Delta To Furlough?
#852
Let me throw this target out for the group to shoot at.
GS for reserve pilots who are not flying "extra", rather manipulating the schedule to fly the same hours for premium pay does not impact staffing. Comments...
GS for reserve pilots who are not flying "extra", rather manipulating the schedule to fly the same hours for premium pay does not impact staffing. Comments...
#853
Gets Weekends Off
Joined: Jan 2014
Posts: 2,286
Likes: 18
I would contend that Reserve Green Slips actually make staffing worse, are at least net neutral. It might "fix" staffing a flight on one day but makes their staffing on another day worse.
#854
WRT buybacks, if we can't eliminate them, any stock based compensation should be adjusted based on a reduction of outstanding shares. If Delta buys back 10% of the outstanding shares, the strike price on executive options increase and the number of shares are reduced by 10%. Executives do not participate in special dividend disbursements.
#856
#858
Assuming they furlough off the number of active pilots, in this case 13,200, we know from the ALPA dashboard that 436 are slated to retire in 2020 and 698 are slated to retire in 2021. A "rumor" going around the industry (not Delta specific) is that in order to furlough, the rule of thumb is that said furloughees need to be off property for anywhere between 9-20 months for it "to make financial sense" for the furlough to occur in the first place due to the training wave produced by the furlough. Due to age 65, between now and 12/31/2021 1,134 pilots will retire, period.
If early outs are offered in the same fashion that AA has offered (62 and above are eligible) that means that pilots retiring between now and April 2023 are eligible. Per ALPA's dashboard of retirements:
2020-436
2021-698
2022-781
2023-190 (759 are slated to retire in 2023, 190 between 1/1/2023-3/31/2023 if you divide 759/4)
Total: 2,105
So 2,105 pilots would be eligible to take an early out option (if offered)...assuming only 20% of those pilots take advantage that reduces the seniority list by another 421, albeit they're still being paid 50-55 hours until age 65 but it does count toward something as the majority of these early outs will be taken by WB Captains. I believe roughly 600 pilots at American took the deal.
So between actual retirements and early out options, by 12/31/2021 our seniority list could be reduced by 1,555 without having to furlough a single pilot which represents 11.7% of active pilots and 10.5% of the entire seniority list as of March 2020. I'm hoping and praying that NOBODY will have to be furloughed but for those of you running numbers that is what I came up with based on available information.
It is my personal opinion that if demand data is suggesting a modest return in Q4 and is trending consistently up into Q1 and Q2 of 2021 a furlough might not be necessary and if there is one it is for 12 months or less.
#859
What would really suck would be if the company ran a massive bid this summer in preparation for furloughs. They could downgrade a bunch of captains and shrink categories forcing all the to be furloughed pilots to the 717B out of NYC. Being forced to commute to NYC for 3 months before you are furloughed would really be a kick in the pants.
As an aside, if Ed Bastian decides to really do everything that he can for the Delta family, he can use the $127 million he made directly from stock buybacks to prevent 550 pilots from being furloughed.
As an aside, if Ed Bastian decides to really do everything that he can for the Delta family, he can use the $127 million he made directly from stock buybacks to prevent 550 pilots from being furloughed.
#860
I don't dispute the math, but realize that the same people deciding if we should furlough are the same ones who planned out or staffing for the summer of 2019.
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