Delta MEC Opinion/Editorial in the AJC

[General Lee]

Surplus1,


You are correct in your statements as well, but the Jetblue rates affect everyone with 100 seats and less. Those rates will be brought up in every future negotiation for any regional or 100 seat operator. I am not happy about them, just like everyone else. It looks like my first eventual Captainship will eventually be on one of those, and the rates aren't great.

As far as who might get a new aircraft type---I can't see Dalpa giving away jobs with 1020 guys out on the street. That would delay their return even longer. There hasn't been a good solution so far---J4J's doesn't seem popular with you guys, and at the same time your company (your management) hasn't been very friendly to our furloughs when it comes to seniority resignation. There hasn't been an agreement yet on what to do with over 1000 furloughed pilots---and only ASA has stepped up to the plate and offered them a job--even at the bottom. You can probably see that our MEC is aware of that and might ask for things that would be more advantageous for them. Grinstein wants large pay cuts, and Dalpa and the MEC are aware that they cannot shoot themselves in the foot by ignoring the fact that a large percentage of their constituency (future votes also) has been affected greatly and over 1000 would like to come back to work. This will prove tricky, but I have faith that our MEC will come up with a solution that will be palitable for most.

I don't know if the MEC will be asking for new 70 seaters---but I have a feeling Delta will be asking for some new ones. It will be interesting to see where this will end--but with the lowering of the 100 seater bar, and the probable capitulation of pay rates---anything could happen.

Bye Bye--General Lee

 

[michael707767]

Surplus1,


You are correct in your statements as well, but the Jetblue rates affect everyone with 100 seats and less. Those rates will be brought up in every future negotiation for any regional or 100 seat operator.

I agree with Gen Lee. The JetBlue 100 seat pay rate will affect more than just 100 seaters at other airlines, and will certainly affect regional pay, even though it is a larger aircraft. In fact, Surplus 1, you once told me the biggest thing holding back CMR on pay rates was the pay rate at Delta Express for the 737, that CMR would never agree to pay you more than Express was paying for the 737. The same thing will apply. In your next negotiation, be it in or out of Sect 6, the Jetblue pay rate wil be the basis, and they will ask why they should pay you more for a 70 seater than Jetblue pays for a 100 seater. The JB pay rate will affect us all.

 

[surplus1]

General,

Just like "merger", the term "Jets for Jobs" has no isolated or clear definition. "The devil is in the details".

If the Company (Delta) buys more 70-seat jets and (for example) decides to place them at Comair, I am NOT against using that opportunity as a means to accomodate some of your furloughed pilots. The problem is not what we do, but how we do it.

In the USAir "model", J4J allocates a percentage of positions for USAir pilots, places them into the captain seat (violating seniority) and compensates them (FO's) at higher pay rates than the receiving airline. In some cases it also affords them special furlough protection. All of that was done by ALPA without consultation or participation by the receiving pilot groups. That is a non-starter.

It is not a system that I could ever see Comair pilots accepting. We see that as a seniority grab and abrogation of our own contract in your favor at the direction of our union. It could never work. It causes the same reaction among us that the alleged claim/demand of DOH causes in the Delta pilot group when someone uses the terms "merger" or "seniority integration."

On the other side of the coin when we use the term "staple", many of you say you would not oppose a merger with Delta. I say, and its just my opinion -- but I think it is shared by my pilot group --- If you use "staple", modified to include appropriate protections for both parties, then it is doable. A "pure staple" is not doable. Once more "the devil is in the details".

The same concept applies to "jets for jobs". If we expand as the result of the restoration of "Scope" to its 1996 levels in your contract, then I think (again my opinion) that there is no reason why any new jobs created, at the bottom of our list, could not be made exclusively available to furloughed Delta pilots. In fact, I think they should be. That's very different from the USAir model.

As long as you are not demanding any form of "super seniority", it's doable. What's more, it ought to be done. Also, it would not require any promise of future preferential hiring from you guys (a promise on which you can't deliver anyway) or anything else. It is just the "right" thing to do.

Of course we would still have to overcome our management's objections, but under those circumstances, I feel most of us would be more than willing to invest in making that happen. A joint decision on how best to move forward is far different than attempts to coerce of force one's way. Efforts by ALPA to force or coerce will fall on deaf ears.

It's not always what we do that matters but how we go about doing it. The last attempt caused a "rukus" because the method employed was offensive to us. Debating why solves nothing.

As I said earlier, we are both facing adversity. Perhaps that is "new" to Delta pilots, but it is NOT new to us. We've been challenged before and we met that challenge. We will meet this one too. Hopefully we can capitalize on this moment of dual adversity and convert it to an opportunity that benefits both groups. Many such "opportunites" to resolve the conflicts between us have been lost before. It may be time to stop arguing about who is to "blame" and spend our energies on resolving our differences. There is little doubt that working with each other is better than working against each other.

