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Delta MEC Opinion/Editorial in the AJC

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Tim47SIP said:
This burden will not be shouldered by the DL pilot group alone, and if it comes to Ch. 11, it will ensure that the pain is spread out. It's amazing how many guys think that when mngmt says it needs XX%, that's what they really need...BS.


Are you sure this is what you want? You are absolutely correct in your above statement. Most likely the Judge will bring you down to industry average which would be somewhere around a 67% decrease in pay. By pay, he would also be bringing your A fund, B fund (or whatever they call all of those funds) and pension plan in alignment with the other carriers. At that point, he would then start taking additional funds from all of the employees to the tune of 10% or so below industry average. To bring ASA to 10% below industry average would be a 4-5% cut.
I think your MEC is well aware of this and will work to protect the upper half of the seniority list.

If DL goes Ch. 11, it will have little to do with the lack of a concessionary package from DALPA (although management will have you believe otherwise). That's management's decision.

Considering management's new $1 billion minimum concessionary package proposal which puts us in the 50%-60% range as far as cuts...in that case, yes, GG please go to the judge. He should have taken our "asprin therapy" over a year ago.

In reality, any MEC's job is to protect the most senior. If I was in the upper half, I would expect DALPA to protect what I've worked hard for all these years.

As for me, I'm in the 7100 range. Any new agreement, whether reached through a voluntary TA or BK, I stand a fair chance at getting furloughed again...that's life.

My trust is with John Malone and the DALPA Negotiating Committee. They are doing a superb job, though many don't think so.


DL_Infidel
 
Malone has stated that one part of the seniority will NOT gain over the expense over the other. The senior guys have had three great years of pay since 9-11, while the rest of the pilot group has experienced ups and downs thru different aircraft bids etc. They have reached their "best three" years, and now they will gain longevity and eventually get that pension. I expect Malone to cut wages in all sectors and fight to keep jobs, thru J4J or new pay scales for 100 seat jets. Malone and Wycoff (the actual negotiator) stated that they expect the recalls to remain in place--in some form--thru any negotiations.


Bye Bye---General Lee
 
Tim47SIP said:
From the perspective of a 27 year employee, his post was ill-informed, as are most regarding DAL. You are certainly entitled to your opinion, as is everyone on this board, that's what it is all about. But my opinion is his facts, as he states them, are for the most part not correct.

OK, exactly what was not correct? Then explain why.

.
I'll try. Most pilots on the current seniority list have over ten years remaining until age sixty. Over 600 pilots retired from DAL since June, 2003, most of them early. A statement implying that a certain group of "senior" guys will sacrifice their "junior" brothers to protect their pensions is absurd. As has been stated previously, John Malone is in his mid forties. For those who do not know, John is the MEC Chairman.

Contrary to what the targeted poster stated, DALPA does not negotiate for other employee groups. Again, mis-information being passed off as fact.

Perhaps this gentleman could also explain how DALPA caused the 100 seat payrates to sink into the toilet. I have no idea what he meant by his statement.
 
Whatever!

;) Contrary to what the targeted poster stated, DALPA does not negotiate for other employee groups. Again, mis-information being passed off as fact.

I think this is coming from the US Air J4J protocal (yes I know US Air is not DALPA). But it is also coming from the restraints that DALPA placed on the DCI carriers, i.e. X% of the flying can be done by Y which is understandable when viewed from DALPA's perspective. But if DALPA does set up a J4J protocal (which there is no rumor or proposal at the moment) then this could be argued. It can also be argued that with DALPA wanting to impliment wage restructuring agreements between Delta mngnt and non union work forces, as well as the WO's, that they are trying to negotiate other employee group's contracts.



Perhaps this gentleman could also explain how DALPA caused the 100 seat payrates to sink into the toilet. I have no idea what he meant by his statement.

"Pay rates on 100 seat aircraft are in the toilet thanks to mainline under-bidding the Regional pilots. Now there is better economic justification to sell the junior Delta pilots on Mesa style compensation to fly the "permitted aircraft types" to 130 seaters."

This is from the Jet Blue pay scale. He is saying that the carriers that fly mainline aircraft are the ones causing the downward spiral in pay structure. After looking at AWA, AA, UA, USA, etc, the actual downward pressure is not from the regional types, but rather the mainline types. For Delta to be able to take on 70's - 100+ seat aircraft, they WILL have to mirror ASA/Comair's pay scale. This just does not mean our hourly rates, but our complete compensation. Only a 401K,some medical, and the hourly rate, nothing else. I find this hard to believe that DALPA will agree to any pay that is this low, but who knows.

