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...

 

[General Lee]

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...

Delta is swapping out CRJ 50 seaters for larger 76 seaters (not adding, but more of a one for one deal). DCI will get more 76 seaters if we at mainline grow. Due to the horrible congestion problems at JFK, adding larger RJs (76 seaters) adds seats and allows for more feed without adding more RJs. There comes a point, though, where we need to add mainline planes with a lot more seats (an MD90 has 156 seats vs 76 seats on a CR9) if the routes get consistantly full, especially since a CR9 and an MD90 both require a gate. That is why we are getting some MD90s and there are a lot more out there available. Anderson is still being conservative (only getting 9 MD90s initially) until things look a little better for the domestic side. The 7 737-700s we start getting next July will do a mix of domestic flying along with mostly INTL flying--to islands and Central America stuff.

A lot of newhires are going to the INTL 767 at JFK initally, but they are allowed to bid the domestic side (at a base other than JFK) right away if they choose. As we get the MD90s and 737-700s, expect more newhires to get assigned those if current pilots do not bid them on future bids.

The big deal coming up here for us is the arrival of 777LRs. We have 8 confirmed orders (4 in 08, 4 in 09), but rumors circulate that we will have 25 total in the next 3-5 years. That is a lot of movement. Our first two will come in March, and start ATL---Shanghai service (John Pennekamp--I forgot that new route too---sorry), which will be daily service. That will be 14 hours each way, and will require 2 Captains and 2 FOs on each flight. (there is a nice crew rest facility above first class) If we get 20-25 LRs, which will do the Long Range stuff (like ATL--Johanesburg nonstop supposedly), that will require a heck of a lot more pilots. And, everyone moving up to that plane allows others to move up to other planes. No doubt there will be a lot of 76 seaters out there because of our growth, but even one of those cannot replace the revenue brought in by a 156 seat MD88 or 90 with lease rates of only $80,000 a month, the same or less than a new CR9.


Bye Bye--General Lee

 

[Rez O. Lewshun]

Sounds like you might need ome B787s General...

 

[John Pennekamp]

How are you doing John?

Bye Bye--General Lee

Great! I'm enjoying flying one hour legs to cities that end in beach and spending lots of time at home. Enjoy those 6000 mile legs ya big stud!

 

[belchfire]

I'm surprised that anyone would go to a Major (well, since Major has been redefined to a $ revenue amount I guess I really mean "Legacy" for you youngsters) airline with no defined benifit retirement plan...but there are a lot of stupid people out there lowering the bar. Hell, I've been one!

 

[PeanuckleCRJ]

Hiring is continuing like crazy... 24 just started on monday (all assigned 767ER out of NYC).

Two classes of 35 each a month starting in January-- meaning hiring is increasing and not decreasing.

There is no decrease in mainline ships- they are simply transferring 10 aircraft from the domestic fleet to the international fleet. 35 RJ's are being cut, though.

Those of you attempting to gloat over a freeze: remember more mainline jobs= better career progression for everyone.