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Old 04-09-2012 | 05:16 AM
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Originally Posted by acl65pilot

Where we differ on labor costs the most are their mechanics, flight attendants, and dispatchers. Their mechanics have to work about a 70 hr week to clear 80K a year, their FA's top out at 27 an hr where ours are almost to 48 an hr, and their dispatchers are paid about 60% of what our get paid. The majority of the labor savings come from these.
First of all, not our problem. Seriously, it isn't. We could get all the RJ scope back tomorrow and this "me too" bolshevism crap gets sent straight to Leningrad because its not our problem. Let the other work groups negotiate and pay for their own scope. The company could easily just off list it (or just threaten to) for them for the same price...only at a "new" subsidiary with a vert tasty longevity reset, which you know they love to do, and when the labor groups come squealing for another pilot "me too" the company should tell them the same thing they tell us..."what are you willing to give up to pay for it" and oh by the way, it'll be done on a B scale, so are y'all cool with that?

I bet the other work groups will drop it like a bad transmission because as much as we don't "get" the whole scope concept at times, we get it better than any other group...so much so that we've been carrying their water for decades. They are not about to unionize over something they don't have or care to get in the first place but if they want to, let them "pay for it" too. I bet they drop it instantly. Anyway, in the very unlikely event the other work groups want to insource all these cheaper paying, less desireable jobs, they can start negotiating with the company. Union or non union, it's going to be a B scale that provides significant savings for the company...or...the savings will have to be amortized over the rest of the work group to pay for it. Either way there will be significant savings over "mainline book". There is no way the other work groups, who totally and completely lack the interest and foresight to even know what scope is, much less care enough to pay for it, will end up getting everything we get in this area for free. It'll be pay to play and I bet they don't even ante up at the table.

The real savings comes in the form of removing debt off the balance sheet and having someone else commit to the aircraft lease/payment.
Right, like Pinnacle?

I think the days are very numbered where companies can use fake phony accounting trickery to "hide" debt from the ones it matters most...the shareholders. While it may always be legal, if debt is a big concern, they will start figuring out the paper lies and sooner or later some analysts will start costing the true debt in.

However, if that really was the deal killer, there are many other tricks that can and would be used, such as creative lease arrangements with financial institutions, which create the exact same paper arrangement for the planes that the fake airline ACMI's do. There is nothing they proivide that a bank/leasing company can't do. Reference the 737-900 orders and how they didn't just add 3-4 billion in debt to our bottom line but were financially finagled in such a way to instantly be "cash flow positive" without the debt hitting our bottom lines. If we can get the credit to sign the contracts and sublet the jets to the fake airlines, we can get the credit to link the leases/payments to a bank just as easilly. The company that launders the leases for us does not have to be a fake airline to hide the debt from the see no evil investment community.

That savings far outweighs any pilot or labor savings. Find a way to allow or convince DAL to do this with in-sourcing labor, and reducing redundant management and support teams and you found a way for all parties to come out ahead.
Just did. So when's the AE?

The simple fact is the savings are too great for DAL to pass up and as a result they go for the savings and outsource the brand.
Disagree. They (not all but easilly most) outsource because they can and for no other reason. It is, literally, a religion to them. They fantasize about shareholder conference calls and board meetings for the fake Delta Ticket Seller where they make nothing, produce nothing and contribute nothing yet collect massive bonuses proportionate to the size of the revenue laundered through their paper shell inventions. WWCEWD? Not the guy that sits at his desk, but him. What would he do? Would he be interested in outsourcing the entire airline (which they would do in a NY slot swap second if we let them) or actually running an airline with people and airplanes and customers that come to us to be flown in our airplanes by our people instead of Skyteam operated by Delta operated by Delta Connection operated by republic operated by Shuttle America on the separate certificate trick for your travelling enjoyment?