Originally Posted by
snowdawg
This email ****ed me off. The union points out the number of jobs that where taken away and makes it sound like 30 million is a great settlement.
I want to know how much money did Delta make being out of compliance? When we find that number, that's the dollar amount we want.
There should be ZERO monetary benefit for the company to breach our contract.
Snowdawg,
Carl made a similar post a few weeks ago. Wonder who came up with the idea of basing penalties off of profitability? Seems to be a common idea in some parts.
My semi-educated guess is that Delta lost money on noncompliance. The JV (there were a lot of news stories on it at the time it was created which described it in general terms) is a revenue sharing arrangement. So lets say you and I started a business, agreeing to share the work and the income 50/50. But, after three years you discovered that you had been doing most of the work. Would you not them demand more of the money that you earned?
Generally speaking, that is what happened. The Europeans could not get out of the European market. They ended up doing more than their half and Delta had to pay AF/KLM/AZ for the extra work they did.
Delta looked at the market and decided it better to send their jets to places other than Europe ... and took the hit for diverting their labor away from a bad market towards a better market.
If you have information that the AF/KLM/AZ JV made a profit while in deficit ... please post your source. That data is not released that I've ever seen ... but my instincts tell me if there were money to be made in Europe Delta would have gone there and made it. Our network guys are some of the best on the planet at chasing down a buck, euro, yen .... etc.