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Old 01-06-2010 | 06:23 AM
  #23733  
slowplay
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Originally Posted by Model Citezen
I think it is a bit early to be ecstatic about the deal.... Spending 1 Billion dollars in cash and commitments for a bankrupt airline does not help our (pilots) case going forward to Contract 2012. With JFK Capitol improvements (terminal), the commitment (now?) to JAL, and the corporate debt the DAL has to either pay back or refinance in the next 3 years, a play for Alaska with surly lead the company to plead poverty at contract time.
If this industry and this company don't start making money, then they will be able to plead poverty at contract time. We already make more in direct compensation than most of the industry, and despite all the negative changes we've endured over the last few years our workrules on balance are still better. You can look at the "tremendous gains" those tough unions at AMR and UAL have extracted from their unprofitable companies as a guide... At DAL's investor day management correctly prioritized enhancing our revenue, controlling costs, and paying down debt with cash flow over the next three years. If they are successful in continuing to differentiate our business from that of our peers then we will see pay rewards. If not, we will be stuck in the same quagmire that envelopes our fellow pilots at other carriers that don't produce a suitable financial return. LUV, FedEx, and UPS don't pay their pilots more because they're better pilots or that management is more generous, it's because their business models throw off profits from which labor can extract value.


Originally Posted by Model Citezen
Until the DAL MEC conveys to ALL of us what the plan is, I am cautious about what to expect. Narita is no Frankfurt. The 5th freedom rights allowed NWA to be the 3rd largest "Japanese" carrier in Japan after JAL and ANA. This "good corporate deal" might not be so good for pilots.
In a business sense Narita is identical to Frankfurt.

Delta was the second largest carrier in Frankfurt until Open Skies, serving that city from 9 different US locations with 15-17 beyond markets and 13 FRA based aircraft (767-200 and 727). Open Skies and the fragmentation brought on by hub busting point to point aircraft like the 767-300ER (for NRT the 787) killed the yield of the operation there. It was pretty hard to compete with Lufthansa once they had the UAL feed and a whole bunch more destinations and frequencies than Delta could offer. While any deal will stand or fall on its own merits, not having a corporate deal might not be so good for pilots.