Ex-DAL exec
12-06-2005, 07:03 AM
#1
Gets Weekends Off
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Joined APC: Aug 2005
Position: Retired 121 pilot
Posts: 1,032
Ex-DAL exec
Ex-Delta exec fights to keep free flights
By RUSSELL GRANTHAM , MATT KEMPNER
The Atlanta Journal-Constitution
Published on: 12/06/05
M. Michele Burns, the Atlanta executive who landed deals allowing her to parachute from Delta Air Lines and Mirant Corp. with millions of dollars, is fighting to keep her loftiest perk: free flights for life aboard Delta.
The airline, which is struggling to stay airborne while in Chapter 11 bankruptcy, wants to cut off first-class flight privileges for its former financial chief and her family.
In court papers filed last week, Burns argued that Delta can't cancel the flight privileges — awarded to her when she left the airline in April 2004 — under federal bankruptcy code. She also said the carrier would lose more than it gained from the move.
Delta will "incur few or no actual costs or expenses ... because there generally are empty seats on the debtor's aircraft," Burns said in the filing with the U.S. Bankruptcy Court in New York.
Burns is no stranger to flaps over executive pay and perks.
In 2002, while at Delta, she helped the airline during its creation of controversial bankruptcy-proof pension trusts for about three dozen executives. That provided her with at least $1 million in a personal pension trust beyond the reach of creditors.
Around the same time, Burns also was among a long list of Delta executives who were paid hefty bonuses while the airline was losing money, cutting jobs and appealing for federal aid. That year, she was awarded a bonus of $846,000, on top of her $560,000 salary.
Despite those incentives, Burns and other Delta executives left the company in droves. Her next stop was Mirant, the bankrupt energy trader, where she became chief financial officer.
Now she's finishing a 20-month stint with Mirant, flush with at least $8.2 million in severance pay, bonuses and other payments from the company as it emerges from its own Chapter 11 case.
Efforts to reach Burns for comment Monday were unsuccessful.
Delta spokesman John Kennedy said the airline asked the bankruptcy court to relieve it of fulfilling all individual compensation agreements with former senior executives. He said that while many executives had such agreements, he was unsure of how many there were or whether others included flight privileges.
"Given the severity of our financial situation and the sacrifices that Delta's active and retired people are making, the company believes it's right and appropriate," Kennedy said Monday.
"We've always said that our restructuring would not be painless and that all Delta stakeholders would need to participate."
Kennedy said Burns was the only former executive to challenge the cutoff.
Burns received the unlimited rights to Delta's generally most expensive seats on a so-called positive space basis, meaning they were reserved as though she and her family were paying passengers. The benefit was part of an agreement for her to provide occasional consulting services for the airline until May 2009.
Delta declined to comment on whether Burns did any consulting.
Long-tenured retirees are allowed to fly free on the carrier. But Burns left Delta after only five years with the company and wouldn't normally qualify for such privileges, much less rights that gave her the higher priority on seating.
Delta promised the flights to Burns, her spouse or domestic partner and their children as long as she lives and doesn't use them for business purposes.
Stanley Barczak, who co-authored an unsuccessful shareholder proposal earlier this year that called for Delta to renegotiate compensation for former executives who tapped the pension trusts, said he was not surprised by the current tussle over Burns' free-flying perk.
He noted that starting next year, active Delta employees would be charged a $50 annual fee to use their personal flight privileges.
"Allowing her to fly free while everybody else is paying would add insult to injury after her time with the company," said Barczak, a Delta baggage handler from Richwood, Ky., who was recently furloughed after 27 years with the company.
------------------------------------------------------------------------
I just love these airline executives who think so much of themselves.
By RUSSELL GRANTHAM , MATT KEMPNER
The Atlanta Journal-Constitution
Published on: 12/06/05
M. Michele Burns, the Atlanta executive who landed deals allowing her to parachute from Delta Air Lines and Mirant Corp. with millions of dollars, is fighting to keep her loftiest perk: free flights for life aboard Delta.
The airline, which is struggling to stay airborne while in Chapter 11 bankruptcy, wants to cut off first-class flight privileges for its former financial chief and her family.
In court papers filed last week, Burns argued that Delta can't cancel the flight privileges — awarded to her when she left the airline in April 2004 — under federal bankruptcy code. She also said the carrier would lose more than it gained from the move.
Delta will "incur few or no actual costs or expenses ... because there generally are empty seats on the debtor's aircraft," Burns said in the filing with the U.S. Bankruptcy Court in New York.
Burns is no stranger to flaps over executive pay and perks.
In 2002, while at Delta, she helped the airline during its creation of controversial bankruptcy-proof pension trusts for about three dozen executives. That provided her with at least $1 million in a personal pension trust beyond the reach of creditors.
Around the same time, Burns also was among a long list of Delta executives who were paid hefty bonuses while the airline was losing money, cutting jobs and appealing for federal aid. That year, she was awarded a bonus of $846,000, on top of her $560,000 salary.
