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Old December 6th, 2005, 07:57 AM   #61
mr_storms
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I dont know, maybe. ATL has so much capacity that it could very well be another hub. Major airlines, particularly in the current situation, wont be fast to rush in, but if landing fees are low enough a lcc might establish a moderate hub. And if there is no hub, the airline numbers will plummet for sure.
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Old December 6th, 2005, 04:43 PM   #62
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Quote:
Originally Posted by mr_storms
I dont know, maybe. ATL has so much capacity that it could very well be another hub. Major airlines, particularly in the current situation, wont be fast to rush in, but if landing fees are low enough a lcc might establish a moderate hub. And if there is no hub, the airline numbers will plummet for sure.
ATL is already a hub for one of the largest low cost carriers: AirTran! They have over 200 daily flights from ATL and they would love to get more gates so that they can expand their ATL hub. Unfortunately, AirTran is basically a domestic only airline. They do fly to the Bahamas and have applied for permission to fly to Cancun, but I really don't see them replacing Delta's international flight schedule. It would be difficult to fly a B717 or B737 to Moscow, Tokyo, or Buenos Aires nonstop from ATL.

Regarding other major legacy airlines, I highly doubt that any of these airlines will rush in to set up a major hub in ATL, because they are all basically dealing with overcapacity in the domestic US market.
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Old December 8th, 2005, 04:28 AM   #63
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Delta Pilots May Consider Vote to Strike

AP - Delta Air Lines Inc. pilots may consider a vote to strike if the bankrupt airline's managers impose changes on their contract, a pilots union spokesman said Wednesday.

The airline has asked a bankruptcy judge to let it scrap its current contract with pilots, as part of its efforts to emerge from bankruptcy. Delta, besieged by rising fuel costs and stiffer competition, filed for bankruptcy protection on Sept. 14.

"It is our contention that if they start imposing their terms we will start defending the contract," Air Lines Pilot Association spokesman John Culp told The Associated Press. "If we hit Dec. 16 and they stick to their plan to start imposing conditions ... we'll consider any and all legal options."

Delta spokeswoman Chris Kelly said the airline would consider extending the Dec. 16 deadline "if we felt a consensual agreement could be reached."

"Our strong preference is to negotiate in good faith and reach a consensual agreement," she said.

Wednesday was the ninth day of hearings focused on the airline's motion to dismiss its current contract with its 6,000 pilots. So far, the hearings have focused on testimony from Delta executives and a Wall Street investment banker advising the airline.

Bankruptcy law provides that a debtor can impose changes to a contract 30 days after making a request in court. Delta made such a request for contract changes in mid-November.

The Delta pilot union's master executive council _ 13 union representatives throughout the country _ is slated to meet on Thursday. Culp said the union pilot representatives may consider giving the union's chairman the ability to call for a strike ballot. It could take weeks from the launch of a ballot to a strike vote tally, said Culp.

While Delta has said such a strike would be illegal and a violation of the Railway Labor Act (RLA), Culp said ALPA believes it has the right to strike if the pilots contract is rejected. Delta's chief financial officer Edward Bastian has said a strike by pilots would be "devastating" to the carrier.

Culp said that if management starts imposing terms, many pilots would quit. "There are a lot of pilots actively looking for work elsewhere. If management starts imposing their terms, they will have a problem operating the airline," he said.

Culp would not state how many of the 6,000 ALPA pilots are seeking employment at other airlines. "This is not a union directed action. These pilots are making an individual career decision," he said.

Delta's Kelly declined to comment on speculation that the pilots are looking elsewhere for jobs.
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Old December 8th, 2005, 04:49 AM   #64
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Trust me, Delta is not going anywhere. There are too many large investors in airlines which won't allow them to disappear, along with the federal government. They'll have to restructure a lot, but they are not going to die.

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Old December 8th, 2005, 05:13 AM   #65
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Quote:
Originally Posted by Kai Tak
Trust me, Delta is not going anywhere. There are too many large investors in airlines which won't allow them to disappear, along with the federal government. They'll have to restructure a lot, but they are not going to die.

