Not much going on here. Next week the BOD meets. The rumors are flying round the hangar about a bloodbath of layoffs to be announced on "Black Tuesday". TPA hangar will be gone and all HMV checks to be outsourced to who knows where. But yet this board hasn't had a post since Thursday?
The Quiet Before The Storm?
- Thread starter DalMD88
- Start date
DalMD88 said:
In the next 6-9 months, I expect DL to do the following in order to avoid a CH11 filing:
-outsource most if not all heavy maintenance
-additional paycuts of 5-10% for all non-union employees
-addtional healthcare cost increases for all employees
-sale of either ASA or Comair
-minor reduction of domestic ASM's beginning in the fall
-possible deferral of mainline planes scheduled for delivery in '06
So how is outsourcing the Heavy Checks going to save money? Find it hard to believe it is cheaper with a fleet as large as ours to have someone else do the work. Unless you are sending the work overseas I can't see much in the way of savings. We turn airplanes quicker with less people than most outfits.
TheDog2004
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I've just heard from someone else that the sh*t is about to hit the fan.
jimntx
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DalMD88 said:
The same way that corporations "saved" money in the 90's by outsourcing support staff, like the mail room and supply room. Companies brought in vendors who (as it turned out) lowballed their bids to make sure that the cost savings of using them vs. regular employees with regular pay and benefits would be obvious.
In a year or two after the corporation laid off all the support staff employees (or transferred them to the outside vendor's payroll and benefits), the vendor would suddenly have to raise prices. If the company was not willing to go along, the vendor would simply terminate at the first opportunity, leaving the company scrambling for someone to perform the support services.
A number of companies outsourced their Information Technology functions at the same time. Then they discovered that the employees of the outside vendor had no vested interest in the long-term survival of the client company. Their only vested interest was in being paid for every time they lifted a finger to write or change a line of code. Quelle surprise! As they say in la belle France.
jimntx
Veteran
mweiss said:
Precisely. And it's not like there's as many a/c maintenance facilities as there are Jiffy-Lubes. Once you go with MAE in Mobile, you're kinda stuck with them.
TheDog2004
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SLA = service level agreement
U
UAL_TECH
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lpbrian said:
That would be because UA has neither:
The mantra has been to 'outsource' without the comprehension of long term contracts (liabilities defined, etc...) because we have a bunch of idiots chanting 'outsource is good'!!! (B'Cause everyone does it)!!!
That is because they 'don't'!!!
A look at 'Pandora’s box' is not as comforting as it once was, is it?
B) UT
WorldTraveler
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Airlines are willing to take big short-term risks on quality in order to get rid of a lot of older, high seniority employees - of which there are many in maintenance at many airlines. I would bet that outsourcing of maintenance will prove as successful as call outsourcing to India has been but there will clearly be companies that deliver high quality outsourcing services.
DAL MD88, I do have a hard time seeing how DL will gain a whole lot since they have considerably more opportunity to move alot more levers in the company since there are few unions to mess with. There is no doubt that DL will have to make some big changes in order to adapt but remember that neither US or UA starting making these kinds of changes until they were IN bankruptcy. It's really alot harder to get into bankruptcy in the airline industry than most people believe unless you are really asleep at the wheel or events spiral completely out of everyone's control. and if those events push DL into bankruptcy, just about every other legacy will go along with them.
DAL MD88, I do have a hard time seeing how DL will gain a whole lot since they have considerably more opportunity to move alot more levers in the company since there are few unions to mess with. There is no doubt that DL will have to make some big changes in order to adapt but remember that neither US or UA starting making these kinds of changes until they were IN bankruptcy. It's really alot harder to get into bankruptcy in the airline industry than most people believe unless you are really asleep at the wheel or events spiral completely out of everyone's control. and if those events push DL into bankruptcy, just about every other legacy will go along with them.
U
UAL_TECH
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WorldTraveler said:
Bet Your Life on it!!!
B) UT
WorldTraveler said:
Yeah, you think about your quote next time you have to autoland due to weather or other reasons. Better hope your plan of getting rid experience doesn't bite you in the *ss, afterall, it will be your mechanic landing that plane. But hey, it's just like outsourcing phone calls.
