Union Chief: US Air Is Only Delta Bidder

[USA320Pilot]

Union Chief: US Air Is Only Delta Bidder

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USA320Pilot comments: In my opinion, the biggest risk for the Delta employees is that the Atlanta-based airline gets "carved up" Pan Am style, similar to what United and Delta did to Pan Am. Considering Delta ALPA's position and potential antitrust concerns, it might be easier for the parties interested in acquiring Delta to pursue a fragmentation to eliminate antitrust and labor issues.

Therefore, the Delta employees may be "shooting them self in the foot" by not agreeing to Doug Parker's proposal. I have no reason to believe this could happen, but it is cleary a risk for a bankrupt company, which is a risk we at US Airways knew all to well.

Regards,

USA320Pilot

 

[NYCDelta]

Union Chief: US Air Is Only Delta Bidder

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USA320Pilot comments: In my opinion, the biggest risk for the Delta employees is that the Atlanta-based airline gets "carved up" Pan Am style, similar to what United and Delta did to Pan Am. Considering Delta ALPA's position and potential antitrust concerns, it might be easier for the parties interested in acquiring Delta to pursue a fragmentation to eliminate antitrust and labor issues.

Therefore, the Delta employees may be "shooting them self in the foot" by not agreeing to Doug Parker's proposal. I have no reason to believe this could happen, but it is cleary a risk for a bankrupt company, which is a risk we at US Airways knew all to well.

Regards,

USA320Pilot

I'm no expert on bankruptcies, but doesn't a company have to be basically on death's door, like chapter 7, in order to be "carved up"? The benefit of Chapter 11, which practically every airline has used (some twice), is that you have some breathing room to reorganize and file a new plan.

 

[BoeingBoy]

Given that there are almost no simularities between PanAm's sad path to demise and DL's current position, I wouldn't worry about it NYCDelta....

Jim

 

[a320av8r]

I'm no expert on bankruptcies, but doesn't a company have to be basically on death's door, like chapter 7, in order to be "carved up"? The benefit of Chapter 11, which practically every airline has used (some twice), is that you have some breathing room to reorganize and file a new plan.

Not really. That's the problem with bankruptcy- management has little control. If the creditor committee thinks that they can squeeze an extra penny for their investors by liquidating they can, and will, do it.
Investors are legally committed to their clients' best financial interests, employees are not a consideration.
"Don't take it personal, it's business."- The Godfather

 

[NYCDelta]

Not really. That's the problem with bankruptcy- management has little control. If the creditor committee thinks that they can squeeze an extra penny for their investors by liquidating they can, and will, do it.
Investors are legally committed to their clients' best financial interests, employees are not a consideration.
"Don't take it personal, it's business."- The Godfather

Where does the bankruptcy judge overseeing the case come in? Doesn't he/she have to look at the impact of all involved? i.e. communities served, employees, shareholders, creditors, etc?

 

[757inthebarrel]

Where does the bankruptcy judge overseeing the case come in? Doesn't he/she have to look at the impact of all involved? i.e. communities served, employees, shareholders, creditors, etc?

Don't worry about DL being sold in parts. Not going to happen. It was just flamebait. DL is worth a lot more to every creditor involved intact and standalone. Current management has exclusive control at least through Spring. They are in continuous contact with the creditors and they know what it will take to satisfy them. Count on a plan that does just that.

 

[Bear96]

Just USA320Pilot's usual tactic of "Go along with USAirways' management's wise decisions, or you'll be sorry and things will be even worse." Nothing new.

 

[BottomFeeder]

Don't worry about DL being sold in parts. Not going to happen. It was just flamebait. DL is worth a lot more to every creditor involved intact and standalone. Current management has exclusive control at least through Spring. They are in continuous contact with the creditors and they know what it will take to satisfy them. Count on a plan that does just that.

It will be interesting to see and you forgot to add the facts to support your theory. Although in corporate america the break up of a company generally makes the money guys richer and the labors left out in the cold.


Is it possible that the US deal was really a false promise that is intended to get the creditors to break up Delta. This would be the best solution since it will make the remaining strong carriers even stronger.

 

[757inthebarrel]

It will be interesting to see and you forgot to add the facts to support your theory. Although in corporate america the break up of a company generally makes the money guys richer and the labors left out in the cold.
Is it possible that the US deal was really a false promise that is intended to get the creditors to break up Delta. This would be the best solution since it will make the remaining strong carriers even stronger.

Facts? OK, lets just look at a few of the biggest creditors out of the 9 on the committee.

DALPA - This one speaks for itself. No union is going to vote itself out of a job.

