Sent: Tuesday, October 07, 2003 8:50 PM
Subject: Letter from the Head of 737 Training at DAL to his Instructors...
September 15, 2003 An open letter to all 737 SLIs:
Things are pretty tough right now, aren't they guys? There seems to be no end to the gloom and doom we hear about Delta and the rest of the "big boys" in the airline industry. United may not emerge from bankruptcy. US Air not much better off. American slashing costs and employees with reckless abandon. Southwest, Air Tran, Jet Blue . . eating into our markets. Our own company publicly asking for huge mid-contract concessions. We've got some
cash to last awhile, but without a better revenue picture and lower costs to produce our product, it seems only a matter of time until something gives.
You know me. I represent the Company in some of your eyes. But, what I have to say here is not from the perspective of a Company pilot, and I'm not a Kool-Aid drinker. I've been in management for 4-5 years, but I've been in ALPA for 16. I have 13 years to retirement. Saying what somebody else told
me to say in an effort to sway your opinion isn't my style, and it wouldn't fool you anyway. What I have to say here might not sit well with the lead dog on either side of the argument. But, it needs to be said. If you're interested in what I think about our situation, read on. If you aren't, you can stop here. This isn't an official memo.
Anybody remember when Sears and Roebuck Company and Montgomery Ward were going strong? Anybody remember when JC Penny was on top of the retail world? I do. I'm old enough to remember when Sears and Wards and Pennys were the
business leaders in retailing. They had the lion's share of the market. They competed with each other, but there was plenty of business for everyone. Life was good, then. It's not so good now. What happened to them?
The market changed. Seriously changed. A company called Home Depot found a better and cheaper way to provide what the customer wanted. A dude named Sam Walton founded a company that could put the product in the customers hands
for less . . much less. The business model that the Sears and Montgomery Ward and JC Penny guys were using started to fall apart. They couldn't compete. The customer was demanding more for less, and someone was in a position to provide it for them. Sound familiar?
Right now, there are pilots (and other employees) at Southwest, Jet Blue, and Air Tran that are doing the same job you do, but they are doing it for less money. They don't belong to ALPA and could care less about what ALPA National thinks or what you think. It's part of what has made American economics great, like it or not. Supply and Demand. There are pilots who will supply the manpower needed to fly the airplanes, and they'll supply it
at a lower cost to their respective companies than we do for ours. And it's not just pilots, but labor in general. That gives their company a competitive advantage. The simple fact of the matter is we are being Wal-Mart'd and Home Depot'd out of business. The aviation version of the warehouse approach flies orange 737s and Airbusses with blue tails and green 717s by the dozens out of our own hub, right here in Mecca.
Now for the emotional part. It doesn't really matter what you or I think about Mr. Mullin or the SERP; it doesn't matter whether you like Mr. Reid or Ms Escarra. Their pay and benefits are driven by market forces, just like ours . . anybody got a "United +1%" sticker on their flight kit? Tying our future actions to past emotional events would be cutting off our noses to
spite our face, literally. The way I see it, we have a choice to make. A career impacting choice. A "will you be working for Delta in 5 years?" kind of choice.
We are made up of several different special interest groups within the Delta pilot collective. There's the real senior group, who are within a few years of retirement. There's the middle group, hired during the late 80's and early 90's . . just getting comfortable as or just making Captain. Then there's the "post Contract '96" group, mostly hired from '96 on. Make no
mistake, there are competing interests here. The senior group has shown much of their hand . . witness the recent spate
of early retirements. They are mostly in the widebody and international Captain seats . . the highest paid positions in the pilot group. Let me be blunt . . many of them believe their best interests are served by maintaining the highest possible paycheck for the next few years. Some of them saw the handwriting on the wall and bailed early. I would have too, in
their position. So would you. The remainder have FAE and lump sum to worry about . . if Delta can just hang on a little longer.
(continued...)
Subject: Letter from the Head of 737 Training at DAL to his Instructors...
September 15, 2003 An open letter to all 737 SLIs:
Things are pretty tough right now, aren't they guys? There seems to be no end to the gloom and doom we hear about Delta and the rest of the "big boys" in the airline industry. United may not emerge from bankruptcy. US Air not much better off. American slashing costs and employees with reckless abandon. Southwest, Air Tran, Jet Blue . . eating into our markets. Our own company publicly asking for huge mid-contract concessions. We've got some
cash to last awhile, but without a better revenue picture and lower costs to produce our product, it seems only a matter of time until something gives.
You know me. I represent the Company in some of your eyes. But, what I have to say here is not from the perspective of a Company pilot, and I'm not a Kool-Aid drinker. I've been in management for 4-5 years, but I've been in ALPA for 16. I have 13 years to retirement. Saying what somebody else told
me to say in an effort to sway your opinion isn't my style, and it wouldn't fool you anyway. What I have to say here might not sit well with the lead dog on either side of the argument. But, it needs to be said. If you're interested in what I think about our situation, read on. If you aren't, you can stop here. This isn't an official memo.
Anybody remember when Sears and Roebuck Company and Montgomery Ward were going strong? Anybody remember when JC Penny was on top of the retail world? I do. I'm old enough to remember when Sears and Wards and Pennys were the
business leaders in retailing. They had the lion's share of the market. They competed with each other, but there was plenty of business for everyone. Life was good, then. It's not so good now. What happened to them?
The market changed. Seriously changed. A company called Home Depot found a better and cheaper way to provide what the customer wanted. A dude named Sam Walton founded a company that could put the product in the customers hands
for less . . much less. The business model that the Sears and Montgomery Ward and JC Penny guys were using started to fall apart. They couldn't compete. The customer was demanding more for less, and someone was in a position to provide it for them. Sound familiar?
Right now, there are pilots (and other employees) at Southwest, Jet Blue, and Air Tran that are doing the same job you do, but they are doing it for less money. They don't belong to ALPA and could care less about what ALPA National thinks or what you think. It's part of what has made American economics great, like it or not. Supply and Demand. There are pilots who will supply the manpower needed to fly the airplanes, and they'll supply it
at a lower cost to their respective companies than we do for ours. And it's not just pilots, but labor in general. That gives their company a competitive advantage. The simple fact of the matter is we are being Wal-Mart'd and Home Depot'd out of business. The aviation version of the warehouse approach flies orange 737s and Airbusses with blue tails and green 717s by the dozens out of our own hub, right here in Mecca.
Now for the emotional part. It doesn't really matter what you or I think about Mr. Mullin or the SERP; it doesn't matter whether you like Mr. Reid or Ms Escarra. Their pay and benefits are driven by market forces, just like ours . . anybody got a "United +1%" sticker on their flight kit? Tying our future actions to past emotional events would be cutting off our noses to
spite our face, literally. The way I see it, we have a choice to make. A career impacting choice. A "will you be working for Delta in 5 years?" kind of choice.
We are made up of several different special interest groups within the Delta pilot collective. There's the real senior group, who are within a few years of retirement. There's the middle group, hired during the late 80's and early 90's . . just getting comfortable as or just making Captain. Then there's the "post Contract '96" group, mostly hired from '96 on. Make no
mistake, there are competing interests here. The senior group has shown much of their hand . . witness the recent spate
of early retirements. They are mostly in the widebody and international Captain seats . . the highest paid positions in the pilot group. Let me be blunt . . many of them believe their best interests are served by maintaining the highest possible paycheck for the next few years. Some of them saw the handwriting on the wall and bailed early. I would have too, in
their position. So would you. The remainder have FAE and lump sum to worry about . . if Delta can just hang on a little longer.
(continued...)
