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Gnomon
Topic Author
Posts: 894
Joined: Thu Jun 03, 1999 12:38 pm

Delta Announces Tech Ops Cuts

Tue Mar 29, 2005 11:23 pm

Somehow the proud Jet Base Atlanta will never be the same.

Delta today announced it would cut up to 2,000 Tech Ops jobs and farm out heavy maintenance on the MD-88s, 757s, and 767s.

http://biz.yahoo.com/ap/050329/delta.html?.v=2.
 
leelaw
Posts: 4517
Joined: Sat May 29, 2004 4:13 pm

RE: Delta Announces Tech Ops Cuts

Tue Mar 29, 2005 11:38 pm

Excerpts from WSJ Article 03/29/05:

Delta Air Adds New Measures
To Cash-Conservation Effort
Carrier May Sell Securities
Valued up to $500 Million;
More Work to Be Outsourced



"Delta Air Lines filed plans to possibly raise as much as $500 million through securities offerings, one of several moves the airline is making to avert a cash crunch later this year.

In a separate bid to shore up its finances competition...the company detailed plans to outsource more aircraft maintenance in order to save $240 million over five years.

...The company filed a shelf registration -- which allows a public company to sell some of its registered securities from time to time over a certain period -- with the Securities and Exchange Commission. In the filing, Delta said it would use proceeds to pay for general corporate operations, to repay debt and for other uses. Delta said it will raise the funds through various offerings of preferred stock, common stock, debt securities and other transactions...

As part of the company's intensified belt-tightening, Delta officials outlined plans to outsource heavy maintenance work on four types of aircraft.

...Delta will contract with Miami-based Avborne Inc. and Air Canada Technical Services, of Vancouver, British Columbia, which are expected to save the company 34% in maintenance costs.

Between 1,600 and 2,000 jobs will be cut, as the company had disclosed. Those cuts include 300 of the 350 jobs at Delta's Tampa, Fla., maintenance facility, but some workers there will be offered jobs in Atlanta and at other facilities.

The shift toward additional maintenance outsourcing is somewhat of a reversal of strategy for Delta, because company officials have said their so-called TechOps unit last year brought in $250 million of revenue from doing work for other airlines. However, Delta officials believe that by outsourcing more heavy maintenance work, the company can use its higher-paid workers to do more technologically complicated work, some of it "in-sourced" from other airlines."
Lex Ancilla Justitiae
 
B4REAL
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RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 12:52 am

No mention of the 737 and 777 aircraft. Does this mean that for the time being DL TechOps will retain responsibility for said aircraft? Or maybe still in the bidding process for these types of a/c.

When DL had the DFW hub, I'd see on FlyteComm a MD-88 flight to GDL about once a week. Was that a maintenance operation? Does anyone remember this 9000 number flight?

I see DL 777 @ GSO for some sort of maintenance - may even be cabin work - frequently. Is the 777 heavy already outsourced?
B4REAL, spelled like it sounds & @RickVanover on Twitter
 
Gnomon
Topic Author
Posts: 894
Joined: Thu Jun 03, 1999 12:38 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 12:59 am

Quoting B4real (Reply 2):
I see DL 777 @ GSO for some sort of maintenance - may even be cabin work - frequently. Is the 777 heavy already outsourced?

IIRC, Delta contracted with TIMCO in GSO to do certain interior refits on the 777s, including crew rest installations and changing the 2-5-2 main cabin configuration on the first airframes to the 3-3-3. Not sure if they farmed out anything else on the 777s.

Maybe some of the DL MX folks on here can correct me if I'm wrong.
 
Dalmd88
Posts: 3172
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RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 1:16 am

The 737-800 and 777 don't get HMV. They are on a Periodic Maintenance Visit program. These will still be done inhouse. The 757 and 767 PSV which come between HMV will still be done inhouse also. The 777 cabin mods were done by TIMCO in GSO because we didn't have the space to do them.