Regards

Surplus1,


You are correct in your statements as well, but the Jetblue rates affect everyone with 100 seats and less. Those rates will be brought up in every future negotiation for any regional or 100 seat operator. I am not happy about them, just like everyone else. It looks like my first eventual Captainship will eventually be on one of those, and the rates aren't great.

As far as who might get a new aircraft type---I can't see Dalpa giving away jobs with 1020 guys out on the street. That would delay their return even longer. There hasn't been a good solution so far---J4J's doesn't seem popular with you guys, and at the same time your company (your management) hasn't been very friendly to our furloughs when it comes to seniority resignation. There hasn't been an agreement yet on what to do with over 1000 furloughed pilots---and only ASA has stepped up to the plate and offered them a job--even at the bottom. You can probably see that our MEC is aware of that and might ask for things that would be more advantageous for them. Grinstein wants large pay cuts, and Dalpa and the MEC are aware that they cannot shoot themselves in the foot by ignoring the fact that a large percentage of their constituency (future votes also) has been affected greatly and over 1000 would like to come back to work. This will prove tricky, but I have faith that our MEC will come up with a solution that will be palitable for most.

I don't know if the MEC will be asking for new 70 seaters---but I have a feeling Delta will be asking for some new ones. It will be interesting to see where this will end--but with the lowering of the 100 seater bar, and the probable capitulation of pay rates---anything could happen.

Bye Bye--General Lee

 

[sleepy]

http://www.ajc.com/business/content/business/delta/0704/13delta.html

None of this stuff really matters anymore. Just go ahead and stick a fork in DAL, the BK judge will figure all of this stuff out for you real soon.

 

[General Lee]

Malone would not negotiate if he thought it would get renegotiated in Chap 11 anyway. If he is negotiating, then there is a good chance we won't go Chap 11. That is a non-cash charge, not good anyway.

 

[General Lee]

Here is an explanation of the charge from someone on the Dalpa board:


This is a reversible charge. Once profits start rolling in they will reverse this charge do avoid paying income tax in the future while suppressing todays numbers.

The gist is that you have expenses that you would normally use to offset income, thus reducing your tax load. Since Delta has not been showing a profit they have been accruing these expenses as "deferred income tax assets".

When they start showing a profit they use these "deferred income tax assets" to reduce or eliminate their tax bill. By "writing off" these deferred income tax assets they are forcing themselves to pay income tax on a quarterly basis. This helps them to greatly reduce their quarterly earnings simply by paying income tax.

** This charge they are taking is reversible with a look back option of several years. Therefore, they can suppress earnings now and make things look bad but then in the future reverse the "write off" and receive a refund for taxes paid or simply use it to offset their income at that time.



Bye Bye--General Lee

 

[surplus1]

I agree with Gen Lee. The JetBlue 100 seat pay rate will affect more than just 100 seaters at other airlines, and will certainly affect regional pay, even though it is a larger aircraft. In fact, Surplus 1, you once told me the biggest thing holding back CMR on pay rates was the pay rate at Delta Express for the 737, that CMR would never agree to pay you more than Express was paying for the 737. The same thing will apply. In your next negotiation, be it in or out of Sect 6, the Jetblue pay rate wil be the basis, and they will ask why they should pay you more for a 70 seater than Jetblue pays for a 100 seater. The JB pay rate will affect us all.

Mike,

On this we agree. I don't think I said we would not be affected by this JB scale. I just think the "mainline" will be affected more. Our principal worry will be the USA 70-seat rate, which is lower than JB. For folks like us that will become the basis, not the JB rates. The JB rate will become the bottom of the mainline. Not only will than run downhill, it will also drag down much above it in the narrow-body segment.

You have a good memory. I did say that about the 737 rates at Delta Express and it was true. It would be true of the JB rate also, were it not for the even lower rates at USAir in same size equipment. I expect they'll be asking about that long before we get to Section 6.

Too bad Delta doesn't have any money. If they did they could buy JBlue and get rid of the competition that way. It is not at all unusual for a big company to buy a small company when it poses a competitive threat. That's why Delta bought us. It's also why we should have bought ValueJet or closed the Spirit deal when we had the chance before Delta bought us. Ahhhh the beauty of hindsight. Too bad the powers that be didn't see the danger of the start-up when they had the power to do something about it, like AA and was it Muse Air.

Maybe SW will gobble them up before they get too big and pose a serious threat. Think we could start that rumor?

Thinking out loud, I wonder what will happen when one or more of these LCC's decides to cross the pond? What we have today is the equivalent of cabotage, except for the fact they're flying the same flag.

 

[michael707767]

You have a good memory. I did say that about the 737 rates at Delta Express and it was true. It would be true of the JB rate also, were it not for the even lower rates at USAir in same size equipment. I expect they'll be asking about that long before we get to Section 6.

I fully agree that the MAA E-170 rate will affect you. Which one affects you more is up for debate. As someone else pointed out, the 170 rate at MAA is for an airline in bankrupcty and possibly on its last legs. It could be argued that its an aberation in the industry. The JB 190 rate is at a company that is profitable. So I don't know which one will affect you the most, I could argue either way.
Mike