New Delta capacity cuts
#21
Gets Weekends Off
Joined: Feb 2008
Posts: 467
Likes: 0
From: SLC ERB
It was a survey conducted by a third party company. They asked a bunch of questions about how I felt about the company and DALPA. Most of the answers were in the strongly agree - strongly disagree type format, but some were in my own words. I took every opportunity to bring up the topic of scope
#22
It was an overall "how do you think the MEC is doing and what are your most important issues going forward" survey conducted by the Wilson Polling Center, standard ALPA stuff.
At every opportunity I told them of my dissatisfaction with the relaxation of Scope and how that was my number one priority going forward.
At every opportunity I told them of my dissatisfaction with the relaxation of Scope and how that was my number one priority going forward.
#23
Am I the only one who thinks you guys are being rather naive?
Unemployment is at 8% ... and is forecasted to go much higher. Who cares if DAL buys a new 777 here or there. They'll just park older aircraft.
Our no furlough clauses aren't going to hold if the economy does as forecasted.
Unemployment is at 8% ... and is forecasted to go much higher. Who cares if DAL buys a new 777 here or there. They'll just park older aircraft.
Our no furlough clauses aren't going to hold if the economy does as forecasted.
#24
Heyas,
No, a Compass divestiture does not affect the flow. The only way the flow changes is if BOTH parties agree.
I don't think the flow, as it stands, would survive at RAH. Failure to maintain the flow would result in draconian 70 seat cuts, which I don't think mama DAL would be willing to deal with right now.
It's interesting to note, though, that DALs most serious competitors, AMR, CAL, and SWA have little or no 70 seat feed, and I've heard serious talk that the whole 70 seat program is being re-considered along the same lines as the 50 seat program. The are BIG DCI cuts coming, and I've heard that this time next year there will be at least one less wholly owned.
Nu
No, a Compass divestiture does not affect the flow. The only way the flow changes is if BOTH parties agree.
I don't think the flow, as it stands, would survive at RAH. Failure to maintain the flow would result in draconian 70 seat cuts, which I don't think mama DAL would be willing to deal with right now.
It's interesting to note, though, that DALs most serious competitors, AMR, CAL, and SWA have little or no 70 seat feed, and I've heard serious talk that the whole 70 seat program is being re-considered along the same lines as the 50 seat program. The are BIG DCI cuts coming, and I've heard that this time next year there will be at least one less wholly owned.
Nu
Now what does that mean? In this economy I see it meaning continued pressure from DAL management to give the DCI carriers the 100 seat market. Why? Well they have contracts that they need to fill. We need to hold the line no matter how many they threaten to put on the street.
That said, there is a lot going on. Nu did you talk to the DAL-N contract administrator and see what he inferred by the four possible outcomes of CPS in the LEC 1 meeting?
DCI is going to get cut, and a lot. It was to happen this year, but they decided to wait until we had more lift to augment it. Why? Because we do not want to lose market share.
A lot is going on.
This decision on the cuts was just made, and it might not be the last. Like I said, we are really right on the line of whether or not it is cost advantageous to furlough. If we do I see 200-300.
#25
They are, we will recover a lot quicker than the others. If this continues I see UAUA, AMR, or LLC in 11 or 7 by this fall.
#26
BRIEF-Delta says still has firm order book on 787
By: AFX | 10 Mar 2009 | 11:49 AM ET
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ATLANTA, March 10 (Reuters) - Delta Air Lines Inc: * In remarks at J.P. Morgan conference, finance chief says Delta still has firm order book on Boeing 787 aircraft * Says has made no announcements, decisions yet about changing course on Boeing 787 * Says needs to improve unit revenue in New York market * Says it would be difficult to dispose of regional subsidiary in current market conditions ((Atlanta Equities; tel: +1 404 493 3656)) (For more news about Delta Air Lines Inc click here
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
By: AFX | 10 Mar 2009 | 11:49 AM ET
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ATLANTA, March 10 (Reuters) - Delta Air Lines Inc: * In remarks at J.P. Morgan conference, finance chief says Delta still has firm order book on Boeing 787 aircraft * Says has made no announcements, decisions yet about changing course on Boeing 787 * Says needs to improve unit revenue in New York market * Says it would be difficult to dispose of regional subsidiary in current market conditions ((Atlanta Equities; tel: +1 404 493 3656)) (For more news about Delta Air Lines Inc click here
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
#27
UPDATE 2-Delta to cut international capacity
By: AFX | 10 Mar 2009 | 11:08 AM ET
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ATLANTA, March 10 (Reuters) - Delta Air Lines, the world's largest carrier, said on Tuesday it would cut its international capacity by an additional 10 percent starting in September as the global economic downturn batters the industry. The airline also indicated it may need to cut more jobs, and its shares were up more than 3 percent in morning trading. Delta said its cuts would target its Atlantic and Pacific networks, which have seen the most revenue weakness. The cuts are in addition to a systemwide capacity decrease announced late last year. "While flying held up somewhat in the second half of last year, it was just a matter of time until the rest of the world started to slow down," said Basili Alukos, a Morningstar analyst. "From the international perspective, most of the airlines are just late to the game," he added. Delta said its trans-Atlantic capacity this winter would be down 11 percent to 13 percent compared to the winter of 2008, while its trans-Pacific capacity would be down 12 percent to 14 percent. The airline industry is grappling with weaker travel demand as economies sag around the world. Carriers slashed seat capacity in the second half of 2008 to compensate for volatile fuel prices and falling demand, and analysts have been expecting further cuts. Delta, which merged last year with