PinnaColaba Bankruptcy soon
12-11-2011, 06:20 PM
#201
You scratched my anchor
Joined APC: Feb 2011
Posts: 4,878
Originally Posted by MunkyButtr
One cert requires FAA approval. The FAA was giving them ish about the Mesaba cert which is why they are surrendering it and moving everything to the Colgan cert. It would cost just as much to get everything onto one cert. Short term cost savings are now impossible in the training sector. Impossible, unless they cancel the vacancy, declare chapter 11, revisit the arbitrators award and regroup. Not happening. Moving to one cert would only cause more of a cluster and add to the train wreck. Need I say cert one more time?
CERT!
CERT!
12-12-2011, 05:03 AM
#202
Gets Weekends Off
Joined APC: Jun 2007
Position: Captain Jack
Posts: 1,003
Originally Posted by ShyGuy
I said soon, and I haven't been wrong so far. Everything they've done so far hints at bankruptcy. Pilots WILL be taking concessions, one way or another. We will have the nicer option of staying out of bankruptcy and having our MEC decide what concessions or cuts to give from our JCBA, OR, Pinnacle will declare bankrupcty and have the BK judge force it upon us. You decide! But I still stand by my statement, that PinnaColaba will soon declare bankruptcy. It's just the beginning right now. I'll talk to you soon when it happens.
You obviously haven't studied about the last ten years of airline bankruptcy's and its effects on airline pilots, you couldn't be more wrong.
12-12-2011, 05:10 AM
#203
Gets Weekends Off
Joined APC: Jun 2007
Position: Captain Jack
Posts: 1,003
Originally Posted by FlyingKat
What is going on here is Menke needs to get rid of the infrastructure of three companies and create one coherent operation out of this mess. He hired the consultants to get the required changes he needs to get this done.
These consultants will go to our "partners" to get contracts that will allow us to operate all of our aircraft one one certificate. They will come to the pilots to get a slowdown in the 11-09 award until he can get all the aircraft on a single certificate. If he can't do this, look for concessions that will limit the ability to transfer between certificates.
These consultants will also use the threat of bankruptcy to get major concessions from the lessors at One Commerce Square as well. 1CS is costing the company 3x what they projected just so Uncle Phil could have a nice office with a 14th floor view.
Anbody who can read a balance sheet can see this company is nowhere near bankruptcy yet. It is a real possiblity later next year if the company doesn't make some changes and fast. Anybody who has been listening to Menke since he walked in the door can't be surprised by any of this.
I'll make these predictions for a year from now:
1. We will either be on one certificate or well on our way to one certificate.
2. There will be massive layoffs at One Commerce Square and on the support side. I'd say one third to one half of the employees at 1CS will be on the street by this time next year.
3. All that will be left at 1CS will be the Executive Offices, if that.
4. Shy Fly Guy will still be crying that the sky is falling.
There will be no bankruptcy as long as Menke gets the concessions he needs to stay out of BK. If he doesn't get them, then he will take the company into bankruptcy to get them late next year.
These consultants will go to our "partners" to get contracts that will allow us to operate all of our aircraft one one certificate. They will come to the pilots to get a slowdown in the 11-09 award until he can get all the aircraft on a single certificate. If he can't do this, look for concessions that will limit the ability to transfer between certificates.
These consultants will also use the threat of bankruptcy to get major concessions from the lessors at One Commerce Square as well. 1CS is costing the company 3x what they projected just so Uncle Phil could have a nice office with a 14th floor view.
Anbody who can read a balance sheet can see this company is nowhere near bankruptcy yet. It is a real possiblity later next year if the company doesn't make some changes and fast. Anybody who has been listening to Menke since he walked in the door can't be surprised by any of this.
I'll make these predictions for a year from now:
1. We will either be on one certificate or well on our way to one certificate.
2. There will be massive layoffs at One Commerce Square and on the support side. I'd say one third to one half of the employees at 1CS will be on the street by this time next year.
3. All that will be left at 1CS will be the Executive Offices, if that.
4. Shy Fly Guy will still be crying that the sky is falling.
There will be no bankruptcy as long as Menke gets the concessions he needs to stay out of BK. If he doesn't get them, then he will take the company into bankruptcy to get them late next year.
