Delta says me to, me to !!!

[flaps30]

In a constant effort to follow Jet Blue...

Dow Jones Business News
Delta Air: Delta Will Expand Fleet With 100-Seat Planes
Tuesday June 10, 1:23 pm ET
By Ann Keeton, Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)--Delta Air Lines Corp. President Fredrick Reid said low-cost competitor JetBlue Airways Corp. (NasdaqNM:JBLU - News) "has an enormous amount of upside" in the industry, but that the carrier's surprise announcement Tuesday that it will order as many as 200 smaller planes from Embraer "isn't hugely material" to the nation's third-largest air carrier.
Reid told analysts at a conference Tuesday that the scramble to meet competition from low-cost carriers will continue. Stiff competition shifting the "balance of power" in the industry may result in liquidation or more bankruptcies among the six major U.S. airlines in the two years before JetBlue takes delivery on its new aircraft.

With its strong balance sheet and healthy cash flow, Delta won't be one of the airlines in trouble, Reid said.

The planes JetBlue will buy fill a niche between smaller regional jets and big mainline aircraft, Reid said. He said Delta's next change to its fleet will include adding 100-seat planes. He didn't say how soon the carrier will add the new aircraft.

Reid said Delta's own low-cost venture, Song Air, launched this spring, is doing better than expected. He said the airline's cost efficiency depends heavily on Delta's ability to cut labor costs. Using non-union employees, Delta has been able to increase productivity between 12% and 18%, he said. Song will operate 36 aircraft by November.

Reid expects Delta's pilots, the only major unionized work group at the airline, will vote this week to open their current contracts for renegotiation.

He said that's essential because Delta is cost-competitive with other airlines in most ways, but that "most of the cost differential is in employment cost."

Reid said Delta hopes to keep wages "relatively attractive" for its non-union workers, which comprise 52,000 of its total workforce of 60,000.

Delta's long-term goal is to cut unit costs, or cost per seat mile, by 15% by 2005, bringing Delta's revenue and cost structure back to the same level it enjoyed in 2000.

Reid said $2 billion of the $2.5 billion cost cutting plan has already been identified. By Ann Keeton, Dow Jones Newswires; 312-750-4120; ann.keeton@dowjones.com

 

[General Lee]

Flaps30,

We have known for awhile about the 100 seat option. The 737-200 is currently our "100 seater" and it is an expensive alternative. The leases are still good for a couple years, but after that we will need to get a replacement. For the last year we have been hearing about the A318, the 737-600, and the Emb jet. I think they were waiting to announce it after they could lower labor costs.


I like this quote:

"Reid expects Delta's pilots, the only major unionized work group at the airline, will vote this week to open their current contracts for renegotiation."

What? We aren't voting on anything. Dalpa is taking their sweet time in evaluating what we should and should not give up. Notice that Delta hasn't asked any of the other employee groups for money, and we are the only ones with a contract. I highly doubt Dalpa will accept being the only ones to give. Delta would love it for us to give in right now, right away. How many times do you think during contract negotiations our management has stalled and taken an extra "two years" or so on a new contract?
The answer is everytime. We will take whatever time we need to look this over carefully, and anything we give will have some sort of a snapback, or contract extension etc.....

Bye Bye--General Lee
"

 

[Networ-King]

General,

Don't forget to include in your post that our brilliant management during these upcoming negotiations for employee compensations (pilot pay ofcourse) they have raised the 45 million they raped out of Mainline for their own pensions up to 65 million. Hmmmm I am so proud of Delta right now let me tell ya................

 

[flaps30]

pay cuts

I don't think Delta really needs to take a pay cut, the industry is coming back, slowly but improving. If Delta can afford to continue buying RJs for us, why should anyone have to take a paycut. The only paycuts are airlines close to BK or regionals competing for the crumbs and the promise of a shinny new jet to wear those cheezy Ray-Bans in. I just don't see it now, two months ago I thought we would all be making less.

 

[corky]

Flaps30,

.......For the last year we have been hearing about the A318, the 737-600, and the Emb jet....

Delta people have been at the 717 factory within the last couple of weeks. They were flying the sim and checking out the production line.

 

[General Lee]

Corky,

That's right, I forgot to include that. I have heard they wanted a 717 varient that could make it nonstop from CVG to SEA. We'll see if Boeing can make it happen, and for the right price.

Flaps30,

I agree, but I think Dalpa might go for a 10% paycut---as long as they can get a contract extension of a couple years. We like our current contract and think things might be a lot better in a couple more years to negotiate for the next contract. But, we will supposedly not give up anymore people or anything that is too expensive. Maybe some per-diem money, and our next May raise, and maybe 5-10% etc. But not the 22% whcih really translates to 31% after you include the May raises. No way.

