"Delta CEO Hails New Pact, REstates Goal of zero (Frontline) Layoffs"

Voice Of Reason

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Sounds like great news if your pilots are defined as "frontline employees"!
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"Friday, May 22, 2009
Delta CEO hails new pact, restates goal of zero layoffs

The Business Journal of Milwaukee - by J. Scott Trubey Atlanta Business Chronicle

http://assets.bizjournals.com/story_image/243529-600-0-1.jpg The top executive at Delta Air Lines Inc. hailed the carrier’s new trans-Atlantic pact with Air France KLM Group, and reasserted to employees Friday the carrier’s goal to avoid frontline layoffs.
In a recorded message to employees, Delta CEO Richard Anderson said the new alliance with Air France and KLM will be a win for employees, investors and passengers alike.
“It makes us stronger competitively, which will add to the bottom line when it’s all said and done,” Anderson said.
The new deal, which the Anderson said would amount to $12 billion in annual revenues, helps insure job security for employees, could contribute $200 million in annual profits for investors and passengers will get enhanced service and convenience.
The trans-Atlantic alliance between the world’s largest carrier and Europe’s largest airline group will offer more flight frequencies, better scheduling and more competitive fares, the carriers said in a joint announcement May 20 from Paris. The $12 billion revenue figure is based on flights operated by Delta, KLM and Air France to respective hubs, plus connecting service.
The deal bolsters the strength of the SkyTeam alliance against competing joint ventures Oneworld and StarAlliance. Delta signed a joint venture deal with Air France in 2007. Northwest Airlines, which Delta acquired last October, has been a partner with KLM since 1997.
Anderson said Friday Atlanta-based Delta (NYSE: DAL) and its Northwest subsidiary will handle one half of the flying under the joint venture. Delta, with Northwest, is one of the three largest carriers at Milwaukee's General Mitchell International Airport.
The new joint venture and Delta’s acquisition of Northwest will help the combined airline move forward despite strong economic headwinds, Anderson said.
Citing recent reports by the Air Transport Association of America, an industry trade group, Anderson said passenger revenues dropped 18 percent in April compared to April 2008. Overall traffic industry wide dropped 6.3 percent in April and the average price to fly one mile fell by 12.6 percent.

Cargo volume in March, the latest data available, plummeted 21 percent.
“It just shows how broadly the recession is affecting the industry,” Anderson said. “We’re seeing less demand in the cabin and cargo hold.”
Anderson credited employee for hard work despite an adverse economy, and said the carrier retains the goal of having no frontline layoffs. Delta and Northwest have offered buyout and early retirement packages to thousands over the past year, and officials have said 2,500 employees will leave the combined carrier after the busy summer travel season.
“We just have to do our very best and work very hard,” Anderson said.


The Atlanta Business Chronicle is a sister publication of The Business Journal Serving Greater Milwaukee.


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Linedriver

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Well, that is good news and hopefully the goal of no furlougs will be achieved. I'm still holding off on the new car for a couple of years.
 

Draginass

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What a bunch of dolts. It's a "goal" not a contract obligation. He can furlough anytime he wants. It means . . . . drumroll please . . . . . NOTHING.
 

Voice Of Reason

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What a bunch of dolts. It's a "goal" not a contract obligation. He can furlough anytime he wants. It means . . . . drumroll please . . . . . NOTHING.
The only dolt would be someone who continuously states something on the public record if he planned to do the opposite. Actually, the other dolt would be the one who thinks he is the only one in this industry aware of the differences between a "goal" and "contract obligation."... Oh YEAH they put THAT in their contract as well.... No matter what, EVERYONE knows there's a loophole for anything, but this does look like good new for the NW/DL people...no need to let it upset your day...:rolleyes:
 

