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 08.29.14 ** HD iPad-Friendly -- Airborne 08.29.14 **
** Airborne 08.27.14 ** HD iPad-Friendly -- Airborne 08.27.14 **
** Airborne 08.25.14 ** HD iPad-Friendly -- Airborne 08.25.14 **

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."

FMI: www.delta.com

Advertisement

More News

Annual Oshkosh 2014 'Best/Worst Of' Award Selection Invites YOUR Participation!

YOU Can Contribute To The Annual List Compiled By The Staff and Readership of the ANN and Aero-TV! E-I-C Note: We're going to start naming names and dropping details THIS week--- t>[...]

Airborne 08.29.14: Google Drone!, Cessna's 10,000th, Bearhawk LODA

Also: Big Boeing Order, Napa Tower Quaked, Landsberg Retires, Galileo Falters Breaking News! Google has unveiled an exciting new UAV project, called Project Wing, which has been un>[...]

Aero-TV: The Tecnam Juggernaut -- SeaSky, P2008, P2010, Trainers, and Astore!

An Impressive Line-Up Continues To Make A Solid Impact On Sport Aviation ANN CEO and Editor-In-Chief, Jim Campbell seized the opportunity to talk with Phil Solomon, the CEO of Tecn>[...]

AD: Bombardier, Inc. Airplanes

AD NUMBER: 2014-17-04 PRODUCT: Certain Bombardier, Inc. Model CL-600-2B19 (Regional Jet Series 100 & 440) airplanes.>[...]

ANN's Daily Aero-Linx (09.02.14)

FAA General Aviation Airports Report Beginning in 2010, the FAA began a national review of the general aviation airports resulting in two reports, General Aviation Airports: A Nati>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC