Conversion / training for the last AE is out.

 

From the NW types that I was around, when the DL C2K was signed it was frequently spoken amongst them that the DL massive lump sum pension structure was going to BK the company.

Of course, then both companies declared BK on the same day, so take that for what it's worth.

It was a sentiment at the time whether or not it had any factual basing.

 

"undertaking by any means, directly or indirectly, to provide air transportation."

That's pretty broad, certainly well beyond certificate holder...
Gotta be a pretty bad lawyer to not be able to argue that...

Cheers
George

 

They're not bad lawyers.
Their client doesn't want to make that argument. They might win.

 

8:30-9ish. Play everything from Crue, Poison, GnR, etc... Bring your axe. As for the -88, we always have a few songs on MEL

 

It was known within the executive circles that Delta's cost structure was going to result in bankruptcy probably as far back as the year 2001. ALPA did not know, went through a period of denial, then made the best of it.

To form your own time line based on objective data points, look at when Mullin came in and formed his team including Michelle Burns. Obviously that team brought great reorganization and bankruptcy experience to the table and they were chosen despite a lack of any airline management experience. That tells us something. Those with airline management experience were passed over, like Hollis Harris, who then went on to do a good job running World.

Also consider that the cost of C2K was basically equivalent to the Company's profits during the economic boom leading up to the year 2000.

Publicly management was running around saying the industry was achieving a new cost paradigm where it did not matter how much money Delta spent because American, Continental and United would be forced to match Delta's spending. ALPA drank this cool aid right up since it helped them achieve United Plus.

ALPA is smarter now and Delta's board also seems to have an acute understanding that no one makes money when the stock price goes to zero. While the airlines wanted to reorganize in bankruptcy, the only folks who did really well were the inner circle, a few attorneys and Mullin's former employer McKinsey.

It is sad what happened to Delta over the last decade. I've frequently thought about writing a book digging into the tragedy. The same administrative inner circle is still in place within DALPA and while it could be hoped they learned something, events like the Compass vote suggest otherwise.

 

Did the C2K contract have a pension? Do we have one now for the majority of the pilots? If we are lacking that, then I think the company could afford more than if the pension was still around for the majority (the Southies and newbies). Were there bag fees back then? That has to be taken into consideration too. Everything that we have and do not have compared to the C2K contract should be looked at. How about the $2 billion a year in extra profit due to synergies? That wasn't a part of the C2K contract most likely. Please remind those mid level guys that when they start talking contract stuff. Bag fees, less pension, synergies.

 

I hope not

TEN

 

Management always blames pilots if the pay scale becomes "unaffordable", but when they were making huge profits under the concessionary '96 agreement, Ron Allen declared: "A contract is a contract." They largely provoked the C2K reaction.

 

It was Leo Mullin who said "A contract is a contract."