So let me ask you a question about these large investors, are they shareholders or creditors of Delta?
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Old December 8th, 2005, 05:35 AM   #66
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Originally Posted by Nick in Atlanta
So let me ask you a question about these large investors, are they shareholders or creditors of Delta?
The top three owners of the publicly traded Delta Air Lines, Inc. are:

#1: FMR Corp. - Fidelity Investments
#2: U.S. Trust Corporation
#3: Brandes Investment Partners

The point being, airlines are owned by major investment corporations. It is in their best interests to keep the airline running and to return it to profitability. Delta recorded $15 Billion in revenue last year, it's far from being in total ruin. Restructuring has worked in the past for other airlines, and will work for them too.

Furthermore, it is in the best interest of the United States government to keep Delta alive. Downsizing during restructuring is inevitable, but liquidation would mean the loss of nearly 70,000 jobs in the blink of an eye. Such a loss would be deemed unacceptable. Then there's the trickle-down effect... Atlanta Hartsfield would see a massive reduction in traffic, reducing profits and forcing cutbacks in staff. Atlanta area businesses would be less apt to grow in the area due to the lack of airline hub convenience. The list goes on...

In other words, it's my opinion that the key players involved with the business end of Delta will essentially be forced into fixing its problems.

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Old December 8th, 2005, 05:55 AM   #67
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Quote:
Originally Posted by Kai Tak
The top three owners of the publicly traded Delta Air Lines, Inc. are:

#1: FMR Corp. - Fidelity Investments
#2: U.S. Trust Corporation
#3: Brandes Investment Partners
When Delta does hopefully emerge from Chapter 11 (good) or Chapter 7 (bad) any and all stockholders in Delta will receive one or two cents on the dollar that they have invested in Delta stock. Delta will most likely give zero money to its current stockholders and will then issue new stock which will go to whoever is willing to pay for it. Previous stockholders will be in no better position to buy stock than you or I.

Regarding the belief that Delta is too big for the US government to let if fail, I will say try to make a reservation on Braniff Airlines, People's Express, Eastern Airlines or that minor airline that represented the US around the world that was known as Pan Am.

I hope Delta suceeds in Chapter 11, because I have neighbors here in suburban Atlanta that are pilots and in air cargo sales for Delta here in Atlanta.
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Old December 9th, 2005, 07:34 AM   #68
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Delta Pilots to Seek Strike Authorization
By HARRY R. WEBER
9 December 2005

ATLANTA (AP) - Delta Air Lines Inc. says the decision by its pilots' union to ask rank-and-file members to authorize a strike doesn't change the company's position on its need for $325 million in concessions, nor its willingness to negotiate a consensual deal.

The decision by the union's executive committee to seek a strike authorization came Thursday after a daylong closed-door meeting of union leaders in New York, said Lee Moak, chairman of the executive committee.

"It's my recommendation that the pilot group vote for the strike ballot," Moak told The Associated Press in a telephone interview.

The tension comes as the nation's third-largest airline, which filed for bankruptcy protection in New York on Sept. 14, has asked the court to reject the pilots contract so it can impose the concessions it is seeking on its 6,000 pilots, which would include a 19 percent pay cut.

A hearing on the contract rejection request was to resume Friday afternoon in New York.

Delta lawyers have asserted in court that the company believes it could impose new contract terms on its pilots starting Dec. 16 even if the judge doesn't rule on Delta's contract rejection request by then. It's not clear if the judge extends the hearings beyond that date what Delta's position would be.

The pilots, who are represented by the Air Line Pilots Association, initially offered $90.7 million in average annual concessions over four years. They have since reviewed their proposal and now value it at $150 million, which would include a 9 percent pay cut for seven months followed by lower cuts thereafter.

The cuts would be on top of $1 billion in annual concessions the pilots agreed to last year.

A Delta spokeswoman, Chris Kelly, said Thursday after the union leaders' vote that the company would continue to try to reach a pact with its pilots.

"This was an expected procedural vote by the pilots union leadership and in no way impacts our operations or our preference to reach a consensual agreement in time to save the company," Kelly said.