12-12-2011, 05:20 AM
#204
Gets Weekends Off
Joined APC: Aug 2007
Position: non acceptus excretus
Posts: 561
If the corporation is going to go into BK they are going to do it anyway.There isn't enough money that pilots make for them to give up that will keep it out of BK. When will you guys get that? All that will happen is your pay will get cut twice and most of the "recovered money" will go to management in bonuses. MEC s get painted a detailed presentation by management types that they have some influence over the situation and it is a pilot instinct to grab the controls and try to right the situation. Oh by the way the presentation they get is crafted by the same guys that con investment banks into finance packages,,,,these guys have lots of practice at convincing people of whichever point they wish to make. Don't fall for it like we did at NWA.
12-14-2011, 10:35 AM
#207
Gets Weekends Off
Joined APC: Aug 2011
Position: C172
Posts: 122
Originally Posted by Imapilot2
I don't have enough fingers to count how many pilot groups were told this. They all were throwing up repeatedly over those words during the judge's bk imposed second round of cuts. Falacy.
FYI, mesa got no paycuts and have a pilot member rep on its board of directors.
And Mesa's pay for the 700/900 is close to pinnacles.....no need to take paycuts
12-14-2011, 12:24 PM
#209
ULTP-Ultra Low Tier Pilot
Joined APC: Dec 2007
Posts: 3,228
I can not imagine pay cuts ever being approved by our pilot group and I could never see myself voting for a pay cut at a regional airline. For me, it comes to a point where "enough is enough" and I would rather this play out in BK court rather than give a portion of, my already meager pay, to the company.
Millions of dollars will be given out in the form "going away packages" for those who did this to the company and that disgusts me to no end.
Pilot wages did not cause this mess and "fixing" those wages will not cure it. Not a penny will I vote to give to their cause.
Millions of dollars will be given out in the form "going away packages" for those who did this to the company and that disgusts me to no end.
Pilot wages did not cause this mess and "fixing" those wages will not cure it. Not a penny will I vote to give to their cause.
12-14-2011, 01:06 PM
#210
Gets Weekends Off
Joined APC: Apr 2009
Posts: 1,569
WASHINGTON (MarketWatch) — Delta Air Lines said Wednesday it expects “solid” profit growth next year on the back of strong business-travel demand and cost cutting.
For 2012, the Atlanta-based carrier said it would trim between 2% and 3% from its system-wide seat capacity to help boost its ticket prices. For trans-Atlantic flights, which include some of the industry’s highest-yielding routes, Delta and its joint venture partners want to pull their combined capacity down by 7% to 8% in anticipation of a European recession.
Travelers pass by the Delta check-in area as the Thanksgiving holiday begins last month at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia.
Globally, however, Delta expects the economy to grow slowly, spurring more deep-pocketed business people to travel. Corporate travel is expected to rise 6% to 8% next year from 2011 levels, the airline said in a government filing.
In the last four weeks, health care, financial services and transportation sector related travel are up sharply from the same period in 2010, Delta said.
Earnings in 2011 are projected to be $800 million, or $1.1 billion after adjusting for restructuring and loss on extinguishment of debt, Delta said. Analysts surveyed by FactSet Research were looking for full-year adjusted earnings of $977 million, on average.
Delta posted an adjusted profit of $1.44 billion last year.
Shares of Delta /quotes/zigman/463579/quotes/nls/dal DAL +1.63% have had a rough year with fuel prices up sharply and concerns a sovereign-debt crisis in Europe could drag down the global economy and reduce the demand for flying. In the past year the carrier’s stock is off by nearly 38%, and it’s down about 3% in the last three months.
On Wednesday, Delta shares rose more than 2% to an intraday high of $8.35. More recently the stock was up 1.6% to $8.12. The benchmark Standard & Poor’s 500 Index /quotes/zigman/3870025 SPX -1.17% slipped less than 1% to about 1,217 points.
To offset a roughly 40% jump in its fuel bill, Delta said it intends to lower its non-fuel costs to 2010 levels, but a climbing labor expense and higher airport fees have frustrated the attempt.
Non-fuel costs per available seat mile next year is expected to rise by 2% to 4%, or about 40 cents higher than the targeted level.
