A Travel and vacations forum. TravelBanter

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Go Back   Home » TravelBanter forum » Travel Regions » USA & Canada
Site Map Home Authors List Search Today's Posts Mark Forums Read Web Partners

Delta Air Lines Prepares Chapter 11 Filing



 
 
Thread Tools Display Modes
  #1  
Old October 24th, 2004, 05:20 AM
nobody
external usenet poster
 
Posts: n/a
Default Delta Air Lines Prepares Chapter 11 Filing

n e w s wrote:
Delta Air Lines Inc. could file for Chapter 11 bankruptcy protection
as soon as next week, a source familiar with the matter said
yesterday.


Interesting timing. I was expecting this to happen after the elections.
Although I suspect this won't make much of a news dent in the USA with the
media in a pre-election frienzie.

What I don't quite understand is why there is an implied threath of bankrupcy
right away if pilots don't agree to concessions. There seems to be concensus
that bankrupcy is inevitable. Do pilots really have any incentive to get some
agreement before bankrupcy when they know perfectly well that any "wins" they
make can be voided weeks later when the judge voids their agreement ?

Seems to me that an agreement reached during bankrupcy and approved by a judge
stands more chances of surviving bankrupcy than any contract done prior to bankrupcy.
  #2  
Old October 25th, 2004, 12:44 AM
Jeff Hacker
external usenet poster
 
Posts: n/a
Default


"nobody" wrote in message
...
n e w s wrote:
Delta Air Lines Inc. could file for Chapter 11 bankruptcy protection
as soon as next week, a source familiar with the matter said
yesterday.


Interesting timing. I was expecting this to happen after the elections.
Although I suspect this won't make much of a news dent in the USA with the
media in a pre-election frienzie.

What I don't quite understand is why there is an implied threath of
bankrupcy
right away if pilots don't agree to concessions. There seems to be
concensus
that bankrupcy is inevitable. Do pilots really have any incentive to get
some
agreement before bankrupcy when they know perfectly well that any "wins"
they
make can be voided weeks later when the judge voids their agreement ?

Seems to me that an agreement reached during bankrupcy and approved by a
judge
stands more chances of surviving bankrupcy than any contract done prior to
bankrupcy.


The argument is that if the pilots agree before a bankruptcy filing, the
filing may well be avoided, like with American Airlines last year. Remember
that there is a tremendous cost associated with bankrupty, including
administrative fees paid to the U.S. Trustee's office, as well as attorney's
fees in the millions of dollars, all of which could be more appropriately
used to fix the airline.


  #3  
Old October 25th, 2004, 06:15 AM
nobody
external usenet poster
 
Posts: n/a
Default

Cyrus Afzali wrote:
Wrong as usual. Bankruptcy is in no way a given if enough concessions
are reached. Look at US Air. Pilots there, seeing the writing on the
wall, decided it was better to keep negotiating when they still had an
opportunity to influence the eventual outcome. Once a carrier's in
bankruptcy, the ability of any one group to make a huge impact is
much, much less.



Yet, the negotiations of before bankrupcy did not ensure whatever contract
would survive and US Air is a good exmaple since pilots agreed to a even newer
contract with more pay cuts last week (inside bankrupcy).

And even inside bankrupcy, it isn't a given. Look at United. United now wanst
more concessions from employees.
 




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Delta Air Lines Prepares Chapter 11 Filing nobody Air travel 8 October 25th, 2004 06:32 AM
Delta Queen Names Nierenberg President! Ray Goldenberg Cruises 0 July 14th, 2004 04:25 PM
DELTA Ponders Chapter 11 Jim Air travel 2 May 18th, 2004 06:17 PM
Royal Olympic Cruises Files For Chapter 11! Ray Goldenberg Cruises 19 December 27th, 2003 03:33 AM


All times are GMT +1. The time now is 11:27 AM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright 2004-2018 TravelBanter.
The comments are property of their posters.