Delta Air Lines has suddenly cancelled a maintenance contract with a subsidiary of ACE Aviation Holdings Ea move that will cost 700 workers in Vancouver their jobs.
Delta's contract with ACTS was for the airframe maintenance of the airline's Boeing 767s. The five-year, $300-million US deal was signed in May 2005, but has been terminated early.
Delta, the third-largest U.S. air carrier, has been operating under Chapter 11 bankruptcy protection since September 2005. It has been restructuring to slash costs.
"ACTS has worked extremely hard to make the relationship successful," CEO Chahram Bolouri said in a statement issued late Tuesday. "Unfortunately, we are not in a position to meet Delta's cost expectations."
The end of the contract will hit the maintenance division's Vancouver operation especially hard. Out of the 1,000 ACTS employees in that city, 700 will be let go. The layoffs will begin in June and be carried out through the summer. By the fall, only 300 ACTS workers will be left in Vancouver.
"We recognize and regret the impact this will have on our people, and we will work closely with them and their representatives in the coming weeks to mitigate the circumstances for affected employees as much as possible," Bolouri said.
I have no idea what happened, why so suddenly? What does Delta's cost expectations mean?
It's a shame, as YVR was probably the only airport in Canada where you could spot Delta's 767's on a regular basis.
SLCUT2777 From United States of America, joined Dec 2005, 3877 posts, RR: 11 Reply 1, posted (6 years 3 months 2 weeks 2 days 13 hours ago) and read 1265 times:
Quoting Ktachiya (Thread starter): I have no idea what happened, why so suddenly? What does Delta's cost expectations mean?
It's a shame, as YVR was probably the only airport in Canada where you could spot Delta's 767's on a regular basis.
It really is too bad this had to come down to it. In May 2005 when this contract between ACE Tech and DL was signed, the U.S. vs. Canadian $$$ value was such that it was a serious cost saver for DL. At that time the Canadian $ was roughly .75 to the U.S. $. Nowadays it is running roughly .85 and has been as high as .91, so the fluctuation of value has killed this deal before it could really go places. The 767s were a similar platform between DL and AC, and in the fact that AC was starting to fly 777s alongside DL it appeared these two had a good working relationship. Something you normally don't see between a Star Alliance carrier (AC) and a SkyTeam carrier (DL).
YVR will miss seeing these birds! A 764 seen here landing @SLC
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
Ktachiya From Japan, joined Sep 2004, 1732 posts, RR: 2 Reply 3, posted (6 years 3 months 2 weeks 2 days 13 hours ago) and read 1257 times:
Quoting SLCUT2777 (Reply 1): Nowadays it is running roughly .85 and has been as high as .91, so the fluctuation of value has killed this deal before it could really go places
Canadian consumers are happy that their dollar is so high, but if this continues, then I guess it could have a serious cost disadvantage. Even for those travlers who transfer to international flights via YVR, YYZ, YUL, etc.
SLCUT2777 From United States of America, joined Dec 2005, 3877 posts, RR: 11 Reply 4, posted (6 years 3 months 2 weeks 2 days 12 hours ago) and read 1228 times:
Quoting Ktachiya (Reply 3): Canadian consumers are happy that their dollar is so high, but if this continues, then I guess it could have a serious cost disadvantage. Even for those travlers who transfer to international flights via YVR, YYZ, YUL, etc.
By 2001-2002 it got as low as .62 on the U.S. $, and the exchange rate made travel to the U.S. increasingly prohibitive, and threatened many NHL teams north of the border (YVR lost the NBA Grizzlies to MEM at this time). It also shifted even western Canadians away from travel to Hawaii and increasingly towards other spots like the Dominican Republic.
The record modern day high for the Canadian $ vs. the U.S. $ was in 1974 when it hit $1.04 (CDN) against the green-back from south of the 49th.
DELTA Air Lines; The Only Way To Fly from Salt Lake City; Let the Western Heritage always be with Delta!
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