Any "Latest & Greatest" about Delta?
06-14-2012, 05:50 PM
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Delta Cuts Back on Jet Order to Save Money
By MICHELINE MAYNARD
Published: February 11, 2004
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Delta Air Lines, which is on an aggressive cost-cutting drive, said yesterday that it would not add five Boeing 777 long-range jets to its fleet over the next two years as it had planned to do.
The action is the latest in a series of moves announced by the airline, which is struggling to be profitable amid a stiff challenge from low-fare airlines. Delta, the industry's third-biggest airline, behind AMR's American and UAL's United, is trying to keep up with cost cuts by rivals.
Delta, based in Atlanta, said it would defer the delivery of two Boeing 777-200 jets to the second half of 2005 from the first half, and then sell them. It also said that it would not keep three 777 jets that it has ordered for delivery in 2006. Delta said it would either sell those jets or exchange them for other Boeing aircraft. It did not say which aircraft it might buy instead.
The airline said that it would continue to operate the eight Boeing 777 jets in its fleet and that it was pleased with their performance.
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Delta said the move could ultimately reduce its capital spending $300 million if it is able to find buyers for the planes. The Boeing Company had no comment.
The action was the first time an airline had changed an order with Boeing since Continental Airlines canceled plans in 2003 to buy Boeing 757 medium-range jets. It decided to take the smaller Boeing 737 instead.
Boeing will end production of the 757 this year. It plans to replace the 757 and its sister jet, the 767, with a new aircraft, the 7E7, which it recently put on sale. Boeing has yet to receive firm orders for the 7E7.
Delta's chief executive, Gerald Grinstein, who took office on Jan. 1, has ordered a top-to-bottom review of the airline to find ways it can save money and streamline its operations.
Delta's announcement came five days after the airline said it would curb its expansion plans at Song, its low-fare airline. Song, which planned to add a number of flights from Kennedy Airport this year, said it would add only two. Song also said it would discontinue service between Washington Dulles International Airport and Orlando, Fla., in April.
In addition, Delta said on Friday that that it had privately placed $325 million in convertible senior notes with an unidentified institutional holder, thought by analysts to be Morgan Stanley.
Last year, Delta began talking with its pilots' union about proposed contract concessions, which Delta says would bring its wages and benefits closer to those at American and United. Both have won cuts from their unions over the last year, United under Chapter 11 bankruptcy protection and American by threatening to file for bankruptcy.
But two weeks ago, Delta's pilots said hope was fading for a deal before their contract runs out in 2005. Delta wants a 30 percent cut in wages. Pilots said they would accept a 9 percent cut and give up a 4.5 percent increase scheduled this year.
Delta's pilots said they might wait until the normal start of negotiations, planned for later this year, to hold further talks with the airline.
06-14-2012, 05:55 PM
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Sailing...perhaps turning back the aircraft had to do more with the economy and bills coming due in 2005. Wasn't it in the fall of 2005 that both DL and NW went bankrupt, sounds like turning back the 777s was going to happen anyway and it was easier to blame it on the pilots.
Delta Cuts Back on Jet Order to Save Money
By MICHELINE MAYNARD
Published: February 11, 2004
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Delta Air Lines, which is on an aggressive cost-cutting drive, said yesterday that it would not add five Boeing 777 long-range jets to its fleet over the next two years as it had planned to do.
The action is the latest in a series of moves announced by the airline, which is struggling to be profitable amid a stiff challenge from low-fare airlines. Delta, the industry's third-biggest airline, behind AMR's American and UAL's United, is trying to keep up with cost cuts by rivals.
Delta, based in Atlanta, said it would defer the delivery of two Boeing 777-200 jets to the second half of 2005 from the first half, and then sell them. It also said that it would not keep three 777 jets that it has ordered for delivery in 2006. Delta said it would either sell those jets or exchange them for other Boeing aircraft. It did not say which aircraft it might buy instead.
The airline said that it would continue to operate the eight Boeing 777 jets in its fleet and that it was pleased with their performance.
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Delta said the move could ultimately reduce its capital spending $300 million if it is able to find buyers for the planes. The Boeing Company had no comment.
The action was the first time an airline had changed an order with Boeing since Continental Airlines canceled plans in 2003 to buy Boeing 757 medium-range jets. It decided to take the smaller Boeing 737 instead.
Boeing will end production of the 757 this year. It plans to replace the 757 and its sister jet, the 767, with a new aircraft, the 7E7, which it recently put on sale. Boeing has yet to receive firm orders for the 7E7.
Delta's chief executive, Gerald Grinstein, who took office on Jan. 1, has ordered a top-to-bottom review of the airline to find ways it can save money and streamline its operations.
Delta's announcement came five days after the airline said it would curb its expansion plans at Song, its low-fare airline. Song, which planned to add a number of flights from Kennedy Airport this year, said it would add only two. Song also said it would discontinue service between Washington Dulles International Airport and Orlando, Fla., in April.
In addition, Delta said on Friday that that it had privately placed $325 million in convertible senior notes with an unidentified institutional holder, thought by analysts to be Morgan Stanley.