Delta will focus on structural changes to help bring costs down, including the delivery on new, more fuel efficient Boeing Co. /quotes/zigman/220026/quotes/nls/ba BA -1.45% 737-900ER jets at the end of 2012 that will lower maintenance costs. There are also opportunities to increase employee productivity and eliminate more smaller-gauge aircraft, especially 50-seat regional jets.
Combined, these structural changes could lower the airline’s costs by $600 million to $750 million.
The airline is also focused on reducing its debt, and projects its adjusted net debt at the end of 2011 will be $12.9 billion, down from $17 billion at the end of 2009.
By the end of 2013, Delta wants to get its debt down to about $10 billion.
Delta Air Lines competes directly with United Continental Holdings /quotes/zigman/617037/quotes/nls/ual UAL +1.74% , US Airways /quotes/zigman/390962/quotes/nls/lcc LCC +7.80% and bankrupt AMR Corp. /quotes/zigman/217884/quotes/nls/amr AMR +10.72% , the parent company for American Airlines.
European partners in Delta’s SkyTeam alliance include Aeroflot /quotes/zigman/4143028 RU:AFLT -0.11% , Air Europa, Air France-KLM /quotes/zigman/127885 FR:AF -3.34% /quotes/zigman/346235 AFLYY -1.57% , Alitalia, Tarom, and Czech Airlines.
/quotes/zigman/463579/quotes/nls/dal Add DAL to portfolio DAL Delta Air Lines Inc. $ 8.12 +0.13 +1.63% Volume: 11.60mDec. 14, 2011 2:56p
/quotes/zigman/3870025 Add SPX to portfolio SPX S&P 500 Index 1,211.36 -14.37 -1.17% Volume: 419.48mDec. 14, 2011 2:56p
/quotes/zigman/220026/quotes/nls/ba Add BA to portfolio BA Boeing Co. $ 69.87 -1.03 -1.45% Volume: 4.20mDec. 14, 2011 2:56p
/quotes/zigman/617037/quotes/nls/ual Add UAL to portfolio UAL United Continental Holdings Inc. $ 19.90 +0.34 +1.74% Volume: 3.23mDec. 14, 2011 2:56p
/quotes/zigman/390962/quotes/nls/lcc Add LCC to portfolio LCC US Airways Group Inc. $ 5.60 +0.41 +7.80% Volume: 6.38mDec. 14, 2011 2:56p
/quotes/zigman/217884/quotes/nls/amr Add AMR to portfolio AMR AMR Corp. $ 0.68 +0.07 +10.72% Volume: 35.75mDec. 14, 2011 2:56p
/quotes/zigman/4143028 Add AFLT to portfolio RU:AFLT Aeroflot-Russian Airlines р. 45.85 -0.05 -0.11% Volume: 1.03MDec. 13, 2011 12:00a
/quotes/zigman/127885 Add AF to portfolio FR:AF Air France-KLM € 3.85 -0.13 -3.34% Volume: 3.41mDec. 14, 2011 5:35p
/quotes/zigman/346235 Add AFLYY to portfolio AFLYY Air France-KLM ADS $ 5.02 -0.08 -1.57% Volume: 3,008Dec. 14, 2011 2:29p
Christopher Hinton is a reporter for MarketWatch based in Washington.
For 2012, the Atlanta-based carrier said it would trim between 2% and 3% from its system-wide seat capacity to help boost its ticket prices. For trans-Atlantic flights, which include some of the industry’s highest-yielding routes, Delta and its joint venture partners want to pull their combined capacity down by 7% to 8% in anticipation of a European recession.
Travelers pass by the Delta check-in area as the Thanksgiving holiday begins last month at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia.
Globally, however, Delta expects the economy to grow slowly, spurring more deep-pocketed business people to travel. Corporate travel is expected to rise 6% to 8% next year from 2011 levels, the airline said in a government filing.
In the last four weeks, health care, financial services and transportation sector related travel are up sharply from the same period in 2010, Delta said.
Earnings in 2011 are projected to be $800 million, or $1.1 billion after adjusting for restructuring and loss on extinguishment of debt, Delta said. Analysts surveyed by FactSet Research were looking for full-year adjusted earnings of $977 million, on average.
