Delta hiring freeze?

[John Pennekamp]

Atlanta Fox 5 news reported yesterday that Delta is instituting a hiring freeze due to the high fuel prices. They are also considering layoffs sometime next year and cutbacks in domestic routes.

I'm shocked that no one has posted this yet.

Surely the other airlines will follow. Another sign of the upcoming recession? Discuss.

 

[FUZZO]

Actually,it is back-office jobs being frozen and approximately 35 50 seat RJ's being parked and about 10-15 mainline aircraft being moved from domestic to international...airlines need to raise ticket prices and cut RJs..just a thought

 

[Airboss]

It seems to be a (G.O.) management freeze, not frontline employees (pilots/flight attendants).

 

[Stifler's Mom]

Interesting. In a few other threads the General is saying that this hiring freeze is back office employees, not pilots or flight attendants. Did the segment mention that, or did it address pilot positions directly?

 

[CFI2766]

The local version of NPR ran the same slug this morning. Their version mentioned that it was ~300 managerial jobs that would be eliminated through attrition. Perhaps more importantly to us, however, they also mentioned that they would delay or cancel aircraft orders.

 

[CFI2766]

http://www.iht.com/articles/ap/2007/12/04/business/NA-FIN-COM-US-Delta.php#end_main

Hiring freeze discussed at the end of the article...

 

[SKYWRJGUY]

Aside: No-kidding about the $5 permanent hike. Most airlines have always been concerned with market share over profitability, and if all airlines matched the first-to-market and nobody backed down [a non-collusive type of move], the industry would see incremental revenue of $3B by that move alone. Funny how short-sighted the airline managers still seem to be...all in the name of market share.

 

[rickair7777]

Aside: No-kidding about the $5 permanent hike. Most airlines have always been concerned with market share over profitability, and if all airlines matched the first-to-market and nobody backed down [a non-collusive type of move], the industry would see incremental revenue of $3B by that move alone. Funny how short-sighted the airline managers still seem to be...all in the name of market share.

It's because they are not running a "businsess", they putting on a dramatic performance for wall street. The street seems to thinks that market share is the key indicator of growth potential and thereby stock value. A few quarters in the red don't mean much to them.

 

[Rez O. Lewshun]

John P. are we sensing some glee from you that those just hired at DAL might get furloughed?

 

[Cardinal]

All I'm sensing is management eyewash for the investors.

 

[Crash Pad]

Atlanta Journal had an article... Delta is only hedged for 20% of their fuel... These guys are good. Who could have predicted that oil would go up in price.

On the job thing the article said pilots will continue to be hired... So if you have some real balls you will gamble on that one.

 

[General Lee]

Atlanta Fox 5 news reported yesterday that Delta is instituting a hiring freeze due to the high fuel prices. They are also considering layoffs sometime next year and cutbacks in domestic routes.

I'm shocked that no one has posted this yet.

Surely the other airlines will follow. Another sign of the upcoming recession? Discuss.

No, only back office people. We still need a lot of pilots and stews to fly our new routes scheduled for this next Spring--JFK to Amman, Cairo, Lyon, Malaga, Paris Orly, Edinburough, London Heathrow, Dakar, Lagos, Cape Town, and Nairobi. From ATL we are starting Stockholm daily plus London Heathrow.

How are you doing John?

Bye Bye--General Lee

 

[scarlet]

Growing international, hold on to those MD-80s. CAL got rid of those because of huge fuel cost, and AA is trying like hell to get rid of them=737-800s to get out of the 80s.

 

[General Lee]

Growing international, hold on to those MD-80s. CAL got rid of those because of huge fuel cost, and AA is trying like hell to get rid of them=737-800s to get out of the 80s.

Most of our MD88s had their lease payments dropped in BK from $280,000 a month to $80,000 a month. So, we have done quite well to keep them, and nobody besides Midwest Airlines flies them. So, we can squeeze the lessors more if we ever need to, or we park them until they give up. We are also getting used MD90s (9 confirmed for next year), which are more fuel effiecient than a 738 on some routes, and they come at a great price ($9 million each including the engines). We already have a sim for them, and our mechanics know how to fix them. Also, they are not as old as the AA MD82/83s, and the MD90s have inflight entertainment.


Oh, and John Pennekamp, we are also adding Tel Aviv to JFK nonstop this next Spring also.


Bye Bye--General Lee

 

[Rez O. Lewshun]

Looks like DAL needs pilots to fly the INTL and to feed the INTL... only the feed will be a CRJ/mainline mix.... what ratio yeilds how many new DAL pilots...