Aces High Bulletin Board
General Forums => The O' Club => Topic started by: beet1e on September 14, 2005, 05:13:13 PM
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Another one bites the dust - http://www.delta.com/about_delta/deltas_restructuring/index.html
What happens to the pension funds? Are they safe?
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Reuters:
Delta's pension plans are also an estimated $10.6 billion underfunded according to the Pension Benefit Guaranty Corp., the federal agency that insures private pensions.
How the airline deals with that liability will influence the amount creditors recover, Warlick said.
"It's an essential part of their reorganization in bankruptcy to get out from under this massive funding burden," he said.
Warlick said he expects Delta to follow the path of U.S. Airways and United, which terminated their defined benefit pension plans and handed them over to the PBGC.
Of course, our two former CEO's took "golden parachutes" that are worth many, many millions and can't be touched now.
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Sad, what is happening to the airline industry these days.
But then again, do we need as many as we have?
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Delta Air Lines’ CEO Leo Mullin, whose $13 million pay package stirred controversy in light of the company’s $2.4 billion in losses over two years, was credited with 25 years’ service after working only 3 years. In addition, the company kicked in $8.24 million to fund Mullin’s benefit, placing it out of reach of creditors in the event of bankruptcy, as well as to pay any taxes owed for his handsome retirement package.
At the same time, Delta announced plans to convert its defined benefit plan covering most workers to a cash balance plan, saving $500 million by cutting in half pensions of workers closest to retirement.
The airplanes were full but they couldn't make money. Gotta love it.
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Originally posted by ASTAC
Sad, what is happening to the airline industry these days.
But then again, do we need as many as we have?
TSA is what's coming.
The added security is killing the industry, IMHO.
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The brainless CEO's are killing the industry.
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at least they didnt do the nasty stunt jetsgo did. continue selling tickets right up to the last second then announcing there breakup out of nowhere, stranding thousands of passengers, and making off with a ****load of money.
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Originally posted by Sandman
TSA is what's coming.
The added security is killing the industry, IMHO.
I saw more security at Grand Central Station than at JFK or LGA.
Even over here, in Finland, had more security - they actually digged through my luggage and the other person had guts to wonder from the other whether the CD's should be checked that I were carrying... wtf.
On the return trip nobody gave crap when I had a full metal replica gun in the luggage.. a TSA worker couldn't really have cared less.
Thats for the security...
What is killing the US airlines, is the careless way of handling business in the past.
Tickets were sold for very low prices, even with the increasing fuel costs and funds were poured into unnecessary things - lack of cost cutting.
Then the happy hour was replaced with the morning after.
Crappy CEO's, indeed...
Not like they care, they got away with lots of money and if they didn't already retire, they must be still in a good job... hey, they were the CEO's of an airline, what a nice thing to have in your CV!
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I remember reading that at a time when Delta had doubled in size, the number of CEOs had risen 5-fold in the same period. Why? Seems like a lot of extra dead weight with no sound reason.
Also didn't Delta build a fancy new glitter palace of a new terminal at one of its major hubs, at great expense?
The new mood amongst the flying public is "no frills" flying. We don't want fancy terminals, washrooms with oak panelling, marble hand basins and gold plated everything. The cheapo airlines gained a foothold within the last ten years, and the experience clearly shows what the customer wants.
The next thing to be phased out should be the airline catering, especially on short flights of less than 5 hours. Given the choice, I feel sure that passengers would be more than happy to bring their own food on a journey - I know I would. That way there wouldn't be all the staff and expense of providing it. Fewer flight attendants would be needed, and much of the galley space could be turned over to extra seating (weight considerations permitting). If such a scheme had existed all along, BA flights would not have been grounded as they were this summer by the Gate Gourmet strike. An airline meal, no matter how good on the relative scale, is still a crappy airline meal whichever way you cut it.
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Originally posted by beet1e
IFewer flight attendants would be needed
Thats something you can't do, because that depends on how many passengers the plane can carry.
Flight attendants first priority is the safety of passengers, not serving.
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Originally posted by Fishu
Thats something you can't do, because that depends on how many passengers the plane can carry.
Flight attendants first priority is the safety of passengers, not serving.
Proven by the Air France crash in Canada. The crew emptied that plane with perfect professionalism.
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Originally posted by Toad
The brainless CEO's are killing the industry.
Yep. They were considering sponsoring a Hydroplane boat called the "Miss Management:.
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TSA is what's coming.
http://www.nbc6.net/nbc6investigates/3947749/detail.html
Fly to get you stuff stolen.. good business model...
DoctorYo
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An old problem. Back in the 1970s, Heathrow was known as Thiefrow for these same reasons.
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Toad,
remember after 9/11 (actually happened in 2/04) when Mullins paid out guaranteed retirement benfits to the execs at Big D. It was almost to the dollar amount of what was given to Big D by the Feds....
All the while they were laying off employees left and right.
Bastages should be shot.
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No, no, no. They didn't steal ALL the money. Just a teensy weensy little crumb to keep them and their families from starving.
In October 2001, Delta Air Lines executives, worried about a possible bankruptcy, quietly proposed a set of executive trusts that guaranteed them full pensions now worth an estimated $45 million.
Arguments like this resonated on Capitol Hill. Ten days after the terrorist attacks, Congress passed a $15 billion aid package for the airline industry: $5 billion in direct cash handouts and $10 billion more in government- backed loan guarantees.
The goliaths of the industry are getting most of the money: $644 million for United, $583 million for American, and $528 million for Delta.
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Toad,
Check out the handout Mullins gave in February 02.
The total of the two were almost 174 million. I was wrong though in the total cash amount I thought it was only 174million.
Either way, the fugger and his cronies should be shot.
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Ya gotta love it. A guy runs a company into the ground, and gets paid more than any fifty regular employees will make in a lifetime, for doing it.
Corporate law needs to be rewritten to remove the protections they have for these common thieves. When bankruptcy is filed during their tenure, they should forfiet ALL salary and benefits. Everyone from mid level management on up should be subject to the change. Further, they should also force seizure off ALL of their assets to the point where they have $10K when they leave. Their assets should be sold and the proceeds should go towards the pension plans. Then the bastards would think twice before raping a company like they do. Also, should they try to bail on the ship after they open the seanoodles, their assets, salary, and benefits should be seized and held until the company's problems are resolved. Attempts to circumvent the laws should be prosecuted, and punished by a mandatory sentence of 30 YEARS with NO PAROLE.