Originally Posted by
TheManager
Did we need to take the first offer. No. DALPA would go on to emphasize that by rejecting this TA, we would be hammered by the judge, process ends.
Not true.
Exhibit 1. Hawaiian Airlines. Rejected the first TA that was produced because it reached too far. The went back and after working on it produced the 2nd TA that was ratified.
This TA
* Did not terminate their pension.
* Had significantly higher payrates.
* Had significantly higher DC.
Manager,
Maybe you can tell me how Hawaiian's creditors fared in their bankruptcy relative to labor. Then compare and contrast how Delta's creditors fared compared to Delta pilots.
Here's a hint: the difference was substantial.
Can you tell me the difference in funding between Hawaiian's DB plan and Delta's pilot DB plan? Hint: the difference was substantial.
The Hawaiian bankruptcy wasn't remotely similar to Delta's. The results weren't similar for any party or creditor.
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
Hawaiian Airlines Inc on Thursday (19 May) said it won court approval for its bankruptcy reorganization plan.
The carrier reportedly expects to emerge from Chapter 11 on June 1, more than two years after filing for bankruptcy.
The company said creditors will receive 100% of the value of their claims, while stockholders will keep their shares. In addition, Hawaiian has negotiated new labor contracts with its employees, reported Reuters.
Delta: Common shareholders wiped out (over 200 million shares). Creditors on average received about 46 cents on the dollar (pilots received just over 60 cents).
Hawaiian's pension plan: $4.5 million underfunded
Delta Pilot Plan: $3 billion underfunded