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Originally Posted by FrankCobretti
(Post 1138689)
I've been thinking about scope today.
Imagine a sine wave with an amplitude of +/- 100. This is Delta's demand signal for pilot labor. Over a five-year period, the number of DAL pilots on the list meets the demand between +/- 80. Perhaps RJs and code shares should provide a "labor buffer" for those times when the need goes below -80 or above +80. This flattens the demand wave, which makes the airline more nimble since it isn't directly responsible for the employment of those in the +/- 80-100 pools. In practice a little different model comes into play. Today, to attend Delta's outsourcing party you have to BYOA (Bring Your Own Airplane). Folks won't pick up a $30 million dollar jet without a firm, long term, commitment. They seek the longest, strongest, contract they can get to lock Delta in. They want 30 years, Delta wants 30 days, they seem to compromise around 5 years (on average). Under contract Delta is locked in, meaning that capacity is paid for whether it flies or not. So where is the real accumulator in the system? What part of Delta's network is unencumbered by debt and can be parked with minimal economic cost? .... You can tell an accumulator by what it does ... "we're expanding MD88 flying" "no we are getting rid of the DC9's" "we're keeping the DC9's" "We're getting more MD90's" "no, we aren't" ... "DC9's until 2013" It all depends on the configuration of our Corporate airplane that instant, are we landing, departing, or going missed? Ironic that the only airplane in the fleet with unpressurized hydraulic reservoirs are our job accumulators. As we suck up the gear and the flaps for a nice flight in 2012, we'll see the MD88 accumulator get filled. If we lose an engine and expect an emergency landing, that same accumulator will be drained. |
Originally Posted by Phuz
(Post 1138813)
I bring this up because while I agree with your assessment about the reasons behind scope concessions, I don't think that the end result helps the company in the long-term. On paper it may appear that they are reducing costs each year by outsourcing your flying but it's my opinion that the reduced quality of customer experience which results from the outsourcing ends up costing more in revenue as repeat customers go to other modes of transportation.
It has to be more efficient to insource for the right rates. |
Bar,
Great points. If DAL need to shrink and the DCI arm of DAL is at their floors in the CPA, the bottom DAL jets are the accumulator. Glad to see everyone getting called on the survey. |
Originally Posted by FedElta
(Post 1138426)
Hey Fly,
I can't speak for the LUV boys, but at FDX we did a lot more than show up and fly.....much like DAL folks do now. The biggest difference is that we were thanked in the pocketbook, instead of another " hearty well-done " letter. Regards, BG |
Bar,
On a side note, it is impressive to see the progression at airlines that want to perform their own flying. NKS has upgrades under five years Emirates looks like they are going with Direct Entry Capt's Hawaiian has grown their pilot group by over 25% in the last year ALK has impressive growth numbers I said a few weeks ago that DAL is trying to find how much they can shrink before their RASM starts to hit the back side of the power curve. Last month they still saw a 14% increase in RASM. I would say that they can shrink a little further as long as it does not effect the efficency of their hub network. |
Originally Posted by flyallnite
(Post 1138834)
Having seen the Fred Smith Show from the Jumpseat, it is indeed a thing of beauty. Cheers!
People Service Profit Great book written many years ago on FDX. They know what their people want to be happy and provide max effort. BTW, a few of my friends over there state that they are about ready to announce a large 757/767 order and as a result wil open their app window again. |
Originally Posted by acl65pilot
(Post 1138832)
Bar,
Great points. If DAL need to shrink and the DCI arm of DAL is at their floors in the CPA, the bottom DAL jets are the accumulator. Glad to see everyone getting called on the survey. Just wondering. |
Originally Posted by DeadHead
(Post 1138847)
Do they call back? Got my survey call, told 'em to call back in a few hours and it's been a few days?
Just wondering. |
Originally Posted by Elvis90
(Post 1138810)
Yo Carl, I like your line of thinking: not SWAPA pay rates, but the whole SWAPA contract! I wonder how the NMB would react. Likewise I'd like to see management's conniption.
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Originally Posted by acl65pilot
(Post 1138838)
Bar,
On a side note, it is impressive to see the progression at airlines that want to perform their own flying. NKS has upgrades under five years Emirates looks like they are going with Direct Entry Capt's Hawaiian has grown their pilot group by over 25% in the last year ALK has impressive growth numbers I said a few weeks ago that DAL is trying to find how much they can shrink before their RASM starts to hit the back side of the power curve. Last month they still saw a 14% increase in RASM. I would say that they can shrink a little further as long as it does not effect the efficency of their hub network. I'd submit we should maintain no less than V2+15. To climb requires excess airspeed. I'll also submit that our next management team will be critical of this management team lack of interest in our airline. |
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