Kelly said the airline would consider extending the Dec. 16 deadline "if we felt a consensual agreement could be reached."

A successful strike authorization would allow the union to call a strike without having to come before the rank-and-file again. The process calls for balloting to occur over 15 days. The timing of sending out ballots is uncertain, union spokesman John Culp said.

"We remain committed to a consensual agreement, but we just have seen no movement," Moak said. "At this moment, management has refused to negotiate. They are still at $325 million."

The airline has said a strike by its pilots would put the company out of business. It believes a strike would violate the Railway Labor Act. The union has argued that if its contract is thrown out by the court, it would be allowed to strike.

During a visit to Atlanta Thursday to meet with executives from area companies, Commerce Secretary Carlos Gutierrez said he is aware of the situation at Delta, but declined to say whether the Bush administration would step in if the pilots strike.

"We hope that ultimately they come to a conclusion that is good for everyone," Gutierrez said in an interview with The Associated Press.

He said pension reform is a key part of helping Delta get back on its feet.

"If workers are made a promise regarding pensions, those pensions need to be respected and they need to be delivered," Gutierrez said. "That's been the administration's policy."

Bankruptcy law provides that a debtor can impose changes to a contract 30 days after making a request in court. Delta made such a request for contract changes in mid-November.
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Old December 10th, 2005, 12:29 AM   #69
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Georgia governor confident Delta, pilots will avert strike
By HARRY R. WEBER
9 December 2005

ATLANTA (AP) - Georgia Gov. Sonny Perdue said Friday he is confident Delta Air Lines Inc. and its pilots will reach a deal on pay and benefit cuts in time to avert a strike, adding that he believes there is no need at this time to call in the Bush administration for help.

"I'm hopeful the pilots and management from Delta can work it out," Perdue, a Republican seeking re-election, told reporters after a luncheon where he spoke on the state's economic outlook.

Asked if he would call in the White House for help in the dispute at the Atlanta-based airline, Perdue said that it's too early for that.

"I'm pulling for Delta," Perdue said. "I believe Delta will rise higher. But I do think it's one of the challenges for us."

On Thursday, the pilots union at the nation's third-largest carrier voted to ask rank-and-file members to authorize a strike. The union has not said when ballots will be sent out. A successful strike authorization would allow union leaders to call a strike without going before members again.

Delta says it could begin imposing $325 million in concessions on its 6,000 pilots on Dec. 16 if a bankruptcy court judge doesn't reach a decision by then on the airline's request to void the pilot contract. The pilots union has threatened to strike if Delta imposes new terms or succeeds in voiding the pilot contract.

A hearing on the contract rejection request was scheduled to resume Friday afternoon in New York, but was postponed because of inclement weather.

In the spring of 2001, President Bush appointed a presidential emergency board when Northwest Airlines Corp. mechanics came within days of striking. However, Bush chose not to appoint an emergency board before Northwest mechanics struck on Aug. 20 of this year. Eagan, Minn.-based Northwest said it has hired permanent replacements or vendors to do their work.

It's not clear what Bush would do if Delta's situation progresses to that point or even if such a board would have authority. A Delta spokeswoman, Chris Kelly, declined to comment on whether the company believes a presidential emergency board would have authority in the Delta case if the airline succeeds in voiding the pilot contract. A union spokesman, John Culp, said he would have to speak with union lawyers before commenting on the subject.

The airline has asserted that other provisions of the Railway Labor Act do apply even if the pilot contract is voided. In that context, it has said a strike by the pilots would be illegal. The pilots have argued that if their contract is voided, they would have the right to strike.

Commerce Secretary Carlos Gutierrez, during a visit to Atlanta on Thursday, declined to say whether the Bush administration would step in if the Delta pilots strike.

"We hope that ultimately they come to a conclusion that is good for everyone," Gutierrez said in an interview with The Associated Press.

Delta, which has lost more than $11 billion since January 2001, filed for bankruptcy protection in New York on Sept. 14. It is one of Georgia's largest employers.