Northwest Airlines, said in December its domestic capacity would fall 8 percent to 10 percent in 2009, and international capacity would fall 3 percent to 5 percent. Systemwide, that meant a reduction of 6 to 8 percent. The new round of downsizing means Delta must "reassess our staffing needs," the company said in a memo to workers. The carrier has eliminated 2,100 jobs through voluntary exit programs and hopes to achieve its next target also through voluntary separation. Delta has more than 70,000 employees. Delta also said it expects its first-quarter operating margin to be down 6-7 percent and breakeven pretax earnings at current fuel prices. Excluding one-time items, the carrier said it sees its first-quarter operating margin down 5 percent to 6 percent. Delta said it expects to end the first quarter with a liquidity position of $4.4 billion. Delta's shares were up 13 cents at $4.30 in morning New York Stock Exchange trading after earlier climbing as much as 8 percent. (Reporting by Karen Jacobs in Atlanta and Kyle Peterson in Chicago, editing by Dave Zimmerman) Keywords: DELTA/ ([email protected]; + 1 404 493-3656; Reuters Messaging: [email protected]) COPYRIGHT Copyright Thomson R
By: AFX | 10 Mar 2009 | 11:08 AM ET
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ATLANTA, March 10 (Reuters) - Delta Air Lines, the world's largest carrier, said on Tuesday it would cut its international capacity by an additional 10 percent starting in September as the global economic downturn batters the industry. The airline also indicated it may need to cut more jobs, and its shares were up more than 3 percent in morning trading. Delta said its cuts would target its Atlantic and Pacific networks, which have seen the most revenue weakness. The cuts are in addition to a systemwide capacity decrease announced late last year. "While flying held up somewhat in the second half of last year, it was just a matter of time until the rest of the world started to slow down," said Basili Alukos, a Morningstar analyst. "From the international perspective, most of the airlines are just late to the game," he added. Delta said its trans-Atlantic capacity this winter would be down 11 percent to 13 percent compared to the winter of 2008, while its trans-Pacific capacity would be down 12 percent to 14 percent. The airline industry is grappling with weaker travel demand as economies sag around the world. Carriers slashed seat capacity in the second half of 2008 to compensate for volatile fuel prices and falling demand, and analysts have been expecting further cuts. Delta, which merged last year with Northwest Airlines, said in December its domestic capacity would fall 8 percent to 10 percent in 2009, and international capacity would fall 3 percent to 5 percent. Systemwide, that meant a reduction of 6 to 8 percent. The new round of downsizing means Delta must "reassess our staffing needs," the company said in a memo to workers. The carrier has eliminated 2,100 jobs through voluntary exit programs and hopes to achieve its next target also through voluntary separation. Delta has more than 70,000 employees. Delta also said it expects its first-quarter operating margin to be down 6-7 percent and breakeven pretax earnings at current fuel prices. Excluding one-time items, the carrier said it sees its first-quarter operating margin down 5 percent to 6 percent. Delta said it expects to end the first quarter with a liquidity position of $4.4 billion. Delta's shares were up 13 cents at $4.30 in morning New York Stock Exchange trading after earlier climbing as much as 8 percent. (Reporting by Karen Jacobs in Atlanta and Kyle Peterson in Chicago, editing by Dave Zimmerman) Keywords: DELTA/ ([email protected]; + 1 404 493-3656; Reuters Messaging: [email protected]) COPYRIGHT Copyright Thomson R
#28
200-300 doesn't make sense to me. If you consider the Compass flowback training costs they max out at 300 no? Its seems that once you reach the training costs of 300 type rides, wouldn't it make more $ sense to do at least 500-1000? 300 of the lowest paid guys in the company sounds like too few to be worth it (for the company), and 500-1000 may be too many to fly the remaining metal. Maybe that's what keeps them from doing any at all. Thoughts?
Philly
#29
Can't abide NAI
Joined: Jun 2007
Posts: 12,078
Likes: 15
From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
There are other ways to do capacity cuts. Aircraft will start flying through each others' markets starting next month.
For example:
747-400 (403 seats) replaced by a 777, 767 or Airbus in Asia (217 to 285 seats)
757-ER back fills the 767
E175, 737, MD88, MD90 and DC9 and Airbus Back Fill for 757's
CRJ, ERJ backfill for DC9 and MD88
Domestic is "right sized now" according to Ed Bastian today in the conference call. Demand is "not getting worse" and "revenue is stable."
Overall, the international capacity change results in a 5% gross cut. To the extent that flying is back filled with the extra Boeings there will not be a staff cut. On the routes that get "seasonal" service there will be cuts and more of the remaining flying will be on the weekend.
For example:
747-400 (403 seats) replaced by a 777, 767 or Airbus in Asia (217 to 285 seats)
757-ER back fills the 767
E175, 737, MD88, MD90 and DC9 and Airbus Back Fill for 757's
CRJ, ERJ backfill for DC9 and MD88
Domestic is "right sized now" according to Ed Bastian today in the conference call. Demand is "not getting worse" and "revenue is stable."
Overall, the international capacity change results in a 5% gross cut. To the extent that flying is back filled with the extra Boeings there will not be a staff cut. On the routes that get "seasonal" service there will be cuts and more of the remaining flying will be on the weekend.
#30
I am not saying that we are more over staffed than 300. What I am saying is that they need to furlough 1000 or just enough that they can guarantee that they will be out two plus years. They will have to pay for everyone to flow in to compass on the front end or the back end of their furloughs as there really are no other jobs out there. They know this. The goal would be to furlough just the number of pilots that can be on the street long enough to pay for their furlough at CPS.
make sense.
I do not have official numbers this is just an educated guess.
make sense.
I do not have official numbers this is just an educated guess.
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