Delta TA
12-12-2005, 03:35 AM
#1
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Delta TA
UPDATE 2-Delta, pilots reach tentative deal for pay cut
Sun Dec 11, 2005 11:02 PM ET
(Adds background, pilots' reaction, byline)
By Mark McSherry
NEW YORK, Dec 11 (Reuters) - Bankrupt Delta Air Lines Inc., the third largest U.S. airline, said it reached a tentative interim agreement with the union representing its more than 6,000 pilots that will cut hourly wages by at least 14 percent.
Delta (DALRQ.PK: Quote, Profile, Research) said that subject to pilot ratification by no later than Dec. 28, the agreement with the Air Line Pilots Association, International (ALPA) provides for a 14 percent hourly wage reduction, while cuts in other pilot pay and cost items would be equivalent to another 1 percent cut.
Delta said on Sunday the cost reductions would be effective from Thursday and would remain in effect while Delta and the pilots, who have threatened to go on strike, seek a comprehensive agreement.
Atlanta-based Delta and ALPA will now try to negotiate a tentative comprehensive deal by March 1, with pilot membership ratification by March 22.
"This agreement reflects the resolve of Delta people to work together to help save the company," said Ed Bastian, Delta's chief financial officer, in a statement. "We recognize and appreciate the additional sacrifice this will represent."
Delta and ALPA will ask the Bankruptcy Court to suspend the hearing on Delta's motion to reject the existing Delta-ALPA collective bargaining agreement, pending the ratification process for the new deal.
Delta said achieving pilot labor cost reductions is an important element of its restructuring plan, which calls for an extra $3 billion in annual cost reductions and revenue improvements by the end of 2007.
DEBT
Captain Lee Moak, chairman of the ALPA chapter at Delta, said in a statement: "We have always maintained that a consensual agreement was in the best interest of the company and the pilots. With a lot of hard work and dedication, I believe we have crafted an agreement that contributes to the restructuring plan and recognizes our value to the company."
Delta sought bankruptcy protection in September under pressure from fuel costs, low-cost rivals and a high debt load.
On Nov. 10, Delta reported a net loss of $1.1 billion for its third quarter on restructuring charges as it cancelled aircraft leases and sought to reorganize in bankruptcy court. Delta reported a net loss of $646 million a year earlier.
While Delta's loss narrowed, excluding $692 million in one-off charges, the airline was still in the red even on an operating basis, illustrating the hurdles it faces.
Of the $3 billion Delta is seeking to cut in costs, about a third would come from wage and benefit cuts. Delta also plans to cut up to 9,000 jobs and shrink its fleet by up to 100 aircraft as part of its turnaround plan.
The loss in the most recent period included a $607 million charge for reorganization items, including the cancellation of 40 aircraft leases, as well as the write-off of debt issuance costs and discounts.
It also included an $86 million settlement charge related to lump sum pension payments to about 250 pilots who retired.
Sun Dec 11, 2005 11:02 PM ET
(Adds background, pilots' reaction, byline)
By Mark McSherry
NEW YORK, Dec 11 (Reuters) - Bankrupt Delta Air Lines Inc., the third largest U.S. airline, said it reached a tentative interim agreement with the union representing its more than 6,000 pilots that will cut hourly wages by at least 14 percent.
Delta (DALRQ.PK: Quote, Profile, Research) said that subject to pilot ratification by no later than Dec. 28, the agreement with the Air Line Pilots Association, International (ALPA) provides for a 14 percent hourly wage reduction, while cuts in other pilot pay and cost items would be equivalent to another 1 percent cut.
Delta said on Sunday the cost reductions would be effective from Thursday and would remain in effect while Delta and the pilots, who have threatened to go on strike, seek a comprehensive agreement.
Atlanta-based Delta and ALPA will now try to negotiate a tentative comprehensive deal by March 1, with pilot membership ratification by March 22.
"This agreement reflects the resolve of Delta people to work together to help save the company," said Ed Bastian, Delta's chief financial officer, in a statement. "We recognize and appreciate the additional sacrifice this will represent."
Delta and ALPA will ask the Bankruptcy Court to suspend the hearing on Delta's motion to reject the existing Delta-ALPA collective bargaining agreement, pending the ratification process for the new deal.
Delta said achieving pilot labor cost reductions is an important element of its restructuring plan, which calls for an extra $3 billion in annual cost reductions and revenue improvements by the end of 2007.
DEBT
Captain Lee Moak, chairman of the ALPA chapter at Delta, said in a statement: "We have always maintained that a consensual agreement was in the best interest of the company and the pilots. With a lot of hard work and dedication, I believe we have crafted an agreement that contributes to the restructuring plan and recognizes our value to the company."
Delta sought bankruptcy protection in September under pressure from fuel costs, low-cost rivals and a high debt load.
On Nov. 10, Delta reported a net loss of $1.1 billion for its third quarter on restructuring charges as it cancelled aircraft leases and sought to reorganize in bankruptcy court. Delta reported a net loss of $646 million a year earlier.
