Originally Posted by
Bucking Bar
Glad you asked. Network and revenue management allocate flying. The company's plan for the allocation of flying does not include consideration of scope compliance. Worse, because we have quite long measurement periods followed by cure periods; harm to pilots can accumulate during an extended period of noncompliance before an actual "violation" occurs.
In successive administrations (including this one) our Scope Compliance and Analysis Chairman is not permitted to interface with network management. Rather, only a very select group of senior leaders are permitted to participate in network meetings based mostly on political considerations. In fact, the Scope Compliance and Analysis Chairman is not allowed "to advocate for scope" compliance. This has been reiterated as "we do not see the SC&A Chair as an advocacy position."
The improvement I suggest (and which is on the agenda for the May 11th C44 LEC meeting) is that we change the policy manual to include participation in the network meetings in the Scope Compliance & Analysis Chairman's responsibilities, including providing feedback to the company on their scope compliance with the goal of proactively seeking (advocating even) for scope compliance.
Every other functional committee interfaces with their equivalent at the company, working together on scheduling, safety and a host of other tasks which make Delta a better airline. We can improve scope compliance by letting our Scope Compliance and Analysis Chair do their job.
We need support for this resolution. Some feel this is somehow diminishes the power of the MEC Chairman. But in reality the MEC Chairman usually delegates these ministrative tasks. The MEC Chairman still selects (and fires) the Scope Chairman. The Chairman's power to determine who is in the room is not diminished in any way.
My reasoning for cementing this change in the policy manual is that we have to think of the future. John Malone's administration has already adopted some of the suggested improvements, for this work to last it needs to be written policy.
Bar is completely correct. We have neutered ourselves.
What most people don't realize is that revenue management runs a whole lot more than just Delta's revenue and schedule.
Here's an excerpt from GOL's 20-F filing. That's the same as a 10-K from a U.S. company.
Delta Investment and Commercial Agreements
On December 7, 2011 our controlling shareholder and Delta entered into an investment agreement providing for the sale of 8,300,455 preferred shares in the form of ADSs owned by our controlling shareholder to Delta at a price per share equivalent to R$22.00, or the Delta Investment. Our controlling shareholder used the entire net proceeds from the sale of preferred shares to Delta to subscribe for new common and preferred shares in a rights offering issued by us at the same price per share paid by Delta.
Our controlling shareholder further agreed to elect a Delta representative to our board of directors as long as Delta holds at least 50% of the ADSs acquired in the investment, among other conditions.
In the context of the Delta Investment, we entered into a long-term commercial agreement with Delta that included exclusivity provisions designed to strengthen the operational cooperation and synergies between the two companies, including:
·an increase in the scope of the codeshare agreement (flight sharing). We have our own code in all Delta flights between Brazil and the United States. In addition, Delta continues to increase the use of codeshare in our flights in Brazil, South America, the United States and the Caribbean. This increases the number of flight options for passengers of both airlines, expanding our geographical reach;
·optimization of flight connections and cargo and passenger transport services through the operations working group among the nearly 400 destinations in over 62 countries served by Gol and Delta;
·the increase in passenger comfort by aligning services and benefits for members of both the Smiles and SkyMiles mileage programs, for example, making it possible to earn and redeem miles and get free access to GOL+Conforto seats, among other advantages;
·joint commercial and promotional activities, encouraging both airlines’ sales forces to cooperate in Brazil, the United States and other countries, including joint sponsorship of events such as Rock in Rio; and
·the exploration of synergies in passenger services, maintenance, VIP lounges and logistical support, including Delta task force in revenue management and maintenance, the use of Smiles lounge by Delta Elite passengers and the use of the SkyClub by Smiles Diamond passengers.