Last year, Delta began talking with its pilots' union about proposed contract concessions, which Delta says would bring its wages and benefits closer to those at American and United. Both have won cuts from their unions over the last year, United under Chapter 11 bankruptcy protection and American by threatening to file for bankruptcy.
But two weeks ago, Delta's pilots said hope was fading for a deal before their contract runs out in 2005. Delta wants a 30 percent cut in wages. Pilots said they would accept a 9 percent cut and give up a 4.5 percent increase scheduled this year.
Delta's pilots said they might wait until the normal start of negotiations, planned for later this year, to hold further talks with the airline.
Delta Cuts Back on Jet Order to Save Money
By MICHELINE MAYNARD
Published: February 11, 2004
Sign In to E-Mail
Delta Air Lines, which is on an aggressive cost-cutting drive, said yesterday that it would not add five Boeing 777 long-range jets to its fleet over the next two years as it had planned to do.
The action is the latest in a series of moves announced by the airline, which is struggling to be profitable amid a stiff challenge from low-fare airlines. Delta, the industry's third-biggest airline, behind AMR's American and UAL's United, is trying to keep up with cost cuts by rivals.
Delta, based in Atlanta, said it would defer the delivery of two Boeing 777-200 jets to the second half of 2005 from the first half, and then sell them. It also said that it would not keep three 777 jets that it has ordered for delivery in 2006. Delta said it would either sell those jets or exchange them for other Boeing aircraft. It did not say which aircraft it might buy instead.
The airline said that it would continue to operate the eight Boeing 777 jets in its fleet and that it was pleased with their performance.
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Delta said the move could ultimately reduce its capital spending $300 million if it is able to find buyers for the planes. The Boeing Company had no comment.
The action was the first time an airline had changed an order with Boeing since Continental Airlines canceled plans in 2003 to buy Boeing 757 medium-range jets. It decided to take the smaller Boeing 737 instead.
Boeing will end production of the 757 this year. It plans to replace the 757 and its sister jet, the 767, with a new aircraft, the 7E7, which it recently put on sale. Boeing has yet to receive firm orders for the 7E7.
Delta's chief executive, Gerald Grinstein, who took office on Jan. 1, has ordered a top-to-bottom review of the airline to find ways it can save money and streamline its operations.
Delta's announcement came five days after the airline said it would curb its expansion plans at Song, its low-fare airline. Song, which planned to add a number of flights from Kennedy Airport this year, said it would add only two. Song also said it would discontinue service between Washington Dulles International Airport and Orlando, Fla., in April.
In addition, Delta said on Friday that that it had privately placed $325 million in convertible senior notes with an unidentified institutional holder, thought by analysts to be Morgan Stanley.
Last year, Delta began talking with its pilots' union about proposed contract concessions, which Delta says would bring its wages and benefits closer to those at American and United. Both have won cuts from their unions over the last year, United under Chapter 11 bankruptcy protection and American by threatening to file for bankruptcy.
But two weeks ago, Delta's pilots said hope was fading for a deal before their contract runs out in 2005. Delta wants a 30 percent cut in wages. Pilots said they would accept a 9 percent cut and give up a 4.5 percent increase scheduled this year.
Delta's pilots said they might wait until the normal start of negotiations, planned for later this year, to hold further talks with the airline.
06-14-2012, 05:58 PM
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06-14-2012, 06:07 PM
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06-14-2012, 06:46 PM
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Sailing...perhaps turning back the aircraft had to do more with the economy and bills coming due in 2005. Wasn't it in the fall of 2005 that both DL and NW went bankrupt, sounds like turning back the 777s was going to happen anyway and it was easier to blame it on the pilots.
06-14-2012, 07:47 PM
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06-14-2012, 08:24 PM
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06-14-2012, 08:26 PM
Sho me da money!
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Position: B25, Left
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That's NOT what negotiations mean FIIGMO!!!
Look man, you know I love ya, but please think about this. We'd all be working for the exact same conditions and pay from 1930 if this was the case. A cost neutral negotiations is appropriate when the company is in trouble. It is NOT appropriate when the company is making billions.
DALPA/management have done an incredible job of getting our newer people to believe that negotiations is defined as paying for any gains with losses in other areas.
Sigh...
Carl
Look man, you know I love ya, but please think about this. We'd all be working for the exact same conditions and pay from 1930 if this was the case. A cost neutral negotiations is appropriate when the company is in trouble. It is NOT appropriate when the company is making billions.
DALPA/management have done an incredible job of getting our newer people to believe that negotiations is defined as paying for any gains with losses in other areas.
Sigh...
Carl
Aw shucks, I love you too man!!
I am like the son you love but sometimes he just doesn' get it right??
06-14-2012, 08:42 PM
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Posts: 277
Have we ever turned down a contract though?
No. The rank-and-file pilots at DAL first voted on POS '96. All PWAs have passed.
06-14-2012, 10:41 PM
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You do know that increasing your pay by 20% within 2 1/2 years while having 14% DC (15% in Jan 14) also increases your chance of recovering some of that retirement, right? It goes hand in hand. Increases in pay and DC % both help.
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