We are really questioning the savings. $240 Million sounds like a lot but it only equals about 3 MD-88 overhauls a year. We are giving up a lot on the quality end for very little gain. I think AC will do a good job, but I wonder about Avborne. I didn't hear the best things about them when they did two of our 737's.
 
ContnlEliteCMH
Posts: 1391
Joined: Wed Mar 02, 2005 8:19 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 1:43 am

Quoting DALMD88 (Reply 4):
$240 Million sounds like a lot but it only equals about 3 MD-88 overhauls a year.

Correct my math, but are you saying it is $80 million to overhaul a SINGLE MD-88? How is this possible?

At $100/hour this would be the equivalent of 800,000 hours, or 400 FTE's.

If the cost of an overhauled engine from an engine depot is $2 million, that would be *40* engines.

And at this cost, why wouldn't I just throw away the aircraft and replace it with a brand new one every time a check is needed?

Something ain't right here...
Christianity. Islam. Hinduism. Anthropogenic Global Warming. All are matters of faith!
 
aa777jr
Posts: 2269
Joined: Tue Feb 17, 2004 12:03 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 5:26 am

http://www.newratings.com/analyst_news/article_752385.html

OUTSOURCING...it happened to the tech industry, it's gonna happen to the airline industry. Hope to God we don't see the same decline as the later.

Regards.
A liberal is a man who is right most of the time, but he's right too soon.
 
SWA TPA
Posts: 1457
Joined: Wed Aug 29, 2001 6:10 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 6:56 am

So are they planning on closing the TPA hangar? That hangar is always full of planes having work done. Not to mention the Song a/c that are always parked outfront. Currently a NW 757 is in the hangar for repairs due to some substantial hail damage received last week!!!

SWA TPA  airplane 
I believe I can fly.....
 
dl1011
Posts: 315
Joined: Tue May 18, 1999 6:42 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 8:13 am

"Quoting DALMD88 (Reply 4):
$240 Million sounds like a lot but it only equals about 3 MD-88 overhauls a year.

Correct my math, but are you saying it is $80 million to overhaul a SINGLE MD-88? How is this possible?

At $100/hour this would be the equivalent of 800,000 hours, or 400 FTE's.

If the cost of an overhauled engine from an engine depot is $2 million, that would be *40* engines.

And at this cost, why wouldn't I just throw away the aircraft and replace it with a brand new one every time a check is needed?

Something ain't right here..."

DL is claiming $240 million in savings over 5 years and the post about MD88 overhauls is 3 per year.
 
dl757md
Posts: 1483
Joined: Mon May 24, 2004 9:32 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 8:21 am

Quoting ContnlEliteCMH (Reply 5):
Correct my math, but are you saying it is $80 million to overhaul a SINGLE MD-88? How is this possible?

The $240 Million savings is over 5 years. Therefore 3 MD-88 overhauls per year would be 15 overhauls. The resulting cost per HMV would be $16 Million.
That's still probably double what the cost actually is but who's counting?

Dl757Md
757 Most beautiful airliner in the sky!
 
ac7e7
Posts: 764
Joined: Mon Oct 25, 2004 7:27 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 9:05 am

According to CBC News, Air Canada will be performing mx on 757-200, 767-300 and 767-300ERs in Vancouver.

http://www.cbc.ca/story/business/national/2005/03/29/acts-050329.html
 
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malaysia
Posts: 2669
Joined: Wed Nov 03, 1999 3:26 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 10:35 am

Quoting AC7E7 (Reply 10):
According to CBC News, Air Canada will be performing mx on 757-200, 767-300 and 767-300ERs in Vancouver.

I found a new career plan, Ill just go get a Canadian license and move to Canada and work as a Mechanic on DL jets and toothpaste color jets.
There Are Those Who Believe That There May Yet Be Other Airlines Who Even Now Fight To Survive Beyond The Heavens
 
Dalmd88
Posts: 3172
Joined: Fri Jul 28, 2000 3:19 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 10:47 am

Opps got the math wrong. An 88 HMV cost about 1.3 million each.
 
