FA4UA
Topic Author
Posts: 777
Joined: Sat Nov 22, 2003 6:26 pm

DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 9:58 am

Excellent article in Business week set to release 08 Dec 03....

http://www.businessweek.com/magazine/content/03_49/b3861048.htm

The scary part was reading that DL needs to pay $1 billion for pensions and another $1 billion for debt. If they only have 2.7 billion in the bank, well, that's not good!

thoughts on this anyone?

FA4UA
The debate continues... Starwood or Hyatt... which is better
 
luv2fly
Posts: 11056
Joined: Tue May 13, 2003 2:57 am

RE: DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 10:06 am

One of the problems as I see it is, the only group that is union is the pilots. So if they piss off the other work groups, i.e. mechanics, FA's, etc, they risk the chance of unions forming in the groups that they just go ahead and impose wage cuts because they can since they are non-union.
You can cut the irony with a knife
 
futureualpilot
Posts: 2404
Joined: Thu May 25, 2000 10:52 am

RE: DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 10:32 am

Should be interesting to see what happens. Why are the DL pilots so hard nosed about pay cuts? The other majors did it and seem to be recovering. Hopefully the pilots over there will suck up and do what is needed for the good of DL.
Life is better when you surf.
 
User avatar
mariner
Posts: 18263
Joined: Fri Nov 23, 2001 7:29 am

RE: DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 11:10 am

CAL is about the only major that doesn't have a problem with their pension funding.

UAL, for example, owes several billion, and unless they get some relief from Congress, it is one of the issues may impede their exit from Chapter 11.

DAL's financial circumstances are not the best, but equally they are not the worst - US Airways probably tops the list of worst.

As I see it, the "great shake-up" among the legacy carriers that was supposed to happen after 9/11 (and the downturn in airline business) has not yet happened.

We may coming out of the downturn, but we haven't yet seen the full implications of the damage the downturn did.

cheers

mariner
aeternum nauta
 
jhooper
Posts: 5560
Joined: Thu Dec 13, 2001 8:27 pm

RE: DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 1:23 pm

the Delta pilots union has many issues to work through in regard to pay cuts. I'm sure they WILL face some form of pay cuts, but currently they're having problems with execs giving themselves huge bonuses while asking the pilots to cut pay.
Last year 1,944 New Yorkers saw something and said something.
 
DeltaGuy
Posts: 3965
Joined: Wed Sep 12, 2001 5:25 am

RE: DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 4:04 pm

Exactly, Jhooper. DALPA won't even do these stupid cuts, with the heavies taking huge promotions, AND furghlowing even more of their fellow pilots.

We might see a little bit of pay compromise..but not for a long, long time...Delta has alot of butt kissing to do to the pilots to get em to move. I hope they don't budge on a dime, but that's just me  Smile

DeltaGuy
"The cockpit, what is it?" "It's the little room in the front of the plane where the pilot sits, but that's not importan
 
FA4UA
Topic Author
Posts: 777
Joined: Sat Nov 22, 2003 6:26 pm

RE: DL: Grinstein And Cost Cutting

Thu Dec 04, 2003 6:03 pm

Ok, new article for a new day. This one talks about the Pilots Union and their willingness to give back 9%. Quite a long reach from the 35% that management was looking for!

http://biz.yahoo.com/djus/031204/0051000031_1.html

Sheesh! What a mess!
The debate continues... Starwood or Hyatt... which is better