Delta's pilots, who are represented by the Air Line Pilots Association, initially offered the company $90.7 million in average annual concessions over four years. They have since reviewed their proposal and now value it at $150 million, which would include a 9 percent pay cut for seven months followed by lower cuts thereafter.

The cuts would be on top of $1 billion in annual concessions the pilots agreed to last year.
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Old December 10th, 2005, 06:39 AM   #70
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#CO+UA | United Continental Holdings

http://www.chicagotribune.com/busine...ck=1&cset=true

Continental and United Airlines would fit together fairly well.

Continental's major hubs and where they fly to:
1) Houston - Huge on Mexico. Central America and South America are fairly well covered.
2) Cleveland - Minor hub with majority of flights on regional jets.
3) Newark (Metro New York) - Metro New York's largest international carrier with many trans-Atlantic flights.

United's major hubs and where they fly to:
1) Chicago O'Hare - Major midwestern hub. Major service to East Asia and some transatlantic flights.
2) Los Angeles LAX - Service to East Asia and Australia.
3) San Francisco - Service to East Asia and Australia.
4) Denver - Major hub for Rocky Mountain states and transfer point for traffic between eastern US and western US.
5) Washington Dulles - Major transatlantic service point.

Just based on the two airlines hub airports, it seems clear that Continental's Cleveland hub will be redundant to United's largest hub in Chicago.

Newark and Dulles should be able to exist together, because both are obviously major cities (especially metro NY) that can generate enough traffic on their own.

United's Denver hub and Continental's Houston hub may bump up against each other when it comes to transcontinental traffic transfers. Houston's enourmous strength is with its massive service network in Mexico, as well as it's fairly strong service to the rest of Latin America. Denver is one of the few US airports with plenty of room to expand, but it may perform more profitably as a arrival/departure point for travelers to the Rocky Mountain area. Its transcontinental switching role could be rolled back considerably in favor of Houston.

United's San Francisco and LAX medium sized hubs should be collapsed into one hub at LAX, in my opinion. LA is a much larger market for flights to East Asia and Australian flights would be better served from one west coast hub.

Well there we have it. It will probably get no further along than mere speculation by some United and Continental insiders, but a United-Continental merger would create major European hubs at Newark and Washington's Dulles airport. Cleveland would be "dehubbed", with O'hare serving as a major midwestern hub with international service to East Asia and Europe. Houston would serve as a major intercontinental transfer point with excellent service to Latin America and Denver would be downsized for the near term and will serve as a arrival/departure point for the Rocky Mountains. And finally, San Francisco would be "dehubbed" in favor of LAX with numerous flights to East Asia and Australia.
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Old December 11th, 2005, 03:43 PM   #71
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How exciting! Poor Ohio, they will have lost America West's hub in Colombus, presumebly the hub at Cleveland, and be left with Delta's Cincinnati hub. Do you think they would need three hubs in mid-America? Wouldn't Houston just replace Denver, and Denver could become more of a focus city like Pittsburgh or St. Louis? How odd it would be for such a major city like San Francisco to not have a hub for a legacy airline. Couldn't a trans-Pacific hub be kept?
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Old December 11th, 2005, 11:36 PM   #72
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Basically, Denver would become a focus city that would solely serve skiing areas in the Rocky Mountains.

San Francisco could remain a trans-Pacific hub because it has enough local population in the Bay area to feed many flights to eastern Asia, but as a hub airport it has problems with duel landings and take-offs in less than ideal conditions.
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Old December 12th, 2005, 06:08 AM   #73
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Delta, pilots reach tentative deal on pay cuts, avert strike
By Aleksandrs Rozens and Harry R. Weber
11 December 2005
AP

Delta Air Lines Inc. said late Sunday it has reached a tentative agreement with its pilots on a temporary 14 percent across-the-board wage cut.

Together with other temporary cuts the sides agreed to that are equal to 1 percent of wages, the deal could save the bankrupt carrier more than $152 million a year.

