Originally Posted by
tsquare
True, but any Joe Bag O'Doughnuts can cut costs (overhead). It takes real creativity to find new revenue and better revenue streams. I think the current DAL management falls into this group (so far). When they don't, it certainly makes for crappy contracts.
This is what is frustrating me now - the company has some great ideas in terms of routes (Africa for example) that could make lots of money. But some aren't paying off yet. Hopefully some of this investment in IFE and Wifi will pay off when people start traveling.
ACL mentioned that someone will have lower overhead and get more business - to a point. Remember Bethune saying "you can make a pizza so cheap no one wants it"? What is interesting is that the airlines that are doing well - really well - invest in their product and pay their employees well. Singapore, Cathay in the international market, and Southwest domestically. You don't see Southwest cutting much (although you can argue they don't have much to cut). But SWA doesn't go to the employees and say "well, we lost money the last two quarters - and our pay is at the top of the pack for pilots. You all need to take a pay cut, so we can be profitable." Nope - the management does what >good< management does - they go increase revenue. They don't make profits off the backs of their employees.
I think the DAL management is on the right track - the graph someone posted a bit ago gave me a lot of confidence in the future for the economy.
Now if the company makes money in the next year or two, hopefully we can point to what we, as pilots, have done to contribute to the success. And get our fair share of that success.