Bye Bye--General Lee

 

[General Lee]

Mailman,

Ok, what? You are obviously the type who falls for everything and would give in on any whim. Yes, Delta lost some major cash last quarter (in the range or $400mil), but we just got more than that from the Gov't. Things are starting to pick up, and the economy is getting better. Our loads are filling up, especially to Europe, and even Wall Street is taking notice----Fitch just gave us an upgrade. But hey, let's just give it all away. And, since we are the only group with a union that actually pays dues for a good contract, none of the other groups have to give a dime. Give me a break man!!!

Bye Bye--General Lee

 

[wil]

Pay cuts at Mainline are not the answer!! I frequently taxi next to AA's 777s and when I think of the lives and cargo under that crew's command I hope to God they are being paid 300+ per hour!! At what point were professional pilots neutered? We need to stand up for our profession!!! My 25 year old cousin, studying for the OK bar, has a job waiting for her- 60k per year! 3 years of Law School true but 60k? Let's stop the race to the bottom. And, for Delta, no more contract flying! Bring in our furloughed brothers/sisters at ASA and Comair and lets get going! There is more than enough flying until the economy picks up- thoughts? Wil

 

[rjcap]

IF Leo and 34 other of his top cronies can prefund their pensions to the tune of 38 million while the Delta general pension fund is underfunded by 4.9 billion, I would have to give Leo and the rest of them a royal f--k you.

This business has become pathetic.

 

[General Lee]

RJCAP,

I know what you're saying, and I just read in the Atlanta Journal Constitution that it's more like $65 million to cover their pensions. But, our pension shortfall is really a function of the stock market--as it goes up (and our stock has dooubled in 6 weeks) the shortfall decreases. But, what are management did is not right, and now they expect us to pay for it. I personally think Dalpa will give in a little, but not the 31% or whatever they wanted. Things are starting to turn around, and I hope it continues for all of us. The only thing you guys now need to worry about is the Skywest TA and how it will affect you guys. That is a whole different story.

Will,

Thanks for your support. We want our furloughs to come back too, and then the ASA pilots who supported us to get their interviews.

Bye Bye--General Lee

 

[rjcap]

Gen Lee,

Your correct, the article said 65 million. I guess that is chump change right ?? Unbelievable.


4.9 billion is a balance sheet liability that won't correct itself overnight. I would consider this a very serious issue.

You think the stock market is down now pray to God and Alan Greenspan that interest rates don't go up or the stock market and the construction industry will go down the toilet. Remember 1991 ?

 

[CU@OSHKOSH]

rjcap, General Lee, wil, Networ-King,

Please don't give those corporate geed-mongers a dime, if and when our contract is opened up again. We 1,310 furloughees have already given our 100% paycuts. And we probably will not be back in DAL's cockpits for many years to come.

I can barely stand to keep reading the "news" articles about the need to retain (and highly compensate come hell or high water) the "best and brightest" management types in order for DAL to succeed. Garbage.

Trying to forge ahead and keep things in perspective.

 

[Networ-King]

Oshkosh,

Don't include me in that bunch. Im with you .... out on the street on my second furlough now in two years. Somebody needs to clean house at all the majors. All of these managment pukes need to be rid of someway or somehow. At least the AA pilots had some balls and kicked Carty out? HHMMMM I wonder where he is now? Oh yeah, he's exactly where our FU*KED up managment would be if they got canned. On the FU*KING street with nowhere to go, cause nobody wants a Friggin loser. I hope DAL pilots grow a pair and oust the whole bunch of morons running the show into the ground over there on virginia ave. What a clusterfu*k. 65 million dollars to line their pockets and they want us to take a pay cut WTFO?

 

[CU@OSHKOSH]

Sorry Networ-King,

This is also my second furlough and I heartily agree with your sentiments. Good luck Bro.

 

[General Lee]

Cu@OSHKOSH and Networ-King,

I know this is another rough time in both of your careers but better times are on the way. I don't think Dalpa is going to give away the farm, but they continue to meet and confer without our input sometimes---you know how it goes. What I hear on the line could be totally different in the Dalpa MEC secret meetings. With things getting better in the industry, I doubt we would give the full 31%, and if we did give anything---like a probable 10%-15%, it would be with conditions that would be favorable (hopefully) to all of us---like extending the contract a year or two, or snapbacks etc... With Jetblue getting larger RJ's for their mainline pilots, it also might be more favorable for Dalpa to get some future 70 seaters or no doubt some 100 seaters. I think they know there are 1310 faces that are also staring at them, expecting support. Also, I don't think our employee group will be the only ones to give if we do give. We are the only ones with a contract. And, the $65 million pension thing is the hot topic in all of the crew lounges. Stay strong and I hope to meet you guys on the line someday soon.

Bye Bye--General Lee

 

[Blue Dude]

I thought this was appropriate: http://www.unitedmedia.com/comics/dilbert/archive/images/dilbert2003024391606.gif

 

[General Lee]

So true