Delta Employees Expected To Profit From Failed US Airways Takeover Bid | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date






Airborne On ANN

Airborne 09.28.15

Airborne 09.29.15

Airborne 09.30.15

Airborne 10.01.15

Airborne 10.02.15

Airborne Hi-Def On YouTube

Airborne 09.28.15

Airborne 09.29.15

Airborne 09.30.15

Airborne 10.01.15

Airborne 10.02.15

EAA/ANN AirVenture Innovation Preview

AIP-#1 Vimeo

AIP-#2 Vimeo

AIP-Part 1 YouTube

AIP-Part 2 YouTube

Tue, Mar 20, 2007

Delta Employees Expected To Profit From Failed US Airways Takeover Bid

Will Receive $480 Million In Benefits; Grinstein Won't Collect Bonus

Employees at Delta Air Lines who stood up to fend off a hostile takeover attempt by US Airways will be rewarded for their loyalty, when the carrier emerges from Chapter 11 bankruptcy protection.

The Financial Times reports Delta workers will receive $480 million in cash and stock options, as part of a restructured pay and incentives package. The plan also includes profit-sharing options and bonuses for staff and executives.

Under the plan, some 39,000 Delta employees will receive a 3.5 percent stake in the airline. Approximately 12,000 managers will receive a further 2.4 percent stake in "equity opportunities," the airline announced Tuesday.

Interestingly, one Delta won't receive any such bonus: CEO Gerald Grinstein, who stated last year he plans to retire from the airline once it emerges from bankruptcy.

Though many credit Grinstein with leading the charge against the US Airways bid, he says Delta's employees should be rewarded for sticking with the carrier through difficult times.

"They let it be known how miserable and unhappy they would make life [under US Airways]," Grinstein told the Financial Times. He emphasized the incentive plan was not a ploy to "buy" employee support and morale.

Meanwhile, Delta CFO Ed Bastian said the effort in fending off the US Airways bid helped the airline gain leverage with its creditors' committee, to win support for its reorganization plan.

"They said 'No' to US Airways and 'Yes' to investing $500m in our people," said Bastian. "That was certainly something that [US Airways' CEO] Doug Parker was not planning to provide."



More News

Airborne 10.02.15: LauncherOne Milestones, A/C Mngmt Legislation, UAV Safety

Also: Open Aviation Safety Reporting, ICAS 2015, Apache/Chinook Orders, Flexjet, Journey To Space Film, Sport/GA Decline?, Soloy Aviation ANN Airborne Link:>[...]

Aero-News: Quote Of The Day (10.04.15)

“Refuelling between the KC-30A and F-35A is an important step towards the KC-30A’s achievement of Final Operational Capability (FOC) and represents continued progress i>[...]

ANN's Daily Aero-Linx (10.04.15)

Aero Linx: Vintage Sailplane Association The purpose of the Vintage Sailplane Association (VSA) is to promote the acquision, restoration and flying of vintage sailplanes by its mem>[...]

ANN's Daily Aero-Term (10.04.15): Flight Information Service-Broadcast

Flight Information Service-Broadcast (FIS−B) A ground broadcast service provided through the ADS−B Broadcast Services network over the UAT data link that operates on 97>[...]

ANN FAQ: Feel The Propwash (Updated)

New Form Makes Subscribing, Unsubscribing Even Easier While we're very proud of our newly-redesigned website, we know that some folks really enjoy the convenience of having their A>[...]

blog comments powered by Disqus





© 2007 - 2015 Web Development & Design by Pauli Systems, LC