Airline Pilot Central Forums - Any "Latest & Greatest" about Delta?

What ACL is hinting at is the second half of the 787 deal.
It involves orders and options for three jets that have had rumors thrown around here.

Options for four of a yet in production widebody jet.

Orders for four of a in production widebody jet

and a deal on four out of production wide body jets.

Columbia

10-26-2010 12:26 PM

Quote:

Originally Posted by acl65pilot (Post 890870)

Reducing debt, buying jets with cash etc, is good for us the "Joe" employee. If DAL paid off its entire debt it would free up 2 billion plus dollars a year in money that is spent on interest for financing that debt. Guess where that could go? You guessed it, employees, and a huge initiative to renew the airline. Everyone one wins.

All us want our money back, most us want our money back for more than two to three years, and understand the difference.

BUT,,,,,, management also understands this concept and will likewise micro-manage debt levels and other financial items so as not have to provide employees with unadulterated leverage. It's absolutely part of a business strategy.

tsquare

10-26-2010 12:26 PM

Quote:

Originally Posted by DAL 88 Driver (Post 890869)

... if you can show that the difference between our current pilot costs and restored pilot costs would break the company, I'd like to see your math.

I would like for DALPA to show us the cost differential between C2K and NOW. I'll bet THAT would water your eyes..... They don't want us to know that number because their demise would be instantaneous if it were to get out.

tsquare

10-26-2010 12:31 PM

Quote:

Originally Posted by acl65pilot (Post 890870)

And if DAL paid of it's entire debt it would make us a huge takeover target. There is a fine balance that must be maintained which has just enough to keep raiders at bay yet be able to continually cry poor.

And I think you are wrong about (any significant part of) the $2 billion going to employees. We have always been, are now, and will always be a liability to the bean counters. the less they can spend on us.. the better. That will never change. They might renew some infrastructure, but that is always a good excuse as to why there is no money left for pay/benefits.

Columbia

10-26-2010 12:35 PM

Quote:

Originally Posted by satchip (Post 890866)

^^^^^^^^^ Bingo

Only through a profitable company will we realize major LONG TERM wage gains. Extracting a 65% raise may make guys like Carl rich but they will only last till the next down turn. When that comes then I along with the other bottom third will be on the street, the top guys will be back to previous levels of compensation, and Carl and his ilk will be laughing all the way to the bank.

I may be reaching a little, but what's to stop further concessions should we enter a downturn here?

acl65pilot

10-26-2010 12:37 PM

T-Not going to argue you last post. I was just illustrating what the savings would be. In fact DAL has targeted 7.5 billion as the debt level they want to be at by 2012. That equates to about a 900 million dollar per year costs savings on debt service.

LUV took upon a ton of debt to reduce the risk of a hostile takeover They are about 40% leveraged. It is just one tool in the tool box.

Columbia;
Do you not think the guys running the DALPA show and their EFA guys that run our numbers know how to break down the real financial health of the company? I expect they do.

johnso29

10-26-2010 12:49 PM

Quote:

Originally Posted by Rogue24 (Post 890878)

So who is going to fill in the blanks? :D

acl65pilot

10-26-2010 12:56 PM

Quote:

Originally Posted by Rogue24 (Post 890878)

Was that what I was hinting at? :rolleyes:

forgot to bid

10-26-2010 01:04 PM