"Top execs at Delta given stock shares: Rank and file, however, got buyout offers"

[ThisistheDream]

There is a no furlough clause..So there wont be any furloughs unless they go back into Bankruptcy

 

[nwaf16dude]

Buying out senior pilots is an extremely expensive proposition, much more so than buying out flight attendants or or gate agents. First, the cost to get someone to give up widebody captain pay is huge of course. Then there is the follow-on cost of the training waterfall to replace wide-body captains, and all the other positions that have to be back filled.

Buyouts would only be affordable if they were planning on parking the seats abandoned by the guys taking the buyout.

 

[DAL737FO]

There is a no furlough clause..So there wont be any furloughs unless they go back into Bankruptcy

I needed a good laugh this morning. I hope this was tongue in cheek and you aren't actually hanging your hat on a "no furlough clause".

 

[Voice Of Reason]

Buying out senior pilots is an extremely expensive proposition, much more so than buying out flight attendants or or gate agents. First, the cost to get someone to give up widebody captain pay is huge of course. Then there is the follow-on cost of the training waterfall to replace wide-body captains, and all the other positions that have to be back filled.

Buyouts would only be affordable if they were planning on parking the seats abandoned by the guys taking the buyout.

There is a training waterfall there ANYWAY, and it is all done in house, sooooo....rather than paying the unexpected 5 extended years of higher salary, take care of it now while everyone is training anyway.
Also get rid of anyone who isn't properly "representing" the interests of your pilot group and using your dues to represent RA.

 

[maxblast72]

Well, hopefully they realize that if they DO furlough, that perception, especially in the eyes of potential investors (as well as the public), would be blown.

Investors don't care about whether Delta furloughs or not. Investors care about whether Delta has the right cost structure going forward and can produce a profit/be cash flow positive. If Delta has pilots are not being fully utilized and a furlough/displacement bid can provide Delta savings within a certain time period, investors would say do it.

 

[ACL65PILOT]

And another fact to ponder. A short furlough will prove more costly than keeping the bodies around for a year or two.

 

[dtfl]

Buying out senior pilots is an extremely expensive proposition, much more so than buying out flight attendants or or gate agents. First, the cost to get someone to give up widebody captain pay is huge of course. Then there is the follow-on cost of the training waterfall to replace wide-body captains, and all the other positions that have to be back filled.

Buyouts would only be affordable if they were planning on parking the seats abandoned by the guys taking the buyout.

....and herein lies a huge problem with our "buyouts" We aren't keeping on eye on whom takes them. Lots of gate agents are taking the package. That leaves us with younger, inexperienced gate agents who are overworked. Years ago 3 gate agents worked 1 flight. Now 1 agent works 3 flights.
That means less time to deal with pax issues, less patience..and of course, crap salary. And we wonder why our customer service isn't the best????

 

[ACL65PILOT]

It is about the bottom line.
On the last buyout we had somewhere near 21 station managers take the buy out. We just let the junior talent take over.
It is the way of the world.