Delta realignment

[wms]

The problem is DAL can't afford to buy new planes, E170/190 or otherwise. If they are gonna put planes in the 70 seat or 90-110 seat range on line they're gonna have to pay someone else to do it. DALPA surely won't let another carrier fly 90-110 seaters, so that leaves contract carriers to fly the E170s, and leaves a gap in the 100 seat markets. One of the results of DALPA's giving in on scope IMHO. I'd rather see growth at ML than contract carriers, one of which I am now, thank you very much! So much for WOs doing 50% of DAL departures (I wonder DALPA/ALPA is on this).

DAL has gotten into more of a position of being a seat broker than an airline.

 

[79%N1]

The 70-100 seat jets will be fought out by the contract carriers, probably a combination of CHQ/REP and Skywest/ASA after DAL declares bankrupcy and their scope gets tossed out (See USAIRWAYS). Maybe even for E190 products. DAL cannot afford to buy these airplanes, and DALPA WILL NOT be competitive for what these other companies can fly for. Remember, overall costs are the factor, not just crew pay. Managers, dispatchers, cleaners, rampers and mechanics all cost more at DAL than CHQ or SKW! DAL needs to, and probably wants to compete with the likes of Airtran out of ATL and Jet Blue out of NY and FLA, but cannot with 50 seat RJ's OR old, expensive MD80's and 737's.

IMHO

 

[General Lee]

The problem is DAL can't afford to buy new planes, E170/190 or otherwise. If they are gonna put planes in the 70 seat or 90-110 seat range on line they're gonna have to pay someone else to do it. DALPA surely won't let another carrier fly 90-110 seaters, so that leaves contract carriers to fly the E170s, and leaves a gap in the 100 seat markets. One of the results of DALPA's giving in on scope IMHO. I'd rather see growth at ML than contract carriers, one of which I am now, thank you very much! So much for WOs doing 50% of DAL departures (I wonder DALPA/ALPA is on this).

DAL has gotten into more of a position of being a seat broker than an airline.

Could Air Canada afford the 35 777s and 20 787's they announced just outside of Canadian Chap 11? They were days from liquidation. The reason the whole deal fell apart was a disagreement between the old CP AIR pilots (who merged with Air Canada) and the Air Canada guys on who would fly what.... Sounds familiar.

Bye Bye--General Lee

 

[General Lee]

The 70-100 seat jets will be fought out by the contract carriers, probably a combination of CHQ/REP and Skywest/ASA after DAL declares bankrupcy and their scope gets tossed out (See USAIRWAYS). Maybe even for E190 products. DAL cannot afford to buy these airplanes, and DALPA WILL NOT be competitive for what these other companies can fly for. Remember, overall costs are the factor, not just crew pay. Managers, dispatchers, cleaners, rampers and mechanics all cost more at DAL than CHQ or SKW! DAL needs to, and probably wants to compete with the likes of Airtran out of ATL and Jet Blue out of NY and FLA, but cannot with 50 seat RJ's OR old, expensive MD80's and 737's.

IMHO

Grinstein said that there would be more 70 seaters with first class probably. Then he stated something about 737-700s flying to many new South American routes. He stated both Boeing and GE want to work with us. And, the expensive MD88s (you said MD80s) have all just gotten new interiors and bathrooms. They are not scheduled to leave anywhere until 2011 or 2012. And, Dalpa will fight for any 100 seaters if they ever do come up. USAir---the AWA side, is currently fighting against those 100 seaters at CHQ, since they know it is ridiculous. Too bad you do not.

Bye Bye--General Lee

 

[N2264J]

first of all, even if CMR and ASA had scope, do you believe it would be ironclad, or would there be economic or force majuer clauses just like there were in the mainline scope? I think you are fooling yourself to think your scope would have protected you anymore than mainline scope has protected us. Certainly not if BK is declared.

Try as you might to redirect the argument, your hypothetical misses the point. We were prevented by our own union from the opportunity to even attempt to protect ourselves from the serious hole in the mainline scope clause concerning "permitted aircraft." We were locked out. It's had the effect of driving this flying off the property and inducing a horrible whipsaw problem, courtesy of ALPA.

 

[General Lee]

Try as you might to redirect the argument, your hypothetical misses the point. We were prevented by our own union from the opportunity to even attempt to protect ourselves from the serious hole in the mainline scope clause concerning "permitted aircraft." We were locked out. It's had the effect of driving this flying off the property and inducing a horrible whipsaw problem, courtesy of ALPA.

Could you have "bought" scope against other regionals? Maybe. But, you went for the money.


Bye Bye--General Lee

 

[regionaltard]

And, Dalpa will fight for any 100 seaters if they ever do come up. USAir---the AWA side, is currently fighting against those 100 seaters at CHQ, since they know it is ridiculous. Too bad you do not.