User avatar
LAXintl
Posts: 25252
Joined: Wed May 24, 2000 12:12 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 10:57 am

Somewhat an about face on Delta's part. The company for the last couple years has been pushing hard to expand 3rd party work for its Delta Tech unit with broad agreements with companies such as Air France and Boeing for BBJ work.

I suppose the company feels it is uncompetitive compared to the many lower cost facilities around the world.
From the desert to the sea, to all of Southern California
 
ac7e7
Posts: 764
Joined: Mon Oct 25, 2004 7:27 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 11:37 am

Quoting Malaysia (Reply 11):
I found a new career plan, Ill just go get a Canadian license and move to Canada and work as a Mechanic on DL jets and toothpaste color jets.

Toothpaste-coloured jets indeed. But they actually look very nice up close  Wink
 
LY4XELD
Posts: 659
Joined: Tue Mar 21, 2000 5:14 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 12:07 pm

For the record, AA has maintained that it will keep its MX in house:

http://www.cnn.com/2005/TRAVEL/03/03/airline.maintenance/index.html

...which is good news for me! Maybe we can take some of the DL work?? We already have worked on other 3rd party work!
 
TPASXM787
Posts: 1667
Joined: Tue Mar 29, 2005 6:31 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 12:34 pm

Too bad to read this in the paper. I hate to see jobs lost in my home city. As with JP Morgan Chase and Cap 1 cutting jobs in my area, this will make me put DL lower on my list of airlines to fly next time I need to go somewhere. I'll just connect thru MEM on NW instead, or thru CLT on US.
This is the Last Stop.
 
swatpamike
Posts: 469
Joined: Thu May 20, 2004 12:14 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 12:55 pm

Hello all

Now with 2 hangers empty at TPA this would be a great time for WN to pick one up cheap.

Cheers

swatpamike
 
wjcandee
Posts: 10287
Joined: Mon Jun 05, 2000 12:50 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 1:22 pm

They lost 4.3 billion last year, and they're going to gut their vaunted maintenance to save $50MM a year? Makes no sense.
 
Lono
Posts: 1136
Joined: Sun Apr 04, 2004 5:47 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 1:58 pm

wrong place to look for savings... another morale buster for loyal DL employees... shows all that DL is willing to outsource all departments.. scary if you are a loyal DL employee..... where is your future if you must constantly be afraid DL management will make you go away.....to save a buck...
This is a bad move... employee morale is hurt badly...
Wally Bird Ruled the Skys!
 
ckfred
Posts: 5198
Joined: Wed Apr 25, 2001 12:50 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 2:52 pm

I heard Dennis Miller talk about Delta's new slogan, "Please fly Delta, because we can't afford to pay our mechanics!"
 
Thucydides
Posts: 94
Joined: Thu Feb 10, 2005 10:18 am

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 4:27 pm

Quoting Aa777jr (Reply 6):
OUTSOURCING...it happened to the tech industry, it's gonna happen to the airline industry. Hope to God we don't see the same decline as the later.


Not really relevant here, but if you are speaking of the tech services industry, then it has always by nature been "outsourcing". If you are talking tech manufacturing, then a large part of that industry has always been "outsourcing" as specialized companies have long been drivers of innovation in the industry, and large integrated producers who manufacture every little aspect of the product line have never really defined the industry.

Your own profile indicates you work for a law firm. Guess what, much of your firm's business is "outsourcing." Rather than maintain a team of inhouse lawyers, all of your firm's corporate clients can hire you instead of maintaining their own internal legal team. Your clients specialize in their core competencies, and you and your colleagues in your own.

