Any "Latest & Greatest" about Delta?
11-10-2011, 04:04 AM
Gets Weekends Off
Joined APC: Jan 2011
Posts: 403
The price of fuel is very volatile, agree? Hedging is a bet on future prices, but not the best way to pay for the cost.
In the US all fuel costs must be included in the base fare for any ticket that is considered a domestic flight. We have big fuel surcharges on international tickets because that is legal.
As fuel goes up and down, the base ticket fare still needs to cover it.
Every other business can add a fuel surcharge and does. Look at your deliver fee for your pizza, fedex, moving companies, sanitation, etc, the list is long. We as airlines cannot.
RA's statement that he would love to see the fuel component removed from the base fare is a wise one. As a fee or surcharge added to the base fare, it can fluctuate. It is added where the taxes are added. It allows us to price a ticket at a constant rate, and then add the fuel on at the time of purchase or check-in, thus taking that unknown out of pricing.
In the US all fuel costs must be included in the base fare for any ticket that is considered a domestic flight. We have big fuel surcharges on international tickets because that is legal.
As fuel goes up and down, the base ticket fare still needs to cover it.
Every other business can add a fuel surcharge and does. Look at your deliver fee for your pizza, fedex, moving companies, sanitation, etc, the list is long. We as airlines cannot.
RA's statement that he would love to see the fuel component removed from the base fare is a wise one. As a fee or surcharge added to the base fare, it can fluctuate. It is added where the taxes are added. It allows us to price a ticket at a constant rate, and then add the fuel on at the time of purchase or check-in, thus taking that unknown out of pricing.
11-10-2011, 04:10 AM
Happy to be here
Joined APC: Jun 2006
Position: A-320A
Posts: 18,563
Every AE seems to generate more angst than the last one. As a long time CVG based pilot who got "downsized" I feel your pain (MEM) and all the rest who are MD's. Let's focus back on the facts. Delta is making money. They are making money in a year where there are numerous excuses to lose money (earthquakes, tornadoes, fuel prices, Martian invasions, etc.) yet they are still making money. They are going to make money next year. They are not going to furlough. They will hire again soon (not as soon as we would like but soon enough). I have worked for Delta when they were financially viable and when they were going (or currently) bankrupt. We are in Plan A. Plan A does not produce the growth we all would hope for but it also is producing consistent profits in dog poop financial conditions. Consistent profits will eventually lead to growth AND better contracts. Don't panic. I have seen Delta as a failing airline and this aint it. Hang in there, it is already getting better, it is just hard to see it sometimes.
I also agree that it has probably been 30 years since DAL has been run this well.
What happens in the EU will effect Europe, and AF. That in turn will effect us. Which way remains to be seen.
11-10-2011, 04:12 AM
Happy to be here
Joined APC: Jun 2006
Position: A-320A
Posts: 18,563
It may be a flow between DAL and Expressjet(formerly ASA) and not DALPA. They can do that if they choose, and it would result in a flow up and probably no flow down if done that way. I would guess if anything is going to happen it would be announced shortly before we hire.
11-10-2011, 04:30 AM
Gets Weekends Off
Joined APC: Jan 2011
Posts: 403
TYG;
Think of the reasons why.
Possible reasons we can delay hiring:
-Shrinking
-Merger or Acquisition
-FT/DT will allow less pilots
-Productivity changes will make us more efficient
-Trip Parking, and yes, it is on the rise esp in the WB categories.
-No one retiring
-By not hiring, when they need to hire they will be able to claim duress and beg for scope relief. (We can't hire that many, we must outsource jobs to keep the network intact)
Just naming possibilities.
Think of the reasons why.
Possible reasons we can delay hiring:
-Shrinking
-Merger or Acquisition
-FT/DT will allow less pilots
-Productivity changes will make us more efficient
-Trip Parking, and yes, it is on the rise esp in the WB categories.
-No one retiring
-By not hiring, when they need to hire they will be able to claim duress and beg for scope relief. (We can't hire that many, we must outsource jobs to keep the network intact)
Just naming possibilities.
One scenario: company gives another little bit of flying to AS. ALPA and MGT: it's nothing, just .5% of our flying and plus it helps us make money. Company finds a way to end around the AF JV restrictions. DALPA and MGT: don't worry, they are only out of compliance by 1%...we will give them a break for now because we are actually making money. Company pulls back flying by another 1% YOY like in this AE. ALPA and MGT: well we have to do this. This is a bad economy and look how high fuel prices are. Company replaces a few more 88/90 routes with the big RJs they already have. ALPA and MGT: don't be concerned, it's only .5% of our flying, and plus look at all the 50 seaters we are parking!
Well, none of those sound too horrible, but add up those block hour cuts. 12,000 x (.5% + 1% + 1% + .5%) = 360 pilots not needed in a year. And how many retirements do we have coming, on average? I bet a the next 5+ years (maybe even 10) would average to around 360. So I don't put too much stock in the consolation "it'll happen soon enough, and once they start hiring they won't be able to stop."
"Show me the money" is great, but you damn well better show me an iron-clad scope wallet to put that money in. We gained a little stock in the merger, but I guarantee we lost much, much more than that in $ and in QOL as we have stagnated and slipped backwards.
11-10-2011, 04:57 AM
ATL A320 B
Joined APC: Oct 2009
Position: No longer MEM or 9, but still a guy.
Posts: 238
How much notice does the company have to give to let us know when the last bid month will be in MEM? How long of a time window do we have to get a paid move? Does this moving timeframe start at award date, or conversion date?
11-10-2011, 04:59 AM
Pog Ma Hoin
Joined APC: Aug 2007
Position: 7ER B
Posts: 208
Nevermind.....
11-10-2011, 05:04 AM
Gets Weekends Off
Joined APC: Jun 2007
Position: Captain Jack
Posts: 1,003
deleted double post
11-10-2011, 05:05 AM
Gets Weekends Off
Joined APC: Jun 2007
Position: Captain Jack
Posts: 1,003
all you guys failed! or I just missed it. I come on here to get the news before its public. No one said they were basically closing mem before. I thought the nines yes but the whole base? you guys are losing your touch!
11-10-2011, 05:11 AM
The Brown Dot +1
Joined APC: Jun 2009
Position: 777B
Posts: 7,775
Just so we don't make that mistake again:
They are going to close cvg and significantly shrink msp and maybe close it.
11-10-2011, 05:31 AM
At home on the maddog!
Joined APC: Mar 2009
Position: ATL MD-88A
Posts: 2,874
Those greedy SWA pilots! They are "LOL" all the way to the bank!
Thread
Thread Starter
Forum
Replies
Last Post