Considering management's new $1 billion minimum concessionary package proposal which puts us in the 50%-60% range as far as cuts...in that case, yes, GG please go to the judge. He should have taken our "asprin therapy" over a year ago.

Well dood, what exactly would that have done for Delta? 14% with only a 9% realized reduction. DALPA's own finance analysts stated it would be enough. Plenty of money to last untill 2005. Now where is DALPA. Pretty much stuck on this one. Also, why do you call it an asprin therapy? Do you think it would have saved Delta? I think GG has DALPA by the nuts and there is really nothing they could do. NO I DO NOT HOPE DALPA GETS SCREWED IN THIS DEAL! I really hope that an agreement that helps both sides is passed that does not hurt others in the deal (non DALPA people).
Good luck to all of you guys!! Tim.



 
Tim,


No doubt these are crazy times. This is exactly what managment is counting on. Dalpa knows this too. We have "cool heads" leading us, and they will make good decisions for us. As far as what will happen--it is everyone's guess. Only the negotiators really know. As far as J4J etc---I have no clue if that is on the table, but all I can look at is National ALPA and what they have done at other ALPA carriers. I look at NW--and their MEC saying that everything over 70 seats (and including 70 seats?) WILL BE THEIRS. I am just looking at trends here---just like I am sure management and Dalpa are doing. They have probably seen those new Jetblue rates.

As far as what Dalpa negotiates for DCI----I don't think that will really happen. Dalpa may negotiate for NEW aircraft--and that doesn't matter what size aircraft--the 7E7 or new CR7s. The RJDC doesn't have to give approval for new 7E7 rates, so why should Dalpa have to talk to them about possibly getting new rates and aircraft for our returning furloughs and the 1000 or so furloughed flight attendants who are also on the street.(This whole CR7 talk is just that---I have no idea if they would ever do anything with new CR7s---I am just trying to make a point)

The $1 billion a year "slip" someone over there "leaked" was supposed to have an effect on us---and also to get the creditors in motion too. We need a lot of contributions here, and not only from the only unionized labor group.

As far as Dalpa agreeing to lower pay--it has happened before. It was called Delta Express. Dalpa agreed to fly 737-200s for a lot lower wages ( after my 8 months as a 727FE, I went to Express--and I was flying the 737-200 for $32 an hour). It will happen again, and I don't know what type of aircraft would be flown, but we sure as heck didn't have 1020 guys out at the time in '96. We really want them all back, it has been almost three years.

I know Tim this is all crazy, and expect more to come. I know Dalpa is handling this well, and we want the company to come back to health, but we also want our guys back too. You guys at ASA have really helped, and hopefully this will all be resolved with everyone benefiting--except we will all eventually have lower pay---no doubt.

Bye Bye--General Lee
 
General Lee said:
Tim,
As far as J4J etc---I have no clue if that is on the table, but all I can look at is National ALPA and what they have done at other ALPA carriers.
If your MEC attempts the equivalent of J4J in the style of USAirways, things will get even more "interesting" than they already are. You are right about what ALPA national has done elsewhere, but this isn't elsewhere. Comair pilots are not likely to allow ALPA or you to "insert" anything, with or without KY.

The UAL model of J4J won't fly either, unless you forego the "higher pay for the same work" gambit in which case it could. One problem with that is you've already taken actions that prevent our growth so, unless you give them up, there will be no new vacancies that you might fill.

If you intentionally undercut our wages you will open yet another Pandora's box and subject yourselves to the prospect of a bidding war that is not likely to be benefical to your interests.

I look at NW--and their MEC saying that everything over 70 seats (and including 70 seats?) WILL BE THEIRS.
The NW scenario is not quite the same. Everything over 55 seats is already "theirs" based on their current contract. Their company has asked for "scope relief" to operate 72 seventy-seat RJs. They are countering with a proposal of their own to place those aircarft at the "mainline". To make that viable for their company, they will probably have to come very close to the USAirways lowball rate of $58 + no retirement + no benefits + no contract (as yet). That is the equivalent of doing what JBlue has just done. It is ironic to see, after years of accusing the regionals of being "cheap labor", how quickly you all seem willing to be even cheaper.

