Let the new round of paycuts begin....

[nwaredtail]

Sounds like 2 billion in job improvements would have been short lived...

Delta CEO: 'Comprehensive' Changes Ahead
Friday March 14, 4:06 pm ET
By Harry R. Weber, AP Business Writer
Delta Will Revise Business Plan to Deal With Higher Fuel

ATLANTA (AP) -- Delta Air Lines Inc. will be overhauling its business plan to deal with soaring fuel prices, the chief executive of the nation's third-largest carrier said Friday.
CEO Richard Anderson did not provide any details in a recorded message to employees, including whether the "comprehensive" plan to be announced next week will include job cuts.


Atlanta-based Delta has already cut domestic flights, eliminated some routes and tried to conserve fuel as the price of a barrel of oil has soared over the last year from $60 to $111 this week, Anderson said.

Spokeswoman Chris Kelly declined to comment beyond Anderson's message to employees.

Delta president Ed Bastian is expected to speak at an investor conference Tuesday.

In the recording, Anderson did not mention consolidation talks between Delta and Eagan, Minn.-based Northwest Airlines Corp.

A deal to combine the two carriers, which at one time had been projected to be worth $20 billion, has been held up by an inability of the two airlines' pilots unions to reach a deal on integrating their seniority lists.

Leaders of the two unions aren't currently meeting, but remain in communication. It's not clear when they will meet again.

Anderson said Delta has to operate cautiously during uncertain financial times that have seen fuel prices increase dramatically.

He said Delta already has trimmed some selected domestic routes at off-peak times, while growing international capacity.

Anderson said the company will make other reductions when necessary.

He said the company will role out a more comprehensive plan "in reaction to changes in the marketplace."

"Stay tuned," Anderson told employees. "We're going to have a lot more information out next week about our business plan in light of the fuel prices we're facing."

 

[Tanker Clown]

This will be a piece of cake for Anderson.

 

[tomgoodman]

Window closing?

Sounds like 2 billion in job improvements would have been short lived...

Perhaps so, but it would have been better if those improvements were already locked in to a new contract. Hope the list stalemate hasn't caused the pilots to miss a window of opportunity.

 

[NuGuy]

Perhaps so, but it would have been better if those improvements were already locked in to a new contract. Hope the list stalemate hasn't caused the pilots to miss a window of opportunity.

I agree, but this is precisely why seniority isn't for sale at NWA.

If you take a bad deal to get the "goodies", those goodies can be gone in a heartbeat and all you're left with is your seniority, or lack thereof.

"Don't worry about stagnation, there's going to be LOTS of growth":laugh: ...Man, glad we didn't bite off on that one.

Nu

 

[MJ42]

Perhaps so, but it would have been better if those improvements were already locked in to a new contract. Hope the list stalemate hasn't caused the pilots to miss a window of opportunity.

Tom, don't take this as an insult but...wish you were still flying 121, we need more smart people like you in the rank and file!

 

[PlaneDrvr]

I agree, but this is precisely why seniority isn't for sale at NWA.

If you take a bad deal to get the "goodies", those goodies can be gone in a heartbeat and all you're left with is your seniority, or lack thereof.

"Don't worry about stagnation, there's going to be LOTS of growth":laugh: ...Man, glad we didn't bite off on that one.

Nu

While I do not work for either DAL or NWA, I have to agree with you.

And, further, it is definitely not a good time (pilot wise) for a merger, any merger. With the prospects of an economic slowdown coming, resulting in demand falling off, combined with 'high fuel costs' the only way that Management can make a merger work for them (financially/money wise), is to cut at least 10-15% capacity out of the combined carrier. That cannot be done just by parking some 50 seat RJs, will involve mainline flying, and probably 'furloughs.' Cut capacity as demand falls off, discount where you have to, raise fares in markets that you can, all to keep the load factors up, keep the cash flow moving, even though it will not offset increases in fuel costs, but merely attempt to keep the losses as low as possible.

I know the general keeps saying that during the US/AWA merger there were no furloughs, which was true; however, I look at the 'passenger traffic' figures almost every month, when they are released for every airline. And, in almost every month, after the US/AWA merger, the combined airline, 'reduced capacity' (fewer ASM, available seat miles), and as a result, their load factor increased, and 'yield' also increased. The only reason there were no furloughs and in fact, 'recalls' is because, through the BK, US Air allowed the airline to become Very much 'under staffed,' people retired, and were never replaced by recalls. So most of the recalls were just to bring the airline up to a reasonable staffing level, and to replace pilot who retired since the merger. I have a few friends over there, ask a pilot there, many airframes retired, only a small amount of int'l growth.

Also, with a NWA/DAL merger, not sure the 'big Int'l expansion' that DAL is counting on to be their savior, will be the 'pot of gold,' if the economic slowdown spreads to the rest of the world. And, the combined airline will be saddled with higher costs; increased pilot costs with the pay and other bennies offer to the pilots to go along, plus additional cost of 'integration' of the two carriers, as they will be incurred 'now' short term, but the 'synergies' (big savings) will occur down the road, 2-3 yrs after everything is completely merged. In short, higher cost short term, at a time when economy is slowing, and demand 'may' fall off, higher fuel costs, integration cost, etc.........Then management says, "oh $hit" we have 'financial problems' plans changed, this is what we 'need' to do, and this is what you (the pilots) have to do.

Could be wrong, but just don't think that, for pilots, it is a good time to be involved in a merger. As things could get very bad, very quickly, with the economic uncertainty, and all right when You are in the middle of putting two companies, two different operations together.

