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Delta Elimiating 8,000 Jobs  
User currently offlineBeechStarship From United States of America, joined Oct 2002, 72 posts, RR: 0
Posted (11 years 6 months 5 days 19 hours ago) and read 1261 times:

Just heard on CNN about Delta cutting 8,000 jobs. Is this old news here? Too bad for the pilots and attendants affected. Can they cut that many jobs and still maintain their current schedule? Is Delta as financially in trouble as United and USAirways?

I hope there will be a crew to fly my ONT to ATL flight at Christmas! They have only one direct flight per day now and I'm nervous they'll eliminate this nonstop service.

5 replies: All unread, jump to last
 
User currently offlineDeltaSFO From United States of America, joined Nov 2000, 2488 posts, RR: 23
Reply 1, posted (11 years 6 months 5 days 19 hours ago) and read 1235 times:

It's not old news, it was just announced this morning. 8,000 jobs are going to go through a mixture of voluntary leaves, voluntary severance, early retirement, and, if necessary, involuntary furloughs.

Delta is not in a situation where bankruptcy is something that is being considered. Delta is simply doing what's necessary to cut costs amid continuing losses. It's painful, it hurts, and I hate the uncertainty of the whole thing, but management is doing what they have to do.

Delta is pulling down capacity both domestically and internationally with the MD-11s being grounded and a number of 767-300ERs moving from domestic to international. All orders through the end of 2004 are deferred, including Delta's ninth B777. With those capacity cuts, it's not necessary to have as many people to run the airline. That plus a poor outlook as far as demand goes, explains why this is happening.

If they eliminate the nonstop service, you will be reaccomodated.



It's a new day. Every moment matters. Now, more than ever.
User currently offlineBeechStarship From United States of America, joined Oct 2002, 72 posts, RR: 0
Reply 2, posted (11 years 6 months 5 days 18 hours ago) and read 1188 times:

Here is a link to the Delta job cut article at CNN.com:

http://money.cnn.com/2002/10/17/news/companies/delta/index.htm

I know I would be re-accomodated on a stopover flight, but I paid more to go on Delta because they offer the only non-stop service from ONT to ATL. Even if the layover is only 1 hour I find stopovers add about 3 hours to the total trip by time the plane circles, lands, taxies, boards, waits in takeoff que, etc.

Is it most airlines' policy to add a stopover on a non-stop flight without compensation or refund offer? If so that doesn't seem fair. Just curious...I've had no problems with Delta so far. Normally I don't mind stopovers because it allows me to fly on different planes, but I'm kind of in a hurry on this flight.



User currently offlineExusair From United States of America, joined Sep 2000, 684 posts, RR: 0
Reply 3, posted (11 years 6 months 5 days 17 hours ago) and read 1166 times:

Delta has been running a lean operation since 7.5 in the mid 90's. There has since been a mindset to focus on costs and operating flights on a margin of 12%. There were scarcely any "extra" employees on the payroll.

To illustrate how stupid some of the cuts were from the last round, let me point out the following.

In certain stations, retired personnel were rehired as part time employees, at 50% of their salary through a temporary staffing company. They are also paid 60% of their previous salary for their retirement benefits. Net raise:10%

My personnal favorite: Merit raises for management. Average raise, approximately 1,000 per month. "In order to attract and retain talent." Screw them. Let them quit and try to find another job at their current salary in this environment.

The continued slump in International business travel. Delta's reponse: Rather than slimming the business class cabin to 36 - 40 seats and adding rows of coach, upgrade the coach oversales to fill the business class cabin. Serve them business class meals and let them drink expensive wine for 8 hrs.

Continue alienating premium fare passengers from the northeast to Florida by replacing 2 cabined, full MD-88's, 757's and widebodied a/c with piece of junk, 119 seat, single cabin Delta Express. Brag for the first 5 years of operation how profitable DL Express is. Then shutter half of the operation. Bemoan to employees the further need to find revenue and continue to sack frontline personnel despite heavy loadfactors.

Force paying passengers to interact with "kiosks" that are frequently broken or kick back a response guiding customers to check in with a human Delta employee. Replace 1 employee for every 2 machines.

Bank the whole transoceanic, heavy demand markets and ultra longhaul flights on 9 777 a/c. Pray that none of the a/c ever break or have to go into the hanger until market conditions improve in 5 years. Sound strategy.