As far as what Dalpa negotiates for DCI----I don't think that will really happen. Dalpa may negotiate for NEW aircraft--and that doesn't matter what size aircraft--the 7E7 or new CR7s.
DALPA, as you call your MEC, has no right to negotiate anything for DCI. You are indeed free to negotiate for "new" aircraft. However, if those "new" aircraft are the same type that we operate, that will mean you are trying to take away one of our types and transfer it to yourself. I know you didn't say that but common sense tells us that Delta isn't going to set up three separate operations with the same aircraft type. That's hardly a way to "save" money. If you get one CR7, you will ultimately wind up with all CR7s. No surprise, you've been trying to do that for years. The ONLY way you will succeed, like NW, is if you can under bid our wages by a major amount. We can't stop you from trying, but for your own sake, hope that you don't get what you're asking for. If you do, you just might wind up having to fly those 737s for considerably less than you did at Delta Express; that is if you want to keep them.

The RJDC doesn't have to give approval >>
You are correct, the RJDC doesn't have to give approval for anything. Go ahead and do whatever you want. You're just tightening the noose around your own necks if you choose to engage in more predatory activity. It's your call.

Maybe it would be a better idea for you to focus on that 100+ seat aircraft that you want. Problem is you will now have to match or better JBlue if you expect to be competitive. Are you sure you want a 12-year captain to fly for $89 bucks or a 3 year captain for $74, with no pension plan and working to FAR's? That's what it will take if you expect to compete with JBlue.

Do that and it could mean we would be expected to fly the 50-seaters for $45 top of scale and the 70-seater for no more than $60 at the top of scale. At that rate the low man on the FO scale would have to work for minimum wage; i.e.., less than $10/hr.

Let's hope that you don't have to make major work rule changes on your current equipment on top of a huge cut in book rates. If you do, that may increase your furloughed pilots to a low bigger number than 1000.

Before you say it, NO I don't want you to have to furlough any more and YES I would like to see those now furloughed be able to come back ASAP. I just don't think that low-ball pay rates or attempts at J4J is the way to do it.

I understand you are just trying to "make a point". I'm trying to do the same. I sincerely hope your NC has better ideas than the options you've mentioned. Those don't seem to practical to me. There has to be a way to build a better mouse trap.

This IS all crazy and nobody likes it. JBlue may well have stepped on it's own tail with these super-low rates for its new aircraft. If it forces everyone to match them, they could lose their competitive advantage. Jet Blue may well have triggered the begining of its own demise.

Over the long term that might not be a bad thing, but the interim consequence is nothing short of disaster for those of us with work forces that have been around more than five years. The irony is that when everyone has become an LCC, the whole thing will be right back to square one. The only thing that will change is that instead of a bunch of upstarts competing against a bunch of dinosaurs, we will all be in the same boat and forced to begin round two of the same bloody mess. There is such a thing as being too high, but there is also a point of being too low. When it takes a 90% load factor to break even, many will fall by the wayside and it will not be limited to the so-called legacy carriers. We are not far from that now.

Here's hoping the BK judge can be kept at bay, but the truth is it doesn't look good at this point.
 
We are our own worst enemy.....

We screwed ourselves the worst.

As pilots, we are making management so happy.

Our fractionated interest groups (mainline vs wholly-owned vs contract vs all the others) is playing right into managements' hands.

Sad thing, for the suits in the corporate offices, it's just a game! They already have millions in the bank and Ch. 11-proof golden parachutes. I'd love to be a fly on the wall during one of their 3-martini lunches, or a caddie at one of their 27-hole golf rounds. A life of leisure.

For us, it's our livelihood, everything we worked for. Our kids' futures and our own nursing-home tuition. It's all disappearing fast.

All 'cause we can't get our act together as pilots.

We need a union (a REAL union), representing our collective long-term interests, not the momentary cause of a few.

'Fraid it's too late, though.

.......see you in the 777 earning $45 an hour!
 
Surplus1,


I can understand that you guys are worried, and Jetblue's new rates have just undercut your 70 seat rates, and that WILL have an eventual effect on your current and future wages. That cannot be denied. I know you are not "threatening me" with your tough talk, but I don't think Dalpa (or our MEC) really cares about the RJDC and their knack for trying to be a road bump in our future negotiations. As far as negotiating for future aircraft--yes, they can negotiate for anything NEW--and another Alpa airline has RJs the same size as their regional---Air Canada and Jazz. I don't know if they intend to go after your 70 seaters or any 70 seater, but thanks to the new Jetblue rates, the ability for ALPA to ask for new aircraft at rates lower than your 70 seat rates has become "competitive." Many on this board said, "you guys will never go for 70 seaters because the rates are too low for you rich Delta pilots...." Now, thanks to the Jetblue rates, even future 100 seaters will be attached to lower rates----and your 70 seaters will be even lower to stay "competitive" and Dalpa may just have to bite. Why don't you ask the RJDC to send Neeleman a mean letter too, maybe that will persuade him to change his mind? This whole thing $tinks, but we still have 1020 guys out and things (pay scales) are changing fast around here. Dalpa (our MEC) will do what they have to do to try to keep wages as high as they can be these days, and try to protect jobs. The only new planes I see possibly coming in the near term are 100 and 70 seaters--after huge pay cuts.

