Isn’t it amazing how folks just disappear for a while and then pop up again?

Put Ex-American Eagle CEO Robert Martens in that category, as today it was announced he is the new Senior Vice President and President, US Airways Express.



From the release announcing his appointment,

“In his new position, Martens, 61, will oversee the US Airways Express program, which consists of 2,300 daily flights and includes nine regional airlines. He will have direct oversight of the airlines’ two wholly owned regional subsidiaries, Piedmont Airlines and PSA Airlines, and will report to US Airways President Scott Kirby.”

Thanks for the guesses you’ve submitted on just where those three smiling American Airlines’ ramp workers are located that I posted for Foto Friday.

But alas, we don’t have a winner yet.

Keep trying! Send me your guesses at hhegeman at planebusiness.com.

Delta CFO Ed Bastian told investors and analysts today that Delta Air Lines forecasts an operating profit of $816 million this year.

Bastian also said that the airline anticipates exiting bankruptcy in late April and that the airline will launch a stock-exchange listing in early May.

The deadline for creditors to vote on Delta’s reorganization plan is April 9, with a bankruptcy court confirmation hearing set for April 25.

While Bastian said the airline has decided which stock exchange the new shares will trade on, he would not disclose the decision publicly.

Delta expects to carry forward about $7.8 billion in net operating losses.

As for the “C” question, (are you as tired as I am of the word, consolidation?) Bastian no doubt got a few tongues wagging today after he reportedly said that “airline industry consolidation will be one of the top issues for discussion by Delta’s board once the bankruptcy case is over.”

“The question is how long is it going to take,” said Bastian. “I think consolidation is eventually going to occur.”

However, Gerry Grinstein was quoted later as saying that he saw Delta more as the acquier, not the acquiree — and that he would not rule out the possibility of Delta acquiring a low-cost carrier.

Hmmmm.

One final note. Delta also talked Tuesday about how it plans to spend big bucks to upgrade its operations at JFK in New York.

Uh-huh.

What about all those nice new gates up in Boston?

Okay, I’ll behave.

It does not appear that anyone at the meeting brought up the new “grand global marketing scheme” for the airline, nor gave any hints as to what is going to replace the “drapes” on the tails of the Delta aircraft, as CEO Gerry Grinstein described them in a recent employee question and answer session.

But Bastian did, apparently, more or less confirm that Delta subsidiary Comair could be up for sale rather shortly.

“We will, once we’re out of bankruptcy, look at whether owning that business makes a lot of sense,” Bastian said at the

conference.

During a conference call later with reporters, Bastian elaborated that Delta’s effort to maximize returns for shareholders may mean “spinning off certain assets, such as Comair.”

Raise your hand if you are surprised.

Grinstein also said today that the airline expects to have its new 11-member board announced by the end of the week.

Both airline bankruptcy beefcakes are in the news today, as they continue to make progress in their efforts to leave the halls of bankruptcy court for the last time.

On the Northwest Airlines’ front, Monday U.S. Bankruptcy Judge Allan Gropper ruled that the airline can begin seeking creditor approval of a plan to exit bankruptcy. The deal values the airline at about $7 billion.

Gropper said that once Northwest revises its disclosure statement to incorporate agreements reached Monday, the statement could be released to creditors along with a restructuring plan.

Northwest has said that it plans to cancel all existing shares in the company and issue 272 million new shares. A stock offering will also offer a percentage of shares at an estimated $27 a share.

Another hearing will be held this week to determine whether an examiner will be appointed to investigate merger discussions that may have taken place with Northwest. This is in response to a complaint filed with the court by a group of funds that invested heavily in shares of the bankrupt stock — anticipating a potential merger.

A reorganization plan could be mailed to creditors as early as April 6.

A hearing to confirm the company’s reorganization plan is scheduled for May 16.

The group of funds, along with the Association of Flight Attendants and the Air Line Pilots Association argued that the company’s disclosure statement did not go into enough detail about management compensation and stock options that will be a part of the deal.

At the judge’s instruction, Northwest consulted SEC lawyers, who approved the airline’s plan to wait until 20 days before the voting deadline to release more details.

While the SEC said it was okay, I wish the airline had issued the details now – and not at the last minute. The fact they are doing so can only mean that they anticipate a heavy cry of opposition over whatever the plans are.

Was Gerald Grinstein’s recent example made in vain?

Good News for Employees



Aside from the management payout details that are still not known, there was some good news for employees Monday.

Northwest will give 4,000 non-union employees $77.4 million in cash and stock as part of a bonus program after the airline emerges from bankruptcy.

The employees, who took pay and benefit cuts as the company reorganized, would get 40% of the bonus as cash when the company emerges from court protection.

The remaining 60% would be issued as new common stock in the company one year later, as long as the employee is still with the company.

It was also announced that flight attendants and certain workers represented by the International Association of Machinists could receive a claim of an undisclosed amount, partially restoring pay and benefits that the company extracted earlier. The company and union supported the move, and it will be considered in an hearing to be scheduled soon.

The IAM claim, estimated by the union to be worth $212 million today, would replace special Northwest shares issued as part of a 1993 deal when IAM workers made concessions in an effort to help the airline stay out of bankruptcy.

Subscribers can access this week’s issue here.

It must be time for our usual Thursday update.

For those of you who are PlaneBusiness Banter subscribers, this week’s issue should be posted in about an hour or so. I’ll let you know when it’s up.

Thanks.