The Threat of a Delta Strike (all threads merged here)

[lauren0309]

Delta Pilots to Wrap Up Strike Vote

 

By HARRY R. WEBER

The Associated Press

Monday, April 3, 2006; 3:28 PM

 

ATLANTA -- As Delta Air Lines Inc. pilots were preparing to wrap up a strike authorization vote, a bankruptcy court judge Monday gave the company permission to void millions of stock options.

 

The pilot votes were to be tallied after polling closes at midmorning Tuesday. If approved, union leaders would be able to set a strike date, but that doesn't mean a strike would necessarily be imminent.

 

At issue is the Atlanta-based company's request to throw out its contract with its 5,930 pilots so it can impose up to $325 million in long-term pay and benefit cuts, which would include a wage reduction of at least 18 percent.

 

The pilots union has said it will strike if its contract is voided. An arbitration panel must decide on the company's contract rejection request by April 15.

 

Delta's pilots previously agreed to $1 billion in annual concessions, including a 32.5 percent wage cut, in a five-year deal in 2004. But Delta, which has imposed pay cuts on other employees, said it needs more from its pilots after filing for bankruptcy protection in September.

 

So far, there has been little movement toward a consensual deal, though both sides have met at least twice since arbitration hearings in Washington ended March 23. The union plans picketing this week at airports serving Atlanta, Boston, Cincinnati, Dallas, New York and Los Angeles.

 

Company spokesman Bruce Hicks declined Monday to update the status of negotiations, except to say it still hopes to reach an agreement with its pilots. Hicks said talk of the strike authorization vote isn't affecting operations, though he wouldn't say how it might be affecting flight bookings.

 

"Our customers continue to book Delta with confidence," Hicks said. "Our operations remain unaffected by the union's activities."

 

Several messages seeking comment left for the chairman of the union's executive committee, Lee Moak, were not returned.

 

Meanwhile, in bankruptcy court Monday in New York, Judge Adlai Hardin gave Delta permission to void roughly 93 million stock options held by 70,000 current and former employees and directors.

 

The company had said the options, if exercised, would provide little to no real value, making the $305,000 a year it costs the airline to maintain, account for and administer the benefit an unnecessary burden on Delta.

 

The judge also granted a request by Delta's bankruptcy trustee to postpone consideration of fee payments for the airline's lawyers and consultants. The payment requests, totaling $43.6 million for the first 4 1/2 months of the airline's bankruptcy case, will be taken up at a hearing on May 1.

[hdawson]

Niney-five percent of the Pilots Union have now authorized a strike. Just announced.

[lauren0309]

I was thinking of changing my tickets and flying to Florida this coming week instead of the 17th and it would cost me $150 (I have 3 tickets) plus I had already bought tickets to Medieval times for another $150 and it says on the ticket, no exchanges or refunds. If it wasnt for the dinner tickets, I would definitely change my flight to this week coming up. I dont mind paying the $150 to change tickets but then I would lose another $150.

[luv2travel29]

i am flying delta on april 16 ~ i booked it thru RCCL and am a nervous wreck... anyone else ?? i will call RCCL when i get home to see what i can do, if anything ...

[Lois R]

Maybe this is a silly question but I figured this is the place to

ask...then again I don't know the answer, so it is probably not silly.

 

I have already purchased a ticket to fly in October. What happens

if they "are no longer around" (Delta)....I booked through American

Express.

What is the normal procedure? I am flying from Jax to Seattle pre cruise

and San Diego back to Jax post cruise.

Any advice would be appreciated.

[JJPNYC]

The "doomsday scenario" as I remember is that it is federally mandated that other airlines step up to the plate and try (key word there) to accommodate affected passengers of out-of-business airlines by making available available seats by charging a fee of no more than $50 per person per way based on a stand-by basis.

 

I couldn't find anything but this is in effect what happened recently when Independence Air went belly-up.

 

If Delta goes belly-up, there'll be plenty of announcements for what to do for those left holding Delta tickets and trying to get some place.

[GeorgiaPeach]

Niney-five percent of the Pilots Union have now authorized a strike. Just announced.

