Delta Pilots Association
#4041
DAL wants debt to be at or under 10bill by 2012...when we actually are amendable (Jan. 2013) the debt will likely be in the 7.5-8 Billion range. That will represent roughly debt service savings of roughly $900 million per year.
With a stable industry and profits in the 1.5-2.5 billion per year range, that would mean about 2.4-3.4 billion per year in available funds.
IF the restoration of C2K rates will cost roughly 18-19mil per percentage point...63% (for restoration + COLA):
Cost $1.20 Billion roughly
Get DC to 18%: (4% more) ADD 80 mil
Roughly $1.28 billion per year rates/ret. ONLY
Using the corporate tan math from above, the "true cost" of this increase is
1.280bn x 65% = $832,000,000 per year.
Still leaving billions in profit.
That money can still provide for 2-3 billion "worth" of other PWA improvements, other emp. pay increases, new planes, profit sharing, more debt pay down, etc.
The company COULD afford most of this now, but "a contract is a contract".
With a stable industry and profits in the 1.5-2.5 billion per year range, that would mean about 2.4-3.4 billion per year in available funds.
IF the restoration of C2K rates will cost roughly 18-19mil per percentage point...63% (for restoration + COLA):
Cost $1.20 Billion roughly
Get DC to 18%: (4% more) ADD 80 mil
Roughly $1.28 billion per year rates/ret. ONLY
Using the corporate tan math from above, the "true cost" of this increase is
1.280bn x 65% = $832,000,000 per year.
Still leaving billions in profit.
That money can still provide for 2-3 billion "worth" of other PWA improvements, other emp. pay increases, new planes, profit sharing, more debt pay down, etc.
The company COULD afford most of this now, but "a contract is a contract".
Excellent points!
Carl
#4042
In addition Delta has the elephant in the closet with the worst customer service. We either make huge improvements in customer service or this airline will be back in Chapter 11 in 5 years. My suggestion would be to tie all management bonus directly to our customer service rankings by the 3 biggest evaluation services. Perhaps they would actually get serious about taking care of the customer.
Carl
#4043
You may have heard something good from our sec/treas ... as I have. But he doesn't have a vote.
Carl
#4044
No disrespect intended, (because you are not Carl) but you are wrong about a few things. C2K was not a correction, it was an aberration. Deregulation has been highly advantageous to the consumer but it started our downward trend. What you see there is a clear linear regression line. C2K was way outside the norm of that trend. The bankruptcy correction was just that. This line is the result of the laws of supply and demand.
Natural surpluses of pilots as well as relaxed entry requirements when shortages loomed have served to dilute our value greatly. Technology has also reduced our value. What you ask is impossible. Pilots are less valuable than they were in 1978. There are more of us, it's easier to make us, and our skills have been supplanted by technology to a great extent. Times they are a changin'.
To focus on "restoration" and returning our "buying power" to decades old levels is Quixotic at best. We have a value, no doubt about it. It's not the same as it was 30 years ago. To set our objectives based on 30 year old expectations is a recipe for failure. Look at APA.
What I want from DALPA is a sober recognition of our value to this company and for them to extract the maximum amount while protecting as many jobs as possible. From National I want them to use their undeniable political muscle to try to slow or reverse some of the negative trends affecting our profession. Tighter entry requirements; less interference in the market; modern, scientific rest rules, and a vector towards unity of all ALPA members are all things that are possible and can only be accomplished by a large, political, experienced presence.
Face it, we are perhaps the last one or two generations of "pilots" in the old tradition. Soon, our grand kids will be members of RALPA, that's Remote, not Regional.
To focus on "restoration" and returning our "buying power" to decades old levels is Quixotic at best. We have a value, no doubt about it. It's not the same as it was 30 years ago. To set our objectives based on 30 year old expectations is a recipe for failure. Look at APA.
What I want from DALPA is a sober recognition of our value to this company and for them to extract the maximum amount while protecting as many jobs as possible. From National I want them to use their undeniable political muscle to try to slow or reverse some of the negative trends affecting our profession. Tighter entry requirements; less interference in the market; modern, scientific rest rules, and a vector towards unity of all ALPA members are all things that are possible and can only be accomplished by a large, political, experienced presence.
Face it, we are perhaps the last one or two generations of "pilots" in the old tradition. Soon, our grand kids will be members of RALPA, that's Remote, not Regional.
#4046
I don't see how you can make the case for C2K being an "aberration" and yet not make the same case (even more so) for the massive, unprecedented cuts we took just prior to and in bankruptcy. C2K represented a return to a previous norm. Yes, that norm put us above the slow downward trend line from PG's graph, but it was a return to a previously accepted value for airline pilots. The BK cuts put the value of our profession far below any previously accepted value for airline pilots. Are you really an airline pilot? Because it just doesn't sound like you're "rooting for the home team" so to speak.
Wow! Again... all I can say is, "who's side are you on?" Do you really have so little regard for the profession you have chosen? (If this is indeed your profession.)
Wow! Again... all I can say is, "who's side are you on?" Do you really have so little regard for the profession you have chosen? (If this is indeed your profession.)
