Delta Air Offers Buyouts to Trim Jobs Amid 4% Capacity Cut

If DL is replacing higher cost workers in the same location with newer workers using INVOLUNTARY methods, then there is a problem... but the voluntary programs are an effective way to reduce costs and to generally do them less painfully than using involuntary methods.
It is also very effective at reducing the skill level at a location, thereby inducing problems in operations, which in turn, will increase turn times, cause delays, etc.

Those all increase costs.
 
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It is also very effective at reducing the skill level at a location, thereby inducing problems in operations, which in turn, will increase turn times, cause delays, etc.

Those all increase costs.
Except that obviously the costs have been calculated and it is not a given that total costs will go down. Does the loss of higher seniority experienced people translate into a loss of job knowledge for the company? Without a doubt.
Keep in mind that there are levels of expertise within an airline. No offense to any group, but the rampup process for all employee groups is not the same and the reality is that some working groups will have obtained the vast majority of expertise after several years with little additional expertise gained in the next 20 or more years. The costs simply do not justify keeping employees on the payroll for 30 years at escalating costs (remember healthcare is one of the costs most likely to escalate with age) when they few airline employees have reached their peak performance after 5 years.
Yes, people can change jobs and continue to grow and again not all employee groups topout in experience at the same point but the notion that someone will continue to grow and build on their experience for 30 years is simply not the reality in most industries, including the airline industry.

Given that DL's frontline groups are non-union, they do not offer different severance packages by workgroup which means there will be a tradeoff in the desired packages for the "benefit" of being able to offer more and perhaps more generous packages than perhaps other airlines might offer.
 
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Since some seem to be unhappy that Delta is offering buy-outs, maybe they would be happier if Delta just laid some peeps off !..................No, wait.................uh, it's starting to make sense now !.............................. No matter what Delta does, these people will never be happy ! :unsure:
 
It's like soliciting for oversales.... Asking for volunteers makes the job a little easier, but at departure time, some one is going to be without a seat and will watch the plane leave without them...

I don't disagree on the skills being somewhat easy to pick up on, but there's a lot of stuff that comes thru experience that indeed is lost with buy-outs.

At more than one company I've worked with in the past few years, one of the main reasons we were brought in as consultants was because they'd eliminated a department years earlier during budget cuts, and now needed to fix software that had been running on auto-pilot since the budget cuts. They had programmers who could look at the code, but had no idea what all those string entries were supposed to be doing, or why a set of error checks had been set up the way they were.....
 
Last time I checked, no one was forcing high-timers to take the Buy-out, err.........sell-out, which ever term makes you feel warm and fuzzy !

Now if I'm a Dude who's talking retirement in a year or so.........................why not take the what-ever you want to call it, now. Delta will lose my experience soon anyways ! :blink:
 
Last time I checked, no one was forcing high-timers to take the Buy-out, err.........sell-out, which ever term makes you feel warm and fuzzy !

Now if I'm a Dude who's talking retirement in a year or so.........................why not take the what-ever you want to call it, now. Delta will lose my experience soon anyways ! :blink:


I know of at least two in my dept. that are doing just that.
 
It's like soliciting for oversales.... Asking for volunteers makes the job a little easier, but at departure time, some one is going to be without a seat and will watch the plane leave without them...

I don't disagree on the skills being somewhat easy to pick up on, but there's a lot of stuff that comes thru experience that indeed is lost with buy-outs.

At more than one company I've worked with in the past few years, one of the main reasons we were brought in as consultants was because they'd eliminated a department years earlier during budget cuts, and now needed to fix software that had been running on auto-pilot since the budget cuts. They had programmers who could look at the code, but had no idea what all those string entries were supposed to be doing, or why a set of error checks had been set up the way they were.....
The law of unintended consequences still exists today Eric. The problem with most of today's airline execs is that most have no interest in history, or the problem of the repetition thereof. Most have five year plans at the most.
 
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Last time I checked, no one was forcing high-timers to take the Buy-out, err.........sell-out, which ever term makes you feel warm and fuzzy !

Now if I'm a Dude who's talking retirement in a year or so.........................why not take the what-ever you want to call it, now. Delta will lose my experience soon anyways ! :blink:


I cant argue with that. I agree with you.
 
