Any "Latest & Greatest" about Delta?
07-05-2013, 10:49 PM
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fwiw from 23APR13
PJ:
PJ:
"We will begin taking delivery of 8 to 10 aircraft per month starting in September, which will allow us to retire nearly 40 older mainline aircraft, primarily 757s and the remaining DC-9s and over a 50-seat regional -- over 40 50-seat regional jets by the end of the year. These retirements will produce meaningful maintenance and fuel savings later this year. To the extent that we make changes to our fall capacity levels, we would have the opportunity to retire even more aircraft. We are also beginning to see the benefits of our maintenance redesign, which is allowing us to reduce our component and engine expense by pursuing market part-out opportunities. And we are on track to achieve $600 million in cumulative savings from our structural initiatives in 2013."
07-05-2013, 10:59 PM
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07-05-2013, 11:45 PM
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07-06-2013, 01:38 AM
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As Slow mentioned 3 years prior to TA 2012,
And
"Delta is capped on the number of 70-76 seat aircraft without substantial mainline growth."
We successfully negotiated out of that substantial mainline growth requirement."NOT ONE MORE SEAT, NOT ONE MORE POUND, NOR ONE MORE AIRFRAME OVER THE CURRENT LIMITS."
Was changed to read: "NOT ONE MORE SEAT, NOT ONE MORE POUND, NOR ONE MORE AIRFRAME OVER THE CURRENT LIMITS unless you give us 717s you got for very cheap and are excited about while parking the 50 seaters that DAL saw as costly airplanes 'are customers don't particularly prefer' and adding 76 seat jets they do prefer." And
"C2K RESTORATION!"
Was rewritten to say "DAL 7ERA pay = SWA 737-500 pay and we pay for it [see Q2 2012 earnings call] by allowing the jumbo RJ fleet to grow, parking the costly 50-seat fleet, adding 'capital efficient' 717s, plus reducing the profit sharing to fund the cost growth." I don't begrudge any of my ALPA reps, in fact I would like most of them too serve in a new union, just not ALPA. I feel Alpa, shakes me and my fellow pilots down each month. Everyone who works for the good of their fellow pilots should be paid instead of volunteering for Alpa's coffer chest. We are being screwed to the toon of 20 plus million a year. Sure would be nice to have that money to add some benefits back to this group. Retirement medical, perhaps a small monthly defined benefit for each pilot so guys wouldn't have to relie, solely on their 401k in a down market. Several benefits could be had rather than ALPA secretaries. Sorry it's our money not yours ALPA!
07-06-2013, 02:02 AM
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We are very happy to keep the more than 200 50-seaters we so wanted to get rid a month ago. We love the 50-seaters despite the fact our customers don't prefer them and they're 'significantly' costly. We will happily operate them for decades to come.
I loved this argument that ALPA (Tim O) made with regards to this at the msp roadshow. I specifically asked him how much management was going to save without having to replace engines on those 200 RJ's. Tim's answer was 250 million. I followed up with, how did you come to that figure, his response was that they were told by management and alpa's financial experts. A fact that would have been so simple to verify if they would have just asked GE or any operator of CRJ's.
I guess it would have been too difficult to reason that 200 airframes--400 engines would cost 625,000 per engine. Hum, that doesn't sound right, perhaps we should look into that a little further. I promise you that a GE cf34b engine cost at least 3 times that amount. Easily verified but we took managements numbers. Anybody with any common sense could've thrown the BS flag at that. Makes you wonder what else the crack team of ALPA financial research experts took as fact? Certainly, not someone I would want to negotiate on my behalf.
I loved this argument that ALPA (Tim O) made with regards to this at the msp roadshow. I specifically asked him how much management was going to save without having to replace engines on those 200 RJ's. Tim's answer was 250 million. I followed up with, how did you come to that figure, his response was that they were told by management and alpa's financial experts. A fact that would have been so simple to verify if they would have just asked GE or any operator of CRJ's.
I guess it would have been too difficult to reason that 200 airframes--400 engines would cost 625,000 per engine. Hum, that doesn't sound right, perhaps we should look into that a little further. I promise you that a GE cf34b engine cost at least 3 times that amount. Easily verified but we took managements numbers. Anybody with any common sense could've thrown the BS flag at that. Makes you wonder what else the crack team of ALPA financial research experts took as fact? Certainly, not someone I would want to negotiate on my behalf.