While Delta's loss narrowed, excluding $692 million in one-off charges, the airline was still in the red even on an operating basis, illustrating the hurdles it faces.
Of the $3 billion Delta is seeking to cut in costs, about a third would come from wage and benefit cuts. Delta also plans to cut up to 9,000 jobs and shrink its fleet by up to 100 aircraft as part of its turnaround plan.
The loss in the most recent period included a $607 million charge for reorganization items, including the cancellation of 40 aircraft leases, as well as the write-off of debt issuance costs and discounts.
It also included an $86 million settlement charge related to lump sum pension payments to about 250 pilots who retired.
12-13-2005, 05:32 AM
#3
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Position: MD80 FO
Posts: 10
Yeah,
I'm concerned about that, too.
They'll take the 14% now & work hard to get the rest in the next 3 months.
I know this is a gut-wrenching deal in the Widget-Driver land ... but we've gotta stop this nonsense ... we --- the members of this profession.
I wish for y'all the best ... & I hope my own group doesn't sabatoge any progress you DO make in ATL.
Al
I'm concerned about that, too.
They'll take the 14% now & work hard to get the rest in the next 3 months.
I know this is a gut-wrenching deal in the Widget-Driver land ... but we've gotta stop this nonsense ... we --- the members of this profession.
I wish for y'all the best ... & I hope my own group doesn't sabatoge any progress you DO make in ATL.
Al
12-13-2005, 05:41 AM
#4
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Posts: n/a
The US Trustee overseeing the process apparently stepped in and told them to get a deal - NOW - even if it was of a temporary nature. DAL was starting to bleed more with the pax book-aways due to fear of a strike over the holidays. This thing will only get uglier. Hate to say it, but the pension is probably a goner. The pilot group still has to vote on the agreement and that is not a slam dunk either.
04-17-2006, 03:00 PM
#5
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Joined APC: Feb 2005
Position: B777
Posts: 5,853
Word I have is that the DAL MEC is still waiting on final language and then will meet (in MSY) to review the agreement.
From the MEC web site:
From the MEC web site:
ALPA will not publicly comment on the proposed Tentative Agreement reached by the negotiating committees of the union and Delta. Our governing body, the Delta MEC, and the Delta pilots must have time to study the agreement before we release any detail or make any comment on the agreement to the public. We can say that the figures quoted in the April 15, Wall Street Journal article titled “Delta, Pilots Reach Tentative Deal” are not accurate.
Last edited by HSLD; 04-17-2006 at 03:03 PM.
04-18-2006, 05:42 AM
#6
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Joined APC: Apr 2006
Posts: 26
Yep, I've looked at the numbers in this TA (as reported), and it's pretty obvious that this is going to be another major pilot giveback. I think we're looking at the average captain's salary heading toward, say, 120K. At most.
We'd better all tighten our belts even further.
We'd better all tighten our belts even further.
04-18-2006, 08:14 AM
#7
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Joined APC: Sep 2005
Position: Retired
Posts: 157
Originally Posted by Seaber
Yep, I've looked at the numbers in this TA (as reported), and it's pretty obvious that this is going to be another major pilot giveback. I think we're looking at the average captain's salary heading toward, say, 120K. At most.
We'd better all tighten our belts even further.
We'd better all tighten our belts even further.
04-18-2006, 08:40 AM
#8
Gets Weekends Off
Joined APC: Apr 2006
Position: ERJ 170
Posts: 737
something is not right
Originally Posted by spinproof
UPDATE 2-Delta, pilots reach tentative deal for pay cut
Sun Dec 11, 2005 11:02 PM ET
(Adds background, pilots' reaction, byline)
By Mark McSherry
NEW YORK, Dec 11 (Reuters) - Bankrupt Delta Air Lines Inc., the third largest U.S. airline, said it reached a tentative interim agreement with the union representing its more than 6,000 pilots that will cut hourly wages by at least 14 percent.
Sun Dec 11, 2005 11:02 PM ET
(Adds background, pilots' reaction, byline)
By Mark McSherry
NEW YORK, Dec 11 (Reuters) - Bankrupt Delta Air Lines Inc., the third largest U.S. airline, said it reached a tentative interim agreement with the union representing its more than 6,000 pilots that will cut hourly wages by at least 14 percent.
Look at the time stamp. Sun Dec 11, 2005?
04-18-2006, 11:08 AM
#10
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Joined APC: Apr 2006
Position: FO dhc-6
Posts: 523
why dont the pilots just go to Managments houses at night and start shooting at the side of their houses and scare their families?
i thought i read that happened in the 80's
read this article and tell me you dont wanna HURT managment
http://www.bizjournals.com/atlanta/s...l4.html?page=1
i thought i read that happened in the 80's
read this article and tell me you dont wanna HURT managment
http://www.bizjournals.com/atlanta/s...l4.html?page=1
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