The law of unintended consequences still exists today Eric. The problem with most of today's airline execs is that most have no interest in history, or the problem of the repetition thereof. Most have five year plans at the most.
As much as some would like to believe otherwise, the airline industry is a for-profit industry that requires returning a somewhat acceptable return to its investors. The airline industry has been one of the poorest performing industries for years.
I don~t like all that is going on in the industry but I know that the way it was done in the past can not be used as a blueprint for what the future will be. A look in the rearview mirror will show the wreckage of lots of airlines that could not adapt. There has to be a different way forward.
 
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As much as some would like to believe otherwise, the airline industry is a for-profit industry that requires returning a somewhat acceptable return to its investors. The airline industry has been one of the poorest performing industries for years.
I don~t like all that is going on in the industry but I know that the way it was done in the past can not be used as a blueprint for what the future will be. A look in the rearview mirror will show the wreckage of lots of airlines that could not adapt. There has to be a different way forward.
Then watch the New Southwest/AirTran deal unfold. I'm no sage but it does look promising...
 
Then watch the New Southwest/AirTran deal unfold. I'm no sage but it does look promising...
there is nothing spectacular about WN that is any different from other airlines other than that they don't have the legacy cost structure... their first employees just hit 30 years of service a couple years ago.
WN also has developed a different business model but that model will change in the next couple years as they develop their presence on the east coast. In case you have missed it, WN's on-time performance has been well below the rest of the industry for a number of years. WN already knows that they have to make operational changes which will affect their costs.
So, no, I don't think WN will provide any unique insights into how the industry will develop other than that they are starting from a lower cost base as a result of being a younger airline.
 
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It is also very effective at reducing the skill level at a location, thereby inducing problems in operations, which in turn, will increase turn times, cause delays, etc.

Those all increase costs.


It's like soliciting for oversales.... Asking for volunteers makes the job a little easier, but at departure time, some one is going to be without a seat and will watch the plane leave without them...

I don't disagree on the skills being somewhat easy to pick up on, but there's a lot of stuff that comes thru experience that indeed is lost with buy-outs.

+1 to both of the above. Like I've said before, the institutional knowledge walking out the door is almost impossible to replace. Regardless of department, there is a ton of things learned over a career that are never taught in a class or manual.


I know of at least two in my dept. that are doing just that.

... Good on 'em. And really, if you're going anyway, why not take the $$$ and run? I won't happen, but if they offered a pay out on sick time (CTB for PMDL), there'd be an even bigger rush for the exits.
 
there is nothing spectacular about WN that is any different from other airlines other than that they don't have the legacy cost structure... their first employees just hit 30 years of service a couple years ago.
WN also has developed a different business model but that model will change in the next couple years as they develop their presence on the east coast. In case you have missed it, WN's on-time performance has been well below the rest of the industry for a number of years. WN already knows that they have to make operational changes which will affect their costs.
So, no, I don't think WN will provide any unique insights into how the industry will develop other than that they are starting from a lower cost base as a result of being a younger airline.
I never said that WN was doing anything spectacular, did I? Please try not to put words in my mouth. Perhaps my comment was not clear. The point I was aiming at is, when the two combine (WN & FL), look for a much stronger Air Carrier. Of course, the almighty Delta is not worried about their back yard in ATL and that is fine. There is room for better service for the Flying Public and my guess is it will expand once this goes through. WN knows it needs to improve On Times and FL definitely has the Lost Bags bit down to a science. The combination of the two will only provide a better service to the customers who just want to get from point A to B. Going forward, I won't say what's coming as it is not my place but from what is being said, It's gonna be a Fun Ride !!!! Unique insight will be kept Family! Let the others do as they may :)
Cheers, QA
 
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+1 to both of the above. Like I've said before, the institutional knowledge walking out the door is almost impossible to replace. Regardless of department, there is a ton of things learned over a career that are never taught in a class or manual.




... Good on 'em. And really, if you're going anyway, why not take the $$$ and run? I won't happen, but if they offered a pay out on sick time (CTB for PMDL), there'd be an even bigger rush for the exits.


Yeah, it really is a good thing for them.