Delta, Northwest File for Bankruptcy

I'm calling bullshit.

This is getting ludicrous. It is sickening how people these days bitch and moan abut how things don't work for them-- and corporations are joining in on the fun. When did the world become so reliant on others? People are so quick to scapegoat, they are almost unwilling to accept responsibility for the effects of their cations, and worse yet, they almost refuse to look inside themselves for the answers to their problems.

But here's the thing about the airlines. The only things they pay for are their planes, and hangars. (Thank you to my dad, an accountant, for that information). All of the infrustructure of the airlines is paid for by the government. That includes, air-traffic controllers, stewardesses, pilots, mechanics, terminals, runways, and research.

Compare that to the railroads, where the infrustructure includes trackage (airlines don't need to pay for right-of-way in the air, nor do they need to perform maintenance on the skies), and employees. And they get very little support from the government. We will certainly revisit the comparision of the airlines to the railroads.

So where is the blame being placed? Well, when United and US Airways declared bankruptcy in the past couple years, they cited lost revenue as an effect of 9/11. OK, if people don't feel safe on your planes-- you need to do something to make flying safer. But Northwest and Delta are both citing lost revenue from Hurricane Katrina. Again, scapegoating.

Wow, they've been handed a temporary setback, with the closing of a couple major terminus in the gulf. But what about the increased volume you benefitted from with people fleeing the area? And what about the increased volume of workers, helpers, and those same refugees returning to the area? Not to mention the fact that the industy didn't halt when the airport in New Orleans closed.

But here is the real kicker. Northwest took cover just before they were due to make a major payment on a pension plan to employees. The only time they have pay employees out of their own pockets, and they can't do it. Nevermind the fact that they've recently chased their mechanics (yes, employees whose paychecks do come from Northwest, but money comes form the government) to the picket lines. It's not their money, and yet they're wanting to reduce what they're paying?

But what I can't fathom, is how an airline reports they have $2.1-billion in hand can declare they are bankrupt. Bankrupt means you are in debt. They are not. And if they think they are about to run out of money, then why are their planes sporting a new look?

Have you noticed the new paint scheme for Northwest? How much money was involved in not only paint and labour for this, but also on the creative staff? Surely, they paid someone for the design. Was it an urgent need?

The other part of the equation is the management staff themselves. Northwest's mnagers are so out of touch with their employees, so wanting to avoid confrontation, that they are chartering personal aircraft to fly around the country. Your company is losing money, and you are refusing to use your own stable to fly, and spending more money for your personal travels? Sounds to me like they have too much money on their hands.

Either they have a warchest, or they need to accept less money, so that they can make the payroll for their employees. Greed at the top only hurts those below.

But here is the real kicker. Anually, the US Government pays out over $250-billion to the 5 major airlines (United, American, US Air, Delta, and Northwest). Yet, directly under the control of the government itself is Amtrak-- the ONLY national passenger rail service. Amtrak's budget for this year was set at $1.2-billion, and that was after our fearless leader (you know, the guy who is known by one letter-- possibly because he can't spell his four-letter last name) requested only $900-million for a budget.

If Amtrak is being forced to work with a badget of $1.2-billion, and they must pay for infrustructure-- why can't the airlines work with a similar figure?

Do I also need to mention that jet fuel cost significantly less than what cars and trains run on? Jet fuel cost only $0.70/gallon. Seriously. And the airlines think that cost is outrageous. Of course, I'm still trying to figure out how jet fuel (with its safety features added) is that cheap, while I'm paying $2.50/gallon to fill my car with something that doesn't give me 600 mph speeds.

And where is this money that is funding the airlines coming from? Last time I checked, the United States itself was still operating with a ginormous debt. Yet somehow, we continue to come up with funding to keep businesses afloat. And there are rumours that NWA is doing the same. Misappropriating funds, into hidden accounts, to give the impression that the are opperating at a loss.

I won't shed a tear for Northwest, Delta, United, American, or US Airways. They need to try harder to find ways to keep costs down-- or at least wait until Amtrak is opperating with a larger budget than they before they even think of complaining about how much money they don't have.