Delta Cuts

[Seaknight1]

Call me a cynic, but is it possible the merger may not be completely dead after all? Could this be a means of reducing the overhead that will certainly be necessary in the support functions should the merger actually happen? You know, some of that synergy we keep hearing about. I don't think rigormortis has set in on the merger yet. Too much money at stake. If mgt wants this merger there will come a time when they move on and do it with or without the pilots coming to an agreement. Time will tell.

Ding, ding, ding, ding! We've got a winner! I think they're cleaning out shop before hand rather than after the merger.

 

[lowecur]

They offer the buyout to 30k, the goal is 2k, and they will take more than 2k if the numbers are there.

Sooooo potentially they could lose insert number here? How many would be too many? 30k?

30k is more than half the company.

I doubt it's insert a number. Buying out older senior workers, then rehiring younger less expensive workers is not a new idea. I'm sure Doug would love to do this, but most of his workforce is union, and I would guess they would smell a rat.

The ranks of the unemployed is going to swell in the next 12 months, and many will be educated and actually be glad for the opportunity to bring home a paycheck. Smart move by Anderson, as many that will take his offer will be sorry they did so 12 months from now.

imp:​

 

[Gunfighter]

I...the fact that they will soon be transporting Americans in decreasing numbers to places were Americans can no longer afford to go.

Delta is already transporting Americans in decreasing numbers. That is the beauty of international flying. Delta is selling tickets in Euros to foriegn customers who view travel TO the US as a bargain. When the $ rebounds they will sell tickets in $ to Americans who can travel overseas. The international flights leaving the US are full of return passengers on round trip flights, not originations on a round trip.

Delta is selling in Euros and converting them at 1.5 to the dollar. That helps offset the high oil prices.

 

[Gunfighter]

The ranks of the unemployed is going to swell in the next 12 months, and many will be educated and actually be glad for the opportunity to bring home a paycheck. Smart move by Anderson, as many that will take his offer will be sorry they did so 12 months from now.

The downside for Delta is that many who volunteer will be the highly motivated and skilled individuals who can find employment elsewhere. Exactly the kind of people who are needed to run a leaner company. The ones who stay in a buyout scenario are often the average to below average employees who couldn't find a comparable job.

 

[Furloughed80]

Is it true that all classes after April are on hold indefinitely?

 

[FDJ2]

I doubt it's insert a number. Buying out older senior workers, then rehiring younger less expensive workers is not a new idea.

You are correct. I'd expect a target figure of between 1600-1700 is what management is looking for.

The number of early outs is insignificant to match the non front line employee cuts a merger would bring. This isn't about prepping for a merger, this is about adjusting to $110/bbl oil.

There may still be a merger down the road, but these cuts are a different matter.

 

[737 Pylt]

I doubt it's insert a number. Buying out older senior workers, then rehiring younger less expensive workers is not a new idea. I'm sure Doug would love to do this, but most of his workforce is union, and I would guess they would smell a rat.

The ranks of the unemployed is going to swell in the next 12 months, and many will be educated and actually be glad for the opportunity to bring home a paycheck. Smart move by Anderson, as many that will take his offer will be sorry they did so 12 months from now.

imp:​

While I don't usually agree with things you say, you do have a good point here. Anderson is not stupid, and you're right, getting rid of higher, longer employed people, and replacing them with newhires is a smart move.

737

 

[Tanker Clown]

Boy, I think we all saw this coming. Soon they won't be asking for volunteers. You can only hemmorage cash before so long.

 

[ACL65PILOT]

Noting is official yet for classes, but from what I have been told (unofficial, official will be in a day or two) One or both classes will probably run. Summer may not have any hiring, and then reevaluate next fall.
The is a very reactive action by Delta. Not something that has happened in the past. They are doing this now instead of a year down the road when we are over 1 billion in the red.
It is better to wait on the outside looking in, than to get a number and be lobbed off in two months. I know, I waited six years. This time lets all hope it never gets to that point.

 

[Tanker Clown]

Hire 'till you furlough. I guess SWA had a crystal ball when they started cutting back a year ago.