Despite those incentives, Burns and other Delta executives left the company in droves. Her next stop was Mirant, the bankrupt energy trader, where she became chief financial officer.
Now she's finishing a 20-month stint with Mirant, flush with at least $8.2 million in severance pay, bonuses and other payments from the company as it emerges from its own Chapter 11 case.
Efforts to reach Burns for comment Monday were unsuccessful.
Delta spokesman John Kennedy said the airline asked the bankruptcy court to relieve it of fulfilling all individual compensation agreements with former senior executives. He said that while many executives had such agreements, he was unsure of how many there were or whether others included flight privileges.
"Given the severity of our financial situation and the sacrifices that Delta's active and retired people are making, the company believes it's right and appropriate," Kennedy said Monday.
"We've always said that our restructuring would not be painless and that all Delta stakeholders would need to participate."
Kennedy said Burns was the only former executive to challenge the cutoff.
Burns received the unlimited rights to Delta's generally most expensive seats on a so-called positive space basis, meaning they were reserved as though she and her family were paying passengers. The benefit was part of an agreement for her to provide occasional consulting services for the airline until May 2009.
Delta declined to comment on whether Burns did any consulting.
Long-tenured retirees are allowed to fly free on the carrier. But Burns left Delta after only five years with the company and wouldn't normally qualify for such privileges, much less rights that gave her the higher priority on seating.
Delta promised the flights to Burns, her spouse or domestic partner and their children as long as she lives and doesn't use them for business purposes.
Stanley Barczak, who co-authored an unsuccessful shareholder proposal earlier this year that called for Delta to renegotiate compensation for former executives who tapped the pension trusts, said he was not surprised by the current tussle over Burns' free-flying perk.
He noted that starting next year, active Delta employees would be charged a $50 annual fee to use their personal flight privileges.
"Allowing her to fly free while everybody else is paying would add insult to injury after her time with the company," said Barczak, a Delta baggage handler from Richwood, Ky., who was recently furloughed after 27 years with the company.
------------------------------------------------------------------------
I just love these airline executives who think so much of themselves.
12-06-2005, 07:28 AM
#2
Gets Weekends Off
Joined APC: Jul 2005
Posts: 2,242
What a class act? Where do they find these people? What happened to expecting leadership from CEOs / CFOs / execs? Too me it looks like all they (CEOs / CFOs / etc...) do is ensure their own survival at the expense of their companies / employees...
-LA
-LA
12-06-2005, 11:06 AM
#4
Gets Weekends Off
Joined APC: Nov 2005
Position: Left or Right
Posts: 113
She would ride on more than what DAL employees ride on. Executive Passes are POS space first class. She would bump the most senior active employee and most FF that desire upgrades. It is a "Sweet" perk, I'd fight for it if it were given to me.
12-07-2005, 10:33 AM
#7
Gets Weekends Off
Joined APC: Sep 2005
Position: Retired
Posts: 157
I wonder if she was the exec. that saw fit to pay $12.50 to $14.00 per ticket to process information when Orbitz Supplier Link has the same ability at $4.00 per ticket.
Delta just decided to change to the Orbitz system yesterday . This system has been available since 2002.
Another example of great management.
http://biz.yahoo.com/pz/051206/90798.html
Delta just decided to change to the Orbitz system yesterday . This system has been available since 2002.
Another example of great management.
http://biz.yahoo.com/pz/051206/90798.html
12-07-2005, 10:42 AM
#8
Da Man
Joined APC: Feb 2005
Position: DC-10 F/O
Posts: 436
Originally Posted by Sir James
Michele did a great job while CFO at Delta. She turned their finances around and helped set the stage for today's bright outlook at the Big D. I say give her what she wants.
I'm guessing she presided over the raid on the Trust for the Benefit of Survivors and the Disabled (opens a PDF document).
"Turning finances around" doesn't count if you steal the money to do it. I also say give her what she wants...as long as it includes an orange jumpsuit and leg shackles.
Last edited by WatchThis!; 12-07-2005 at 10:46 AM.
12-07-2005, 04:35 PM
#9
Gets Weekends Off
Joined APC: Nov 2005
Position: Left or Right
Posts: 113
DAL is a Classic example of Mismanagement. DAL will get the BK courts to force DAPLA to cut wages and void it's contract and still go down the tubes. Get those "Boobs" out of the Glass Palace and get some real Business managers in there. A recent BA grad from GT can do a whole lot better than JG and his "ass"ociates.
12-07-2005, 04:45 PM
#10
Guest
Posts: n/a
"what?! why we couldn't THINK of violating such a trust with a wonderful management person! she has a CONTRACT that must be honored!"
they never seem to honor our contracts in BK for some reason, do they? why, they drop our pensions on the PBGC like a hot potato while creating special protected pension classes for themselves.
every single one of them should be lined up against a wall and shot.
they never seem to honor our contracts in BK for some reason, do they? why, they drop our pensions on the PBGC like a hot potato while creating special protected pension classes for themselves.
every single one of them should be lined up against a wall and shot.
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