The agreement, which must be approved by the U.S. Bankruptcy Court in New York and is part of an effort to get a comprehensive deal over the next few months, comes just days after the executive committee of the pilots unionvoted to ask its members to authorize a strike.

The agreement, subject to ratification by the pilots no later than Dec. 28, provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equal to approximately an additional 1 percent hourly wage reduction.

Because of the agreement, both sides will ask the bankruptcy court to suspend the company's request to reject the pilot contract. The company wanted to reject the contract so it could impose $325 million in concessions on its pilots, who had offered $150 million in concessions.

The pilots had threatened to strike if their contract was rejected by the court.

Delta has said in bankruptcy filings that its 6,000 pilots make an average annual salary of $169,393. Based on that, Delta's 14 percent temporary pay cut could save the carrier, on an annual basis, an average of $142.3 million. The other 1 percent cut that was agreed to would save another $10.2 million.

Last year, Delta's pilots agreed to $1 billion in average annual concessions. The interim reductions with the Air Line Pilots Association members at Delta would take effect Thursday and remain in place while the parties attempt to reach a comprehensive agreement.

Both sides said they hope to do so by March 2006.

The nation's No. 3 airline and ALPA will ask a bankruptcy court on Tuesday to suspend a hearing on the company's motion to reject the existing Delta-ALPA collective bargaining agreement.

"This agreement reflects the resolve of Delta people to work together to help save the company," said Ed Bastian, Delta's chief financial officer. "We recognize and appreciate the additional sacrifice this will represent."

An ALPA spokesman, John Culp, called the agreement "a positive step in the right direction."

"The Delta MEC (master executive council) remains committed to reach a consensual agreement that responds to the legitimate needs of the corporation in bankruptcy," Culp said.

The airline's restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements to be realized by the end of 2007.

Delta has lost more than $11 billion since January 2001.

The carrier's management said the airline has been hurt by rising fuel and wage costs as well as competition from low cost carriers.

Sunday's interim agreement comes after a series of hearings in ew York's bankruptcy court which, at times, have gotten heated between attorneys for the pilots union and Delta.

Judge Prudence Carter Beatty, who has been overseeing the case, has repeatedly called for both sides to come to a middle ground. Delta filed for bankruptcy protection on Sept. 14.
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Old December 12th, 2005, 06:22 AM   #74
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^ I was hoping that the pilots would be willing to give up an amount in the $200 million range, and I honestly am a little surprised that management agreed to $152 million, because it is not even half of the $325 million in concessions that management said it would try to impose under bankruptcy protection.

Although Delta's pilot leadership claimed they would go on strike if they had these concessions imposed, there is a legal question as to whether the pilots can strike when a contract is altered by the company when it is in Chapter 11 reorganization. The pilots would have to prove to the judge that they have a legal right to strike.

Fortunately, there is very little animosity between Delta management and the pilots' union. Most other airlines do not have such a good relationship as Delta has with its workers.
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Old December 14th, 2005, 08:07 AM   #75
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Binding arbitration risky for both Delta, pilots
By HARRY R. WEBER
13 December 2005

ATLANTA (AP) - One is a California labor attorney. Another is a former law professor who has been a consultant for the government of Bermuda. The last sided with the Philadelphia Eagles as arbitrator of their decision to bench star receiver Terrell Owens.

Delta Air Lines Inc. and its pilots union have tapped Fredric Horowitz, Robert Harris and Richard Bloch to sit on a panel that will seek to end their stalemate if the two sides can't reach a comprehensive deal on pay and benefit cuts by March.

The binding arbitration process would pose risks for the nation's third-largest carrier and the Air Line Pilots Association, which represents Atlanta-based Delta's 6,000 pilots.

For example, a term sheet filed Tuesday in U.S. Bankruptcy Court in New York says the panel's decision would be final and binding on both sides, subject to limited rights to appeal. The union, however, believes it could still strike if the panel were to reject its contract.

Another risk is both sides have agreed to bear the costs of employing the arbitration panel, which could additionally award damages to Delta if it were to throw out the pilots contract, the term sheet says.