07-06-2013, 03:06 AM
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From the Delta MEC:
Some will argue these increases are not enough and that we should hold out for more, but this ignores the time-value of consistent year-over-year increases. Southwest pilots, for example, are where they are today because they work for a consistently profitable company and have received a series of modest pay increases.
In terms of scope, we were able to achieve important improvements, from the smallest jets through international joint venture protections. Scope is the most complex section of the contract. At its core, it is about who flies Delta’s passengers and ultimately, about Delta pilot jobs.
Importantly, we will have a block hour ratio, which establishes a minimum amount of mainline flying relative to DCI flying and a cap on the total number of 50 to 76 seat DCI aircraft. Delta will be permitted accelerated access to 76-seat jets, but this access can only occur if Delta first acquires small narrow-body jets flown by Delta mainline pilots and if there is a significant reduction in the number of 50-seat aircraft. Without the acquisition of these new mainline aircraft, Delta will be capped at the current level for 70/76-seat jets. Ultimately, under this agreement, Delta’s access to 76-seat jets will be capped at 32 less than what is allowed in the current PWA. Additionally, Delta will no longer be permitted to convert 70-seat jets to 76-seat jets going forward, regardless of the size of the mainline fleet.
Delta management decides which aircraft it operates, but we have every reason to believe that Delta will soon announce the purchase of aircraft contingent on the ratification of this agreement. This will represent a major opportunity for many of our pilots to upgrade from the right seat to the left seat and will also create a need for additional hiring for the right seat.
Some will argue these increases are not enough and that we should hold out for more, but this ignores the time-value of consistent year-over-year increases. Southwest pilots, for example, are where they are today because they work for a consistently profitable company and have received a series of modest pay increases.
In terms of scope, we were able to achieve important improvements, from the smallest jets through international joint venture protections. Scope is the most complex section of the contract. At its core, it is about who flies Delta’s passengers and ultimately, about Delta pilot jobs.
Importantly, we will have a block hour ratio, which establishes a minimum amount of mainline flying relative to DCI flying and a cap on the total number of 50 to 76 seat DCI aircraft. Delta will be permitted accelerated access to 76-seat jets, but this access can only occur if Delta first acquires small narrow-body jets flown by Delta mainline pilots and if there is a significant reduction in the number of 50-seat aircraft. Without the acquisition of these new mainline aircraft, Delta will be capped at the current level for 70/76-seat jets. Ultimately, under this agreement, Delta’s access to 76-seat jets will be capped at 32 less than what is allowed in the current PWA. Additionally, Delta will no longer be permitted to convert 70-seat jets to 76-seat jets going forward, regardless of the size of the mainline fleet.
Delta management decides which aircraft it operates, but we have every reason to believe that Delta will soon announce the purchase of aircraft contingent on the ratification of this agreement. This will represent a major opportunity for many of our pilots to upgrade from the right seat to the left seat and will also create a need for additional hiring for the right seat.
While the details are complex and best left for a dedicated Negotiators’ Notepad, let me summarize by saying that if Delta executes its plan for the small narrow-body jet flying, the result will be a major shift of block hours to Delta mainline. The share of mainline domestic flying will increase by 21 percent and the ratio of mainline domestic to DCI flying will increase by 57 percent over the life of this agreement.
We achieved a number of improvements in the scheduling arena, and one of the most significant is in the area of reserve flying. The reserve guarantee will be established as two hours below the average line value (ALV) with a floor of 72 and a ceiling of 80. This improvement alone will result in a monthly pay increase for reserves of between 2.9 - 14.3 percent depending on the monthly ALV, before the pay table increases are applied. Combined with the other improvements to reserve, it is my view that when viewed in aggregate, we will have the best reserve system in the industry.
The complicated and often punitive 75 percent sick leave bank has been eliminated. All sick leave up to a pilot’s yearly accrued maximum will be paid at 100 percent, and for pilots with over 20 years of service, the sick leave accrual will increase from 240 to 270 hours per year.
The agreement also includes an early retirement program similar in scope to the program offered to other Delta employees earlier this year, and this program will also be the subject of a standalone communication.
We achieved a number of improvements in the scheduling arena, and one of the most significant is in the area of reserve flying. The reserve guarantee will be established as two hours below the average line value (ALV) with a floor of 72 and a ceiling of 80. This improvement alone will result in a monthly pay increase for reserves of between 2.9 - 14.3 percent depending on the monthly ALV, before the pay table increases are applied. Combined with the other improvements to reserve, it is my view that when viewed in aggregate, we will have the best reserve system in the industry.