Bye Bye--General Lee

And if they're willing to fly them for the third-world wages and bennies that are the byproduct of their tragic misunderstanding of Scope they will.....as long as someone doesn't underbid them. Welcome to the world you created......

 

[satpak77]

Then he stated something about 737-700s flying to many new South American routes.

Curious what these would be. Besides the major capital cities of South America, the other cities (Cali, Medellin, Chihuahua, etc) are flown by American or Continental themselves (non-codeshare) or their regional partners.

CAL prob has the most Mexico coverage and AA the most South America coverage

Wonder what "new market" Delta is going to tap into.

 

[michael707767]

Try as you might to redirect the argument, your hypothetical misses the point. We were prevented by our own union from the opportunity to even attempt to protect ourselves from the serious hole in the mainline scope clause concerning "permitted aircraft." We were locked out.

so you say. My sources say otherwise.

 

[michael707767]

Maybe even for E190 products. DAL cannot afford to buy these airplanes, and DALPA WILL NOT be competitive for what these other companies can fly for. Remember, overall costs are the factor, not just crew pay. Managers, dispatchers, cleaners, rampers and mechanics all cost more at DAL than CHQ or SKW! IMHO

first of all, you are right. Pilot costs are not the only issue. However, I do believe the Delta pilots will have no choice but to become competitive in our positions. But managers, dispatchers, cleaners, etc don't have to cost less than or equal too CHQ. They just have to be competitive with Airtran and JetBlue. If they cost more than those airlines, they are overpaid. We are all headed to a similar cost structure. The sooner everyone, from pilots to rampers, realize that, the better. Second, Delta will have to replace aircraft. Its like fuel really. Its one of our "raw" materials. You can't build cars without steel. You can't move furniture without trucks. And you can't fly passengers without airplanes. At some point you have to have aircraft to operate an airline. You can't make money if all you do is code share. Once Delta gets its overall cost structure in line, financing will become available. Plus, I suspect if Boeing is not willing to wheel and deal with Delta for new aircraft, Airbus will be willing. Or even Embraer. But Delta will get new aircraft.

 

[MedFlyer]

Could Air Canada afford the 35 777s and 20 787's they announced just outside of Canadian Chap 11? They were days from liquidation.

Bye Bye--General Lee

Not really a comparable situation as Air Canada has a near monopoly and the Canadian gov't would never have allowed them to liquidate.

But for more accurate comparisons...take a look at UAL and USAirways. Do you see them buying up lots of new planes? No. They've deferred deliveries for many, many years into the future. Even healthier carriers like AA aren't buying up planes. AA will take delivery of 2 777's and then nothing until 2010.

If AA can't afford planes for that long, what makes you think DL (a far weaker airline) can?

DL's credit rating is so poor that attractive financing just isn't going to happen. And a CH11 filing won't help the matter...DL will be viewed as a deadbeat. Why should Boeing cut a deal with DL for new 737's when more stable carriers like Airtran and Southwest are buying them up rapidly?

 

[Gregorio]

This is my first post here after lurking for six months or so. I've just got a plea from those of us on the slower side. All the acronyms that everyone is so fond of using here makes the threads really hard to follow. Some posts seem to have more acronyms than actual english words. Examples are DL, DAL, CAL, CMR, LCC, INTL, ML, JB, COEX, DCI, CVG, XJT, RJDC. I can figure out about half of them, but they still make it very hard to read a thread with any kind of comprehension. Equally bad is the abbreviating of aircraft types like 738. It took me about two months to figure out that this meant 737-800.

I'm a product of the mississippi educational system, and a Marine, so God knows I'm not qualified to give any english lessons. I'm just asking folks to take the extra second to type out the names so we dumbasses can follow.

Thanks

 

[skykid]

Once again MedFlyer is right on the money with this topic. Delta isn't going to be buying any aircraft anytime soon and has little in common with Air C.

NWA and Delta ARE going to shrink their domestic operation, either in Ch11 or not. Delta will have to do it out of ATL, and it will be a double digit percentage loss of seats. I doubt Delta is going to do this outside of Ch11.

I see two possible lines of thinking at Delta. Either their mgt figures they aren't going to survive a trip to bankruptcy, so they are going to fight tooth and nail to stay out, or they will go Ch11 in the next 6 weeks before the rules change.

Here's hoping the price of jet fuel takes I dive and I'm wrong!

 

[JoeMerchant]

Uh oh, someone is on his rant again.

JB is that you????

No, but JB does have some valid points. He tells it like it is, not necessarily the way ALPA wants to tell it. I like people who question authority - BOTH sides! Rumor has it some of the ASA MEC members are dissapointed with the recent elections over at DALPA. One of the status reps said "that DALPA is going back to the way it was". Is that really a surprise to you guys? Didn't JB warn you?

Joe

 

[chperplt]

Didn't UAL just buy some new airplanes in conjunction with exit financing from Airbus?