For Delta, the risk would be that the arbitration panel will be less friendly than the bankruptcy court, which has often sided with other airlines in their disputes with labor unions.

Delta had asked the court to reject the pilot contract so the airline could impose $325 million in concessions on its pilots. A tentative agreement on temporary pay cuts worth more than $152 million a year that the sides worked out Sunday prompted Delta on Tuesday to ask the court to suspend the company's contract rejection request.

The tentative agreement includes a 14 percent across-the-board wage cut for pilots and reductions in other pilot pay and cost items equal to an additional 1 percent hourly wage reduction. Prior to the deal, Delta's pilots were projected to make an average annual salary of $169,393 in 2005, according to company filings.

"I was very pleased that at least a partial resolution had been reached and we would not be seeing a strike at Delta over Christmas," Judge Prudence Carter Beatty said on Tuesday.

Rank-and-file pilots must ratify the interim agreement by Dec. 28 for it to take effect.

Beatty urged Delta to do everything it can to ensure that once it emerges from Chapter 11, it doesn't return.

"I am very much of the let's do it once variety," Beatty said.

The company and union will now spend the next several months trying to hammer out a comprehensive, permanent agreement. If they can't, they have agreed to turn the matter over to the arbitration panel, rather than go back to court.

Horowitz is a labor attorney in Santa Monica, Calif., and a member of the National Academy of Arbitrators. He previously worked as corporate counsel and human resource director for a public company that manufactures electronic components and was in-house counsel for a national labor organization, according to his bio on the American Bar Association Web site.

Harris is former chairman of the National Mediation Board. He has been a consultant to the government of Bermuda and a member and chairman of prior presidential emergency boards. Harris also has been an adjunct law professor at the Washington College of Law.

Bloch is a former president of the National Academy of Arbitrators. He has arbitrated past labor disputes between Delta and its pilots, and in November he was an arbitrator in the dispute between the Eagles and Owens. He said the team's decision to bench Owens for the season over his off-the-field conduct was supported by the labor agreement between the league and the NFL Players Association.

AP Business Writer Aleksandrs Rozens contributed to this story from New York.
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Old December 15th, 2005, 02:39 AM   #76
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Delta compromise with pilots not driven by fears of Christmas strike, executive says
By HARRY R. WEBER
14 December 2005

NEW YORK (AP) - Delta Air Lines Inc. got less of a pay cut than it wanted in its temporary deal with its pilots, but its willingness to compromise was not driven by the fear that a strike could disrupt Christmas travel, a top company executive said Wednesday.

Instead, the bankrupt airline's need for immediate cash relief as it works with its pilots on a comprehensive long-term deal was the main reason, Chief Operating Officer Jim Whitehurst said.

"For employees, it is important to have that certainty through the holidays, but that wasn't the driver," Whitehurst told a small group of reporters during a round table discussion at a New York hotel.

Whitehurst also insisted there has not been a backlash among customers due to the protracted labor dispute.

"It is hard for me to speculate what is on our customers' minds," Whitehurst said. But, he added, "what I can say is their behavior and our revenues (are) on plan."

Atlanta-based Delta, the No. 3 U.S. carrier, had asked a bankruptcy court judge to throw out its pilot contract so it could impose $325 million (euro270 million) in yearly concessions, including a 19 percent pay cut, on its 6,000 pilots, who offered $150 million in concessions, including a 9 percent pay cut.

The pilots threatened to strike if their contract was rejected by the court, but Delta refused to budge.

Then on Sunday Delta reached a compromise with its pilots on a temporary 14 percent wage cut as well as other cost savings that are equal to an additional 1 percent cut.

The value of the cuts based on the pilots' average annual salary of $169,393 (euro140,925)in 2005 could be as much as $152 million (euro126 million) on an annual basis.

Delta, which has lost more than $11 billion over the last five years, filed for bankruptcy protection in New York on September 14.
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Old December 20th, 2005, 05:06 PM   #77
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Delta gets fuel-hedge go-ahead
By Aleksandrs Rozens
Associated Press
20 December 2005

A Bankruptcy Court judge yesterday allowed Delta Air Lines Inc. to enter new agreements, or hedges, to protect against sharp spikes in fuel prices, and approved the rejection of a lease for a hangar at Dallas-Fort Worth International Airport.

