Delta''s restructuring plan?

Discussion in 'Delta Air Lines' started by Tim47SIP, Aug 26, 2002.

  1. Tim47SIP

    Tim47SIP Member

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    Anyone know anything about this? When are the results supposed to be made public. Will DALPA have to approve or provide a counter proposal concerning the plan and their furloughs before things are really made public? Thanks.
     
  2. DLFlyer31

    DLFlyer31 Senior

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    I think it depends upon what part of the plan you are talking.

    In terms of the "new" low-fare operation that will debute sometime in winter, I don't think DL will need pilots approval. For example, if DL takes a 757 and strips it down to one-class, that really has no impact on the pilots as the payscale stays the same. Of course, Leo might want to renegotiate payscales for the "new" low-fare operation...but I don't think it will happen.
    If the DLX 732's return to mainline service, I believe they have the same payscale as the 733's (correct me if I'm wrong).

    In terms of a codeshare alliance, that does require pilot approval and I think Leo's going to have to make some BIG concessions to get it through.

    Otherwise, DL seems to be making capacity reductions here and there....trimming mainline down in many markets. Sad to see a route like ABQ-SLC lose its last mainline flight, but DL doesn't really have many other options.

    I wonder if DL will attempt to "de-peak" ATL similar to what AA is doing at DFW? In April 2001, I remember there were plans to smooth out the ATL operations, but I'm not sure whatever really came of it. ATL still seems to have the standard bank structure...though the banks almost run together.
     
  3. Tim47SIP

    Tim47SIP Member

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    D31, Thanks for some info. I really think that Leo will not be able to compete against the low cost carriers with mainline rates and mainline operational costs. I have read several analyst's reports that have stated that Delta would have to start a new carrier using lower pay scales and benifits accross the board or use DCI for some of the capacity. Personally, I don't think DCI can handle that and what it is doing now. I can see the mainline furloughed guys flying the equipement as Delta is vigerously looking at 90 and 110 seat aircraft. These of course would have to be flown by mainline guys but I would think on different seniority lists. Because their binefits would be completely different, it would be impossible to put them on the same list. They would eventually move on to the mainline and then continue where they (furloughed guys)left off and new guys would replace them. Dont really know what is going to happen, but I hope it is for the best.

    As far as the banks, Delta went from 10 banks to 12 banks per day. Since I am a DCI guy, I cant answer about the mainline side of the house, but I can say that the waiting for dep lines went down. The main problem for DCI right now is parking. To many apples to fit into the box (and they are getting more!). I dont see and end to that problem until the new runway and terminal are completed. Airtans is to move to the new terminal and ASA will get all of C. At least that is the present master plan. It could change before 2005 when completion is scheduled.

    [8)]
     
  4. pk45cu

    pk45cu Member

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    I think DL was ahead of the times with this so-called rolling hub concept that AA is bandying around. They spread out their departures across more banks to relieve congestion rather than as a cost-control. ATL already has the lowest costs of any hub in the US.

    FYI, AA has 9 major banks at DFW with around 4,000 to 5,000 departing seats per bank. This number doesn't count 2 smaller ones; the early bank connecting West coast red-eyes to East coast monring departures, and the late East to West coast departures. It'll be interesting to see their Nov schedule.
     
  5. DLFlyer31

    DLFlyer31 Senior

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    I'm not sure how DL will find a cost-effective way to run a lowfare carrier. If 757's are put into service as part of the low-fare carrier, they will have a lower CASM and be a more appropriate size to compete against JBLU (the 732's just don't cut it). However, in the long run DL's cost structure just won't work as a "lowfare carrier"...something that US,UA and CO already figured out with their experiments.

    It will be interesting to see if Leo can manage a deal with the pilots to create a more effective "low fare" carrier. In the end, I think it will really come down to what the pilots really want...mainline growth or top-pay? In Contract 2000, they chose to take top dollar and sacrifice growth. Can DL profitably fly a 90-110 seater at mainline costs? I don't know...but DL needs to find a way to make it happen.

    I think DL can survive with the current pilot contract, however future growth will be even more limited. Many DL pilots complain that the NW/CO codeshare would compromise growth, but w/o the codeshare they'll see even less growth.


    As for DCI in ATL, it's quite a mess. Few DL flyers look forward to a trip down Concourse C (or D/E in some cases)....as it often means chaos. Sadly, I think DL's ASA operation in ATL is really a weak point. Part of the problem is the cramped conditions as you mentioned and part is the customer service side. While people often speak well of DL mainline, Comair and SkyWest customer service...ASA is rarely mentioned. I'm not sure if its just the poor pay or poor training, but it isn't pleasant.
     
  6. luv2fly

    luv2fly Veteran

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    Can DL profitably fly a 90-110 seater at mainline costs? I don't know...but DL needs to find a way to make it happen.

    [/quote]

    Well,
    That depends on the arbitrator. The current contract allows any dispute in pay over new equipment to be referred to an arbitrator in the event that both sides cannot agree on a negotiated rate. There are provisions that he or she must follow in determining that rate.
     
  7. Tim47SIP

    Tim47SIP Member

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    I was told that if DALPA agrees to the codeshare with NW/CO, then there will be permitted types over 70 seats. This could then allow Delta Management to put 90 seaters on the DCI property and bypass the mainline????? Is this possible? What is a "permitted type"? Dosn't DALPA'a scope prevent this regardless of the situation? Anyone! Thanks.[:0]
     
  8. luv2fly

    luv2fly Veteran

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    Tim,

    Nothing over 70 seats is permitted at a DCI carrier. That being said, there has been some speculation that regional carriers affiliated with CO or NW could potentially end up with larger aircraft and ultimately be used in the codeshare agreement. I am not sure how this would work within the confines of CO and NW working agreements, or even Comair and ASA for that matter. One thing is for sure. If there is a loophole or gray area in those agreements, management will expose it.
     

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