Linedriver

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What a bunch of dolts. It's a "goal" not a contract obligation. He can furlough anytime he wants. It means . . . . drumroll please . . . . . NOTHING.
We know what a goal is.
 

~~~^~~~

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The only dolt would be someone who continuously states something on the public record if he planned to do the opposite.
Airline management does not pre annouce furloughs. People start using sick time, finding other jobs, etc... as was the case when US Air was both critically short of pilots & furloughing at the same time.

It is pretty common when outsourcing, whether to AirFrance/KLM or a regional carrier, to claim no loss of jobs will result.

As for the goal to keep the labor force intact until they decide what they are going to do this fall/winter/2010... that's just smart business.
 

General Lee

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Airline management does not pre annouce furloughs. People start using sick time, finding other jobs, etc... as was the case when US Air was both critically short of pilots & furloughing at the same time.

It is pretty common when outsourcing, whether to AirFrance/KLM or a regional carrier, to claim no loss of jobs will result.

As for the goal to keep the labor force intact until they decide what they are going to do this fall/winter/2010... that's just smart business.
That is smart business. We all know that the recession is probably nearing an end, at least by early next year, and it is prudent to not make any major moves at this point until they are sure. Numbers for passengers are scheduled to go up within the next couple years, up to 1 billion domestic passengers alone by 2011. When people think of outsourcing, they often think of the little guy (a regional) doing it for the bigger guy. But, as you point out, the AF/KLM deal could have outsourcing across the Atlantic too. But, I believe we are due half the the flying in that agreement, and I still see a lot of flying between the US and CDG and AMS. We are still adding PIT to CDG, even though we are posponing others (RDU to CDG and the resumption of BDL to AMS). It will be interesting to see what other cities start new transatlantic service, and since we have a lot of 757ERs that can handle new routes from smaller US cities to those hubs, I bet we will have at least half, if not a bit more. The smallest planes AF and KLM have to cross the Atlantic are A332s, which may be too big for starting service to some cities. We still have 787s and 777s on the way too for the rest of the world.


Bye Bye--General Lee
 

General Lee

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Just read this post, General
-MORON!!!!

-NOW do you think your company is so well run?
You don't know what you are talking about. We haven't flown (or NWA Cargo hasn't flown) over the NORTH Atlantic in YEARS. Read the article again dumbazz. If they were going to use our NRT slots and fly out of our old hub in ANC, then I think there would be more of a red flag. If they do anything for us OVER THE ATLANTIC, then I bet it will slip by, since we haven't done ANY OF THAT IN YEARS. NWA Cargo has been doing the PACIFIC RIM and ANC (along with LAX, ORD, JFK, and ILN all to ANC) almost exclusively for the past 5 years or so. Go back to the fry machine, it is beeping, which means YOU LOST. Here it is again for you from that article.


[FONT=Arial, Helvetica, sans-serif]Delta Back In All Cargo[/FONT]
05/26/09
Delta is back in the all cargo business on the North Atlantic via a 10 year joint venture agreement with Air France-KLM.


Bye Bye--General Lee
 
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flap operator

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OMG, I agree with the General. They were never GONE from the Atlantic as both DL and NW carry belly freight across the Atlantic every day. This just creates more belly room and main deck room (on the AF/KL freighters) for DL to sell space on and share the profits. This is no different than the pax JV they've got now and NWA had for over 10 years.
 

General Lee

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Will CRJ567 ever apologize to me for calling me a Moron? Looks like again he shows his true colors, an antagonist jerk who is clueless. McFry does it again.....


Bye Bye--General Lee
 

PeanuckleCRJ

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GL and flap operator... we no longer have a cargo operation at all on our seniority list. They are simply changing the scope of operations.

Delta Cargo Connection by Air France and Martinair.
 

General Lee

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GL and flap operator... we no longer have a cargo operation at all on our seniority list. They are simply changing the scope of operations.

Delta Cargo Connection by Air France and Martinair.
I understand what you mean, but they are NOT covering flying that we had. They are starting something new. If they covered our ANC flying and used our NRT slots, that would be different. I would love to have some of our own widebodies on the Trans Atlantic stuff, but we ONLY have old 742s. Air France Cargo, Aerologic, and maybe Emirates Cargo are the only three that have new 777 Freighters, and those are coming off the line new from Boeing. If we had some of those, I bet we could do it. Would I like us to share in this? HECK YEAH. Can you find me some planes please?


Bye Bye--General Lee
 

PeanuckleCRJ

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Yep, why aren't they replacing the freighters? That would be like them saying "sorry guys, we don't have a replacement for the 767, so all the 767s will be parked and Air France is going to fly it."


I matters not where the planes fly.... they are being parked and their mission is being outsourced. Please tell me you can see this.
 

General Lee

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Yep, why aren't they replacing the freighters? That would be like them saying "sorry guys, we don't have a replacement for the 767, so all the 767s will be parked and Air France is going to fly it."


I matters not where the planes fly.... they are being parked and their mission is being outsourced. Please tell me you can see this.
Hey, even the arbitrators knew the 742s were on the way out. They stated that in the SLI explanation. We could replace them with ERs if we got a cargo door conversion, but that would take some time to do. Again, we are behind the curveball when it comes to airplane orders. I have heard we could do the cargo mod on our 744s, and they could be replaced with 777-300ERs. But, again, it will take time to do that.


Bye Bye--General Lee
 

crj567

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I understand what you mean, but they are NOT covering flying that we had. They are starting something new. If they covered our ANC flying and used our NRT slots, that would be different. I would love to have some of our own widebodies on the Trans Atlantic stuff, but we ONLY have old 742s. Air France Cargo, Aerologic, and maybe Emirates Cargo are the only three that have new 777 Freighters, and those are coming off the line new from Boeing. If we had some of those, I bet we could do it. Would I like us to share in this? HECK YEAH. Can you find me some planes please?


Bye Bye--General Lee

Come up with whatever fool justifications you wish, Gen.... These sure are some big-ass RJs you are outsourcing.

-Keep right on whistling by the graveyard.... Just let them keep parking DAL airplanes whilst the Frenchies keep right on flying ones your sorry butt should be in!

-Perhaps you should check out some of the other "scary" threads dealing with the fact that NWA bought control of Midwest and outsourced all their flying to Republic. Obviously, this is a blatant test of scope-but you are too stupid to recognize what RA is trying to slide into somewhere uncomfortable. Just keep marching right on along, like a good little pawn...

-P.S.- You never addressed Peaknuckle's question: Why are they not flying this with 767 freighters? There really ARE 767 freighters out there-hell DAL is parking 767s all the time!
 
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PeanuckleCRJ

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We butt heads alot crj567, but I'm with you 100% on this one. Scope is the ultimate battle we have to fight in this industry now.
 
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