Bye Bye--General Lee
 
General,

A lot of your observations (in this post) are pretty much in line with what's happening. One place you go astray is your attempt to link the RJDC with declining compensation packages; that is not an RJDC issue. Hegemony is the issue.

I know that your MEC will do the best it can to keep your contract as intact as it can including, but not limited to, pay rates. I have no problem with that and we will do the same.

As I'm sure I don't have to tell you, the EMB-190 is certified at 106 seats and the EMB-195 at 118 seats max. That puts it in the "its yours" category. Therefore, with respect to JBlue's new rates it is you that has to be more worried than we.

Basically the JBlue debacle leaves you with two options 1) lower your rates and contract terms to match JB or 2) open your scope clause and give away the 100-seat category. Both of those options suck big time.

The seventy-seat segment more directly affects us, but the equation is little different. We have to deal with ALPA' USAir low-ball EMB-170 rate, which is no less onerous to us (and other reginals) than the JBlue deal is to you. We also have to watch what NW does with respect to their effort to capture the 70-seaters their company wants. If ALPA past practice is any indicator, the will copy the U deal or somethng similar.

In fairness to JBlue management it could be said that all they have done is jump on ALPA's lead of rushing hell bent to win the race to the bottom. Why a so-called labor union would do what ALPA has done leaves many to wonder as to the sanity of its leaders.

Once again, if your designs include attempts to place the 70-seat equipment at your airline (copying NW) you will have the same two options 1) lower your rates and contract terms to match USAirways or 2) open your scope clause and restore our unlimited access to this size aircraft.

With respect to the RJDC, I suspect that what you do with the EMB-190/195 categoty is of no concern. On the other hand what you attempt to do with the 70-seat category is of great concern. We are not blind to the ways of ALPA.

In my previous post, what I suggested was that it might be in your best interest to stay away from the "we want it" syndrome in the 70-seat category and give up on ideas like J4J. I still hold that opinion.

Regardless, there is no doubt that we will be impacted by these low ball rates and so will you. If you were smart, it is my opinion that this common impact should give you the motivation to end the dispute between us and produce a mutually agreed accommodation. To date I have not seen or heard anything indicating that your group shares this view. Instead you are still pounding your chests in the belief that you can do as you please with impunity. There's not too much time left for you to make a positive decision.

It appears much more practical that we confront this "problem" with a common interest as opposed to a continuation of fighting the war on two fronts. In the past your group hasn't been able to grasp that reality or if you have, has been unwilling to act. I'm just hoping out loud that the now common dilemma that we both face will give you a wake up call. As I've tried to point out previously, you really have a lot more to lose. Now that your own contract is in clear danger of vanishing even more completely than ours, perhaps you will see more light.

You already have the "union" on your side and working against us. We are fighting that and each time ALPA and you make another predatory overture our chances of winning get better. Plam B may be worth considering.

Management has been nuetral in the dispute so far. However, they are no longer "neutral" with respect to your negative impact on the cost structure. Depending on what you do now, you might well put them in our camp, rather solidly. While we don't want that to happen, I have to remind you that "self preservation is nature's first law." More directly, we simply can't allow you to do things that would, for practical purposes, put us out of business. You must come to the realization that our job security is just as important to us as yours is to you. We aren't asking you to take the hit for us. By the same token, don't expect us to take the hit for you. Each of us needs a better way to secure what is respectively "ours".

In my simple mind that means we are better off working as one than we are as three. We've been preaching that for four years now. Maybe it's time you listen. Candidly, bankrupt Air Canada is not an airline I would seek to emulate if I were you. In terms of structure, Jet Blue might be a better model. They may be dragging down pay rates excessively but at least they have as yet made no attempt to create competing groups and conflicts of interest within their own airline. You have, and seem determined to continue doing even more.

