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Old 07-25-2012 | 05:49 PM
  #106161  
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Originally Posted by Scoop
You are probably right about the capacity discipline, but one thing is for sure - its a lot easier to get enthusiastic about capacity discipline while in the left seat.

Scoop
I was speaking as an investor. As a pilot, I think it sucks, and you are probably right that it is a bit easier from the left seat however, I have not become any more senior as a result of that discipline.... And yes, I can differentiate between the two.
Old 07-25-2012 | 07:08 PM
  #106162  
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Originally Posted by 76drvr
When were you "sold" the code share agreement with DALPA?

I believe it was around 1998. DALPA put out a lot of information regarding the benefits of code sharing. It was pursuant to the DL/AM application to codeshare across each others domestic networks. If I recall correctly, DL needed approval from the MEC.

DAL has been code sharing with Aeromexico for years.

Not saying it's been a bad thing. On the contrary, I think it has been mostly beneficial. My concern is where it's headed.

I share your concern with international code sharing and joint ventures. That's one of the reasons I voted in favor of this latest TA. It tightened international code sharing and established first of a kind global joint venture protections.

I guess we are going to get a chance to test it out.

Since code sharing with Aeromexico is not a joint venture, and we don't have anti trust immunity, I'm not sure if your claim that we are coordinating scheduling is correct.

While it's true we don't have a JV agreement, it's clear that there is a great deal of coordination going on at the sales level, and sales drives scheduling. See below:




9/09/2011 @ 10:32AM |315 views

Delta Deal With Aeromexico Helps Give DAL Stock Lift To $9


What does the proposed agreement entail?
The agreement enables network-wide codesharing for both Delta and Aeromexico flights between the U.S. and Mexico as well as flights within the carriers’ domestic networks and to other key international destinations.
The cooperation further includes setting up a coordinated sales team, reciprocal benefits for elite-level loyalty program members and a $65 million investment by Delta in Aeromexico. The investment once approved by the Mexican regulators would give Delta a ~3.6% stake in Grupo Aeromexico and a seat on its board of directors.


Also, isn't Aeromexico a prorate code share agreement. How is it that Delta is deriving revenue from a passenger on Aeromexico who never touches Delta metal or flies through one of our hubs?


It is indeed. My point though is that we don't gain any flow across our system from their passengers if they can bypass our system and our metal. Worse yet, we may actually be feeding THEM our international passengers in some markets.

Bottom line, I'm not against the code share. I am concerned that they are ordering new shiny hub bypassing widebodies, after giving them 65 million dollars, and we aren't ordering any new international metal. All we seem to be doing is gradually closing international stations and slowly reducing our block hours and pilot head count. The two together are not something I'd like to see.
Old 07-25-2012 | 07:53 PM
  #106163  
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Originally Posted by flyallnite
It is indeed. My point though is that we don't gain any flow across our system from their passengers if they can bypass our system and our metal. Worse yet, we may actually be feeding THEM our international passengers in some markets.

Bottom line, I'm not against the code share. I am concerned that they are ordering new shiny hub bypassing widebodies, after giving them 65 million dollars, and we aren't ordering any new international metal. All we seem to be doing is gradually closing international stations and slowly reducing our block hours and pilot head count. The two together are not something I'd like to see.[/COLOR]
Not to mention we have no eventually essential next gen planes on order, while little AeroMexico has the latest and greatest. We've pushed ours out til 2020 (at least) for the 787, with no MAX or NEO's to speak of while a third world code share partner inks 11billion worth after we invest in them. At least we are getting 15-20 year old used planes.

There is some protection in the CS and JV language, but when it comes down to it, DL management appears to be more than willing to give up the flight revenue in order to let a phantom third party oputsource provider like AM or AS do it as long as the over all network is preserved or expanded. They will take the hit on the flight segment revenue as long as the network route map continues to win and the HVC's have lounges, especially if they don't have to spend money, grow operationally or add debt for anything. The end result is entirely unsustainnable as it puts us on an ever increasing cost structure trajectory requiring more and more capacity dicipline, which further increases our costs. Merging just to shrink is also a very limited solution and only adds to the funding of the ULCC and foreign ponzi scheme order books. By growing our outsource proxies, it lowers their unit costs relative to ours, which further incentivises them to keep growing them and shrinking us.

