What's new

Delta to buy American routes from MIA and DFW?

Has any heard of Delta looking to buy routes from American in MIA and DFW?


I have heard this in different conversations and groups but i can seem to find any news or other facts to back this up.
Lets hope not. No one wants to hear how great it will be to see the AA 737 checks go to Mexico like the rest of the DL fleet from WT. Or when DGS comes in and takes mainline jobs how grateful we should all be. *rolls eyes*
 
except that AA will send thousands of jobs out of the US regardless of what DL does - of course that's on top of spending tens of billions of dollars on new aircraft that will make AA's debt servicing costs several times higher than what DL spends for the same expense even though DL is a larger airline.

It is perhaps precisely because AA has moved too far down the path of restructuring and has committed to new purchases so large that neither DL or US can get out of that AA "wins" the battle to be a standalone carrier....
 
And, I think it goes without saying (but, I'm going to say it anyway :lol:) that the debt incurred with all the wonderful new airplanes will probably take AA down sometime down the road. I just do not believe that the fuel savings enjoyed by the new a/c will provide the funds for servicing that debt. Other than new a/c, AMR management seems to have run out of revenue generating ideas (well, the vaunted cornerstone strategy). Oh, I forget, they can always tells the remaining employees that they are being paid too much. They are bricks in the corporate backpack, and they need to concede more pay and benefits for the good of the company. Yeah, that's it. Problem solved. Bonusses all around at Centreport!!!
 
but also not the only way that DL can obtain what it needs....
most of Latin America becomes Open Skies in a couple of years.. there could be very little advantage for DL to spend years buying AA assets when it can build what it wants on its own.

I'm impressed! Exactly how many moves ahead of the pack is Delta?

Check Mate B)
 
No, I will not checkmate anyone... but some airlines may checkmate others.

As the result of movements in markets within the US as well as internationally, some of the long-standing paradigms will be shattered.

The next few years will see a shakeout in the US airline industry.. after 35 years of very difficult deregulation, the US industry is reaching a point of stability where the long-term winners will emerge.
 
they are spending money increasing pay and paying profit sharing NOW. But then that is what they have been doing since they came out of BK as a result of creating a viable business model, and there is no reason to think that will change anytime soon.
 
They're spending it now, in an attempt to make sure that never happens...
bingo!

How wonderful it is to agree!

DL employees don't see the need for unions when they are paid as well as or better than their peers at other airlines - and DL is creating jobs by bringing work back inhouse and adding pay while other carriers either continue to outsource work and/or hold employees at their previous BK rates.
DL's practice of paying its employees "just a little more" than its peers goes back well before deregulation. DL's current management has been smart enough to look at what made DL tick in the past and work to reinstate many of those same things.

I don't for a minute doubt your observations as well as the accounts you have cited about what some people are experiencing and forgive me if I sound flippant at your efforts to advance your cause.
At the end of the day, DL is looking at the total odds of remaining non-union and isn't afraid to throw money at its employees to keep the values that have enabled the airline to succeed where others have not. The fact that DL is running a profitable airline is precisely what drives their ability to keep throwing money at employees to keep them non-union.

The vast majority of employees are able to look past the issues you cite precisely because of the better total compensation than their peers - compensation which continues to grow even after adding in higher health care costs which is an issue for all American workers. Add in the jobs which DL is shifting from DCI back to mainline and it is very hard to argue that unions would provide a better compensation package for DL employees.

And it bears noting once again that labor relations are horrid in the airline industry; most airline employees have working relationships w/ their companies that are just as bad if not worse, but obviously perceptions of "justice" and "treatment" are subjective and differ from person to person.
 
At the end of the day, DL is looking at the total odds of remaining non-union and isn't afraid to throw money at its employees to keep the values that have enabled the airline to succeed where others have not.

It's not about "values," unless you consider autocracy a value.

*That* is the item the company will pay any price to retain.
 
DL IS a traditional management lead company and the vast majority of DL employees can accept that is the way the company works.

As I have noted, the history of mgmt sharing responsibilities w/ labor among American companies does not have a great track record, esp. in the airline industry.
Robert Reich, the former Secy of Labor for the USA, acknowledged that difficult relationship in the EA videos.

I'd still like to dealve into the issues of autonomy you raise w/ specifics about what work you did at NW which is now done by someone else at DL.

As I have noted, NW DID have a successful culture of providing frontline autonomy better than what has happened at other airlines. I'm not sure how they did it, but you shouldn't hold DL - which operates more like the norm of American businesses and airlines - for being normative while also acknowledging that you truly had something great in that experience at NW that probably won't be replicated. Some things in life happen for a season; sometimes we have to just be grateful for the good experiences we once had w/o expecting we will ever duplicate them again.
 
Once again you are conflating multiple issues. The fact remains that there is no price point too high for DL to pay in order to maintain autocracy. When all is said and done, *that* is what all the gauzy/feel good talk about "family," "culture, " and so on is really about.
 

Latest posts

Back
Top