If letters to Needleman are in order they would better come from the Delta MEC than the RJDC. The RJDC has not claimed that the EMB-190/195 is a "regional" airplane. You have claimed that it is a "mainline" airplane, therefore it is your rates that JB is low-balling, not ours. You need to defend your own turf far more than we do.

ALPA, on the other hand is the principle cause of low-balling our compensation package. We are already telling ALPA what we think and they will undoubtedly hear far more before they hear less.

The RJDC is not trying to be a road bump in your negotiations. As long as you don't negotiate on our behalf (which you have already done) and use us as a bargaining chip, it is none of our business what you do. When you cross that line we will do what we can to stop you, any way that we can.

Yes, I know that you still have 1020 on the street and would like to see them accommodated in some practical way. Unfortunately it looks like what you may have to do will increase that number rather than reduce it. I do hope that can be avoided and I'm sure you will do your best. As long as what you do does not come at our expense, I think we are more than willing to assist you in finding a slot for them. I'm sure you understand that we can't hire your pilots unless we are growing and we can't grow because you are artificially preventing it. When you remove that artificial restraint there is no reason we should not help you and I am confident we would. You just can't put the cart before the horse.

I agree that the only "new" airframes that come in the short term will be in the 70 - 110 seat range. What we do together will decide where the company elects to allocate them. We are much more likely to find a mutually satisfactory placement of those aircraft when you decide to end your intransigence.

This is a real crisis and everyone in the Delta System will ultimately be affected by it. It is a time for equitable solutions to our problems, not a time for more chest thumping. We need to shake hands and move forward. You might consider that your ability to take what you want is somewhat diminished, whereas our ability to defend what is ours may have increased. Togetherness, is bliss.

Mutual adversity opens the door to opportunity. All is not lost, unless you choose to make it so (again).

Regards.



General Lee said:
Surplus1,

I can understand that you guys are worried, and Jetblue's new rates have just undercut your 70 seat rates, and that WILL have an eventual effect on your current and future wages. That cannot be denied. I know you are not "threatening me" with your tough talk, but I don't think Dalpa (or our MEC) really cares about the RJDC and their knack for trying to be a road bump in our future negotiations. As far as negotiating for future aircraft--yes, they can negotiate for anything NEW--and another Alpa airline has RJs the same size as their regional---Air Canada and Jazz. I don't know if they intend to go after your 70 seaters or any 70 seater, but thanks to the new Jetblue rates, the ability for ALPA to ask for new aircraft at rates lower than your 70 seat rates has become "competitive." Many on this board said, "you guys will never go for 70 seaters because the rates are too low for you rich Delta pilots...." Now, thanks to the Jetblue rates, even future 100 seaters will be attached to lower rates----and your 70 seaters will be even lower to stay "competitive" and Dalpa may just have to bite. Why don't you ask the RJDC to send Neeleman a mean letter too, maybe that will persuade him to change his mind? This whole thing $tinks, but we still have 1020 guys out and things (pay scales) are changing fast around here. Dalpa (our MEC) will do what they have to do to try to keep wages as high as they can be these days, and try to protect jobs. The only new planes I see possibly coming in the near term are 100 and 70 seaters--after huge pay cuts.

Bye Bye--General Lee
 
Tim47SIP said:
Considering management's new $1 billion minimum concessionary package proposal which puts us in the 50%-60% range as far as cuts...in that case, yes, GG please go to the judge. He should have taken our "asprin therapy" over a year ago.

Well dood, what exactly would that have done for Delta? 14% with only a 9% realized reduction. DALPA's own finance analysts stated it would be enough. Plenty of money to last untill 2005. Now where is DALPA. Pretty much stuck on this one. Also, why do you call it an asprin therapy? Do you think it would have saved Delta? I think GG has DALPA by the nuts and there is really nothing they could do. NO I DO NOT HOPE DALPA GETS SCREWED IN THIS DEAL! I really hope that an agreement that helps both sides is passed that does not hurt others in the deal (non DALPA people).
Good luck to all of you guys!! Tim.

We will never know what that would have done for Delta. Asprin therapy was what GG called our offer. And, yes, $300-$400 million per year would have helped. No amount of pilot concessions could have or would be able to save Delta...just prolong the inevitable if GG keeps this company on its current path.

I too wish an agreement that is palatable for both sides can be reached outside of BK. But GG needs to negotiate, not make outrageous demands.

I appreciate your best wishes for us.


DL_Infidel
 
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
 
General Lee said:
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.
 
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



General Lee said:
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
 
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.
 
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
 
michael707767 said:
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.
 
surplus1 said:
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
 

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