Originally Posted by
Timbo
I believe you are correct, they stopped hiring not long after we signed C2K in May, the contract that got rid of reserve pilots being able to bid move ups, along with many other concessions...
My point is, about every 10 years or so, another Black Swan shows up. We are overdue for the next one.
Feel free to speculate what that swan is going to look like, here, I'll start:
1. Emirates gets more access to our major cites and/or Cabotage gets approved.
In the quarter prior to the signing of contract 2K the company experienced the single largest drop in revenue in history. It was a cliff like drop. While 911 had a impact the real issue was massive over capacity combined with a stunning drop in revenue. The contract was signed ratified on 20 June and we were already into record losses. That quarter we lost 123 million. Prior to that we were generating profit margins higher then we are seeing today. Sadly the entire industry was on a giant buying spree and capacity went crazy. In short Delta was in deep trouble with or without 911.