WANTED: Furloughed DAL pilots?

[General Lee]

RJCAP,

I am not saying that we would not take some cuts, but it would be negotiated to come back when times get better---which they will eventually. I am sure that IF Dalpa negotiated for the 70 seat RJ's---it would not be an high rates at all---probably closer to Comair rates. See the thing is---if Delta wants more than 57 70 seaters before 2007 (after long negotiations from 2005) they will have to get Dalpa's permission. We have 1060 pilots out right now, and probably won't be getting any new airplanes unless UAL goes Chap 7 or sells us the Asian routes (Our CFO said we have the borrowing power and are interested) or LHR stuff. A lot depends on what happens with UAL, USAir, and AA. We are NOT in the same financial leagues as those guys. We are losing some money, but we have better flexibility (RJ's etc), better hedging of fuel, and better management with connections. I feel very lucky to be at Delta. The reason it would be a seperate subsidiary for the 70 seaters would be to counter "integration" with ASA/Comair.

AGV,

Delta in bankruptcy? Unlikely. The management at Delta cares too much about the stockholders---they have given a stock dividend every quarter, even through 9-11. We have most of our costs under control, and Leo asked only the pilots to take a pay cut, and none of the other 50,000 workers (non-union) have to. Why would that be? AA is asking for cuts from everyone. Delta is telling the government NOT to give anyone any aid. They are trying to ride this out and see who is still standing at the end. We have around $2.5 Billion in cash (some borrowed), and $5 billion we can mortgage. The pilots started talks with management on Tues about concessions, but the talks will continue through this war to make sure they don't pull another Force Manure. We will probably give up some things, but we will have snapbacks when better times come back. You probably saw my other posts that stated that last quarter we had a $177 million operating profit, but the $360 million or so loss came from one time charges like parking the 727's, MD11's etc. We will trim costs, but we want them back eventually. Thanks for your concern.

Bye Bye---General Lee

 

[sleepy]

Just wondering General, what makes you think that DAL wants more than 50 CRJ-700's right now? They seem to get what they want, when they want it. At some point down the road they may want more than 50, but I don't see it happening anytime soon. If they wanted more than 50 they would have gotten them when they met with DALPA on the CO/NWA code-share wouldn't they?

Also, CRJ-700 production has ground to a near halt. They are having production problems at Canadair. There is the fuel AD to contend with (it can be pretty restrictive unless you have the AMOC approval). There is also talk of a bankruptcy at Bombardier.

I'm not saying that it will not happen, I just wonder why you are so optimistic about this happening?

 

[General Lee]

Sleepy,

I do not have any inside knowledge of exact negotiations, but I know that Delta likes that 70 seater---at Comair Wages that is. I know there is an AD out on the CRJ70, and infact ASA has told Delta that it cannot fly nonstop from DCA---DFW in the headwinds with the lack of center tank fuel. What I told you was what I heard at the ATL Chief Pilots office (management pilots)---they had the idea of offering Dalpa extra 70 seaters and have the furloughs fly them under a new subsidiary. Whether or not that
actually comes up in negotiations is the question. I just reported what I actually heard. It is an interesting concept and it might float with Dalpa---we'll have to see what happens next. I know for a fact that atleast 1060 pilots would like to fly that airplane--no doubt. As far as the delivery schedule of the CRJ70's-----I am sure that Bombardier could probably make new ones with the new center tank design built in, and they probably would love for some of those options to become actual orders. Who knows?

Bye Bye---General Lee