Delta posted an adjusted profit of $1.44 billion last year.
Shares of Delta /quotes/zigman/463579/quotes/nls/dal DAL +1.63% have had a rough year with fuel prices up sharply and concerns a sovereign-debt crisis in Europe could drag down the global economy and reduce the demand for flying. In the past year the carrier’s stock is off by nearly 38%, and it’s down about 3% in the last three months.
On Wednesday, Delta shares rose more than 2% to an intraday high of $8.35. More recently the stock was up 1.6% to $8.12. The benchmark Standard & Poor’s 500 Index /quotes/zigman/3870025 SPX -1.17% slipped less than 1% to about 1,217 points.
To offset a roughly 40% jump in its fuel bill, Delta said it intends to lower its non-fuel costs to 2010 levels, but a climbing labor expense and higher airport fees have frustrated the attempt.
Non-fuel costs per available seat mile next year is expected to rise by 2% to 4%, or about 40 cents higher than the targeted level.
Delta will focus on structural changes to help bring costs down, including the delivery on new, more fuel efficient Boeing Co. /quotes/zigman/220026/quotes/nls/ba BA -1.45% 737-900ER jets at the end of 2012 that will lower maintenance costs. There are also opportunities to increase employee productivity and eliminate more smaller-gauge aircraft, especially 50-seat regional jets.
Combined, these structural changes could lower the airline’s costs by $600 million to $750 million.
The airline is also focused on reducing its debt, and projects its adjusted net debt at the end of 2011 will be $12.9 billion, down from $17 billion at the end of 2009.
By the end of 2013, Delta wants to get its debt down to about $10 billion.
Delta Air Lines competes directly with United Continental Holdings /quotes/zigman/617037/quotes/nls/ual UAL +1.74% , US Airways /quotes/zigman/390962/quotes/nls/lcc LCC +7.80% and bankrupt AMR Corp. /quotes/zigman/217884/quotes/nls/amr AMR +10.72% , the parent company for American Airlines.
European partners in Delta’s SkyTeam alliance include Aeroflot /quotes/zigman/4143028 RU:AFLT -0.11% , Air Europa, Air France-KLM /quotes/zigman/127885 FR:AF -3.34% /quotes/zigman/346235 AFLYY -1.57% , Alitalia, Tarom, and Czech Airlines.
/quotes/zigman/463579/quotes/nls/dal Add DAL to portfolio DAL Delta Air Lines Inc. $ 8.12 +0.13 +1.63% Volume: 11.60mDec. 14, 2011 2:56p
/quotes/zigman/3870025 Add SPX to portfolio SPX S&P 500 Index 1,211.36 -14.37 -1.17% Volume: 419.48mDec. 14, 2011 2:56p
/quotes/zigman/220026/quotes/nls/ba Add BA to portfolio BA Boeing Co. $ 69.87 -1.03 -1.45% Volume: 4.20mDec. 14, 2011 2:56p
/quotes/zigman/617037/quotes/nls/ual Add UAL to portfolio UAL United Continental Holdings Inc. $ 19.90 +0.34 +1.74% Volume: 3.23mDec. 14, 2011 2:56p
/quotes/zigman/390962/quotes/nls/lcc Add LCC to portfolio LCC US Airways Group Inc. $ 5.60 +0.41 +7.80% Volume: 6.38mDec. 14, 2011 2:56p
/quotes/zigman/217884/quotes/nls/amr Add AMR to portfolio AMR AMR Corp. $ 0.68 +0.07 +10.72% Volume: 35.75mDec. 14, 2011 2:56p
/quotes/zigman/4143028 Add AFLT to portfolio RU:AFLT Aeroflot-Russian Airlines р. 45.85 -0.05 -0.11% Volume: 1.03MDec. 13, 2011 12:00a
/quotes/zigman/127885 Add AF to portfolio FR:AF Air France-KLM € 3.85 -0.13 -3.34% Volume: 3.41mDec. 14, 2011 5:35p
/quotes/zigman/346235 Add AFLYY to portfolio AFLYY Air France-KLM ADS $ 5.02 -0.08 -1.57% Volume: 3,008Dec. 14, 2011 2:29p
Christopher Hinton is a reporter for MarketWatch based in Washington.
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