Unlimited flights for former exec's family
Sep 19, 2009, 8:53 am
#1
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Unlimited flights for former exec's family
I'm reposting this from another website:
http://www.reddit.com/r/IAmA/comment...f_my_life_can/
I suspect it's Delta/NWA from his description (worlds largest), but he mentions 'quarterly' calculations, also mentions the airlines 'removes' his flown miles every quarter.
http://www.reddit.com/r/IAmA/comment...f_my_life_can/
One of my parents use to be an executive for one of the major airlines in the world, and as part of his retirement contract my whole family can fly for free for the rest of our lives. This is not the usual airline benefit where it is a standby ticket, rather, we pay for the ticket with unlimited 'fake' money in the same process a normal customer would. Also, I have the status of their middle tier frequent flier program, so it appears to employees that I fly 75k miles every financial quarter. AMA
Edit - Inspired by the lotto winner of $30 mill AMA, he flys around the world cause he got lucky, I do it too! Also for the most part, I don't do this alone, I have a brother 5 years older than me who travels with me a good bit, and a small number of my friends also have 'standard' benefits and fly standby with me also, so we jetset around 2 or 3 times a year together.
Edit - Inspired by the lotto winner of $30 mill AMA, he flys around the world cause he got lucky, I do it too! Also for the most part, I don't do this alone, I have a brother 5 years older than me who travels with me a good bit, and a small number of my friends also have 'standard' benefits and fly standby with me also, so we jetset around 2 or 3 times a year together.
Last edited by hg; Sep 19, 2009 at 10:59 pm
Sep 19, 2009, 11:25 pm
#2
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Pretty much every major airline does this for their senior executives. Usually it is disclosed in an 8-k filing with the SEC.
Sep 20, 2009, 12:17 am
#3
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Not quite every major airline for all senior executives.
Delta used its bankruptcy to discharge their perpetual obligation to haul a couple butts (think Leo & Michelle) around in F. Leo took it quietly; Michelle went out screaming.
Delta used its bankruptcy to discharge their perpetual obligation to haul a couple butts (think Leo & Michelle) around in F. Leo took it quietly; Michelle went out screaming.
Sep 20, 2009, 2:47 am
#4
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Last I had heard the bankruptcy judge sided with Michelle. Or am I thinking of someone else?
Sep 20, 2009, 8:32 am
#5
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It's great to to see standards of evidence call for posting a link to heresay in a blog.
Last edited by 3Cforme; Sep 20, 2009 at 8:41 am
Sep 20, 2009, 9:08 am
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Agreed. Executive compensation can take many forms. This is wholly unremarkable. Why was GE paying for fax machines and flowers for Jack Welch? Because that's what he or his attorney negotiated.
It's great to to see standards of evidence call for posting a link to heresay in a blog.
It's great to to see standards of evidence call for posting a link to heresay in a blog.
The OP is simply picking up on a discussion he found elsewhere on the web & trying to introduce it into FT.
Sep 20, 2009, 1:52 pm
#7
Join Date: Apr 2004
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I'm reposting this from another website:
http://www.reddit.com/r/IAmA/comment...f_my_life_can/
I suspect it's Delta/NWA from his description (worlds largest), but he mentions 'quarterly' calculations, also mentions the airlines 'removes' his flown miles every quarter.
http://www.reddit.com/r/IAmA/comment...f_my_life_can/
I suspect it's Delta/NWA from his description (worlds largest), but he mentions 'quarterly' calculations, also mentions the airlines 'removes' his flown miles every quarter.
Sep 20, 2009, 2:34 pm
#8
Join Date: Sep 2007
Posts: 839
This type of arrangement is nothing new in the airline industry.
Grinstein and his family (extended) received lifetime flight benefits on DL (positive space in F class); Whitehurst and his family got the same deal (though IIRC it was only for ten years) when he left for Redhat;
And as stated above, these departure benefits are itemized in SEC filings. Not hard to find what former execs and their family are getting in terms of benefits.
Grinstein and his family (extended) received lifetime flight benefits on DL (positive space in F class); Whitehurst and his family got the same deal (though IIRC it was only for ten years) when he left for Redhat;
And as stated above, these departure benefits are itemized in SEC filings. Not hard to find what former execs and their family are getting in terms of benefits.
Sep 20, 2009, 2:36 pm
#9
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Also, I have the status of their middle tier frequent flier program, so it appears to employees that I fly 75k miles every financial quarter.
Sep 20, 2009, 5:33 pm
#10
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Former Delta Air Lines Executives No Longer Receive Perks After Bankruptcy...
With regard to Michelle Burns, this was the "contract" she set herself up with prior to her departure (source):
The Atlanta-based carrier also revealed that it is giving its former finance chief free flights for life in exchange for her consulting services over five years.
The agreement calls for former chief financial officer Michele Burns to provide consulting services to Delta until 2009 on issues related to her time at the airline.
In exchange, Burns, who left Delta in May to become CFO at bankrupt energy supplier Mirant Corp., will get unlimited free air travel anywhere Delta flies during her lifetime. The filing also said that Burns' spouse or domestic partner and any children -- until they reach age 19, or 23 if a full-time student -- would also get the free airfare. The company would not comment about Burns' family.
Burns will not receive any other compensation besides the free flights, which will continue after her consulting services are completed, spokeswoman Peggy Estes said. The agreement bars Burns during her service term from soliciting any Delta officer or director to go work somewhere else.
Delta moved very early in the bankruptcy to void & discharge these arrangements. Why would they want any continuing consulting from the ex-CFO who helped run the company into the ground?The agreement calls for former chief financial officer Michele Burns to provide consulting services to Delta until 2009 on issues related to her time at the airline.
In exchange, Burns, who left Delta in May to become CFO at bankrupt energy supplier Mirant Corp., will get unlimited free air travel anywhere Delta flies during her lifetime. The filing also said that Burns' spouse or domestic partner and any children -- until they reach age 19, or 23 if a full-time student -- would also get the free airfare. The company would not comment about Burns' family.
Burns will not receive any other compensation besides the free flights, which will continue after her consulting services are completed, spokeswoman Peggy Estes said. The agreement bars Burns during her service term from soliciting any Delta officer or director to go work somewhere else.
Has anyone see Leo or Michelle mooching on DL metal since late 2005?