j29, one last string of thoughts on the subject (
maybe) and thanks for the cordial discussion.
Contract 2012
Delta:
- 50 seat RJs are unpopular with our passengers and their CASM is too high and their killing out balance sheet especially if they go into heavy maintenance.
- We have too many RJs.
- We have too many 50 seat RJs and not enough 70/76 seat RJs.
- We want more 70/76 seaters beyond 255 but the PWA will not allow it.
- We want more 76 seaters then we have now but the PWA will not allow it. Unless we grow from 720 jets which is a size we like up to 800+ mainline jets and even then we have to park relatively new 70 seaters on a 1:1 trade. To grow that much would be bad on our balance sheet, our partnerships and capacity discipline path.
- We are going to acquire SWA's 717s and we're going to try and squeeze SWA as much as we can on the price. We want every 717 ever made. Scream bucking bar, long live McDonnell Douglas.
- Must be no worse than cost neutral.
- We want the TA done now.
NC:
- We want DCI to shrink.
- We want the size of DCI to be directly linked to the size of our domestic mainline operation in the only metric we think matters which is pilot block hours.
- We want to include turboprops in size restrictions and caps, not just jets.
- Everything is on the table.
- We understand if there is something we want then we know what we are willing to give up to get it.
- We want a pay raise.
End Result
- In order to get the 717s, the pilot must vote YES immediately on the first TA and agree to the following:
- DCI will shrink to an optimum size, but, the 255 cap must be lifted to 325. The PWA must add 70 more 76 seaters without having to park any 70-seaters and no more growth beyond the 767 mainline merger fleet size.
- Change jets to aircraft so as to include turboprops that Delta in their right mind would never want anyways.
- A BH ratio will ensure the size of DCI does not grow while mainline shrinks.
- The BH ratio, however, will not force mainline to grow beyond what it is right now. If Delta sees the need to grow then that's their prerogative but the ratio will NOT have to increase as mainline grows.
- IF mainline does shrink below the 1.56 ratio, DCI will be reduced but the 70-76 seaters do not have to be reduced. The cuts can come from the 50 seaters.
your mileage may vary, it's just my thought.