Airlinelifer
Senior
- Jan 10, 2008
- 333
- 142
Could this news be have positive affect on mainline groundhandling?
Any stations that D E L T A might open up to Dept 120 (mainline ramp operations) employees?
Are the RE People going to be offered employment with other subsidiaries?
DATE: August 7, 2012
TO: Regional Elite People
FROM: Don Stephens, Senior Vice President
RE: RFP Results and Regional Elite Transition
Throughout the airline industry – and in many cases the global economy – organizations large and small continue to look for ways to stay competitive. For us, this means providing the safest, highest quality service to mainline and regional customers, while driving toward greater efficiency and value. Delta’s recent RFP for ground handling services across more than 100 regional stations is one of many examples of this trend.
Our team has worked hard to run a strong operation for our customers. However, our cost structure kept us from effectively competing with other aviation service providers in this RFP. Unfortunately, we were not awarded the work in the vast majority of these locations, which will mean higher overhead costs spread across a smaller number of stations.
With very limited opportunities to maintain or grow our business, we will not be a viable company moving forward. As a result, we have made the decision to transition all of our remaining work to other aviation service providers by the end of the year. Having said that, we believe this transition will result in jobs being available at the same locations with the new providers for the vast majority of our people.
In light of these changes, yesterday Delta also issued an RFP for the DTW and MSP regional hub operations we currently handle. This work will transition to another service provider as well, with the result of the RFP being communicated to us in early September. Since the scope of work in the hub RFPs is the same as we currently provide, we also anticipate that the new supplier will need most if not all of our hub people.
The decision to transition Regional Elite operations was not easy, nor made lightly, and it certainly is not a reflection of your professionalism or dedication to each other and the customers you serve every day. It is a reflection of the current state of the airline industry. Mainline carriers like Delta face incredible cost pressures and the ongoing reductions of smaller regional jets have added significant pressure on regional suppliers. We’ve seen this with the recent announcements that Comair and PinnPro Ground Services are ceasing operations. ExpressJet and SkyWest have drastically reduced their ground handling services as well. As we’ve seen more mainline aircraft showing up in regional stations, traditional aviation service providers have gained a presence in regional markets – many of which competed with us and won this Delta business.
I know you will have many questions about what this means for you and your families. Your leadership team is committed to providing you with the tools and information needed to make an informed decision. In these transitions from one service provider to another, it is very common for the new provider to need most, if not all, of the skilled professionals currently working in a station. Our goal is to help preserve as many jobs as possible during this transition, and severance or retention packages, as applicable, will be available for everyone.
In the coming days, you can expect to receive additional briefings from your leaders – including field town hall conference calls and hub town hall meetings. Additional communication specific to your station also will be available.
Your leadership team and People department are here to answer any additional questions you may have, and you have my commitment to share additional information about the transition timeline and job opportunities with the replacement providers as quickly as we know it.
Over the past three years we’ve strived to be the best at providing regional handling services, but now the regional industry is undergoing significant change. While I regret this outcome, I remain proud of and grateful for all you do every day. Thank you for staying focused on running a safe operation, and taking care of each other and our customers as we work through this transition.
Any stations that D E L T A might open up to Dept 120 (mainline ramp operations) employees?
Are the RE People going to be offered employment with other subsidiaries?
DATE: August 7, 2012
TO: Regional Elite People
FROM: Don Stephens, Senior Vice President
RE: RFP Results and Regional Elite Transition
Throughout the airline industry – and in many cases the global economy – organizations large and small continue to look for ways to stay competitive. For us, this means providing the safest, highest quality service to mainline and regional customers, while driving toward greater efficiency and value. Delta’s recent RFP for ground handling services across more than 100 regional stations is one of many examples of this trend.
Our team has worked hard to run a strong operation for our customers. However, our cost structure kept us from effectively competing with other aviation service providers in this RFP. Unfortunately, we were not awarded the work in the vast majority of these locations, which will mean higher overhead costs spread across a smaller number of stations.
With very limited opportunities to maintain or grow our business, we will not be a viable company moving forward. As a result, we have made the decision to transition all of our remaining work to other aviation service providers by the end of the year. Having said that, we believe this transition will result in jobs being available at the same locations with the new providers for the vast majority of our people.
In light of these changes, yesterday Delta also issued an RFP for the DTW and MSP regional hub operations we currently handle. This work will transition to another service provider as well, with the result of the RFP being communicated to us in early September. Since the scope of work in the hub RFPs is the same as we currently provide, we also anticipate that the new supplier will need most if not all of our hub people.
The decision to transition Regional Elite operations was not easy, nor made lightly, and it certainly is not a reflection of your professionalism or dedication to each other and the customers you serve every day. It is a reflection of the current state of the airline industry. Mainline carriers like Delta face incredible cost pressures and the ongoing reductions of smaller regional jets have added significant pressure on regional suppliers. We’ve seen this with the recent announcements that Comair and PinnPro Ground Services are ceasing operations. ExpressJet and SkyWest have drastically reduced their ground handling services as well. As we’ve seen more mainline aircraft showing up in regional stations, traditional aviation service providers have gained a presence in regional markets – many of which competed with us and won this Delta business.
I know you will have many questions about what this means for you and your families. Your leadership team is committed to providing you with the tools and information needed to make an informed decision. In these transitions from one service provider to another, it is very common for the new provider to need most, if not all, of the skilled professionals currently working in a station. Our goal is to help preserve as many jobs as possible during this transition, and severance or retention packages, as applicable, will be available for everyone.
In the coming days, you can expect to receive additional briefings from your leaders – including field town hall conference calls and hub town hall meetings. Additional communication specific to your station also will be available.
Your leadership team and People department are here to answer any additional questions you may have, and you have my commitment to share additional information about the transition timeline and job opportunities with the replacement providers as quickly as we know it.
Over the past three years we’ve strived to be the best at providing regional handling services, but now the regional industry is undergoing significant change. While I regret this outcome, I remain proud of and grateful for all you do every day. Thank you for staying focused on running a safe operation, and taking care of each other and our customers as we work through this transition.