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Old 11-11-2011 | 05:47 PM
  #80262  
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Carl Spackler
Back on TDY
 
Joined: Apr 2008
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From: 747-400 Captain
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Originally Posted by Bucking Bar
Carl,

A lot has to do with shifting costs off property. Our management is focused on reducing our debt which means not buying things, like airplanes. Air France has about 1/3 of our debt load and has their aircraft acquisitions subsidized. They have 76 wide body jets on order.

On the DCI side, SkyWest is the largest Bombardier customer on the planet and they get significant (was about 25%) off the lowest prices paid by competitors for parts and support. Then you got some operators like Republic and Trans States who are willing to make silly deals just to keep the growth going. Trans States (GoJets parent) uses alter ego creations to side step scope and destroy longevity, so it resets pilot costs every so often. Delta can't compete on those terms.

As Delta shrinks it has fewer operations to allocate costs to. Our metrics as measured by seat miles will increase in cost. Hence the law that "you can not shrink to profitability."

I agree with management's work to reduce debt. I understand they can maintain and grow their network without us. The answer I have proposed is that "Delta" pilots perform this flying, even if the operator is not "Delta Air Lines."

You now understand why I equate unity to power at the bargaining table. Management can make this place work without us. We need better, more effective, scope to turn this around.

I like the JV language, but the 36 month compliance window was, and is, too large.
Of your multiple topics here, the main one I want to focus on is your estimation of why the company is doing what it's doing...because it doesn't matter why they're choosing Delta pilots last. It only matters that they are. SWA could have similar cost savings if they chose to behave like our management, but SWA chooses not to. Instead SWA management chooses to take scrupulous care of their brand by ONLY trusting it with SWA pilots. DAL management has no such concern, and is totally focused on cost. It's caused them to make horrible business decisions that have removed billions from our company.

SWA picks SWA pilots first and always. DAL picks DAL pilots only as a last resort. That's our reality.

Carl