Originally Posted by
The Juice
I dont know and wont pretend to know much about BK court. That is why I will wait and listen from those who do (legal) and my new quest for self education on the topic. There is a lot to learn and know between "FUPM" and "Take whatever you want."
Here is a link to Comair's 1113c decision, as written by the BK Judge.
http://www.nysb.uscourts.gov/opinion...64_opinion.pdf
Page 8 - Some background on "Good Faith Negotiations" and the 1113c process.
Page 14 - How Comair's president (who went on to become Delta's president of DCI, by the way) testified that pilot costs are why Delta took our planes away.
Page 15 - Then-President of DCI, Shawn Anderson, lies under oath that throwing out Comair's pilot contract and imposing lower pilot costs will allow Delta to give Comair more planes and let Comair survive:
". . . If Comair can restructure itself so that its controllable costs are competitive, Delta should be able to increase, rather than decrease, the flying it contracts to Comair. This would mean that Comair would have an opportunity to grow, rather than shrink. With growth would come new job opportunities, and reduced unit costs, as more junior employees are added, and reduced unit overhead costs as the same facilities and overhead could be used to perform more flying."
". . . I am familiar with Comair’s restructuring plans, including its plan to reduce its controllable costs–both labor and non-labor. If Comair is able to restructure in accordance with its restructuring plans, I believe that Comair will be able to perform Delta Connection flying at a competitive price. Accordingly, I believe that the labor cost reductions in Comair’s business plan are necessary–indeed, essential–to Comair’s successful restructuring."
I wonder if the judge cares, or even knows, that he got suckered?
Page 17 - Delta describes how Comair "lost" planes to cheaper regionals as proof that Comair pilots need to have their expensive contract thrown out. This is akin to a bank robber using his crimes as proof that his job doesn't pay enough.
Page 18 - Delta argues that the wage snapback (the only enforcement clause to the Fleet Guarantee that Delta was violating) would cost too much. Keep in mind that whatever ALPA promises you - as a guarantee that Pinnacle won't hold up their end of the deal - can be thrown out in bankruptcy.
Page 20 - Delta's Ed Bastian argues that even though Comair had a $50 million profit that year, it was still necessary to reduce costs to keep flying at Comair.
Page 22 - Judge points out that concessions must be made during BK; earlier concessions don't count.
Page 23 - More "Good Faith" jabbering and ALPA wrist-slapping from the judge.
Page 25 - Judge emphasizes that it is in Delta's best interests to grow Comair.