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Old 06-07-2012 | 06:01 PM
  #103111  
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Originally Posted by Denny Crane
. Currently, couldn't the company take us to a ratio of 1 dci hour to .90 mainline hour if they wanted too?

Denny
With 50 seaters being too expensive (and on their way out) and 76-seaters capped, could that even happen mathematically?
Old 06-07-2012 | 06:03 PM
  #103112  
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Originally Posted by TOGA LK
Almost put this under tool of the day:

TA pg. 1-14, line 14.

"The company's compliance with the minimum ratio of MBH to DBH will be measured for the first time on July 1, 2014 and then measured again each succeeding July 1 thereafter, ..."
What's our ratio now? I think it's 1-1.19. When will the 717's be delivered? I heard approx. 15 will come in 2013 and then 39 in 2014 and 2015. If we get the 15 in 2013 the contractual BH ratio would be 1-1.25, essentially slightly better than it is now. With deliverys supposed to come pretty even thru the year, the middle of 2014 is where the block hour limit starts to go up. Hence the wait. At least, that's what it looks like to me.

Denny
Old 06-07-2012 | 06:09 PM
  #103113  
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Originally Posted by More Bacon
With 50 seaters being too expensive (and on their way out) and 76-seaters capped, I'm not sure if that could happen mathematically.
If the company is under lease to operate them, gives them expensive heavy checks, and does not have this agreement to worry about, would the 50 seater be so expensive? Anyway the question was: Currently, could the company operate at the block hour ratio I offered? What's to stop them?

Denny
Old 06-07-2012 | 06:09 PM
  #103114  
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Originally Posted by Denny Crane
Questions: Have we not already wizzed it away? There are 600 jets at DCI doing just this now aren't there? Does not the TA actually cut down on the current amount of wizzing (albiet with bigger acft at DCI)?

Just curious what I'm missing.

Denny
I was referring to the combination of increasing the number of viable, long-term mainline replacement aircraft and increasing our efficiency which, together, appear to me a poor long-term solution for growth at the mainline.

Reducing the overall block hours at DCI is great. Reducing the number of RJ's is spectacular. I expected that this would happen as the inefficient 50-seaters were retired while we held the line on large RJ scope. I don't consider their early retirement a windfall any more than I do the early outs. They were both going to happen eventually. Now, however, we've found a way to effectively 'pay' for management to do what they want to do by further weakening our long-term position.

As a former DCI guy who did a good amount of flying that used to be done by DAL 737's, I saw the result of that outsourcing firsthand. I never wanted the 76-seaters at my company and chose never to fly them for that reason. This is my first opportunity to vote no on outsourcing more large RJ's. I haven't decided definitively how I'll vote, but this kind of outsourcing matters to me both for the practicality of reduced future leverage and for the principle of the thing. Outsourcing your own job feels, somehow, unwise.
Old 06-07-2012 | 06:18 PM
  #103115  
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Originally Posted by Denny Crane
No it doesn't but it does ensure that DCI is essentially capped in the amount of block hours it can fly and it will shrink to keep the 1-1.56 ratio. Currently, couldn't the company take us to a ratio of 1 dci hour to .90 mainline hour if they wanted too?

Denny
They could, but they would have to get additional small (read: inefficient) aircraft to do it. There is no economic incentive for additional outsourcing. The opposite is true: there is economic incentive to *decrease* outsourcing right now because the 50s are such a drag. This is evidenced by the extraordinary lengths the company has been willing to go to in order to get out of them (killing Comair, Mesa lawsuit). Lesson learned: the company responds strongly to economic incentives.

With the TA, you decrease the number of airframes at DCI, somewhat decrease the ASMs at DCI, decrease number of pilots working at DCI, and shift the balance of flying significantly towards mainline. These are all good things! None of us are arguing against them. The problem is by shifting DCI's fleet to one that is economical, capable, and popular with passengers, you are once again creating economic incentive to outsource. Yes, there are block hour ratios to protect you from the company responding to that incentive. The real money question is: will the company respect the contract? Will ALPA enforce the ratios if tested? Will the language hold up in court? Will the ratios survive the next contract?

