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Here it comes
UPDATE 1-Delta plans additional capacity cuts | Markets | Markets News | Reuters
ATLANTA, June 11 (Reuters) - Delta Air Lines Inc (DAL.N) said on Thursday that it planned additional cuts in seat capacity this year as rising fuel prices and softer travel demand pressure business. The world's biggest airline also said the planned capacity reductions meant it must again "reassess staffing needs," but added it would try to avoid involuntary layoffs. In a statement, Atlanta-based Delta said it planned to reduce system capacity by 10 percent from 2008, with reductions beginning in September. It also said it planned to cut international capacity an additional 5 percent on top of what it has already announced, for a total reduction of 15 percent. Earlier this year, Delta had said it would cut international capacity by 10 percent. The company also said it would accelerate the merger integration with Northwest Airlines and keep tight controls on costs and spending. The carrier cited cost pressures from rising jet-fuel prices and said the H1N1 flu virus outbreak contributed to softer travel demand. Delta shares were down 1.8 percent at $6.43 in morning trading as other airline stocks fell. United parent UAL Corp (UAUA.O) was off more than 4 percent, while US Airways Group Inc (LCC.N) and American parent AMR Corp (AMR.N) each fell more than 2 percent. (Reporting by Karen Jacobs; Editing by Lisa Von Ahn) |
Yep, I thought this would be out today. Not good. I would be very surprised if people did not hit the street this time around!
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Originally Posted by NWA320pilot
(Post 626434)
UPDATE 1-Delta plans additional capacity cuts | Markets | Markets News | Reuters
ATLANTA, June 11 (Reuters) - Delta Air Lines Inc (DAL.N) said on Thursday that it planned additional cuts in seat capacity this year as rising fuel prices and softer travel demand pressure business. The world's biggest airline also said the planned capacity reductions meant it must again "reassess staffing needs," but added it would try to avoid involuntary layoffs. In a statement, Atlanta-based Delta said it planned to reduce system capacity by 10 percent from 2008, with reductions beginning in September. It also said it planned to cut international capacity an additional 5 percent on top of what it has already announced, for a total reduction of 15 percent. Earlier this year, Delta had said it would cut international capacity by 10 percent. The company also said it would accelerate the merger integration with Northwest Airlines and keep tight controls on costs and spending. The carrier cited cost pressures from rising jet-fuel prices and said the H1N1 flu virus outbreak contributed to softer travel demand. Delta shares were down 1.8 percent at $6.43 in morning trading as other airline stocks fell. United parent UAL Corp (UAUA.O) was off more than 4 percent, while US Airways Group Inc (LCC.N) and American parent AMR Corp (AMR.N) each fell more than 2 percent. (Reporting by Karen Jacobs; Editing by Lisa Von Ahn) |
Yup, thanks to a newspaper down south they had to already announce 10 Saabs going back to Sweden starting in Sept. Mesaba is now looking at 200-250 on the street soon. Everyone is about to get donkey punched again.
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1+1=1
Not to be negative, but two big airlines merging was bound to create redundancies. The first thing that usually happens is capacity cuts, route discontinuations, and cities disappearing from systems route maps. Then, there will be fleet reductions, hangar closures, hub closures, res center closures, gate/terminal space reductions and inevitably, the probability of...furloughs. I still think NWA/DAL is going to be a great airline; but not at it's current size.
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Originally Posted by B757200ER
(Post 626465)
Not to be negative, but two big airlines merging was bound to create redundancies. The first thing that usually happens is capacity cuts, route discontinuations, and cities disappearing from systems route maps. Then, there will be fleet reductions, hangar closures, hub closures, res center closures, gate/terminal space reductions and inevitably, the probability of...furloughs. I still think NWA/DAL is going to be a great airline; but not at it's current size.
NWA had greater effciencies and lower costs than DAL. Do you really think RA was going to combine the airlines so he could double his workforce, pay them all more and work them less? Oh yea, 1+1=3 Puleeze.... Next will be the return towards NWA type efficiencies both in the PWA and other parts of the airline. We'll survive - expect a wholesale blood bath on the ramp and agent side. We ain't seen nothing yet. The only question on the pilot side is if we'll toss the end of the list under the bus to further outsourcing so as to preserve what we can a little longer... |
I dont understand, how could you guys not see this coming? I know you all were hoping for the best but with the economy the way it is, as well as the usual reduction that goes along with "synergy" is this really a surprise that there may be a need to Furlough?
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This isnt about pilot layoff, yet. There are ALOT of factors that go into this and its multi-level. there is a breaking point but we're not there yet.
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Originally Posted by JoeyMeatballs
(Post 626521)
I dont understand, how could you guys not see this coming? I know you all were hoping for the best but with the economy the way it is, as well as the usual reduction that goes along with "synergy" is this really a surprise that there may be a need to Furlough?
I think that exists EVERYDAY in this industry. |
Originally Posted by Superpilot92
(Post 626528)
This isnt about pilot layoff, yet. There are ALOT of factors that go into this and its multi-level. there is a breaking point but we're not there yet.
