DL787932ER
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"Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 10:34 am

Atlanta Journal-Constitution interview with CEO Gerald Grinstein:

http://www.ajc.com/business/content/...delta/stories/0122sbizdeltaqa.html

Some highlights:

Q: When do you expect to come out of Chapter 11?

A: My aspiration would be to come out in the spring or summer of '07. Certainly [we] don't want to stay in as long as United. ... We're right on the plan that we laid out ... [but] fuel is now more costly than we projected.

...

Q: You said pilot costs are a big pending issue. Are you still seeking $325 million in concessions?

A: The number hasn't changed. ... We've been in contact [with the union], but I can't tell you that negotiations have started. Time is running out. The end date for an agreement is March 1.

...

Q: How do you plan to maintain employees' spirit long term?

A: I see our job as reassuring people that Delta is going to survive, and that it will only really get a chance to grow and expand the way we think it should if we have superior passenger service. ... And it's got to be part of your ethic going ahead. Delta is ... an echo of the past. We were there and we've lost some of that and now we're trying to recoup something we had, and I think it may be a better situation here. But I will not tell you that I think it's easy.

...

Q: Do you plan to book a seat on AirTran's new flights to Seattle this summer? (Grinstein has a home there.)

A: [Laughs heartily] I don't want to be uncomfortable that long.

[Edited 2006-01-22 02:35:06]

[Edited 2006-01-22 02:37:15]
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mariner
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 10:42 am

Quoting DL787932ER (Thread starter):
Certainly [we] don't want to stay in as long as United. .

I wonder why?

When United went into Chapter 11, CEO Tilton said they wouldn't come out until they had gained every possible advantage from it.

It seems better to do that than to try and hurry the process.

cheers

mariner
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jacobin777
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 10:53 am

Quoting Mariner (Reply 1):

I wonder why?

When United went into Chapter 11, CEO Tilton said they wouldn't come out until they had gained every possible advantage from it.

It seems better to do that than to try and hurry the process.

my take is that he's "hoping" it won't take that long....i.e-try to get the "house in order" ASAP......that way he can collect his multi-millions sooner like Tilton is.. Wink

i wouldn't be surprised if its true also..not a far-fetched idea.. no 
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srbmod
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 12:23 pm

Quoting Mariner (Reply 1):
Quoting DL787932ER (Thread starter):
Certainly [we] don't want to stay in as long as United. .

I wonder why?

When United went into Chapter 11, CEO Tilton said they wouldn't come out until they had gained every possible advantage from it.

They won't stay in CH. 11 as long as UA has because the bankruptcy laws now have time frames because of the length of time companies like UA have taking to even put together a reorganization plan. Pretty much if you can't get plans in order within a certain amount of time, the judge can turn a CH. 11 into a Ch. 7 ASAP (Look at the most recent incarnation of Midway.).
 
hoya
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 1:17 pm

Quoting Srbmod (Reply 3):
They won't stay in CH. 11 as long as UA has because the bankruptcy laws now have time frames because of the length of time companies like UA have taking to even put together a reorganization plan.

Not entirely true. Yes, new bankruptcy laws have put a limit on the time a company can spend in Chapter 11, however DL filed before the new laws took effect, so they can spend as much time as they want in Chapter 11.

Sorry for going off topic here, but GO HOYAS!! We beat Duke today! I was at the game, it was phenomenal! HOYA SAXA !!

[Edited 2006-01-22 05:17:39]
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mariner
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 1:33 pm

Quoting Srbmod (Reply 3):
the bankruptcy laws now have time frames because of the length of time companies like UA have taking to even put together a reorganization plan.

Um - I could be wrong, but I thought Delta (and Norhtwest) filed before the laws were changed, so they were not affected by the new time frame rules.

Quoting Srbmod (Reply 3):
the judge can turn a CH. 11 into a Ch. 7 ASAP (Look at the most recent incarnation of Midway.).

Um - again. Midway filed a long time go, well before these present laws took effect.

It seemed to me that Mr. Grinstein was too determed not to file Chapter 11, and almost from the moment they did he was saying they would be out asap. Now he seems to be saying it again.

I prefer CEO Tilton's approach.

cheers

mariner
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Alitalia744
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 1:43 pm

Quoting Mariner (Reply 5):

I prefer CEO Tilton's approach.

of course you do Mariner - you have everything Delta...
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AirRyan
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 1:45 pm

One reason as to why these CEO's are regurgitating the whole "get-out-of-BK-sooner-than-later" mantra is because they are trying to convince the majority of their employees from leaving the company. For example, morale for NW is not all that great right now and even at their best scenario they are not going to emerge from Ch.11 until Q2 2007. With the latest round of pay/benefit cuts that were imposed upon their management, the cuts don't revert back until/if NW emerges from that Ch11 and for the majority of the newly hired and overly compensated beancounters whose bonuses contractually obligated them for just one year, come this next Holiday season a lot of people are going to be going elsewhere if the exiting from Ch11 is not perceived as to being imminent. Just one theory.
 
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mariner
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 1:52 pm

Quoting Alitalia744 (Reply 6):
of course you do Mariner - you have everything Delta...

I very seldom comment on Delta.

Mostly, when I do, it is to recall with great appreciation the cure for moonshine hangovers given me by a Delta f/a, ATL/LAX, the first time I flew the airline.

Why would you consider that a criticism of an attitude to law - or a preference for another attitude - constitutes an emotional criticism?

cheers

mariner
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 2:27 pm

Quoting Mariner (Reply 1):
It seems better to do that than to try and hurry the process.

Well, Delta had a large part of their restructuring plan already determined before the filing, and so far, the court hasn't tweaked it too much.

They had a head start, so to speak. Everything is on track right now, for DL to exit quicker than average. I'm sure they won't before the carrier is ready tho.

B
 
Jamake1
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RE: "Troubled Airline Faces 'Critical Year'" (DL)

Sun Jan 22, 2006 7:22 pm

Delta probably doesn't want to take the approach that UA took because bankruptcy is a very expensive undertaking. The numerous law firms involved in the proceedings and the complexities of a Chapter 11 filing involve heavy cash expenditures on the part of debtor. Having said that, I do think that Tilton's approach was the right choice for United at the time...
United's B747-400. "She's a a cruel lover."

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