These are the real questions because by the end of this contract, if ratified, DCI will be far more attractive than it is now, the company will once again consider them a viable alternative to mainline, there will be 230 76 seaters permanently ensconded at DCI, and a portion of the 102 70 seaters will be getting old. The pressure to allow more outsourcing will be huge, and the precedent will have been set.

Put another way, if there were some way to guarantee that the "hard caps" and ratios remained in place for the next 15 years, they would be a good deal and worth allowing the extra jumbo RJs. With this T/A though, it's only guaranteed for the next three years (if the company respects the contract) and it ensures there will be pressure for additional outsourcing at some point. You're trading decent protections for the next three years for a precarious situation in the years after that.
Old 06-07-2012 | 06:19 PM
  #103116  
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Originally Posted by Bluto
I was referring to the combination of increasing the number of viable, long-term mainline replacement aircraft and increasing our efficiency which, together, appear to me a poor long-term solution for growth at the mainline.

Reducing the overall block hours at DCI is great. Reducing the number of RJ's is spectacular. I expected that this would happen as the inefficient 50-seaters were retired while we held the line on large RJ scope. I don't consider their early retirement a windfall any more than I do the early outs. They were both going to happen eventually. Now, however, we've found a way to effectively 'pay' for management to do what they want to do by further weakening our long-term position.

As a former DCI guy who did a good amount of flying that used to be done by DAL 737's, I saw the result of that outsourcing firsthand. I never wanted the 76-seaters at my company and chose never to fly them for that reason. This is my first opportunity to vote no on outsourcing more large RJ's. I haven't decided definitively how I'll vote, but this kind of outsourcing matters to me both for the practicality of reduced future leverage and for the principle of the thing. Outsourcing your own job feels, somehow, unwise.
+1 this is where I'm at. Back and forth on this very issue.
Old 06-07-2012 | 07:15 PM
  #103117  
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Originally Posted by Bluto
I was referring to the combination of increasing the number of viable, long-term mainline replacement aircraft and increasing our efficiency which, together, appear to me a poor long-term solution for growth at the mainline.

Well, all I can say is we would be significantly lowering the the total amount of outsourced aircraft and lowering ASMs. Along with the block hour ratio, if there is any growth it should benefit mainline way more than DCI. Also, DCI will be capped at 450 aircraft. There is only so much flying they can do.

Reducing the overall block hours at DCI is great. Reducing the number of RJ's is spectacular. I expected that this would happen as the inefficient 50-seaters were retired while we held the line on large RJ scope. I don't consider their early retirement a windfall any more than I do the early outs. They were both going to happen eventually. Now, however, we've found a way to effectively 'pay' for management to do what they want to do by further weakening our long-term position.

I have to ask, do you think my scenario that, currently, with the delivery of the '90's and 737-900's the company could reach 801 aircraft, get up to 255 76ers and dump mainline aircraft? I think it's entirely feasible. As far as the 50 seaters go, I think a lot of guys saying they are gonna leave and soon but I'm not convinced they are, especially if the company puts a lot of money into heavy checks.....

As a former DCI guy who did a good amount of flying that used to be done by DAL 737's, I saw the result of that outsourcing firsthand. I never wanted the 76-seaters at my company and chose never to fly them for that reason. This is my first opportunity to vote no on outsourcing more large RJ's. I haven't decided definitively how I'll vote, but this kind of outsourcing matters to me both for the practicality of reduced future leverage and for the principle of the thing. Outsourcing your own job feels, somehow, unwise.

All I can say to this is I wish we had never allowed it but we did...

I have to look at the "big picture" scope clause in the TA and when I do I see a win for us. I do NOT like the increase in 76ers but when I see that 255 are allowed currently if the company meets 801 mainline aircraft (which I think is entirely possible), I have to really consider this a win.