Not to be negative but I believe we have reached the breaking point...... I know some have stated that they will not furlough if it will be for less than 24 months. But history has shown us different. I believed DAL was going to furlough pilots even before this capacity reduction, and now with this announcement I feel this is just the nail in the coffin. Note: 757 here I come |
Originally Posted by NWA320pilot
(Post 626535)
Super,
Not to be negative but I believe we have reached the breaking point...... I know some have stated that they will not furlough if it will be for less than 24 months. But history has shown us different. I believed DAL was going to furlough pilots even before this capacity reduction, and now with this announcement I feel this is just the nail in the coffin. |
this may or may not make you feel better, but I would rather be furloughed from DELTA, than be a 3rd year XJT F/O with no career progression in sight...........
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Originally Posted by JoeyMeatballs
(Post 626543)
this may or may not make you feel better, but I would rather be furloughed from DELTA, than be a 3rd year XJT F/O with no career progression in sight...........
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My hope is DALPA doesn't sell out the junior guys to retain perks for the senior.
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Originally Posted by NWA320pilot
(Post 626546)
My hope is DALPA doesn't sell out the junior guys to retain perks for the senior.
X |
Originally Posted by JoeyMeatballs
(Post 626543)
this may or may not make you feel better, but I would rather be furloughed from DELTA, than be a 3rd year XJT F/O with no career progression in sight...........
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Originally Posted by NWA320pilot
(Post 626535)
Super,
Not to be negative but I believe we have reached the breaking point...... I know some have stated that they will not furlough if it will be for less than 24 months. But history has shown us different. I believed DAL was going to furlough pilots even before this capacity reduction, and now with this announcement I feel this is just the nail in the coffin. Note: 757 here I come Ok. I know. I'm getting way ahead of myself. Sorry. New K Now <+++++ (going to find some of those PERP apps to print out to put in the older guys mailboxes.) |
Originally Posted by newKnow
(Post 626551)
If they do furlough, does that "flush" Compass? If so, is that our foot back into the 76 seat market? Ie. Mainline guys flying 76 seaters?
Ok. I know. I'm getting way ahead of myself. Sorry. New K Now <+++++ (going to find some of those PERP apps to print out to put in the older guys mailboxes.) |
Originally Posted by newKnow
(Post 626551)
If they do furlough, does that "flush" Compass? If so, is that our foot back into the 76 seat market? Ie. Mainline guys flying 76 seaters?
Ok. I know. I'm getting way ahead of myself. Sorry. New K Now <+++++ (going to find some of those PERP apps to print out to put in the older guys mailboxes.) |
Originally Posted by NWA320pilot
(Post 626561)
Great idea!!!! We can even fill them out prior to stuffing them in their mailboxes :)
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Originally Posted by newKnow
(Post 626572)
Hell, let's sign 'em too!!! :D
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Originally Posted by NWA320pilot
(Post 626579)
On second thought why put them in the mailboxes lets just fill them out, sign them, and turn them in!
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Originally Posted by newKnow
(Post 626581)
We'll start with those who appear on "no fly" lists the most, then work our way down. This is great brainstorming. :D
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Let's throw in 4 judges, and the highest vote will take the PERP!
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DCI guy on the outside looking in..... I thought that DALPA signed a No Furlough LOA that allowed the DCIs to get more flying =(
BTW just to clarify... this LOA was no furlough = more flying at DCIs.... so if they do furlough, you guys get to take back some scope, right? |
Originally Posted by cencal83406
(Post 626598)
DCI guy on the outside looking in..... I thought that DALPA signed a No Furlough LOA that allowed the DCIs to get more flying =(
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Originally Posted by NWA320pilot
(Post 626585)
Maybe we can have a company wide email sent out and guys could vote on who should go......:eek: Boxes could be setup at checkin at each base and every pilot can enter 10 names. those with the most votes go first!
Whoever voted for the previous contract, c ya! (Oldest first of course.) :D |
Originally Posted by NWA320pilot
(Post 626535)
Super,
Not to be negative but I believe we have reached the breaking point...... I know some have stated that they will not furlough if it will be for less than 24 months. But history has shown us different. I believed DAL was going to furlough pilots even before this capacity reduction, and now with this announcement I feel this is just the nail in the coffin. Note: 757 here I come |
Other airlines will also be in the same situation. Capacity cuts.
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Originally Posted by JoeyMeatballs
(Post 626543)
this may or may not make you feel better, but I would rather be furloughed from DELTA, than be a 3rd year XJT F/O with no career progression in sight...........
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Originally Posted by Florida Flyer
(Post 626732)
Maybe I just have a different take on the situation, but personally, I'd rather be gainefully employed at my stagnant regional and be able to pay my bills, rather than be furloughed on some mainline seniority list clipping coupons and collecting unemployment, wondering if the repo man is going to show up in the middle of the night. Anyone who has a job in aviation at this time (Regional or Major) is extremely fortunate, and no matter where you may be (Regional or Major), you have it better than someone on the street. This is my point. Good luck to all on furlough everywhere, and I hope this economy turns around soon and we can all be back in the sky soon.