But it buffs the next quarter's numbers. Right up until it doesn't. Then golden parachues will be popped and it'll be someone else's problem.
Old 07-25-2012 | 09:34 PM
  #106164  
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Originally Posted by forgot to bid
500 50-seaters in 2008. So we dropped 150-200 since then?
Dropped 131 just at Comair, so yes.
Old 07-26-2012 | 03:14 AM
  #106165  
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So I'm jumpseating home and the Capt said he just had a 4th Flr on his jumpseat a couple days ago and the decision this week is 717s in Atl and NY to take over all the LaGuardia slots. I know not very juicy news but now the discussion on how junior the 717A side will be can begin.
Old 07-26-2012 | 03:43 AM
  #106166  
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Originally Posted by cni187
So I'm jumpseating home and the Capt said he just had a 4th Flr on his jumpseat a couple days ago and the decision this week is 717s in Atl and NY to take over all the LaGuardia slots. I know not very juicy news but now the discussion on how junior the 717A side will be can begin.
We shall see. Best guess in 8500.
Old 07-26-2012 | 04:27 AM
  #106167  
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Originally Posted by cni187
So I'm jumpseating home and the Capt said he just had a 4th Flr on his jumpseat a couple days ago and the decision this week is 717s in Atl and NY to take over all the LaGuardia slots. I know not very juicy news but now the discussion on how junior the 717A side will be can begin.
I thought this was the decision all along. That weekly newsletter said otherwise, but DAL has never had a typo before in their correspondence. I just hope (not a strategy) that they are mostly growth airplanes. That is the real questionmark.
Old 07-26-2012 | 04:52 AM
  #106168  
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Originally Posted by acl65pilot
We shall see. Best guess in 8500.
Heard as of yesterday 176 on the RMA. Figure 10-20% backout for a total of ~150. I guess this kills once and for all the early retirement and all it needed was a medical plan myth.

I guess a bunch of junior pilots are going to get a displacement pay cut instead of a raise, and no new hires for a while.

The further capacity reductions sort of kills the hope of the 2013 flying plan making up for the productivity increases and RMA shortfall.

I bet 717A and 88A all go more, not less senior than before the TA

Last edited by Enemyofthestate; 07-26-2012 at 05:03 AM.
Old 07-26-2012 | 05:37 AM
  #106169  
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Originally Posted by Enemyofthestate
Heard as of yesterday 176 on the RMA. Figure 10-20% backout for a total of ~150. I guess this kills once and for all the early retirement and all it needed was a medical plan myth.

I guess a bunch of junior pilots are going to get a displacement pay cut instead of a raise, and no new hires for a while.

The further capacity reductions sort of kills the hope of the 2013 flying plan making up for the productivity increases and RMA shortfall.

I bet 717A and 88A all go more, not less senior than before the TA
I heard this also. I have said this before. There is no excuse for not retiring. Most pilots will not retire until they are forced to. This job is their identity. They cannot imagine not being an airline captain. We have former NWA whale captains literally working for $1500/month vs what they would be making if they retired. These guys would be making more money if they retired and took a job at year one pay flying a regional jet. That memo about us hiring as early as fourth quarter this year was a TA sell job by the company. I don't see us hiring until 2015 and that's only if we reverse course and stop shrinking. On a brighter note, we are shrinking at about the same pace pilots are leaving resulting in continued employment for everyone on property.
Old 07-26-2012 | 05:44 AM
  #106170  
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Continual backwards movement is a real moral buster. I am starting to see the 717 as simply another possible step in the wrong direction. If they aren't growth, which I am beginning to suspect they won't be, then their value to the pilot group will be a cushion to furlough. The early retirement, as many have posted, will benefit a select few. As far as the group as a whole, it won't be a blip.

MD90s, 737s, and 717s are all smaller/lower paying replacements to aircraft already on property. I would say a majority of the pilot group is about to take a pay cut, thus negating most of our supposed TA gains.

In the end, my glass is half empty regarding these future two AEs. I also don't have much confidence in any hiring rumors. Growth at Delta is going to be through merger and acquisition. Our answer to pilot attrition won't be through hiring, it will be through mergers and the capacity reductions that follow.

Last edited by CAAC ATP; 07-26-2012 at 05:55 AM.
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