Denny
Old 06-07-2012 | 07:20 PM
  #103118  
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Originally Posted by Denny Crane
I have to look at the "big picture" scope clause in the TA and when I do I see a win for us. I do NOT like the increase in 76ers but when I see that 255 are allowed currently if the company meets 801 mainline aircraft (which I think is entirely possible), I have to really consider this a win.

Denny
Don't neglect that the company would have to park 102 70-seaters in order to reach that 255 76 seat count. That is pretty freaking significant.
Old 06-07-2012 | 07:40 PM
  #103119  
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Originally Posted by JungleBus
They could, but they would have to get additional small (read: inefficient) aircraft to do it. There is no economic incentive for additional outsourcing. The opposite is true: there is economic incentive to *decrease* outsourcing right now because the 50s are such a drag. This is evidenced by the extraordinary lengths the company has been willing to go to in order to get out of them (killing Comair, Mesa lawsuit). Lesson learned: the company responds strongly to economic incentives.

They wouldn't have to get any more small aircaft at DCI. All they have to do is cut mainline and park aging aircraft and voila! Yes they do respond strongly to economic incentives. What do you think they will do if we turn this down and they then spend the money on heavy checks for the 50s? I suspect they will fly them to try and get the money back from doing the checks!

With the TA, you decrease the number of airframes at DCI, somewhat decrease the ASMs at DCI, decrease number of pilots working at DCI, and shift the balance of flying significantly towards mainline. These are all good things! None of us are arguing against them. The problem is by shifting DCI's fleet to one that is economical, capable, and popular with passengers, you are once again creating economic incentive to outsource. Yes, there are block hour ratios to protect you from the company responding to that incentive. The real money question is: will the company respect the contract? Will ALPA enforce the ratios if tested? Will the language hold up in court? Will the ratios survive the next contract?

You answered your own question better than I could have! That is why the ratio's are there. I will probably be called a "company man" for saying this but I have been proud to work for Delta thru my career so far. Over the years I have been here there has not been alot of head butting between Delta and DALPA. There have been instances where the contract has been violated and DALPA has grieved and won. FM II being one of them. I fully believe DALPA will grieve any known violation of the ratio. Only courts can decide that! I would say yes because our agreement is with Delta Air Lines and not DCI. Will the ratios survive? Only the next TA will tell but I would be highly surprised if they didn't...

These are the real questions because by the end of this contract, if ratified, DCI will be far more attractive than it is now, the company will once again consider them a viable alternative to mainline, there will be 230 76 seaters permanently ensconded at DCI, and a portion of the 102 70 seaters will be getting old. The pressure to allow more outsourcing will be huge, and the precedent will have been set.

It may be more attractive but it will definitely be smaller and isn't that what we are after? I cannot get passed the fact that, currently, DCI can reach 255 76ers if mainline gets to 801 aircraft and then Delta could dump mainline. You say some of the 70s are getting old, I rest my case with the pump and dump to 255 76ers.

Put another way, if there were some way to guarantee that the "hard caps" and ratios remained in place for the next 15 years, they would be a good deal and worth allowing the extra jumbo RJs. With this T/A though, it's only guaranteed for the next three years (if the company respects the contract) and it ensures there will be pressure for additional outsourcing at some point. You're trading decent protections for the next three years for a precarious situation in the years after that.

Unfortunately there will never be a guarantee of that. When in contract negotiations, every thing is negotiable. Well thanks for saying we get decent protections from the TA! All I can say for the last is: You are only worth what you negotiate!
And I'm not real excited with what we negotiated in the whole contract but I still think the scope is an overall win.

Denny
Old 06-07-2012 | 07:44 PM
  #103120  
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Originally Posted by bigbusdriver
That was all in reference to the Delta Private Jets and not DCI. I really don't care about 5 Gulfstreams. Bigger fish
Comair started the "RJ Revolution" with 4 RJs.

Want to try again?

Nu
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