 

 

The pilots had to vote this way for leverage before their negotiations with management next week. It's another "power play".

[hdawson]

GeorgiaPeach. With Delta being 28 BILLION in debt, there may not be any power in that play. In spite of being in bankruptcy, Delta pilots are still the second highest paid in the industry. Delta really needs to sell Comair, just to meet operating expenses.

[pootsien2]

If Delta pilots do go on strike, there will still be a few who cross the picket line to work and management, training school pilots will be required to fly. It may take a few days to organize but they probably will fly there most populated routes and add more as they hire non-union employees or the present employees realize what they are giving up and cross the picket line. Remember Eastern Airlines? They kept flying for 2 years after their strike in 1989. If Delta doesn't go on strike, this bad publicity may put them out of business after the summer travel season...IMHO!

[lauren0309]

Assuming on April 15 when a decision will be made in court, if it doenst go in favor of the pilots do they strike immediately or first set a date to strike? I am flying on the 17th and would like to make alternate plans if I would have the time.

[GeorgiaPeach]

GeorgiaPeach. With Delta being 28 BILLION in debt, there may not be any power in that play. In spite of being in bankruptcy, Delta pilots are still the second highest paid in the industry. Delta really needs to sell Comair, just to meet operating expenses.

 

 

I started working for Eastern in 1979 based in Atlanta. I worked through many years of constant labor problems(I worked for the only non-contract group with the airline) Many of my former co-workers now work for Delta and I have many friends that have flown for Delta for 35+ years. Believe me, everyone in Atlanta is very much aware of how much debt Delta is in. Eastern was cannibalized to the benefit of Continental in the last years and with the sale of ASA last fall by Delta, I felt some of the same feelings I had in the late 80s.

 

No one in Atlanta was shocked by the results of the strike vote by the Delta pilots. What hasn't made near the news is that last week, Delta announced the first of several layoffs of management. I believe the first round was 1000 positions(mostly mid level). Most of my Delta friends feel that this is a problem of both high pilot wages and the unbelievable compensation packages given to the highest executives at Delta. You are correct----Delta pilots are paid extremely high salaries to do something that they love doing. Their families complain about them not having normal schedules. I didn't either--I missed holidays, birthdays, etc and made a tiny fraction of their pay.

 

My earlier comment about the strike vote being a power play is the truth. Most news commentators are saying the same. I'm certainly not defending the pilots. They HAVE to make concessions for any chance of Delta making it. There are egos involved here as in any labor negotiation and we just have to hope that they remember what happened Jan 1991 with Eastern and can see the forest for the trees.

[bahouse3]

Will it affect Delta Connection which is operated by Chataqua Airlies, Freedom Airlines, Comair, ASA??????

[SherriZ366]

In answer to the question on Independence Air, other carriers will honor their tickets if they can accomodate them. The cost is $50 per person.

My DD and SIL are booked on Radiance for Alaska the second week in June on frequent fliers so they could really be hurt. We're hesitant to book for a wedding in Harrisburg in October usiing Delta with this issue being unresolved.

[Gotimone]

i am flying delta on april 16 ~ i booked it thru RCCL and am a nervous wreck... anyone else ?? i will call RCCL when i get home to see what i can do, if anything ...

I am traveling on Delta on the 20th, also arranged by RCCL.. Did you call them? What was their response..?? HELP...........

[luv2travel29]

gotimone: rccl said if something happens they will make other arrangements to get us to the ship ~ even with horror stories i have heard about booking the air with the cruise line, in this situation, i am glad we did.

[lauren0309]

Does this article mean maybe we will get a heads up on a strike date so we can make alternate plans if it affects us? I hope they don't tell us the last minute.

 

 

 

ATLANTA The head of the Delta Air Lines pilots union is seeking authority to decide when and if a strike is to happen. Union chairman Lee Moak is to meet with other union leaders today, now that they've voted to authorize a strike.

 

Delta, the nation's third-largest carrier, is operating under bankruptcy protection.

 

An arbitration panel must decide by April 15th whether to void the pilots' contract.

 

Delta has said such a strike would force it to go out of business.

