route systems have been combined through code shares until the airlines can secure a single operating certificate.

Separately, Doug Parker, US Airways' chairman and chief executive, said in a statement that his company remains "fully committed" to the proposal to merge with Delta.

He said that if a deal can be reached, it "will create a strong, healthy airline, able to compete long into the future in any industry scenario, benefiting our employees, customers, and the communities we serve, as well as providing Delta's creditors with the opportunity to receive far greater recoveries than what they will receive under any Delta stand-alone plan."

Parker also indicated that he wants Delta's board and creditors' committee to begin due diligence on US Airways' offer. "Only then can they be in a position to truly assess this opportunity," he said. "I am confident that they will do so. We are absolutely determined to take necessary steps to move the process forward."

Delta has said in the past that it wants to remain an independent carrier and that it's aiming to emerge from Chapter 11 in the first half of next year.


--------------------------------------------------------------------------------

Abe

 

[wings396]

There has not been any firm decision as to where the HQ would be pending this merger. It may very well remain in ATL for all that we know. As far as the DL pilot contract, that may be a keeper as well. None of these issues have been decided yet, and Parker will do what he can to make it all come together. It appears as if he has had a recent change of heart with the HP/US group and their respective contracts.

 

[PhillyFlyGuy]

Can you even imagine how much the lease was on "The Crystal Palace". I for one am happy to see it gone Sounds like it was a smart move to me. $$$SAVE$$$$

 

[BoeingBoy]

Can you even imagine how much the lease was on "The Crystal Palace". I for one am happy to see it gone Sounds like it was a smart move to me. $$$SAVE$$$$

I agree, but to the point of the thread - ATL vs PHX. DL is in BK so can reject the leases in ATL. US is not, so cannot reject leases in PHX. Plus there's the nearly $900,000/year US gets for having the property in PHX.

Jim

 

[luv2fly]

Forgot, we're talking Delta here.

Next command...order more buttons...bigger ones this time!! Hey guys, lets take a look and see how the old Western HQ is doing! The "Dixie Darlings" took care of that! Sorry that slipped out, forgive me....

Hey fluf,

We can all cast stones here about one pilot group or another. Lord knows I can certainly throw some stones at your US group.
The MEC chair is trying to preserve DL jobs just like yours did in its two trips through BK. Agree with it or not, the DL pilot group has a say in this matter as it represents a good portion of DL's unsecured creditors committee. Belittling us for exercising that right is hypocritical.

 

[wings396]

"Moak spoke by phone from Crystal City, Va., site of the one-time headquarters of the former US Airways. That facility has since been shut down, idling several hundred workers"
I think that his head count may be off by a bit here. At one time the CCY HDQ had more staff that it had in the last 5 years. Not all that worked there left the company, as some did relocate to Tempe. During the BK times many left on their own will for greener pastures. The last time as was at CCY, I believe that US only occupied 2 floors of the building. Moak looks like he is making a habit out of making things look much worse than they really are. Maybe next time he holds a press conference, he can have it in ATL, as I think "several hundred" may have lost jobs their too.
Maybe he can check with Jerry to see if he recalls any jobs lost as a result of the Delta/Western merger. I bet there may have been a few there too.

 

[flyingcat]

Can you even imagine how much the lease was on "The Crystal Palace". I for one am happy to see it gone Sounds like it was a smart move to me. $$$SAVE$$$$

Crystal City cost $35.05 per square foot while Tempe is around $17. I am curious how much Delta employees are concerned about the headquarters not being in Atlanta.

During the Western merger were SLC employees sore over having to march to orders from GA? US's biggest hub is CLT and headquarters was never there.