Further alienate customer base by penalizing them for showing up at the airport early to standby for an earlier flight, rather than simpifying the insane fare structure that neither airline officials or customers can neither undersatnd nor explain. Also call all past date tickets null and void.

Shut down crew bases in New Orleans and Seattle. Rather than have 8 supervisors on staff at a salary of approximately $50,000-$60,000, pay for 30 overnight hotel rooms every day for overnighting crew members in those cities. Average cost $40/night. higher in New Orleans the week of Mardi Gras, Jazz Festivals, Major football games and other events.

Replace full mainline a/c with 50 seat RJ's. Send mainline a/c to desert and pay thousands in ramp fees. Continue operarting the 3rd largest airline with 13 a/c with fewer than 150 seats. Although current pay rates and market demand enable a profitable operation with up to 150 100 seat a/c.

Pare operations in crucial Florida market. Give market to Southwest. Complain to employees that company is being assaulted on all fronts by low fare competitors. Neglect efforts to improve products offered. Discontinue meal service on just about all domestic flights in an effort to emulate Southwest style service. Hope that Southwest style profits roll in. Create a new low fare intiative that will ultimately fail too, just like DL Express.

Give the one of your largest Western Airlines markets (LAX and California) to your competitor. (United). Take all lessons learned and throw out the window. Give another large market (JFK and New York) to your competitor (Jet Blue). Give another large market (DFW) to your competitor. Do not capitolize on downsizings of your competitors (US at BWI and DCA) by offering flights to other cities (Florida). If you do offer new flights, put them on RJ's with 2 hr durations (DCA RJ's to Florida)

Superb management. I can see the need to compensate them and retain them at a premium.


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6484 posts, RR: 24
Reply 4, posted (11 years 6 months 5 days 16 hours ago) and read 1109 times:

My personnal favorite: Merit raises for management. Average raise, approximately 1,000 per month. "In order to attract and retain talent." Screw them. Let them quit and try to find another job at their current salary in this environment.

I don't fully agree with the raises but in some cases they are a necessity. If DL doesn't offer some money, all the talented people would be gone in a second. Trust me, they could find jobs in other industries that pay far more than airlines. MBA's in the airline industry are some of the poorest paid of MBA's in any industry.

Continue alienating premium fare passengers from the northeast to Florida by replacing 2 cabined, full MD-88's, 757's and widebodied a/c with piece of junk, 119 seat, single cabin Delta Express. Brag for the first 5 years of operation how profitable DL Express is. Then shutter half of the operation. Bemoan to employees the further need to find revenue and continue to sack frontline personnel despite heavy loadfactors.

DL had no choice but to shutter part of DL Express. The 732 is the most junior plane so when furloughs occurred the 732 was hit the hardest. It costs money to retrain pilots to fly the 732 so DL had to ground more 732's than they wanted to. By the way, there are very few premium far passengers left in the NE to Florida market...they just don't exist. For the few that do, DL still offers mainline in the LGA to Florida market.

Force paying passengers to interact with "kiosks" that are frequently broken or kick back a response guiding customers to check in with a human Delta employee. Replace 1 employee for every 2 machines.

DL has no choice, they either invest in technology or die. I personally enjoy using the kiosks. They are faster than the agents and easy to use....sometimes friendlier than the agents too.  Smile

Bank the whole transoceanic, heavy demand markets and ultra longhaul flights on 9 777 a/c. Pray that none of the a/c ever break or have to go into the hanger until market conditions improve in 5 years. Sound strategy.

Trust me, DL is breathing a sigh of relief that they don't have more 777's. In this market, you just can't fill them...especially in the winter. You are kind of a hypocrite that you complain that DL has too many Int'l Business seats, but then complain DL has too few big planes which have even more business seats to fill. Ask UA, which is trying to dump some of their 777's because they can't fill them.

Further alienate customer base by penalizing them for showing up at the airport early to standby for an earlier flight, rather than simpifying the insane fare structure that neither airline officials or customers can neither undersatnd nor explain. Also call all past date tickets null and void.

I'll agree with you on this one. DL is stupid for enacting these rules...though obviously they aren't alone.


