NWA/DAL contract improvements

[nwaredtail]

Just curious where the "contract improvements" will come from when both Anderson and Steenland have come out and stated that 105 bbl are budget breakers. Where will $500 million per year come from?

This is why the SLI is EVERYTHING.

 

[jetflier]

Just curious where the "contract improvements" will come from when both Anderson and Steenland have come out and stated that 105 bbl are budget breakers. Where will $500 million per year come from?

This is why the SLI is EVERYTHING.

I totally agree, as oil continues to erode our business plan, the airlines are going to look to trim employee costs. Seniority is our only way to enhance quality of life going forward.

 

[Occam's Razor]

Just curious where the "contract improvements" will come from when both Anderson and Steenland have come out and stated that 105 bbl are budget breakers. Where will $500 million per year come from?

This is why the SLI is EVERYTHING.

As Far as I've heard, there are large piles of Euros out there itching to be invested. Kinda Like Many of the other rumors I've heard...

 

[Fly4hire]

deleted

 

[Draginass]

Don't believe the BS than Steenland and Anderson are putting out. They and their buddies are going to make a personal bundle on any merger and leave the employees to get the shaft with renegs on pay and furloughs when the recession hits full force in the fall.

 

[ifly4food]

Don't believe the BS than Steenland and Anderson are putting out. They and their buddies are going to make a personal bundle on any merger and leave the employees to get the shaft with renegs on pay and furloughs when the recession hits full force in the fall.

Why wouldn't they? Airline management gets away with it time and time again. We always believe their empty promises, then whine when they screw us. History will continue to repeat itself as long as pilots continue to believe they're smarter then the MBAs.

 

[~~~^~~~]

Don't believe the BS than Steenland and Anderson are putting out. They and their buddies are going to make a personal bundle on any merger and leave the employees to get the shaft with renegs on pay and furloughs when the recession hits full force in the fall.

Delta Air Lines Inc. Chief Executive Officer Richard H. Anderson plans to waive millions of dollars in compensation he'd be eligible for if the carrier merges, as a goodwill gesture to employees and investors....
"Mr. Anderson's decision to waive any accelerated compensation illustrates he is committed to the culture of employees here at Delta and is ultimately making decisions based on long-term interests of the company," said Delta spokeswoman Susan Elliott.
Anderson's salary was set at $600,000 a year, with a bonus of as much as $900,000, plus incentives of as much as $15 million spread over several years, Atlanta-based Delta said in an August regulatory filing. Anderson took a 2 percent pay cut to leave UnitedHealth Group Inc., the largest U.S. health insurance provider.
Anderson would be eligible for millions in accelerated pay under a merger, although a spokeswoman didn't know the exact figure. Anderson's offer was reported earlier today by the Wall Street Journal.
Executive pay became an issue at Delta when the carrier disclosed that former CEO Leo Mullin's 2002 compensation was $12.9 million, prompting criticism from pilots and other labor groups who had been asked to make concessions as the airline tried to avoid bankruptcy.

Write what you want, but so far I've been impressed with Anderson.

 

[Fly4hire]

Write what you want, but so far I've been impressed with Anderson.

Dude, get real - he's an ex-EAL Lorenzo lawyer and worked at the evil empire for 14 years.

He could waive all compensation for the next 20 yrs and have more money than he knows what to do with from the NWA and United Health Care separation packages.

It's not altruism, it's PR, which he is good at - he's certainly suckered you guys.

Learn to watch their feet, not their lips.

 

[~~~^~~~]

Just curious where the "contract improvements" will come from when both Anderson and Steenland have come out and stated that 105 bbl are budget breakers.

This is why the SLI is EVERYTHING.

The SLI is everything, but maybe in a way different than what you think. My take on this is a little bit different. I think the merger allows both airlines to redeploy assets to be more efficient and provide revenue growth with the same expense structure.

Delta wants NWA's fleet & pilots to redeploy and expand and Delta wants some of NWA's managers who are very good at revenue management.

Right now we have a lot of RJ's overflying each other's hubs and raiding each other's hubs. Cities like KRDU are almost RJ hubs, CVG and ATL are nearly RJ hubs. There are probably examples on the NWA side, but I've not observed them.

The fleets of interconnected RJ's flyiing wingtip to wingtip could be rationalized into fewer, larger, jets. A CRJ 700 is 35% + more revenue efficient than a 50 seater (and unfortunately more revenue efficient than a DC9 and sometimes an MD88) That process would allow for more efficient utilization of aircraft while still providing the customer with the same level of network connections, but with less hub overlap.

Eventually this move will drive traffic into the next generation of 100 to 150 seat jets that the NWA and DAL pilots will be flying.

The extra aircraft created by thinning the connection market will be re-depolyed to hub to hub flying. The jets on hub to hub flying will be reconfigured to go further out, international (like the transatlantic 757 flying we see CAL and DAL doing). All the way up to some 747's which can be used out of Atlanta. Some of the 777 flying would be better out of NWA bases.

As you write, the "SLI is everything" because the company wants the flexibility to re-deploy these assets out of bases where they make the most sense, like LA and ATL and DET and MSP. Hence the demand for "no fences" a demand that takes this out of the normal way of doing things.

If anything, we need to make sure we get positive space for commuting out of this "agreement."

 

[123]

Funny how they don't mention the $10 and $15 fare increases that have stuck over the last few months, with more of them to come. Where those increases part of the businesss plan?

 

[737 Pylt]

Funny how they don't mention the $10 and $15 fare increases that have stuck over the last few months, with more of them to come. Where those increases part of the businesss plan?

Why would they, every time in the last 5 years there's been a fare increase, NWA rescinds it, or refuses to go along with it......

737

 

[FDJ2]

As Far as I've heard, there are large piles of Euros out there itching to be invested. Kinda Like Many of the other rumors I've heard...

Occam is correct.

There is significant up front equity also, which is cash in your pocket and not subject to renegotiations.

A stronger airline with a larger global reach and market presense can bring in more revenue and help mitigate some of the cost pressures.

No one is immune to $100+ oil, but having a stronger airline, flush with additional liquidity could be the difference between surviving this next down cycle or visiting the court house steps.

 

[IXLR8]

Why would they, every time in the last 5 years there's been a fare increase, NWA rescinds it, or refuses to go along with it......

737

BS....other airlines besides NWA are the first ones to NOT go along with it....get real.

 

[Bavarian Chef]

Free lint brushes for the double breasts.

 

[737 Pylt]

Free lint brushes for the double breasts.

No way, they're $10 and payroll deductable! Look for that increase not to stick too...........

737