Any "Latest & Greatest" about Delta?
No, what's really good is that the pilot group is much smarter than you think. Rather than get bamboozled by your type of mindless propaganda, they could apply the most basic principles of common sense and Econ 101 to realize that this was a great deal.
Let's just examine some basic facts. In rough justice numbers, Delta pilots generate about $36 billion in revenue every year and cost the company about $2 billion. So when Delta adds flying to mainline they don't expect revenue neutrality they expect you to add revenue on a 18 to 1 basis from your cost. Seriously, is this a surprise to anyone that has had even a week's worth of economics instruction. Even a second grader running a lemonade stands knows she needs to generate more revenue than costs in order to make a profit. Delta Air Lines is a capitalistic organization it is not a charity operation.
So in this deal, there were costs shifted from RJ maintenance to pilot salaries and benefits and acquisition of new aircraft. They expect that in the end it is not profit neutral, but that they generate more profits. That is the reason that people invested billions of dollars in Delta Air Lines, they want to make a profit. Right, please someone stop me if I am moving too fast here, because this all seems pretty basic. When Delta buys new aircraft they expect them to be self financing also. Why else would anyone invest billions in new aluminum if they didn't think that the aircraft would generate revenue that would pay the cost of acquisition, the cost of operations, and every other cost, and THEN GENERATE A PROFIT. Once again, these are the most basic of facts, people start capitalistic businesses to make money.
So, the idea that pilots will capture all of the revenue they generate is insane. The idea that pilots will capture all of the profits of a company is insane. The idea that management wants to generate a business plan to increase profits should pretty much fall in the DUHHHHHHH category. If along the way we can make a deal that adds a billion dollars into our pockets while allowing Delta to reduce other costs and generate more revenue, that is a no brainer.
So, we are fortunate that pilots are not easily fooled by this type of mindless propaganda. By an overwhelming majority, they saw through this type of sham argument and saw that adding mainline flying, adding vacation, adding reserve guarantee pay, increasing pay rates by 20%, increasing retirement income, and numerous other improvements just made sense. In fact, it wasn't even close.
So rather than substitute their own good judgement for mindless internet bloviation, they used their intelligence and common sense to make what really is an easy decision. More mainline flying, more pay, more benefits, works for me.
Let's just examine some basic facts. In rough justice numbers, Delta pilots generate about $36 billion in revenue every year and cost the company about $2 billion. So when Delta adds flying to mainline they don't expect revenue neutrality they expect you to add revenue on a 18 to 1 basis from your cost. Seriously, is this a surprise to anyone that has had even a week's worth of economics instruction. Even a second grader running a lemonade stands knows she needs to generate more revenue than costs in order to make a profit. Delta Air Lines is a capitalistic organization it is not a charity operation.
So in this deal, there were costs shifted from RJ maintenance to pilot salaries and benefits and acquisition of new aircraft. They expect that in the end it is not profit neutral, but that they generate more profits. That is the reason that people invested billions of dollars in Delta Air Lines, they want to make a profit. Right, please someone stop me if I am moving too fast here, because this all seems pretty basic. When Delta buys new aircraft they expect them to be self financing also. Why else would anyone invest billions in new aluminum if they didn't think that the aircraft would generate revenue that would pay the cost of acquisition, the cost of operations, and every other cost, and THEN GENERATE A PROFIT. Once again, these are the most basic of facts, people start capitalistic businesses to make money.
So, the idea that pilots will capture all of the revenue they generate is insane. The idea that pilots will capture all of the profits of a company is insane. The idea that management wants to generate a business plan to increase profits should pretty much fall in the DUHHHHHHH category. If along the way we can make a deal that adds a billion dollars into our pockets while allowing Delta to reduce other costs and generate more revenue, that is a no brainer.
So, we are fortunate that pilots are not easily fooled by this type of mindless propaganda. By an overwhelming majority, they saw through this type of sham argument and saw that adding mainline flying, adding vacation, adding reserve guarantee pay, increasing pay rates by 20%, increasing retirement income, and numerous other improvements just made sense. In fact, it wasn't even close.
So rather than substitute their own good judgement for mindless internet bloviation, they used their intelligence and common sense to make what really is an easy decision. More mainline flying, more pay, more benefits, works for me.
It's so ironic that in this unresponsive manifesto length post of yours, you use terms like mindless propaganda and bloviation.
