Delta to cut jobs

[buffalopilot]

The release off the CNBC website states:
Delta Air Lines says it will offer voluntary severance payouts to roughly 30,000 employees (more than half its workforce) and cut domestic capacity by an extra 5 percent this year as part of an overhaul of its business plan to deal with soaring fuel prices.Executives at Atlanta-based Delta said in a memo to employees Tuesday that the airline's goal is to cut 2,000 frontline, administrative and management jobs through the voluntary program, attrition and other initiatives.
A spokeswoman says that if more than that amount agree to take the voluntary severance, that will be allowed. The severance program primarily affects mainline Delta employees.
Delta had 55,044 total full-time equivalent employees as of the end of last year.

[Pacopollo]

http://www.reuters.com/article/marke...0080318?rpc=44

[LoadMasterC141]

I guess that would explain why ASA hiring came to a screeching halt this week.

[jml2992]

Nah, the article goes on to say that it won't go on to affect the pilot groups for either DL or ASA.

[pedro]

It's crazy seeing how unpredictable this industry can be. When I joined JC a year ago, the hiring frenzy was beginning and now airlines are offering colas and voluntary severance pay.

[Doug Taylor]

Cyclical, folks, ups and downs!

I keep talking about moving up the food chain but noooooooo one listens to Doug!

[wheelsup]

I think we all would move up the food chain if we could. Sometimes it's just not possible at the present moment. On the other hand, being at the bottom of a major right now is probably just as rocky. After 9/11 when demand softened the majors went with smaller planes, downsizing the mainline fleet. Although gas was $.25/gal back then.

On another note,

Dear God, please allow the discovery and implementation of cheap biofuel ASAP. Sincerely, wheelsup.

[mojo6911]

Originally Posted by pedex

It's crazy seeing how unpredictable this industry can be. When I joined JC a year ago, the hiring frenzy was beginning and now airlines are offering colas and voluntary severance pay.

No kidding.

[jml2992]

Yeah, what do you know, Taylor?!? Just because you fly a big fancy jet....As a sidebar, how much do line pilots actually hear from their union reps regarding the big merger fandango with NW?

[pedro]

Originally Posted by Doug Taylor

Cyclical, folks, ups and downs!

I keep talking about moving up the food chain but noooooooo one listens to Doug!

this downward cycle now will hopefully mean that by the time I enter the arena the grass will be greener. Either way this is no bueno and I hope for the best for anyone that just got hired.

[surreal1221]

Once again. . .passing the buck off onto the employees. . .another taking it on the chin example.

[jml2992]

Originally Posted by pedex

this downward cycle now will hopefully mean that by the time I enter the arena the grass will be greener.

There's green grass wherever you choose to find it. Keep in mind that airlines are cutting jobs but fractionals are raising salaries and there is always going to be a demand for boxes to go from one place to another. In addition, people also have to learn to fly.

[Doug Taylor]

The press release said nothing about pilots, but they're basically looking at a 5% reduction in groundling headcount.

Take this guy: and give him a tab of Xanax!

[wheelsup]

Originally Posted by surreal1221

Once again. . .passing the buck off onto the employees. . .another taking it on the chin example.

What did you expect? Demand softens and you no longer need as many people. That's called "Logic 101".

[meritflyer]

Originally Posted by wheelsup

What did you expect? Demand softens and you no longer need as many people. That's called "Logic 101".

Wow! You're on a roll today.

[mojo6911]

CFI's are still in demand, for now. With the dollar being weak, lots of foreign pilots are going to continue flocking in droves to the US for flight training.

[pedro]

Originally Posted by jml2992

There's green grass wherever you choose to find it. Keep in mind that airlines are cutting jobs but fractionals are raising salaries and there is always going to be a demand for boxes to go from one place to another. In addition, people also have to learn to fly.

thats true. funny because those are the jobs that I plan on going for too .

[surreal1221]

Originally Posted by wheelsup

What did you expect? Demand softens and you no longer need as many people. That's called "Logic 101".

I haven't said anything about demand wheels. I also haven't seen the numbers for last month in regards to passengers who traveled by air, but I'd gladly look at it when it is available to see if there really is a demand reduction.

I think what is happening is that the airlines are being a bit proactive in reducing the amount of flying they are doing. I'm also pretty confident that the demand is still there to fly, but because of the costs to actually do it. . .they are making a reduction instead of increasing the cost of their services rendered. *gasp!* I'll anxiously await the great defender of the pricers, as I'm sure he's out there watching.

I don't know wheelsup, I knew it was happening, especially when a majority of the workforces at Delta are not presented by any form of union.

Nevertheless, growing up in the Delta family, I've seen the "place it on the employees" chin enough times to realize that people (the employees) are really getting tired of taking the responsibility for making a company profitable.

