Mainline scope clauses

[FlyDeltasJets]

Two points for Golden:

1. If we take a paycut, our competition will do the same to maintain their cost advantage (the only competitive advantage they have as our size, route structure, international presence, ff program, alliances, etc. all dwarf theirs.) When that happens, mgt (and you, it seems) will again come to us for concessions, citing our need to get our costs in line to compete. Where would it end? I feel that the line we have drawn is just as good as any, and I applaud my MEC.

#2. You wrote: You guys ought to be working with management to come up with a plan whereby they can buy and use the planes they need for max profitability, with the understanding that your guys fly them.

For the record, we have already done that. It's called our contract. Delta mgt has the power and the aurtority to buy and use whatever airplane they want, and as many as they want.

 

[goldentrout]

Management can, its true, buy anything they want. But because of the greed of the pilots, they will demand wages too high to make the planes profitable.

We at Comair and ASA have payrates that can allow the ocmpany to buy and operate larger RJs.

Your MEC has scoped them out.

So I guess I need to revise my statement. Management cannot buy and "operate at a profit" any planes they wish, either at mainline or their whooly owneds, because of the main line pilot contracts.

Evidence

1. US Air MEC just denied larger RJs to management. He didn't want them for his own guys, and wouldn't allow them at the wholly owneds. If they were at mainline, they would be staffed at 100% by mainline US Air pilots. Instead, they will be staffed at 50% by US Air furloughees at Mesa pay rates...that's really taking care of your boys...you could be on our mainline list, but instead go fly at the bottom of the Mesa list, because we're too proud to let management have payrates that would make them profitable at mainline.

2. AMR (not ALPA, bu same mindset). Their recent agreement says the mainline guys fly the 70 seat RJs only when it is cost neutral to take them from Eagle. However, the APA obviously deosn't want to have his furloughees fly them at Eagle rates...again, they're too proud, I assume, to "lower their standards." He'd rather have another 1500 guys on furlough.

Finally, you say, which is totally opinion, that the low cost carriers will have to take a paycut if the mainline pilots do. US Air/UAL/AMR pilots have already taken a 25-30% pay cut, and I don't see the management at Jet Blue, AirTran, or SWA begging their pilots for a cut. This is because these pilot groups have worked with management to obtain compensation packages that are respectable, but do not jeopardize the future of the company

Your theory that mainline pay cuts will automatically trigger low cost carrier pay cuts is refuted by the actual, current facts. Jet Blue/AirTran/SWA are going to each buy close to 100 planes each over the next three years...and even after the US Air/AMR/UAL pay cuts, low cost management at those carriers has not said a word about employee concessions.

I don't want to see you guys take concessions. I hope you guys can hold out and things until things turn around.

However, the facts are that DAL employee compensation packages, be it pilots, mechanics, or Flight Attendants, are significantly higher than the other mainline carriers. How will you compete?

With three billion or so in liquid assets and 225,000,000 quarterly losses, it will take what, about three years until DAL goes into bankruptcy court.

Just as all the airline analysts have said...DAL is weak financially like all the other airlines...just not as weak. Their demise is just further down the road.