Carl
Banned
Joined APC: Oct 2012
Posts: 335
Continues to amaze me that guys get upset or are shocked by the information and the way it is presented in earning calls and other types of public reports. They use this communication to bolster their fight against the atrocities committed against pilots in our last agreement. Given the audience they are courting, what do you think the theme and tone is going to be? Would you really want this type of investor and public communication to be pro-employee? or pro-company economics?
Banned
Joined APC: Oct 2012
Posts: 335
We were also overstaffed, that's why the company wanted an early retirement package.
The 717 will provide upgrade opportunities for some and a fall back for others. The increase in pay rates will help reduce the sting of displacements to lower paying equipment.
Without the 717s arriving as fast as they will be, this upcoming AE probably would be very ugly.
If you are talking about displacements from the domestic 767, those displacements have been going on for some time and were coming regardless of the contract.
We were also overstaffed, that's why the company wanted an early retirement package.
The 717 will provide upgrade opportunities for some and a fall back for others. The increase in pay rates will help reduce the sting of displacements to lower paying equipment.
Without the 717s arriving as fast as they will be, this upcoming AE probably would be very ugly.
We were also overstaffed, that's why the company wanted an early retirement package.
The 717 will provide upgrade opportunities for some and a fall back for others. The increase in pay rates will help reduce the sting of displacements to lower paying equipment.
Without the 717s arriving as fast as they will be, this upcoming AE probably would be very ugly.
The 737-900s start coming quickly too. Which begs the question, how many 757s, 320s, and 767s are being retired and how soon? Nothing in the crew resources updates has indicated that we are removing any of those from the fleet as of yet, although there are many parked in the desert. Other than the 717s coming on line, this has the potential to swing the staffing one way or the other by a large amount. I have to think that with the AA merger happening, growth either through another merger or internally makes more sense in an industry that favors the top two players. So either we buy Alaska, Hawaiian, or we start growing and flying their routes.
Now, why was/is this an important question? It's important because people like alfaromeo and others within the MEC administration vehemently denied any characterization of the TA as cost neutral to Delta...despite executive leadership stating the exact opposite. The MEC administration felt they had to try to kill the cost neutral description or risk being thought of as management stooges by the membership. It was this vehement attack against the cost neutral description that is the concern. Is that what an MEC should be doing during the membership decision phase of a TA vote? Shouldn't an MEC just put out the TA and let us decide? And shouldn't an MEC let the words of our executive leadership speak for themselves?
Carl
Ok, I'll be back in a few minutes......gotta take care of 'something'
As I and many others stated before the TA vote, the TA was cost neutral to Delta. We didn't make that up, we were simply posting Richard and Ed's quotes to various financial media. So it's not a question of making sense to you or not, it's simply quoting our executive leadership.
Now, why was/is this an important question? It's important because people like alfaromeo and others within the MEC administration vehemently denied any characterization of the TA as cost neutral to Delta...despite executive leadership stating the exact opposite. The MEC administration felt they had to try to kill the cost neutral description or risk being thought of as management stooges by the membership. It was this vehement attack against the cost neutral description that is the concern. Is that what an MEC should be doing during the membership decision phase of a TA vote? Shouldn't an MEC just put out the TA and let us decide? And shouldn't an MEC let the words of our executive leadership speak for themselves?
Carl
Now, why was/is this an important question? It's important because people like alfaromeo and others within the MEC administration vehemently denied any characterization of the TA as cost neutral to Delta...despite executive leadership stating the exact opposite. The MEC administration felt they had to try to kill the cost neutral description or risk being thought of as management stooges by the membership. It was this vehement attack against the cost neutral description that is the concern. Is that what an MEC should be doing during the membership decision phase of a TA vote? Shouldn't an MEC just put out the TA and let us decide? And shouldn't an MEC let the words of our executive leadership speak for themselves?
Carl
Continues to amaze me that guys get upset or are shocked by the information and the way it is presented in earning calls and other types of public reports. They use this communication to bolster their fight against the atrocities committed against pilots in our last agreement. Given the audience they are courting, what do you think the theme and tone is going to be? Would you really want this type of investor and public communication to be pro-employee? or pro-company economics?
but we already knew that there were productivity gains in this contract, EB isn't saying something from out of left field. He's just saying what we cheated, we paid for our own pay increases via fewer pilots, larger RJs and in another place they mentioned profit sharing cuts. I'll look up that quote when I get back to the computer.
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