But hey, I don't know if you've grown up in an airline family or not. . .nor do I know if you know anyone who has given 20-30 years of their life to a profession that they loved, and are tired of seeing customers walking around getting the cheapest fare while they are seeing their quality of life, and income, in a steep decline over those 30 years.

I would hope those of us who are flying for a living, and who are represented by an association (or union) would be able to understand that these companies are not doing a damn thing and see us merely as an expenditure when all they have to do is make some sound decisions in regards to the price of their services that they are rendering.

Then again - maybe some of us like taking it on the chin.

[Doug Taylor]

Everyone seems to be overlooking picking up an additional 22 "international" jets thru 2009...

Relax folks.

[meritflyer]

Originally Posted by Doug Taylor

Everyone seems to be overlooking picking up an additional 22 "international" jets thru 2009...

Relax folks.

But Doug, I really want to be a 777 CA in a year!

[wheelsup]

Originally Posted by surreal1221

I think what is happening is that the airlines are being a bit proactive in reducing the amount of flying they are doing.

Thank goodness.

I'm also pretty confident that the demand is still there to fly, but because of the costs to actually do it. . .they are making a reduction instead of increasing the cost of their services rendered. *gasp!* I'll anxiously await the great defender of the pricers, as I'm sure he's out there watching.

Try and follow me here.

To raise prices companies that deal with commodity like services have to restrict supply. Reference oil (OPEC). Reference Soybeans. Reference airline seats. Less supply and/or more demand equates to higher prices.

In addition, by reducing supply on routes you reduce your costs to operate that route. Reduction in supply = higher overall ticket cost and lower overall operating cost, until other airlines come in and try to take your market share.

If you think the airlines intentionally keep fares low just to make employees "take it on the chin" I really can't help you.

[surreal1221]

No, they don't intentionally do such.

I don't think I said that, and if it came off that way. . .I'd ask that you try to re-interpret what I wrote.

What I'm tired of seeing, and what many who have dedicated their life to a company for >30 years have seen and continue to see, is that their respectable company instead of increasing the cost of their services when the cost of raw goods increases (oil) they instead go and look for the easiest solution - reduce labor. This fear that they'll push customers away just makes my head wobble.

Trouble is, that cycle has NEVER provided a stable environment for an airline to grow.

The customers are not always right, but they'll always be served. If they don't like the cost, or surcharge put on for traveling by air - then they can seek transportation elsewhere.

What I also do not follow is how we can have load factors >85%, and people telling me that "If they raise prices, they'll lose customers."

Yes, thank goodness these companies are being proactive. . .but in my eyes, it's the wrong decision.

When you can fly somewhere cheaper than traveling by road, or rail. . .there is a significant problem.

[Gulfstream IV]

Originally Posted by Doug Taylor

Everyone seems to be overlooking picking up an additional 22 "international" jets thru 2009...

Relax folks.

I agree Doug. They are also forgetting that the slump our economy is in right now will eventually end. Look, these times are hard and especially for the airline industry and the financial industry sector. Just imagine what Bear Stearns employees woke up to Monday morning. Their company was bought for $2/share and 75% of those employees lost a lot of money and a lot of them will be layed off. Keep in mind, those folks were not even given any options like Delta's. Personally, I think the airline is doing fine compared to many other sectors of our economy. We need to sit tight ride through the storm, then hopefully things will turn around shortly.

[GalaxyIFE]

Originally Posted by jml2992

There's green grass wherever you choose to find it. Keep in mind that airlines are cutting jobs but fractionals are raising salaries and there is always going to be a demand for boxes to go from one place to another. In addition, people also have to learn to fly.

What? No way...freight REALLY REALLY REALLY sucks. Run away...run away. All you noobs FIGHT for the RJ, stay away from those HORRIBLE 135 outfits, they will KILL YOU!!! DON'T EVEN consider freight...NO NO NO.

Yes, here. I don't want these SJS dudes taking a good 135 gig (that I would love to do) when ASA's mins go up to 2500TT!!!

[surreal1221]

Originally Posted by Gulfstream IV

I agree Doug. They are also forgetting that the slump our economy is in right now will eventually end. Look, these times are hard and especially for the airline industry and the financial industry sector. Just imagine what Bear Stearns employees woke up to Monday morning. Their company was bought for $2/share and 75% of those employees lost a lot of money and a lot of them will be layed off. Keep in mind, those folks were not even given any options like Delta's. Personally, I think the airline is doing fine compared to many other sectors of our economy. We need to sit tight ride through the storm, then hopefully things will turn around shortly.

Yes, sit tight and ride the storm out.

Just know too though, that most of those Bear Sterns employees, make a pretty damn good living off of speculation.

I'm sure each and every one of them (sans janitors - which were probably contracted out anyway) have a nice little nest-egg to get them through the tough times.

Hopefully none of them were living outside of their means. . .