The complicated and often punitive 75 percent sick leave bank has been eliminated. All sick leave up to a pilot’s yearly accrued maximum will be paid at 100 percent, and for pilots with over 20 years of service, the sick leave accrual will increase from 240 to 270 hours per year.
The agreement also includes an early retirement program similar in scope to the program offered to other Delta employees earlier this year, and this program will also be the subject of a standalone communication.
In addition to the communications I’ve already discussed, the MEC administration and the Negotiating Committee will begin a series of system-wide road shows commencing after the Memorial Day weekend. We will also produce a streaming video for those unable to make it to a road show. In short, we will do everything in our power to provide you with all the information you need to cast an informed vote once the ratification window opens next month.
In mediation, the average time spent to reach an agreement is 29 months. Our time in mediation could be more; it could be less. But if we take the average, that means we might not reach an agreement until the fall of 2015,
In mediation, the average time spent to reach an agreement is 29 months. Our time in mediation could be more; it could be less. But if we take the average, that means we might not reach an agreement until the fall of 2015,
just months ahead of the amendable date of the recently achieved tentative agreement. Put another way, we’ll be deep into negotiations for ourfollow-on agreement (Contract 2015) even before we might have reached an agreement on Contract 2012.
In a recent Chairman’s Letter to you, I wrote somewhat cryptically about fleeting opportunities, and earlier in this letter, I wrote about Delta’s fleet plan. The value the Delta pilots receive in conjunction with this TA is a result of Delta’s desire to execute its business plan in a timely fashion. It is in large part due to this leverage that we were able to seize the opportunity to reach this agreement over seven months ahead of the amendable date. Delta can execute a portion of its fleet plan without an agreement with ALPA, but this is a rare opportunity to accelerate and enhance that plan to the benefit of both Delta and the Delta pilots.
In a recent Chairman’s Letter to you, I wrote somewhat cryptically about fleeting opportunities, and earlier in this letter, I wrote about Delta’s fleet plan. The value the Delta pilots receive in conjunction with this TA is a result of Delta’s desire to execute its business plan in a timely fashion. It is in large part due to this leverage that we were able to seize the opportunity to reach this agreement over seven months ahead of the amendable date. Delta can execute a portion of its fleet plan without an agreement with ALPA, but this is a rare opportunity to accelerate and enhance that plan to the benefit of both Delta and the Delta pilots.
Finally, I would like to thank the MEC Negotiating Committee and their expanded team for the incredible work they have done over the past 18 months and in particular, during the last two months. The Delta pilots have once again set the bar for pattern bargaining, and shattered the paradigm of drawn-out negotiations. Importantly, if this agreement is ratified, we don’t intend to stop there. Your MEC will continue to make incremental but significant improvements at every opportunity, just as we have for the past several years.
So that's the list of items that alfaromeo says have proven to be true.
Carl
07-06-2013, 03:27 AM
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Recent history has shown that not only is that belief sadly mistaken but in fact the opposite is true. I can give you labor group after labor group that acted on this false assumption and ended up with a worse deal, often substantially worse (think Airtran and Southwest). I have yet to hear anyone give any example within the last decade or two where this assumption proved to be a wise move.
Carl
07-06-2013, 03:32 AM
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You think a sales job is anything that doesn't match your thoughts....
You think "straight facts" are anything that does match your thoughts....
So spare me the sanctimony....
So if you want to stick your head in the sand and ignore reality while you satisfy your anger then I say you are just immature....
So you can snark away all you want with your childish insults...
Someone else with more maturity will keep digging you out of that hole and like a dead weight you can latch on for the ride.
You think "straight facts" are anything that does match your thoughts....
So spare me the sanctimony....
So if you want to stick your head in the sand and ignore reality while you satisfy your anger then I say you are just immature....
So you can snark away all you want with your childish insults...
Someone else with more maturity will keep digging you out of that hole and like a dead weight you can latch on for the ride.
Carl
07-06-2013, 03:39 AM
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Carl if you are a spokesman for the DPA and they use logic like your 2 prior posts DALPA has nothing to worry about. My favorite was "using DL pilots money to purchase a 49% stake in Virgin Atlantic". That is a classic
07-06-2013, 03:51 AM
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If you're the spokesperson for the Dr. Janus screened senior Delta pilot, we've all got a lot to worry about.
Carl
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