thanks, Paris.
Kev,
Correct me I’m wrong but I thought the process of outsourcing cabin cleaning was started by NW before the merger.
You can remind us of what is involved with the bag room jobs… but IIRC DL insourced back to mainline employees the DCI work that was being done at ATL and I believe DTW… not sure if other hubs were involved . Not sure of the numbers involved but I would strongly bet that DL added more mainline jobs by insourcing DCI than it did by outsourcing some bagroom jobs.. . but I’d like to hear both sides.
Signals,x
Thanks for identifying your position in this discussion.
Whether you care about whether DL is harmed by WN or not seems to be contradicted by your desire for WN to inflict damage on other carriers. Not sure why you believe that but if that is your wish, so be it.
I post lengthy, data-filled responses because they answer questions which involve a right or a wrong. For example, the question of who or what is the largest of anything is measurable. In the same way, the question of who will be harmed by WN can be answered based on 30 plus years of history and data between WN and the network airlines.
Of course fact-filled responses cut to the heart of people’s opinions when their opinions are contrary to fact. Not surprisingly, many people don’t like what I post for that reason.
Yet, regardless of the conclusions, many do in fact learn from the research I do regarding the industry because they, like me, want to learn. For them my contributions are valuable – and they tell me so.
There are plenty of people who want WN to inflict damage on DL – and they have said it.
There are also plenty of people who have held WN up as something that destroys everything in its path – despite the fact that WN has a history of going into markets where it sees opportunity and doesn’t engage in battles to establish itself. The network airlines have left plenty of opportunities for WN, whether it be because they closed hubs they no longer needed or were unable to defend them due to their own cost structure. The point still remains that a number of network airlines have closed hubs and/or given up the local markets where they previously had hubs to low fare carriers, including WN. The revenue is no longer in the hands of that network carrier and if they haven’t replaced it with comparable revenue elsewhere , then it is no surprise to see the low fare carriers gaining and network carriers losing.
WN is a very well run airline – always has been. They know what they do best, do only that, and do it very well.
Let’s also be clear that WN became a force in national aviation – outside of its limited Texas operation – AFTER deregulation. The definition of legacy airlines is of an airline that existed prior to deregulation – when airlines were viewed as utilities, competition was limited, and the airlines asked the government for permission to raise fares and add service – creating little incentive to keep costs down.
Prior to deregulation, airplane travel was largely an experience of the wealthy and privileged. Today it is the intercity version of mass transit.
WN has no vestiges of the regulated era of aviation and has had to break no promises or get rid of costly parts of its network or business plan that no longer work in the current environment.
Lucky for them AND their customers AND their employees.
But WN’s simple – but well executed model –cannot begin to provide the level of air service which many people need.
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I and most rational people see no conflict between WN and the existence and success of other network airlines. I am also quite certain that WN recognizes full well that there will be network airlines that survive and thrive alongside WN – as well as other low fare and sometimes low cost carriers.
That leaves it to figure out who among the network carriers will survive and thrive against WN.
I have laid out quite clearly that DL – and its merger partner NW – for years have understood the threat to their business models of low cost carriers and both have vigorously maintained cost structures which allow them to compete with other carriers.
The simple fact is that DL has maintained more of its network footprint and given up less of its network to low fare carriers than any other network carrier. Whether you like it or not doesn’t change the reality.
I am thus quite comfortable – based on reams of data and pages of aviation history – to show that DL will continue to grow its domestic network – the region in which low fare/low cost carriers compete – while other network carriers will lose domestic revenue and market share.
We can indeed check back 10 years or more from now – but I don’t expect the situation will be any different.
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As for the PMNW people who you say you have met and talked with, I can only say that it is incredibly unfortunate that the labor representation aspects of the merger have not been resolved three years after the merger was announced – and nearly three years after it closed. As you know ALPA came up with a working agreement prior to the merger and Flight Ops is operating as one airline – with the exception of the few large aircraft carveouts which will be winding down in the next couple years.
For those PMNW who are awaiting resolution of the labor representation issues, they say they feel like second class citizens and I can clearly understand why.
My desire for them remains resolution and for them to be able to integrate fully into DL if that is what they wish to do.
The NW merger was DL’s largest and in my mind, the most significant in transforming them into the global airline they are now.
NW brought a huge amount to DL – not the least of which are some incredibly great people. My travels of late have taken me more through PMNW hubs than PMDL. NW built great hubs, I love the Airbuses NW brought to the “marriage” alongside DL’s Boeings, but most of all I appreciate the PMNW people.
Combined, I am more confident as ever that the new DL – strengthened by the PMNW people and resources – will accomplish whatever DL believes is necessary for it to “win” in the industry.
