Delta won't die after all

[WorldTraveler]

I know some of you are disappointed, but this is exactly what most of us expected to happen. My kudos to the Delta pilot leaders.

Press Release Source: Delta Air Lines, Inc.

Delta, ALPA Reach a Tentative Interim Agreement
Sunday December 11, 7:27 pm ET


ATLANTA, Dec. 11, 2005 (PRIMEZONE) -- Delta Air Lines, Inc. (Other OTCALRQ.PK - News) confirmed today that it has reached a tentative interim agreement with the Air Line Pilots Association, International (ALPA), the collective bargaining representative of the company's more than 6,000 pilots.
Subject to pilot ratification by no later than December 28, 2005, the tentative interim agreement provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional one percent hourly wage reduction. The interim cost reductions would be effective December 15, 2005 and would remain in effect while the parties seek to reach a comprehensive agreement. The company and ALPA would seek to negotiate a tentative comprehensive agreement by March 1, 2006, with pilot membership ratification by March 22, 2006.

``This agreement reflects the resolve of Delta people to work together to help save the company. We recognize and appreciate the additional sacrifice this will represent,'' said Ed Bastian, Delta's chief financial officer.

Delta and ALPA will request that the Bankruptcy Court suspend the hearing on the company's motion to reject the existing Delta-ALPA collective bargaining agreement pursuant to section 1113 of the U.S. Bankruptcy Code, pending the ratification process for the tentative interim agreement.

Delta has said that achieving additional annual pilot labor cost reductions is an important element of its restructuring plan. The restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements to be realized by the end of 2007. The $3 billion improvement target is in addition to the approximately $5 billion in annual financial benefits the company says it is on track to deliver by the end of 2006, as compared to 2002.

Delta Air Lines (Other OTCALRQ.PK - News) is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 505 destinations in 93 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.

This press release contains various forward-looking statements which represent the company's estimates or expectations regarding future events. All forward-looking statements involve a number of risks and uncertainties that could cause the actual results to differ materially from the projected results. Additional information is contained in Delta's Securities and Exchange Commission filings, including its Form 10-Q filed with the SEC on November 14, 2005. Caution should be taken not to place undue reliance on Delta's forward-looking statements, which represent Delta's views only as of the date of this presentation, and which Delta has no current intention to update.

The Delta logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1825



Contact:
Corporate Communications
(404) 715-2554

 

[luv2fly]

I would urge some caution on all of this. The TA is subject to membership ratification. The MEC will have a difficult sell from the initial rumblings. The one thing I find very interesting is the company would now subject itself to binding arbitration, something it had refused to do earlier. You have to believe the past week of chastising by the judge had something to do with that.
Time will tell.

 

[TheDog2004]

It will pass with ease.

 

[Busdrvr]

I would urge some caution on all of this. The TA is subject to membership ratification. The MEC will have a difficult sell from the initial rumblings. The one thing I find very interesting is the company would now subject itself to binding arbitration, something it had refused to do earlier. You have to believe the past week of chastising by the judge had something to do with that.
Time will tell.

Maybe they feel after the crap the company tried to pull in negotiations, and were called out by the judge, that in front of an arbitrator the company won't try to overreach, and if they do, they'll get Hillary-slapped.

 

[SegmentKing]

first off, I don't hate Delta. You guys help me get from Point A to C quite often, and I thank everyone for the rides... DL is a great airline when ATL isn't f'd over (weather).

Anyway...

This judge isn't going to make DL's Chap 11 as easy as UA or US's, that's for sure. She's not the typical judge in the fact she's learning more about the business and I think we'll even get her to get DL management to admit they're inept!

 

[ualdriver]

The pilot group might be a little shy about accepting binding arbitration......especially after what just happened at Alaska Airlines. It should be an interesting vote.

 

[Cobrakev]

Now where do you think the other 5%, of the 19% they were looking for, is now going to come from?

 

[luv2fly]

It will pass with ease.

Seeing as you are not a pilot with DL, I seriously doubt you truly have any real knowledge of what the vote will be.
We won't know until the votes are counted.

 

[TheDog2004]

Seeing as you are not a pilot with DL, I seriously doubt you truly have any real knowledge of what the vote will be.
We won't know until the votes are counted.

Yeah we do. DALPA members ALWAYS do what they are told.

They will be told to ratify and it will pass. There will be some no votes but not nearly enough to cause problems.

 

[CapnCockroach]

How about a pool?

I say 60% for, 40% against. (Pretty much the industry benchmark these days)

 

[WorldTraveler]

Maybe they feel after the crap the company tried to pull in negotiations, and were called out by the judge, that in front of an arbitrator the company won't try to overreach, and if they do, they'll get Hillary-slapped.

The judge has had plenty of caustic comments for all parties. Ultimately, though, she is bound to follow bankruptcy law which is pretty clear. The 30 day clock on the 1113 filing was up this week and something had to give. I'm glad logical heads prevailed on both sides.

And, I would agree, binding arbitration is probably as much of a win for the company as it is for the pilots. You can bet the final agreement won't be less than the TA and many of the "no cost" items such as RJ flying even if split down the middle are not cost neutral for either party. Their value is not reflected in the TA.

 

[767jetz]

It will pass with ease.

I wouldn't be so sure about that. Personally, I can't call this one. IMO it will be close.

I say this because of several friends of mine I have spoken with on this matter just in the past few days. They are all guys I would have expected to vote yes, who are fed up and going to vote no. They believe that the $200 Million difference is not going to break the company, and the company can find that savings elsewhere. (Like from management and executive compensation and benefits.)

They strongly feel that someone in the piloting profession needs to make a stand, and are fully willing to be the ones. Keep in mind that DL pilots are very unified and not nearly as fractured as US Airways for example.

This vote could go either way, but it certainly won't be a landslide.

 

[luv2fly]

Yeah we do. DALPA members ALWAYS do what they are told.

They will be told to ratify and it will pass. There will be some no votes but not nearly enough to cause problems.

Thanks for emphasizing my point. Like I said. You don't have a clue.

 

[aislehopper]

IMHO, it will pass because striking is a theoretical option not a realistic one. A "no" vote leads to a chain that could unfold like this. The pilots vote no. The judge imposes a contract. The pilots strike. Delta follows EAL and others into history. Pilots are back at Taco Bell or flying Middle Eastern freight.

Our pilots know that they will have difficulty replacing the job with a like-quality job outside Delta. For most, employment outside Delta means starting over at the bottom of someone else's list or leaving the industry.

A "yes" vote will allow ALPA to fight this battle again in the future. If the company got more than it needed this time with this contract, ALPA can get it back later. If the company only got what it needed, a "yes" vote will be what our pilot group can claim it did to save the company -much like it is doing with the last round of concessions.

While I have flown with a few hotheads and die hard "we'll show them, full pay to the last day" unionists, I believe the majority of the pilot group will evaluate the condition of the industry, the condition of our company, and outside job prospects and then pass the contract.

I think that the "take one for the team" and "make a stand" rumour is more of wishful thinking for other airline groups that would benefit by Delta's demise than a realistic sentiment by DALPA members.

ah
f/a

 

[Kev3188]

How about a pool?

I say 60% for, 40% against. (Pretty much the industry benchmark these days)

You're on.


55% for, 45% against.