Sorry for going on so long, but just my $0.02 for what its worth.

Now continue with your normal 'personal attacks' rant. And, not that some on here don't deserve it.

DA

 

[FDJ2]

Sounds like 2 billion in job improvements would have been short lived...

Just a few points, the merger was intended to create a stronger airline with true global reach. A growing international mega carrier with access to more revenue, with better liquidity and a more viable business plan. IOW, the bumpy ride ahead would have been much less bumpy.

Pay rates was just part of the package. Remember there was also a substantial amount of up front
equity to be put in the pockets of pilots today. That money would never be subject to renegotiations.

Your contract today, as a stand alone carrier in this environment is much more likely to be renegotiated then your contract in the merged company. Your pension is in much more jeapordy today, with a stand alone plan, then in the merged company. Quite simply the merged company business plan had a greater likelihood of surviving then either stand alone plan.

Now I know what folks will say, NWA isn't anywhere near the court house steps, we're doing fine, we have lots of cash etc. Those were the exact same words we heard in the Spring of 2004.

Every airline is in jeapordy, so I'm not picking on NWA.

I can tell you that Richard Anderson and Ed Bastian are still confident in a stand alone plan, but with oil where it's at, any management would be foolish not to react in some way.

DAL will draw down on some domestic capacity. Some from mainline some from the RJs. Keep in mind though that the plan was already to draw down that capacity. DAL is going to take some of its 767-400s and move them from domestic service to international service. The natural result is a reduction in domestic capacity.

International growth will continue, although some of the routes may be postponed so it might not be as aggressive as before.

A merger with NWA isn't the only other option for DAL at this time. There are other strategic options on the table. I'm sure the same is true for NWA.

I know that seniority is not for sale at NWA, this may come as a surprise to some over there, but it's not for sale at DAL either.

 

[buckeyes95]

I don't work in the 121 world anymore, but as far as pay cuts, I don't that happening. It wouldn't be worth doing this job for anything less that pilots are getting now. And don't forget the last time employees took pay cuts, Mgmt got nice bonuses. Employees haven't forgot about that. Pilots control there fate. They should not agree to another round of pay cuts.

 

[Tanker Clown]

I don't work in the 121 world anymore, but as far as pay cuts, I don't that happening. It wouldn't be worth doing this job for anything less that pilots are getting now. And don't forget the last time employees took pay cuts, Mgmt got nice bonuses. Employees haven't forgot about that. Pilots control there fate. They should not agree to another round of pay cuts.

With some of the stooges on this forum, I don't think paycuts will be too tough to pass one. Look at General Lee. That guy thinks Anderson hung the moon. If he want's another 25%, a guy like him will gladly give it.

 

[hockeypilot44]

Perhaps so, but it would have been better if those improvements were already locked in to a new contract. Hope the list stalemate hasn't caused the pilots to miss a window of opportunity.

You can't lock in a contract in today's world. Bankruptcy judges have the power to void contracts and prevent strikes. ALPA is not willing to illegally go on strike which leaves us open to the mercy of the company.

 

[FDJ2]

You can't lock in a contract in today's world. Bankruptcy judges have the power to void contracts and prevent strikes. ALPA is not willing to illegally go on strike which leaves us open to the mercy of the company.

That's exactly why bankruptcy reform is such an important issue. ALPA-PAC is currently working to pass legislation that would level the playing field in bankruptcy, but alas only 14% of ALPA pilots support their own PAC. Political apathy could be our own undoing.

 

[Redmeat]

Damn.

You usually get a good 5 year up tick on the "good times" cycle.

With the price of oil in an unrestricted climb and the "Peso"...er... Dollar<(thanks Fins) in free fall mode this one is over before it began.

We will still have our seniority though!

(which may be good for the early recall from furlough).

Cinch em' up folks, looks like a rough ride ahead!

 

[PlaneDrvr]

Damn.

You usually get a good 5 year up tick on the "good times" cycle.

With the price of oil in an unrestricted climb and the "Peso"...er... Dollar<(thanks Fins) in free fall mode this one is over before it began.

We will still have our seniority though!

(which may be good for the early recall from furlough).

Cinch em' up folks, looks like a rough ride ahead!

Red,

Again, don't have a dog in this fight, don't work for either DAL or NWA, but agree that 'seniority' becomes Very Very important in uncertain economic times.......unless the power to be, 'force' this merger through, without an agreement, would end in a huge mess. Read my post above, not sure it is a good time for a merger, at least 'pilot wise.' For management/investors, makes more sense, but pilots, NO.

Also, agree, "looks like a rough ride ahead" and could last for a while. Best of luck to everyone, plan ahead.

For what its worth.

DA

 

[~~~^~~~]

I'll go out on a limb and predict a popping of the speculative bubble in oil IF we can get Helicopter Ben talked in for a landing.

Then with any luck our employers will hold the line on revenues long enough to put a little cash in the bank.

Commodity prices are way up there. Often said, but very true, when the Flight Attendants start giving investment advice it is the time to sell, sell, sell.

 

[Jmoney]

25%

With some of the stooges on this forum, I don't think paycuts will be too tough to pass one. Look at General Lee. That guy thinks Anderson hung the moon. If he want's another 25%, a guy like him will gladly give it.

General Lee would give Anderson a lot more than 25%..... And don't think that is limited to financial compensation.

If you happen to walk into Anderson's office and hear a certain strange "humming" coming from under the desk-you can forget trying to call the General-his cellphone is off...... "Otherwise engaged"-that would be the polite way to describe the goings-on.

-Eat It, General!