Now as for Delta, as other posters have pointed out, Delta has used their maintenance facilities for insourcing from other airlines and customers. Unfortunately, though, it looks like the very near term requirement for cash are driving them to make decisions that will sacrifice some very good employees and what some argue is a profit center.
 
Sean-SAN-
Posts: 815
Joined: Tue Aug 13, 2002 4:02 pm

RE: Delta Announces Tech Ops Cuts

Wed Mar 30, 2005 4:54 pm

Correct me if I'm wrong, but DL mechs are non-union. The non-union FA's are already being shafted by DL.. now it's the mechanics turn. Sad. I'll avoid DL whenever possible.
 
727LOVER
Posts: 8633
Joined: Tue Oct 09, 2001 12:22 am

RE: Delta Announces Tech Ops Cuts

Thu Mar 31, 2005 12:13 am

Quoting Swatpamike (Reply 17):
Now with 2 hangers empty at TPA this would be a great time for WN to pick one up cheap.

My understanding is the TPA hangar will loose 300 jobs, but it WILL NOT close.

Why doesn't WN just pick up the Ex-US hangar?
"We must accept finite disappointment, but never lose infinite hope." - Martin Luther King, Jr.
 
dl757md
Posts: 1483
Joined: Mon May 24, 2004 9:32 am

RE: Delta Announces Tech Ops Cuts

Thu Mar 31, 2005 8:51 am

Quoting Swatpamike (Reply 17):
Now with 2 hangers empty at TPA this would be a great time for WN to pick one up cheap.

Indeed the TPA hangars are not closing they just won't be doing scheduled MX there.

Quoting Sean-SAN- (Reply 22):
Sad. I'll avoid DL whenever possible



Quoting TPASXM787 (Reply 16):
this will make me put DL lower on my list of airlines to fly next time I need to go somewhere. I'll just connect thru MEM on NW instead, or thru CLT on US.

Thanks guys. As a DL mechanic that'll really help my position. Thanks again.  sarcastic 

Dl757Md
757 Most beautiful airliner in the sky!
 
TPASXM787
Posts: 1667
Joined: Tue Mar 29, 2005 6:31 am

RE: Delta Announces Tech Ops Cuts

Thu Mar 31, 2005 10:56 am

Quoting Dl757md (Reply 24):
Thanks guys. As a DL mechanic that'll really help my position. Thanks again.

I hate to see them getting rid of people in my home town. I'm flying DL to MSY in October, and I use DL for a lot of my NW flights.

I don't want DL, UA, or US to go down.
This is the Last Stop.
 
OttoPylit
Posts: 2259
Joined: Wed Dec 17, 2003 10:58 am

RE: Delta Announces Tech Ops Cuts

Thu Mar 31, 2005 3:16 pm

Quoting Sean-SAN- (Reply 22):
Correct me if I'm wrong, but DL mechs are non-union. The non-union FA's are already being shafted by DL.. now it's the mechanics turn. Sad. I'll avoid DL whenever possible.

Well, you are correct in that DL mechanics are non-union, as are their FA's. Now, having answered your question, I have one for you. How are Delta FA's being "shafted," as you say? I don't see any logic to that comment. If you are referring to any jobs being lost, then everyone at Delta has been "shafted" in one way or another. That means I, at one point, came very close to being "shafted" myself a couple years ago. While sad to see some good friends possibly get the pink slip, I think many of us need to see that obviously Delta thinks this something that will lead the company in the direction to profitability, something Delta knew what was until 4 years ago. Unfortunately, some 2,000 Delta mechanics will be out of a job, but hopefully, by losing 2,000 workers, it will help Delta keep employed the other roughly 55,000 other workers on the payroll.

I am someone who has seen the pink slip handed to me first hand and know the feeling. It sucks...it really sucks. But my best wishes and heartfelt sympathy go out to those who are unfortunate enough to be dealt this blow.

OttoPylit
I don't have a microwave, but I do have a clock that occasionally cooks shit.

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