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Delta cost cutting proposal

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Delta cost cutting proposal

Old 16th Dec 2001, 04:14
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Post Delta cost cutting proposal

Delta Air, Pilots Reach Tentative Deal to Trim Costs

NEW YORK (Reuters) - Delta Air Lines said on Friday that it had reached a tentative deal with its pilots that will allow the airline to trim costs as the industry continues to struggle in the aftermath of the Sept. 11 attacks.

Under the deal, Delta pilots can schedule a month-long leave while receiving partial payment equivalent to 55 hours of flying time, less than they would receive for a full month of work, the airline said.

Atlanta-based Delta, the No. 3 U.S. airline, said the agreement allows it to reduce overall pay and better staff its different aircraft categories.

"It's really a mutually beneficial agreement,'' said Christine Frias, a spokeswoman for the airline.

The deal is still subject to approval by the Air Line Pilots Association. Union officials were not available for comment.

Most airlines have slashed capacity and cut jobs to better match lower demand. Earlier this year, Delta announced it would lay off 13,OOO workers as part of cutbacks. About 11,000 of those have opted for voluntary leave or early retirement programs.

Labor expenses are among an airline's highest costs and Delta's pilots became the highest paid in the industry after they reached a new contract deal in May, the airline said.
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Old 16th Dec 2001, 09:24
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This so called agreement is good for both parties. There are plenty of pilots that would rather not work during the winter months----and to be able to be partially paid is great. Cold winter months can now be spent in warmer climates. This also benefits the company----saving up to 15 hours of pay per month. A win -win situation.

As far as the upcoming potential furloughs---
an arbitration hearing is scheduled for early Feb (the 5th I believe)---and the pilots union---ALPA---believes that they will be able to show that the woes that Delta is feeling is not all from the 9-11
tradgedy. There are many factors showing that the Recession and the high jobless rate
in the last year has primarily affected Delta----NOT only 9-11. The No Furlough
clause in the pilot contract says under
"Circumstances over which the company does not have control" that regarless of the state of the economy,
the financial state of the company, or the relative profitability or UNprofitability
of the company's then current operations-----there should be No furloughs. The Vice President of AAA---a major US company dealing with travel in the states----was quoted in the Tues Dec 11th USA Today newspaper as saying, "The travel slowdown
can't be attributed solely to terrorism fears. 'The current recession and the nation's unemployment situation are the major contributors.' " FOX News reported that Southwest Airlines, Frontier, and Airtran Airines were doing very well lately
with increasing loads. That is because they offer lower fares, and passengers today are worried about the economy. Terrorism is not scaring passengers off their planes. So,
Delta's claims that all the losses are due to Terrorism solely---are unfounded and hopefully the furloughs will stop.

Thank you. Donkey Duke
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Old 16th Dec 2001, 14:13
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Donkey Duke - so you believe that Delta have control over the US economy, do you? If not, then how can you say that they cannot invoke their force majeure clause and impose layoffs?

Typical union bollox - they would rather see the company go under and everyone be put out of work; rather than than have a few laid off so that the company can survive in a leaner, fitter, stronger position.

Of course, the insane DALPA agreement - which added half a billion dollars worth of costs to the bottom line - doesn't have anything to do with the present mess!
 
Old 16th Dec 2001, 18:40
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Guv,

You are a joke. Have you ever heard the phrase, "A contract is a contract"? Leo Mullin said it and then he SIGNED Delta's
contract. There are many things that YOU do
not know---especially about things going on in the states. Delta is doing a lot of things under the table---like NOT reporting
the US aide money last quarter that they received so that they COULD show a loss.
They reproted something like a $280 Million dollar loss last quarter---even though Continental and Northwest reported PROFITS.
Well, this quarter they WILL show that money,
but just in time so the Flt Attendants can
NOT vote in a Union. Kind of sneaky. Something that the GUV might do. Blame the Unions! It's the pilots' fault. There are plenty of things Delta could do to lower costs----but they DO NOT want to show the Flt Attendants before their
big VOTE by JAN 31st that MNGMT can work with a UNION.

GUV, when you sign a contract, you must stick with it. If you want to get around it, you must work with the unions. If you try to go around them, it will only make it worse later on. You know what? I feel like I am giving the GUV a lesson in MNGMT. HA HA. It feels great! GUV wants his future Bomb airline to be flown by droids---flying vintage L1011's.

Delta cannot control the economy-----but they signed the contract and now have to find a way to deal with it by working with their own employees. GUV cannot understand this, and unfortunately he never will.
I hope GUV isn't the mordern day SCROOGE.
Merry Christmas buddy!

Thanks. Donkey Duke
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Old 16th Dec 2001, 19:09
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Donkey Duke,

Considering the climate in Washington (especially with this administration), do you think that the arbitration will go well?

The PR machine at work has been pinning everything that's been going wrong financially in the US on 9/11 (at least as the "final nail"). I hope it works out well for the Delta guys but I don't know. This is definitely a pro-corporate environment these days.
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Old 17th Dec 2001, 03:13
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Did I get this right?

Delta think it will save money to give pilots a months leave and pay them the equivalent of 55 hours flying, and this will save them money? If their not doing any flying why pay them for any hours.

I'm back to being confused again.
 
Old 18th Dec 2001, 05:11
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Donkey Duke
you must work for DAL
they are such a shower... worked for them and
got shafted by Leo the CO...yes a contract
is a contract...even if signed but once furloughs come then nothing matter then you are just a number...hopefully you never get shafted the way we did by DAL.... some analyst in a cube in Red Square decided our fate not knowing the effort we put in each day and many others i know were just in the same boat.
DAL is just out to make money no matter what or who they walk on.....Leo can't be trusted except to do whatever will make Leo line his pockets with more money. Don't forget only 400 pilots have been furloughed a small number compared to the amount lost on the ground....so come down from your ivory tower and fight with the rest of your collegues,
I don't think DAL controlls the US economy...perhaps the US aviation industry in general does but not DAL on it's own
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