As for your second statement, I'm on my side, just like you. I just don't have a Pollyannish view of my worth or skill set value. We are still valuable as our skill set is not easily duplicated and requires experience and judgment to apply. That value, however, is undeniably less than it was in 1978 and before. I'll give you two for instances.
According to the AOPA, there were 15,840 ATPs in 1958. In 1978 there were 55,881. In 2008 there were 146,838. The crew of a Boeing 377 was 5. A 747 in 1978 had a crew of 3. A 777 in 2008 has a crew of 2. Supply and demand.
http://www.aopa.org/newsroom/statistics/pilots.html
Disclaimer: I don't have a degree in statistics, so my use of mathematical terms may be off, but the gist of what I'm saying is true. I do have a degree in history and am qualified to recognize historical trends. So math wizzes, don't hate me because I'm beautiful.
Last edited by satchip; 01-09-2011 at 06:21 AM. Reason: added link
#4047
As for your second statement, I'm on my side, just like you. I just don't have a Pollyannish view of my worth or skill set value. We are still valuable as our skill set is not easily duplicated and requires experience and judgment to apply. That value, however, is undeniably less than it was in 1978 and before. I'll give you two for instances.
According to the AOPA, there were 15,840 ATPs in 1958. In 1978 there were 55,881. In 2008 there were 146,838. The crew of a Boeing 377 was 5. A 747 in 1978 had a crew of 3. A 777 in 2008 has a crew of 2. Supply and demand.
Disclaimer: I don't have a degree in statistics, so my use of mathematical terms may be off, but the gist of what I'm saying is true. I do have a degree in history and am qualified to recognize historical trends. So math wizzes, don't hate me because I'm beautiful.
According to the AOPA, there were 15,840 ATPs in 1958. In 1978 there were 55,881. In 2008 there were 146,838. The crew of a Boeing 377 was 5. A 747 in 1978 had a crew of 3. A 777 in 2008 has a crew of 2. Supply and demand.
Disclaimer: I don't have a degree in statistics, so my use of mathematical terms may be off, but the gist of what I'm saying is true. I do have a degree in history and am qualified to recognize historical trends. So math wizzes, don't hate me because I'm beautiful.
It is very troubling that we have some folks like yourself in this profession who have so little regard for what we do. Twenty years ago, you would have been laughed out of the room saying the stuff you're saying. Sadly, now there is a percentage (a very small percentage in my experience) who agree with you.
#4048
That's pure BS. There is no need to have a massive decrease "below the line" in order for the market to "seek equilibrium." The massive decrease was just as much of an aberration as you say C2K was. And I still can't believe you're okay with a continually declining value for our profession. You do realize that at some point, following your continually declining line theory, we will make less than the guy that picks up your trash, right? And I'm guessing that guy doesn't have a history or math degree!
Again... could not disagree with you more. The value and importance to safety of a highly competent, well trained, and motivated pilot is no less today than it was in the past. If anything, using your example, that value should be MORE because the airlines have gained a HUGE efficiency by going from a crew of 5 pilots to a crew of 2 pilots.
It is very troubling that we have some folks like yourself in this profession who have so little regard for what we do. Twenty years ago, you would have been laughed out of the room saying the stuff you're saying. Sadly, now there is a percentage (a very small percentage in my experience) who agree with you.
Again... could not disagree with you more. The value and importance to safety of a highly competent, well trained, and motivated pilot is no less today than it was in the past. If anything, using your example, that value should be MORE because the airlines have gained a HUGE efficiency by going from a crew of 5 pilots to a crew of 2 pilots.
It is very troubling that we have some folks like yourself in this profession who have so little regard for what we do. Twenty years ago, you would have been laughed out of the room saying the stuff you're saying. Sadly, now there is a percentage (a very small percentage in my experience) who agree with you.
Eventually, the trash guy may make more than me. In fact in NYC I bet the trash guy does make more than me. But as time and technology advance, our skill set becomes less relevant. For example, how much do stage coach drivers make? Buggy whip makers? Navigators? Flight engineers? There will come a time when pilots won't be in airplanes any more. Then our skills will be worth zero, or close too it.
Personally, I think we have reached a floor on that graph and it will go up for a period of time. Someone posted that management has learned how to operate in a deregulated environment. I think that is true to an extent and industry consolidation will enable some pricing power that will shore up industry bottom lines. That will enable us to see some wage increases. But be assured, the trend line is still there.
Your second paragraph shows a complete misunderstanding of the laws of economics. ( I apologize in advance if took that as a personal insult, it's not meant to be.) How can more of us, supply; and fewer required, demand; equal more value? Don't equate an employer's ability to pay more, your efficiency argument, with labor value.
You are right about one thing. Twenty years ago I would have been laughed out of a crew room. I doubt many would have foreseen the advance of technology, the rise of outsourcing, and the other misfortunes that have befuddled our profession. They may have laughed at me, but they also laughed at the guy who warned that "those little jets" would be the bane of our existence.
#4049
It is very troubling that we have some folks like yourself in this profession who have so little regard for what we do. Twenty years ago, you would have been laughed out of the room saying the stuff you're saying. Sadly, now there is a percentage (a very small percentage in my experience) who agree with you.
This thinking is of course misguided, but the motivation is clear.
Carl
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