Unless I'm misunderstanding you, I think we'd want just the opposite. Raises that kick in if the company doesn't meet its promised debt reduction goals. That would make them think really hard about buying Virgin stakes and Pinnacle remnants.

Carl

 

This is 100% spot on.

Carl

 

Another spot on point and one that is not mentioned often enough.

Carl

 

YES! AWESOME!!

First johnso29 telling people to resign, now this.

The ghost of Dr. Janus is so proud right now.

Carl

 

Nothing. Capacity reduction.

An article from the New York Times hit it square on the head back in 2012.

"..., the cramped 50-seat regional jets that were the backbone of service for midsize and smaller markets are disappearing. In some markets, that means service is being eliminated. In others, though, it means reduced schedules on fewer routes, served by slightly bigger planes like the Bombardier CRJ-700, which is a stretched version of the older 50-seat CRJ-200." -Joe Sharkey, New York Times

A few things happened to make this even more lucrative to Delta. We ratified the new contract. Comair and its senior employee group were eliminated. GoJet was signed on to fly those airplanes and Pinnacle was restructured.

This process is continuing at mainline as we have already cut capacity and now we are retiring and replacing larger higher paying aircraft with smaller lower paying aircraft.

The last few years have witnessed nothing short of a large restructuring of Delta. Everything has been driven by cost savings and debt reduction rather than growth or competition.

 

We've been told time and time again that the companys' goals and our goals are aligned. If the company does well, then we all do well.

While I agree with this logic to some extent, durning contract negotiations the exact opposite is true.

If our aligned interests are so apparent, then why not official connect them contractually to one another. I guess the downside to this is that if the company performs poorly, the we would receive a comeasurate pay cut. To that I would say, isn't that already the case?

 

CNN reporting an Asiana 777 "crashed" in SFO on landing....

 

looks like Asiana from the logo. News reporting wind 8 kts. Some slides are deployed.

 

That's a good point. Where does the alignment of goals split off?

I think the company's goals, especially our company, would be a peaceful labor force. We'd like the same thing.

So one way to do that is a fast contract, slight pay raise, talk about the time value of money and add in a little SJS. The cost will increase but you can fund that cost growth through productivity improvements (which I guess is shrinkage in every category top to bottom), realignment opportunities on outsourced aircraft and profit sharing reduction. Not sure that's how I'd done it.

 

Looks like fire in fuselage but wings intact.