Delta Schedule Changes

[topDawg]

I understand the concept of a contract quite well and also understand that DL is not in compliance with the terms regarding JV.
But just because DL cannot meet the terms of the contract does not mean that ALPA will succeed in getting them to fly more flights to meet the requirements of a clause which perhaps cannot be met any longer or succeed at getting a pay raise to compensate for the clause no longer working as it once did.
.Ok so you say you get how a contract works then turn around and say pretty much a company making 1B+ shouldn't have to honor the agreement signed?
The simple fact is that DL started the process a year ago of pulling down TATL capacity based on what it saw as significant changes in the market. The fact that other carriers have reported significantly worse financial results (lower RASM) on their TATL operations than DL shows DL made the right decision. The question then is to make the pilot contract fit the market realities.no see DELTA DOESN"T GET TO DO WHATEVER IT WANTS TO DALPA MEMBERS. They signed a contract, they agreed to the terms if it goes to arbitration Delta will get to pay DALPA or add capacity. Period. Delta has no judge to hide behind, this world doesn't work like you make it out to be.
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It is very possible that DALPA will ask for increased pay, but again let's remember that DL pilots are the highest paid network carrier pilots. no they aren't. WN/UPS and FX all make more. Yes, WN pilots make more but remember that their leadership is telling them their pay is unsustainably high.no GK said they have to cut cost, but something about that...if other airliens cost get to their levels then he will shut up. He just is playing on a level playing field now. The chances that there will be significant increases in pilot salaries in the US are very slim, esp. considering where AA is and the fact that UA apparently is not very interested in completing labor integration because doing so will require them to shell out alot more cash to their employees - cash they cannot afford to pay. None of that has to do with DL, Delta did its BK run, bring up AA means nothing to post BK labor groups. Sucks for AA, really does, but we did it, and just because they are taking it in the shorts doesn't mean the rest of the carriers get to use that as an excuse. AAhas a judge to hide behind. Delta doesn't.
Sure, RJ scope could be pulled back but let's also keep in mind that DL is moving more aggressively at pulling down small RJ capacity than any other network carrier. Sure, what may be left are the 70-76 seaters but when half of DL's RJ capacity is via 50 seaters, significant cuts in 50 seat flying does translate into less "outsourced" capacity to regional carriers. Here is an idea...no more DCI. Fixes that problem. Dump the 50 seaters and bring the mainline jets back home.
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I still argue that if DL succeeds in acquiring a significant portion of AA's LHR operations (or anyone else's for that matter), DL might be content to scale back the JV, esp. since AF is going through a significant restructuring and they/KL provide most of DL's current LHR slots. If DL can gain LHR access on its own then it might be alot necessary to have a JV when you can provide 80% of what your passengers need on your own aircraft... and obviously the pilots would be happy to see reductions in the amount of flying done by other carriers.
But remember that DL has picked up some of the flying for AF (ORD and SEA to CDG) and could pick up even more since DL is a lower cost producer than AF. The pilots would have to consider how much of that flying DL would do if a JV was terminated. DL obviously operates an enormous amount of capacity into AMS and CDG that is part of the JV. DL could choose to reduce the size of the JV - and it might make sense to do so to protect DL from AF's losses - but for now DL pilots might be able to pick up more and more JV flying while AF works itself through their restructuring.
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Having an open pilot contract would be a distraction in merger activity and DL did gain a huge advantage in the DL/NW merger by getting the pilots to agree to a contract before the merger - but keep in mind that a disproportionate amount of potential growth for DL through merger/acquisition or internally will come in int'l markets.
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Bottom line is that fixing the JV requirements needs to be done... but it is relatively small in the scope of issues facing US airline pilots overall and it is also in DL and DALPA's interest to work together to go after whatever opportunities that might arise, including the ability to expand DL's international system, the most likely place where merger/acquisition activity will occur.
It was precisely the fact that DL and NW pilots recognized the value of that transaction that they quickly came to agreement - and the benefit was significant growth over the Pacific.
no its not small. If Delta gives all of its international routes to AF and becomes a US feeder to them then its a pretty darn big problem for employees yes?

oh and WT, don't expect to much of the love between DALPA and management to keep up. After the joke that was openers i expect DALPA will be feeling the heat(again) from its members. I truly expect ALPA will not be the pilots union at Delta Air Lines by 2014.

 

[topDawg]

yes, DL signed a contract and they have to live with the consequences of it, renegotiate it with the affected parties, or go onto BK where it is possible to toss out contracts. My bet is they will renegotiate the term about the JV with DALPA and DALPA will be smart enough to recognize they have more to gain by cooperating and gaining new opportunities - which I am certain DL will work to provide them. DL and DALPA have a knack for being able to find win-win solutions.
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Yes, on a quarterly basis ALL OTHER network carriers report RASM change by region and some carriers specificially note their specific RASM by region.
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On a monthly basis, the trend has become that RASM change is reported for the consolidated system of each airline on a monthly basis. AA has not adopted this practice and likely will not start in BK. Other network and many LFCs report consolidated RASM change with their monthly traffic reports. Some carriers note cash and fuel price as well.

Ah dreaming again. If Delta goes into BK after making 2-2.5B over the last few years they will get so many law suits, you can bet every single EVP will lose their jobs.

and as i said before, DALPA would be writing its own death sentence by giving Delta more room to hurt the pilot group.

and as Jim said, AF/KL's unions are very much a part of the agreement. Those three unions pretty much each get a piece of the pie. (just happens to be AF/KL's are about 20% over the limit)

 

[WorldTraveler]

glad you found the quote, Jim, because it validates that I never did say that DOT data is unreliable, just that it is used for a different purpose than for accounting.
DOT data is revenue related and there is a pretty consistent ability to view revenue between carriers because there are industry standard methodologies for revenue proration. It is even easier to compare non-hub revenues which works very well for BOS since the majority of its traffic is origin and destination traffic.
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Tracking revenue for DOT purposes at the market level leaves out details such as ancillary and cargo revenue which will show up on accounting statements - something none of us have access to.
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But it doesn't change the fact that DL's BOS revenue is the largest among all carriers and they now have a #1 or #2 presence in most US regions with the notable exceptions of BOS-west since they have chosen not to compete in the nonstop market at this time and BOS-southwest where AA and UA and US have hubs that generate more revenue than DL does.
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Given that UA/CO have never been terribly strong in BOS compared to AA and DL and that B6 does not obtain the premium revenue esp. in the longhaul US markets, it is not likely that DL's position in BOS will change for the forseeable future. BOS is not a hub and not a major focus city but it is a market where they have a strong historical presence and one where they have used the combined strengths of DL and NW to further grow the positions each airline had individually.

 

[BoeingBoy]

glad you found the quote, Jim, because it validates that I never did say that DOT data is unreliable, just that it is used for a different purpose than for accounting.

So you're right "whether the BTS says so or not." If the BTS publishes something you like, you use it to "prove" your point. If the BTS publishes something you don't like, as when you typed that quote, it's not really accurate since it doesn't follow GAAPs.

I think I got it...

BTW, here are the codes I'll be using for 3-digit airplane type identifiers so these are now official and should be recognized when seen (a work in progress):

773 = 737-300
734 = 737-400
NG2 = 737-700
NG3 = 737-800
G3E = 737-800ER
NG4 = 737-900
G4E = 737-900ER
319 = A319 standard
19S = A319 w/Sharklets
19N = A319neo w/Sharklets

Jim

 

[Kev3188]

Seems like a lotta work, Jim.

I'm gonna go with Bus (A320), baby bus (A319), and Big Bus (A330).

I'll use "Seven Three" for all 737 types.