Two moaks not given, just want to know when my bid is out.

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Why did the company agree to this? What is in it for Delta?

Obviously, only my opinion.

Why does Delta buy fuel hedges? After all, fuel is eventually bought at market and hedges are really just insurance against market fluctuations. Yes, you can use them to bet on the market, but eventually statistics tell us pretty reliably that the net is near zero and Delta still had to pay the premium. The answer is certainty. To plan profitable flying, Delta has to have a certain cost in mind for fuel.

This agreement provides management certainty over another big expense, labor. With that expense understood, they can decide what airplanes make sense, where does Capital get the greatest return? Getting this out of the way allows them to move forward, just as they did with the 717's in C2012.

It isn't that they can't run the airline without certainty, but they can not plan as well without certainty. Having agreement lowers risk.

I'd also like to point out the converse of this cooperation. Delta could just plan on the pilots fighting them on everything. If that were the case Delta would avoid using us as much as they could and try to outsource more; while becoming stagnant & losing a first mover advantage in the marketplace.

Especially on the international side, margins are tight and our competitors (like the ME carriers) don't have labor problems. We can move together and remain competitive, or fight each other and lose the World (quite literally).

Just my opinion, that is how I think management sees it.

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FTB,

Perhaps a poor choice of words on my part. Should have stated we can talk "intelligently."

Now that the Virgin LOA is a done deal, what's next?

The AF/KLM grievance.

Management will mitigate. It is in their best interest to fold this grievance into C2015.

This harm to us has been going on for almost 4 years. The damage is millions and millions. And the damage is ongoing even after any settlement because they will still not be in compliance.

This grievance needs to be handled separately. Either through settlement or arbitration.

If DALPA allows it to be folded into C2015, WE LOSE.

C2015 with the grievance included will have the same yield as C2015 without the grievance. Why would we make that mistake?

Settling the grievance outside C2015 will allow us a second bite at the apple. It will allow for major improvements in our scope language. Shorter time frames and specified penalties. It will also mean millions for our pilot group outside of C2015.

Sadly, I believe it will be folded into C2015 and we will miss this opportunity.

Make your voice heard.

I have been very critical of DALPA and their lack of planning and stated goals.

IMO this Virgin LOA is seriously lacking.

Does anyone think this is the end? That we will not have JVs in China, Mexico and Latin America?

We have all the leverage we need and more. RA has promised "labor risk is off the table". All we have to do is rock the boat just the tiniest bit.

This is a watershed moment. Will we make the same mistake we made in the 80s by turning up our nose at commuter air lines??

There is ZERO excuse for not having rock solid international scope to ensure our share of this flying. NONE.

Gzsg,

You are correct, it is likely there will be further development of JV's.

However, I don't understand why you would state your conclusion that a ten fold increase in widebody flying protections in a way that no other airline has done indicates a lack of planning, or lack of scope. Once again, I believe the industry will copy Delta.

Can you explain your conclusions?

The VS JV is the opposite of what happened in the 1990's (and played out during the following decade). In this case we have included our flying in the Company's overall global operation. This is flying we want and we have worked to inclusively capture it.

Is your complaint simply "more." If so, I understand.

We won't know the real story until the blue line drops off like a base jumper here in the coming couple years. Will our net pilot jobs hold steady or increase? Or will KA pretty much do most Pacific flying except a few high yielding US-Asia directs, while we fight for the US-Korea scraps that are left after they have dibs on 2 A380's and a few 777's a day as their baseline.

Buck

I am no expert in this area. It would have been nice to have more education from the MEC.

Specifically, if tomorrow brought the absolute worst case scenario, how much flying could we lose? And worst case scenario, how much can they grow with no gains for us?

What are the actual penalties for noncompliance? I apologize if I missed them.

As you know performance is the centerpiece of all of the contracts Delta signs with partners/vendors/regional partners. This performance is clearly spelled out as well as the penalties for noncompliance.

Did we study and use these contracts for our negotiations?

Jerry