WateryGrave
Blue Koolaid Drinker
- Joined
- Apr 28, 2005
- Posts
- 286
From company website
"[SIZE=-1]The following memo from President Fred Buttrell was shared with the Comair team:
January 5, 2006
Since the Chapter 11 filing, Delta has been in active negotiations with lessors regarding its overall fleet, including Comair's aircraft. We communicated in our restructuring plan in October that Delta may remove approximately 30 aircraft from service as a result of these negotiations. Earlier this month, we returned to lessors the first five aircraft, which were vintage 1997 planes. During January, we anticipate the removal of 14 aircraft, including six 40-seat, three 50-seat and five 70-seat jets.
While these decisions are still being finalized, we are sharing the information now as we prepare for the aircraft return. Delta will remove the lines of flying for the 14 aircraft effective January 31, 2006 and the reductions will be reflected in the crew bid and the flight schedule. We are currently reviewing the staffing impact.
As you'll recall from earlier communications, we had hoped to retain 70-seaters in this process, but unfortunately, some of these aircraft are tied to the financing for 40- and 50-seaters. All Delta Connection regional carriers are suppliers to Delta and we must bring our costs to market-competitive rates or risk further aircraft and schedule reductions. We prevent this by having a cost structure commensurate with what mainline carriers will pay for flying in a post-bankruptcy environment.
Delta will continue to use the aircraft rejection process to eliminate non-competitive aircraft ownership costs and unprofitable flying. Ultimately, that means we may have more developments like today's, particularly while we lack clarity in our cost structure. As I have said before, time is of the essence, and I feel more passionate than ever that we must respond by reducing our controllable costs to be a going concern business.
We have already instituted pay reductions for non-contract employees, renegotiated supplier costs and made changes to our overhead structure. A critical component of restructuring is reaching cost-competitive agreements with our unions. We have had a professional and real-world engagement with ALPA, and they are enabling our final proposal to go to the pilots for a vote. We also have had productive discussions with the International Association of Machinists (IAM). Unfortunately, we are not making the substantive progress necessary with the IBT, who represent the flight attendants. We may have no other choice but to pursue the process within Chapter 11 that is designed to achieve competitive costs in order to avoid further negative impacts to our airline.
I understand this news is disheartening for all of us as the impact of our Chapter 11 restructuring is hitting home. I offer my thanks and empathy to those that have already made sacrifices ranging from pay cuts to job reductions. However, I see daily examples of strong resolve in every corner of the airline and I believe we will get through this and on to the better aspects of running an airline. "
[/SIZE]
"[SIZE=-1]The following memo from President Fred Buttrell was shared with the Comair team:
January 5, 2006
Since the Chapter 11 filing, Delta has been in active negotiations with lessors regarding its overall fleet, including Comair's aircraft. We communicated in our restructuring plan in October that Delta may remove approximately 30 aircraft from service as a result of these negotiations. Earlier this month, we returned to lessors the first five aircraft, which were vintage 1997 planes. During January, we anticipate the removal of 14 aircraft, including six 40-seat, three 50-seat and five 70-seat jets.
While these decisions are still being finalized, we are sharing the information now as we prepare for the aircraft return. Delta will remove the lines of flying for the 14 aircraft effective January 31, 2006 and the reductions will be reflected in the crew bid and the flight schedule. We are currently reviewing the staffing impact.
As you'll recall from earlier communications, we had hoped to retain 70-seaters in this process, but unfortunately, some of these aircraft are tied to the financing for 40- and 50-seaters. All Delta Connection regional carriers are suppliers to Delta and we must bring our costs to market-competitive rates or risk further aircraft and schedule reductions. We prevent this by having a cost structure commensurate with what mainline carriers will pay for flying in a post-bankruptcy environment.
Delta will continue to use the aircraft rejection process to eliminate non-competitive aircraft ownership costs and unprofitable flying. Ultimately, that means we may have more developments like today's, particularly while we lack clarity in our cost structure. As I have said before, time is of the essence, and I feel more passionate than ever that we must respond by reducing our controllable costs to be a going concern business.
We have already instituted pay reductions for non-contract employees, renegotiated supplier costs and made changes to our overhead structure. A critical component of restructuring is reaching cost-competitive agreements with our unions. We have had a professional and real-world engagement with ALPA, and they are enabling our final proposal to go to the pilots for a vote. We also have had productive discussions with the International Association of Machinists (IAM). Unfortunately, we are not making the substantive progress necessary with the IBT, who represent the flight attendants. We may have no other choice but to pursue the process within Chapter 11 that is designed to achieve competitive costs in order to avoid further negative impacts to our airline.
I understand this news is disheartening for all of us as the impact of our Chapter 11 restructuring is hitting home. I offer my thanks and empathy to those that have already made sacrifices ranging from pay cuts to job reductions. However, I see daily examples of strong resolve in every corner of the airline and I believe we will get through this and on to the better aspects of running an airline. "
[/SIZE]
