Panamair From United States of America, joined Oct 2001, 4713 posts, RR: 26 Reply 1, posted (8 years 3 months 15 hours ago) and read 1806 times:
Operationally, you're not going to see significant changes. What DL has been doing in the past 12-18 months with the Transformation Plan (closing DFW, retiring a/c and simplifying fleet, expansion of international flying, expanding Song in certain markets, etc.) are things they would be doing in BK. The additional things that BK basically accomplishes for DL are things they cannot or are having a difficult time doing outside the courts:
1) Buys them more time against creditors (repayments due, etc.) till all the beneifts of the Transformation Plan and additional cuts kick in
2) Buys them more time till Pension and potentially other reforms pass through Congress
3) Allows them to renegotiate leases, debt, etc., that have been very difficult to do outside of BK
4) Allows them to potentially dump expensive DALPA and Comair contracts
DLPMMM From United States of America, joined Apr 2005, 3566 posts, RR: 10 Reply 2, posted (8 years 3 months 15 hours ago) and read 1778 times:
To answer your question briefly:
Nothing changes from a customer point of view.
DL gets DIP financing, sheds it's defined benefit pension plan liabilities, renegotiates leases and contracts (most of which are probably already renegotiated), renegotiates union contracts with pilots and dispatchers, cancels outstanding stock shares, reissues new shares to debt holders in exchange for debt relief, perhaps issues new shares in exchange for cash.
Merger is possible after these steps are done, but a likely merger partner is not evident at this time due to industry woes.
Uadc8contrail From United States of America, joined Sep 2003, 1782 posts, RR: 10 Reply 3, posted (8 years 3 months 15 hours ago) and read 1744 times:
no real changes other than most delta employees(non union) will not have a choice when it comes to paycuts, also do not know what your pass benefits are but ual started charging its employees(at the request of some committee)--my a$$ just more ways to get more out of the employee. pension will probably be dumped to the pbgc other than that its status quo. one thing that i hope does not happen but could is when ual dumped the pensions ual and iam came up with a additional pension paid out by the iam along with the pbgc pension, although it was not as much as the orig ual pension it was better than just relying on the pennies that the pbgc is going to pay, that could happen to non union employees......also remember the word"kerp", if delta does what ual did, some employees could get a pay raise as crazy as it sounds...uals reasoning was that they had to pay top dollar to keep the IT guys and the top dogs from jumping ship...expect bonuses for management if they stay with in the covenants set by the dip people.....
Panamair From United States of America, joined Oct 2001, 4713 posts, RR: 26 Reply 4, posted (8 years 3 months 14 hours ago) and read 1642 times:
Quoting Uadc8contrail (Reply 3): most delta employees(non union) will not have a choice when it comes to paycuts
Actually, most DL employees today already have no choice when it comes to pay and benefits cuts as they are non-union. DL could have imposed more cuts on them already without the help of the courts. BK will enable them to tear up the DALPA contract though...