BTW, thats not a put down thats just my perspective. ;) |
I agree with that. You can make more at Wal-Mart or working for TSA!
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Originally Posted by acl65pilot
(Post 626748)
I agree with that. You can make more at Wal-Mart or working for TSA!
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So when is CVG going to close? You've got ATL to the south and now DTW to the north...
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Originally Posted by JoeyMeatballs
(Post 626753)
I dunno 'bout that, living in base and a good contract I made $50,000.00 my 2nd year at Express, goes to show you what a good contract can do, but your right regional FO pay still is sad
If so that is why. Most people cannot do that due to the reserve obligation. In good times yes, but in bad times No way. Add to that not many regionals are hiring. there are a few good corporate jobs out there if you know where to look. Plus, if oil goes back up those Oil companies are going to be hiring pilots again! |
From the 'Letter to Employees', this announces some specific routes being cut.
Two thoughts..... 1) CVG is toast 2) How do I change my username to Deldah F/O We are all seeing negative impacts from the global recession and rising oil prices not only in the news, but also in our communities and personal finances. Clearly, the airline industry is not immune. Industry passenger revenues have declined nearly 20 percent in the first four months of the year compared to the same period in 2008. That trend is expected to continue in the near term. On top of this, cost pressures from rising jet fuel prices - up more than 20 percent since the start of the year - coupled with softer travel demand due to the spread of the H1N1 virus, have created a difficult business environment. These forces that are affecting the industry are creating significant headwinds for Delta. Declining revenues will overtake the more than $6 billion in total benefits we expected this year from lower year-over-year fuel prices, merger synergies and capacity reductions. This morning, at an investor conference in New York, we will announce additional steps to align our capacity with market demand, preserve liquidity, and ensure Delta's long-term success. This plan includes reducing our system capacity by 10 percent compared to 2008. Capacity reductions will begin in September. In this environment, our merger makes more sense than ever and we will continue to accelerate our integration, as it gives us a competitive advantage and strengthens our financial foundation. We also will maintain tight controls on our costs and capital spending. Customer demand for international travel has fallen significantly. Accordingly, we plan to reduce our international capacity by an additional 5 percent from what we announced in March, for a 15 percent total reduction in international capacity. This fall's capacity reductions will target routes that have experienced losses in the current economic climate and with higher fuel prices, including:
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Originally Posted by Florida Flyer
(Post 626732)
Maybe I just have a different take on the situation, but personally, I'd rather be gainefully employed at my stagnant regional and be able to pay my bills, rather than be furloughed on some mainline seniority list clipping coupons and collecting unemployment, wondering if the repo man is going to show up in the middle of the night. Anyone who has a job in aviation at this time (Regional or Major) is extremely fortunate, and no matter where you may be (Regional or Major), you have it better than someone on the street. This is my point. Good luck to all on furlough everywhere, and I hope this economy turns around soon and we can all be back in the sky soon.
There are jobs out there that pay far more then 1st year FO regional pay. I could slash my budget by 50%, and still not live on min guarantee from any regional's first year pay. And one has to make the jump to a Legacy sometime. If you're feeling cozy in your FO spot at a regional wait to you get to CA and start making more money. The longer you wait to make the jump, the harder it will get for you to leave. With your mentality you will never leave, because this industry is constantly facing threats. If DAL drops the F-Bomb and I hit the street, I'll find a way to support my family. It will most likely be OUTSIDE of aviation because I don't want to work at the bottom of a regional list, and I will also view it as an opportunity to take a break from flying and spend more time with my family. I have ZERO regrets about leaving my regional and coming to DAL-N, and I think it will pay off very shortly. JMHO. Good Luck to you. :cool: |
Originally Posted by JoeyMeatballs
(Post 626753)
I dunno 'bout that, living in base and a good contract I made $50,000.00 my 2nd year at Express, goes to show you what a good contract can do, but your right regional FO pay still is sad
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Originally Posted by contrails
(Post 626805)
With second year XJT pay before concessions you would have needed to credit 122 hours per month for 12 months to achieve $50K. That is a lot of work. :eek: Even with a decent contract.
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Originally Posted by johnso29
(Post 626778)
There are jobs out there that pay far more then 1st year FO regional pay. I could slash my budget by 50%, and still not live on min guarantee from any regional's first year pay. And one has to make the jump to a Legacy sometime. If you're feeling cozy in your FO spot at a regional wait to you get to CA and start making more money. The longer you wait to make the jump, the harder it will get for you to leave. With your mentality you will never leave, because this industry is constantly facing threats.
If DAL drops the F-Bomb and I hit the street, I'll find a way to support my family. It will most likely be OUTSIDE of aviation because I don't want to work at the bottom of a regional list, and I will also view it as an opportunity to take a break from flying and spend more time with my family. I have ZERO regrets about leaving my regional and coming to DAL-N, and I think it will pay off very shortly. JMHO. Good Luck to you. :cool: |
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