 

Any strike decision would likely prompt a court challenge by the company, which would almost certainly seek a restraining order. Moak says in an interview the union will "do what is legal."

[greatam]

gotimone: rccl said if something happens they will make other arrangements to get us to the ship ~ even with horror stories i have heard about booking the air with the cruise line, in this situation, i am glad we did.

 

Yes, theortically this is what happens. The REAL problem-Delta strikes or goes out of business-US domestic capacity is flying at 78% +. Not a lot of extra seats on ANY airline to get you to the ship.

 

It will not only be cruise passengers who are impacted, but each and every person who also holds a ticket on your flight. There is NO way that current US airline capacity could absorb all the Delta pax on the day they are originally scheduled to fly.

 

IF Delta strikes or goes out of business, I see a LOT of people missing their cruise, business meeting, or trip to Grandma's house. Be prepared.

[hdawson]

I think IF the strike takes place and/or liquidation, other lines will move quickly (24 to 48 hours) to take up some of the slack. You may find yourself flying at 1AM on USAir, AirTran, Spirit or JetBlue. AirTran and JetBlue have both been adding quite a few new planes to their fleet. Of course Atlanta is extremely vulnerable to Delta disruptions.

[FlyerTalker]

Likely, but to what extent would be difficult to predict at this time. Many of the DL connection flights are designed to be just that....a connection to mainline DL. Others are replacements for mainline flights when there isn't the demand for larger aircraft. There are some that are not feeders into a DL hub, but that's the exception.

 

Where are you travelling - you can get better information if we get more details.

[FlyerTalker]

The "doomsday scenario" as I remember is that it is federally mandated that other airlines step up to the plate and try (key word there) to accommodate affected passengers of out-of-business airlines by making available available seats by charging a fee of no more than $50 per person per way based on a stand-by basis.

 

That's if the airline goes out of business. All such travel is on a space-available standby basis.

 

If there is a strike but the airline is still in business, there is no federally mandated protection. Years ago, there were "mutual assistance pacts" that airlines had to agree to carry each others pax if there was a strike, but those have gone the way of the coach meal on a 1.5 hour flight.

[chrismxn]

I have tickets booked on delta connection "Freedom Airlines" from Nashville to Orlando for my June Fantasy/Sensation cruise. I am hoping that since it is nonstop on Freedom Air that if Delta does have a strike it won't affect my flight. I am in Chattanooga so if worse comes to worse I will just drive the 10 hours to Port Canaveral.

 

Hopefully this will all be a moot point and Delta will work things out. I am also booked with them for my Flight to Rome in September for my Liberty Cruise.

 

Chris

[AAAMom]

Flying out from Boston on 4/14 to Ft Lauderdale to board the Voyager in Miami on 4/15. Just in case, I've booked refundable one ways from/to Newark (yes, its a 3 hour drive from Boston, but better than missing the cruise). This way if something happens with Delta I have tickets on another airline and if nothing happens...my travel agent cancels them...now I can breathe!

[lauren0309]

I was thinking of doing that too, not that I have a ship to catch at this time as we are going to see Mickey Mouse. But, it is too expensive so I will just have to wait and see what happens. My trip is April 17.

[Jaxsonbrownie]

I am booked with Delta for 4/22 for a cruise on the Mariner. How did you do that? Through a travel agent? Would really love to hear from you about this.Can you send me a private message through this board & fill me in? I would love it.Thanks,Jaxson

[AAAMom]

jaxsonbrownie,

I tried to pm but couldn't. Basically I looked around for the cheapest way that I could get to FL for our cruise. However, if Delta does fly I didn't want to be stuck. So the only option was refundable one ways. My refundables are booked after my Delta flights depart (gives travel agent time to cancel). Our travel agent was able to set it up that we haven't had to pay for them yet and may not have to until that day. If the pilots strike our travel insurance should reimburse us for the cost of the alternative travel. The airfare I got was on a Continental Non-Stop flight from Newark to Miami for $304 each way (yes, $608 roundtrip). We will have to drive to Newark from Boston to do this. Right now we are considering renting and turning in the care this will then allow us to fly our Delta flights home should we be able to .

 

Hope this helps and isn't too confusing.