-Voluntary monthly SILs
Voluntary extended paid leaves offered in 6, 12, 24, 36, 48 or 60-month increments
-Voluntary blank lines which would allow a pilot to build their schedule throughout the course of a month
-Voluntary reduced value lines, set at 80%, of the ALV for pilots who wish to fly a partial month
-Voluntary reduced value ultra-long call reserve lines, set at 80% of the published reserve guarantee with:
•Additional X days
•No short call assignments
•A lower step in the trip coverage sequence
-A temporary exemption to USERRA restrictions which would allow military pilots to go on extended orders without accumulating toward the 5-year limitation
-Expansion of the eligibility window allowing military members to be Air Reserve Technicians (ARTs) in their respective military units
These were offered months ago, and mirror similar actions done at the following airlines: United, American, Southwest, Jetblue, Hawaiian, Alaska, Spirit, Air Wisconsin. Delta has refused to even let military pilots go beyond USERRA limits... why?
How many of those would actually result in a reduction in a pilots paycheck? A lot of flight attendants took "unpaid leave" .. but "Voluntary extended paid leaves offered in 6, 12, 24, 36, 48 or 60-month increments" seems like getting paid to do nothing.
Why did the flight attendants accept unpaid leave. No one needed to sit home without pay until October 1st. The flight attendants did what they did out of free will but actually they should have stood pat and got what they deserved full time pay until Oct 1st why shame the pilots for standing up for themselves when others did not. Can't imagine that too many Delta share holders are sluming it during this crisis.
The flight attendants know that the more Delta losses now, the more layoffs later. No early retirement offer was required. They FAs could have sat still and waited for furloughs like many of their competitors.
The pilots get full employment until September 31st, then furloughs.
Labor is the #1 cost of airlines. Without a sharp cut in the costs, with yesterday having 638,575 TSA passengers versus a year ago 1,938,402 or 32.9% of the passengers, with little premium revenue.
No airline needs to survive. Delta is doing what they must to do the best for as many as possible.
United furlough over 16,000: https://abcnews.go.com/Politics/united- ... d=72771897
American airlines furloughs 19,000 + 23,000 early retirements and voluntary leaves: https://www.dallasnews.com/business/air ... n-october/
The pilots stood their ground and get involuntary furloughs: https://www.fool.com/investing/2020/09/ ... except-fo/[i]Notably, about 20% of Delta's employees -- of which there were roughly 91,000 at the beginning of 2020 -- have taken early retirement packages. Additionally, more than 40,000 Delta staff volunteered for short- or long-term unpaid leaves of absence, usually with a continuation of travel benefits and healthcare coverage.
As the airline's only large unionized mainline workgroup, Delta pilots have been spared the mandatory 25% hours reductions that have impacted most of the carrier's employees. But for the same reason, nearly 2,000 of Delta's roughly 11,000 remaining mainline pilots are facing furloughs in just two weeks.
Delta needed to cut costs. Either more voluntary (e.g., the 25% hour reduction) or long term involuntary.
Throwing around things about the investors is a good way to scare them away in the future.
The reality is, some of Delta's competition didn't manage their debt well before this crisis. They will have a much harder time digging themselves out. The airline that saved as much money as possible will be able to grow the fastest on the other side of this recession when aircraft are cheap and all employees, including pilots, are plentiful.
American's credit rating is now 6 levels down into speculative (Junk): https://www.marketwatch.com/story/ameri ... 2020-06-03
United's credit rating is BB-, better than American's, but under 'negative review': https://www.fitchratings.com/entity/uni ... c-83067925
Allegiant is BB- (same as United): https://www.streetinsider.com/Credit+Ra ... 85408.html
SouthWest still has investment grade of BBB, but on negative (they can take a drop of one level and still be investment grade): https://www.spglobal.com/marketintellig ... 20outbreak
Delta is BB, one above united. This is 2 levels down into speculative (junk): https://www.fool.com/investing/2020/03/ ... han%202019
You are proposing the airlines spend more money they do not have. The lower the credit rating, the costlier and more leveraged borrowing must become. I feel for employees, but if there is a choice between 75% paycheck and benefits in this economy vs. full paycheck and then none, I know which I could pick.
Again, traffic is at 33% of prior levels, that means the biggest expense at airlines must be cut (employees). This isn't fun. This isn't good. By saving money, Delta will be able to expand far faster than UA or AA (but not as fast as WN) and bring back jobs quicker.
Winter is coming.