[lbo-talk] Steep Wage Cuts

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sun Nov 14 13:47:33 PST 2004



> i was wondering if our LBO-talk financial wiz kids have an
> idea how long it will take delta to run through the alleged
> one billion dollars per year it gets in stiffing union
> members on their salaries.

Stiffing, indeed. they aren't _exactly_ getting stiffed out of $1B:


| In return for the concessions, Delta is awarding its pilot group
| options for 30 million shares, plus future profit sharing and other
| incentives. The union said that of the 6,756 pilots eligible to
| vote, 91% did.

As part of their restructuring, they are issuing 63M options; the pilots (6,756 of the nearly 57,000 employees) are getting nearly half of them.

And divide $1B/yr by 6756 pilots ... they are "giving up" about $150k each per year: what do you think a Delta pilot makes these days? I'll tell you: way more than the average pilot anywhere else, until last week.


> wasn't delta one of the airlines to receive the largess
> of govt loans -- taxpayer guaranteed -- due to alleged
> 9/11 losses a couple of years back?

Not that I know of.

It doesn't even look like they asked:

http://www.treas.gov/offices/domestic-finance/atsb/recent-activity.shtml



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