Delta TA

"Those orders will be canceled," Anderson said on an investor call Wednesday. Delta earlier said that if pilots approved the deal, it would place orders for the aircraft so it can replace other planes scheduled to retire through 2019. Boeing had been trying to finalize an agreement to sell the jets to Delta for months.

I have a feeling that another order will be made sometime before 2019. But, I could be wrong...
 
1) we don't make contract decisions based on aircraft orders
2) there is no guarantee that they would be growth airplanes and not all or partial replacements.
3) he stated he would cancel them so how could he not
4) they can be reordered just as quickly as they were cancelled.
 
Kingairer said:
Any truth to the fact that DL canceled the 190 and 737 order? If so, that's mighty sleazy, or honest, I cant tell.

No, not sleazy. Just smart business. Why would you bring more airplanes on property without knowing what you're going to have to pay to operate them? Uncertainty is bad in business.
 
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No, not sleazy. Just smart business. Why would you bring more airplanes on property without knowing what you're going to have to pay to operate them? Uncertainty is bad in business.
I'm not sure here, but doesn't the Delta contract already have pay rates for the 737 and E190? They obviously know the cost of operating the 737s they had on order. Or were the 60 orders all 190s?
 
When I worked COM at Skyway, national told us day one when Dave Reeve suggested that if we drop the ALPA membership campaign, we would pick up a fleet of DornierJets.

"You don't negotiate for orders, you only negotiate for the rates at which you will fly them".

Why that basic principle is too difficult for some in my peer group is astounding.
 
I'm not sure here, but doesn't the Delta contract already have pay rates for the 737 and E190? They obviously know the cost of operating the 737s they had on order.

The -900 are replacing the much higher paying 757 and some of the 767s.
 
B767 said:
I'm not sure here, but doesn't the Delta contract already have pay rates for the 737 and E190? They obviously know the cost of operating the 737s they had on order. Or were the 60 orders all 190s?

The company knows that the pilots will never accept anything close to the current rates for the -190s. Hell, they came right out and said so. So the future rate of the equipment is highly uncertain. Once the airframe is on property, the company has much less leverage to deal with that issue, and they're at greater risk of having to pay 717 rates for that equipment. I suspect that they aren't interested in buying the airframe if they have to pay that rate for it, so they want that resolved first.
 
The company knows that the pilots will never accept anything close to the current rates for the -190s. Hell, they came right out and said so. So the future rate of the equipment is highly uncertain. Once the airframe is on property, the company has much less leverage to deal with that issue, and they're at greater risk of having to pay 717 rates for that equipment. I suspect that they aren't interested in buying the airframe if they have to pay that rate for it, so they want that resolved first.
Im confused, this is more general management question not specific to Delta. If a contract already has a payrate what say do the pilots have if its agreed upon and the planes are allowed on property all day long and twice on Sunday? How does a company have less leverage once they decide too bad so sad we're ordering them and you're going to fly them for this rate that you agreed to?
 
ClarkGriswold said:
Im confused, this is more general management question not specific to Delta. If a contract already has a payrate what say do the pilots have if its agreed upon and the planes are allowed on property all day long and twice on Sunday? How does a company have less leverage once they decide too bad so sad we're ordering them and you're going to fly them for this rate that you agreed to?

The pilots have a say in current bargaining. Right now the planes aren't on property, and the company can use them as a carrot. After they're on property, they're no longer a bargaining chip, and labor can just bargain over the rates for them. That leaves management in a bad position, because the rates could end up somewhere where they would have rather had more 737s instead of smaller 190s. They want a rate locked in that is lower than their 717 rates, and then they end the argument that the planes should be treated the same.
 
Are the 757-300 and 767-300/400ERs coming out this direction too?

The -900s were a replacement for some of the 757s and some of the "domestic" 767's. Straight up replacement for the 75's and give of a gauge-shift, of sorts, for the 767.

Some of hte 757s will end up out in the dirt in AZ, but I don't think the large scale parking of the 767's will come until more 350s and 330-900's are on campus.

My humble opinion only, mixed in with some previous statements from the Puzzle Palace.

I don't think you'll see 767-400's out in the dirt for quite a long time.
 
Sadly, it's time to dust this off:
SJSthreatTheSite.jpg
 
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