In approving the carrier's ability to enter the special agreements, Judge Prudence Carter Beatty cautioned Delta against speculating in non-fuel contracts.

The issue of fuel expenses has been a recurring one in Delta's case because rising energy costs are one of the reasons cited by the carrier for its filing for bankruptcy protection.

Delta still flies to Dallas-Fort Worth but closed its hub there last year. The airline, which also shut down a maintenance facility there, is no longer using the hangar in Dallas.

Delta's main hub is near its Atlanta headquarters, with secondary hubs in Cincinnati and Salt Lake City.

Delta filed for bankruptcy in September, tipped into court protection because of a steep jump in fuel prices as well as competition from low-cost carriers. The company has lost more than $11 billion over the last five years.

Separately, Delta was allowed to pay a maintenance firm for work done on its planes that involved retrofitting wide-body jets.

Also, Beatty approved a request by the U.S. bankruptcy trustee that limits communication between individuals serving on Delta and Northwest Airline credit committees simultaneously.

Pratt & Whitney, the engine-maker, is one such creditor that is serving on both Delta's and Northwest's creditor committees. Northwest Airlines Corp. filed for bankruptcy in September.

"I don't want them to use the same representative on both Delta and Northwest committees. These are essentially direct competitors with each other," U.S. Trustee Deirdre Martini said.

Beatty told her to "do what you want to do," adding: "I think we'll have to think about this in the long run over a number of cases."
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Old December 21st, 2005, 05:26 AM   #78
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A January contract for West Texas Crude as I write this is just below USD$59 per barrel. I know that the price of jet fuel does not rise and fall in unison with the West Texas benchmark price for fuel. There are a lot of intervening factors like refining capacity and the supply of jet fuel at any given time, but I really don't see fuel going above its high mark of USD$70 per barrel.

I know that a futures contract does not lock the purchaser into buying at a certain price, it only enables him to buy at that price. However, I just think it's too late to rely on locking in a fuel price. But then again, you never know what's going to happen in the world which could raise the futures price and real world price of jet fuel.
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Old December 24th, 2005, 08:44 AM   #79
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Delta To Shut Down Two-Thirds Of Orlando Airport Gates
23 December 2005

ATLANTA (AP)--Delta Air Lines (DAL) said Friday it plans to shut down two-thirds of its gates at Orlando International Airport as part of attempts to emerge from bankruptcy.

Delta will close 16 of its 24 gates at the airport on Jan. 18, said Anthony Black, a company spokesman.

"It's part of our overall efforts to restructure our costs and to get them in line with our operations," Black said. "The bankruptcy process has afforded us the opportunity to address the situation of having too many gates."

Delta and its subsidiaries, including Song and Comair, currently operate 115 flights from the airport each day, Black said. Despite the airline's lease cancellation, Black said the company plans to increase the number of flights moving through the Orlando airport.

Delta passengers make up about 23% of the total traffic through the airport, said Carolyn Fennell, the airport's spokeswoman.

Fennell was optimistic that the gates would soon be snapped up by other airlines who seek a greater beachhead at Florida's busiest airport.

"It's still very early to know the impact," she said. "There are airlines growing that may want the gates. This is a growing market."

She said Delta's lease on the gates was signed through 2008. The airport's lawyers have not indicated yet whether the airline faces a fine for its early cancellation, Fennell said.

"Delta is a very good business partner," she said. "It's a disappointment when there's a reduction, but they've indicated they would maintain their level of service."
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Old December 26th, 2005, 06:35 AM   #80
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I'm not really sure what Delta is up to here unless they just basically are trying to trim costs everywhere and they believe they can operate with fewer gates. They have a pretty heavy schedule from Orlando and eight gates could be enough if they really push the crews and perhaps tweak the schedules to make sure they don't ever have more than eight planes on the ground in Orlando at any particular time.

It's good to see that they are trying to get more use out of less money.
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