Replace full mainline a/c with 50 seat RJ's. Send mainline a/c to desert and pay thousands in ramp fees. Continue operarting the 3rd largest airline with 13 a/c with fewer than 150 seats. Although current pay rates and market demand enable a profitable operation with up to 150 100 seat a/c.

Hmmm...if DL is flying around with half empty mainline planes, what do you suggest they do? Just keep losing money or replace them with a smaller plane that matches demand to capacity better. I agree that DL needs more 100 seat planes, but its not that easy. DL's cost structure makes the 100 seat market very difficult to make money in....plus there's the cost of buying new 100 seaters. You'll notice very few airlines are buying 100 seaters...not AA (they're dumping the F100's), UA is dumping the 737's, U dumped them, WN isn't taking delivery of any 100 seat planes, CO is slowy dumping the 735's, JBLU doesn't want a 100 seater.......see a trend. The economics of the 100 seater are questionable given DL's (and other airlines) cost structures.

Pare operations in crucial Florida market. Give market to Southwest. Complain to employees that company is being assaulted on all fronts by low fare competitors. Neglect efforts to improve products offered. Discontinue meal service on just about all domestic flights in an effort to emulate Southwest style service. Hope that Southwest style profits roll in. Create a new low fare intiative that will ultimately fail too, just like DL Express.

DL Express did not fail....if it did DL would just shut it down. DL Express is in need of a better plane (732's aren't the best weapon) and better cost structure (talk to the DL pilots who refuse to compromise). DL hasn't really pared down its Florida service that much and has maintained its market share in most Florida markets. DL has canned a few routes that simply could not make money. WN will always win in Florida...they have a dramatically lower cost. Most people going to Florida are tourists and won't pay a premium...that's why DL dumped food. Why

Give the one of your largest Western Airlines markets (LAX and California) to your competitor. (United).

Oh yeah, United is doing so well in California...do you pay attention to anything in this industry.

Give another large market (JFK and New York) to your competitor (Jet Blue).

DL didn't give JBLU the market. JBLU has a substantially better cost structure, no pilots union, lots of financing and was given slots by New York. What was DL supposed to do...oh wise Exusair?

Give another large market (DFW) to your competitor.

Hmmm...ever stop to think that DL did this because there were places that DL could make more money. Why fight with AA over scraps when you have golden opportunities in ATL?

Do not capitolize on downsizings of your competitors (US at BWI and DCA) by offering flights to other cities (Florida). If you do offer new flights, put them on RJ's with 2 hr durations (DCA RJ's to Florida).

How could DL take advantage of US's downsizing in DCA? DCA is slot controlled....so what should DL do?? Use some common sense. The new flights DL is adding are on RJ's because it makes financial sense. CMH,HSV,JAX and CHS don't have enough O+D to justify mainline. The Florida flights may get upgraded to mainline in the future, but its best to start with RJ's. The RJ's keep capacity down and might push yields up until the route develops to the point that mainline is justified.

How do you propose DL take advantage at BWI? DL has added flights to BWI and ATL, but what more should they do? Build another hub there only 400 miles from CVG and with WN's massive presence keeping yields in the toilet???
That would be dumb management.

Exusair, you might not like some of managements moves, but many of them occurred for a reason and a good reason. If DL management was so bad, then DL would be in the position that US or UA are in. And if you can do better, go right ahead...though I doubt you would survive.


User currently offlineJcs17 From United States of America, joined Jun 2001, 8065 posts, RR: 40
Reply 5, posted (11 years 6 months 5 days 15 hours ago) and read 1072 times:

I know I would be re-accomodated on a stopover flight, but I paid more to go on Delta because they offer the only non-stop service from ONT to ATL. Even if the layover is only 1 hour I find stopovers add about 3 hours to the total trip by time the plane circles, lands, taxies, boards, waits in takeoff que, etc.

Is it most airlines' policy to add a stopover on a non-stop flight without compensation or refund offer? If so that doesn't seem fair. Just curious...I've had no problems with Delta so far. Normally I don't mind stopovers because it allows me to fly on different planes, but I'm kind of in a hurry on this flight.


Theyll usually call you if this occurs and tell you your options. Probably one would be to fly into LAX and the other would be to connect in SLC. I wouldnt expect too much in the way of compensation, especially from DL. However, if your lucky you might get $50 off a future flight, or perhaps first class on one of the legs...if they cancel it last minute



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