Boeing - A standalone DL brings a future boat load of aircraft replacement orders. Almost all DL aircraft will be replaced in the next 5-10 years and DL is a strictly Boeing customer. A breakup would flood the market with used aircraft and eliminate a loyal customer.

PBGC - DL put a lot of effort into supporting legislation that would allow non-contract employees to keep their pensions. A breakup would likely send these retirements to the PBGC as would a merger with US.

Fidelity - Vote to put a valuable customer out of business?

Coke - Coke, DL, and Home Depot are the backbone of the Georgia economy. No chance of Coke voting for a breakup.

Pratt - DL is loyal customer. Why would any airline supplier want to see fewer airlines? Fewer companies means fewer aircraft and less parts.

You dream of a breakup probably because you fear the competition from a lean/mean DL. Sorry man, ain't gonna happen.

 

[wings396]

Where does the bankruptcy judge overseeing the case come in? Doesn't he/she have to look at the impact of all involved? i.e. communities served, employees, shareholders, creditors, etc?

I can tell you first hand, that the BK Judge could care less about the employees. They are only obligated to see that the creditors get as much as possible, and that the company has a valid business plan that will enable them to pay the bills. At US, we lost plenty of jobs along with wage and benefit cuts. The company had the BK judge in their pocket from day one, as they got everything and anything they wanted. Union contracts meant nothing, and pensions were gone in a flash. You should know just how much the Judge cares about the employees based on what those at DL went thru.

 

[BottomFeeder]

Facts? OK, lets just look at a few of the biggest creditors out of the 9 on the committee.

DALPA - This one speaks for itself. No union is going to vote itself out of a job.

Boeing - A standalone DL brings a future boat load of aircraft replacement orders. Almost all DL aircraft will be replaced in the next 5-10 years and DL is a strictly Boeing customer. A breakup would flood the market with used aircraft and eliminate a loyal customer.

PBGC - DL put a lot of effort into supporting legislation that would allow non-contract employees to keep their pensions. A breakup would likely send these retirements to the PBGC as would a merger with US.

Fidelity - Vote to put a valuable customer out of business?

Coke - Coke, DL, and Home Depot are the backbone of the Georgia economy. No chance of Coke voting for a breakup.

Pratt - DL is loyal customer. Why would any airline supplier want to see fewer airlines? Fewer companies means fewer aircraft and less parts.

You dream of a breakup probably because you fear the competition from a lean/mean DL. Sorry man, ain't gonna happen.

You sound just like the Pan Am guys

1. The goverment will never allow Pan Am to go under

2. Pan Am we are the US flag carrier

3. The goverment spend all that money to retrofit the 74's with the cargo doors for military flights

4. Boeing loves Pan Am and they built the 74 for us

5. Pan Am the second most recognized logo in the world behind Coke

6. Delta will save us



You and your job can be replaced and the world won't miss a beat.

 

[luv2fly]

You dream of a breakup probably because you fear the competition from a lean/mean DL. Sorry man, ain't gonna happen.

Oh cmon 757, let him dream. It is as close to reality as his theory is going to get.

 

[BoeingBoy]

Take it from someone that's been around/in the industry for over 40 years - there are almost no similiarities between DL's situation and that of PanAm.

BottomFeeder - several of your points were accurate at some point in PanAm's existance - some for most of PanAm's existence. Ironically, though, several of your points mention the government - the same government that started the chain of events that ultimately led to PanAm's demise. Toward the end, only #5 - name recognition - may have been true but that wasn't anywhere near enough to save PanAm.

Jim

 

[NYCDelta]

You sound just like the Pan Am guys

5. Pan Am the second most recognized logo in the world behind Coke

That part was true until the mid 90's!!

 

[BottomFeeder]

Take it from someone that's been around/in the industry for over 40 years - there are almost no similiarities between DL's situation and that of PanAm.

BottomFeeder - several of your points were accurate at some point in PanAm's existance - some for most of PanAm's existence. Ironically, though, several of your points mention the government - the same government that started the chain of events that ultimately led to PanAm's demise. Toward the end, only #5 - name recognition - may have been true but that wasn't anywhere near enough to save PanAm.

Jim

No Jim things have changed a lot in the last 40 years.

These are days of corporate raiders and money guys. In todays business it is what makes the most money. They don't worry about the little guys. So if it makes the creditors more money then that is where their loyality will be.

The past is a stark reminder that you can be replaced. Branif, Pan Am, Eastern and many more, Yet the industry is still here only there are just different names. So for some Delta people to think they can not be broken up by the creditors is just ignoring the possibilities. Remember it is bankruptcy and when you owe corporations money they are in the drivers seat.