Isn't it better for Delta pilots to have it that way? Less airframes at DCI, but the ones that are flying have more seats/first class? It's about revenue and costs, right? If the plane is going to fly, isn't it better to have more people on it, more revenue? This makeds DAL's bottom line healthier and increases your profit sharing check. A profitable company means more stability and possibly growth, no? You have protection by the overall (less) number of planes flying for DCI, and have capped the size at current levels. Sounds like a win. You geta all balled up by the seats. The plane is going to fly DCI from MEM to GPT anyway. Isn't it better to have it carry 70 people - maybe some paying a higher first class premium - than have it fly with 50 people.
That's how some people are looking at it. The 50 seaters are money losers with high gas, and we can all wish them to go away, but what if there are leases on them that prohibit that economically. We can be mad at the people who did that, or we can accept it and then try to figure out what to do next. We can just continue to fly them at a loss, park them and pay for them, or unfortunately do this.
Here is the "carrot" for allowing this (and we all know it is a carrot):
Delta to Take Delivery of Boeing 717 Aircraft Upon Ratification of Pilot Tentative Agreement
Delta to upgauge fleet while replacing less efficient aircraft
Pilot agreement and aircraft transactions provide value to Delta people, customers and shareholders
ATLANTA, May 22, 2012 /PRNewswire/ -- Delta Air Lines will begin taking delivery of Boeing 717 aircraft as early as 2013 upon ratification of a new tentative agreement covering Delta's more than 12,000 pilots. The tentative agreement was approved on May 21 by the Master Executive Council (MEC) of the Delta Air Line Pilots Association (ALPA), and now will be presented to pilots for review and ratification through June 30.
The tentative agreement provides career growth opportunities as well as pay and benefits improvements for Delta pilots, while providing Delta productivity gains and additional aircraft flexibility, including an opportunity to accelerate its domestic fleet restructuring to provide a better customer travel experience.
If ratified, the agreement will accelerate Delta's domestic fleet restructuring strategy. To this end, Delta has reached an agreement in principle with Southwest Airlines and Boeing to lease 88 Boeing 717 aircraft currently in service at Southwest subsidiary AirTran Airways that is conditioned upon pilot ratification of the tentative agreement. The aircraft will primarily replace inefficient 50-seat regional jets and some older DC-9 aircraft still in service, on a capacity-neutral basis.
The tentative agreement also provides Delta with additional flexibility to acquire up to 70 larger two-class, 76-seat regional jets as the Boeing 717 aircraft are delivered to Delta. Delta currently operates 255 larger two-class regional jets; the fleet will be increased to 325 aircraft.
"These actions pave the way for us to restructure and upgauge our domestic fleet, which will lower our costs, provide more pilot jobs and improve the onboard experience for our customers," said Delta CEO Richard Anderson. "The addition of the Boeing 717s, additional large regional jets and the planned replacement of 50-seat aircraft continue Delta's commitment to operating an efficient, flexible domestic fleet that offers customers even more opportunities to upgrade to our First Class and Economy Comfort cabins."
In addition to aircraft flexibility, the tentative agreement will provide for productivity enhancements as well as improvements to the total compensation package for Delta pilots, including increases to base pay. The agreement also provides for a modification of the profit sharing program for pilots so that it pays 10 percent of profits, compared with 15 percent today, on the first $2.5 billion of profits effective Jan. 1, 2013. The plan will continue to pay 20 percent of profits above $2.5 billion. A voluntary early retirement option recently offered to Delta's other employee groups also will be available to Delta pilots upon ratification of the tentative agreement.
"Delta, our pilots and ALPA continue to benefit from a very constructive, proactive relationship, one that is unprecedented in our industry," said Mike Campbell, executive vice president – Human Resources and Labor Relations. "This tentative agreement represents an investment in our pilots and our company as it gives Delta significant fleet flexibility, the ability to continue running a reliable operation for our customers, and a profitable enterprise for shareholders and for all Delta people. The fleet changes provided by this agreement, coupled with the productivity and profit sharing changes, cover the investments in our employees.
"We strongly support the Delta MEC's endorsement and are optimistic that Delta pilots will ratify the tentative agreement," Campbell said.
Pilots have approximately five weeks to review and ratify the tentative agreement. If approved by the June 30 deadline, the agreement would take effect July 1, 2012. The agreement becomes amendable Dec. 31, 2015.
Some people said "I'll believe it when I see it." Well, there it is. Don't forget the 27 MD90s that are coming this year too (more after that probably), along with the 737-900s.(which will replace some outgoing older 757s and some domestic 767s) I would say that is a build up of the domestic fleet. Hopefully there will be an order for INTL widebodies too (rumors), and maybe more in the domestic arena too.
Remember, I am just looking at the scope section here. I am still not very pleased with the compensation part.
Bye Bye---General Lee
