DL: Rev up but still cutting jobs?
 

Looks like DL is not done with the ax. Despite increased revenues, tighter capacity, and higher airfares, they are still look at cost cutting from downsizing through employees. One depressing comment from Ed Bastian....

"With fuel prices expected to stay high, Bastian said the company was squarely focused on cutting non-fuel costs and garnering more passenger revenue from new sources such as first-class upgrades."

http://www.reuters.com/article/2012/...8111QG20120202

Sounds like they are going to sweeten the pot for some of the employees. I think the PMNW folks ended up with a lot better retirement benefits, so they may be a prime candidate for early exit.

I think the part I bolded is key. Fewer seats = fewer employees.

As long as they offer early retirement vs RIFs this is a win-win way to reduce headcount.

It's ham sandwich time

Beautiful. Just beautiful.....

A quote from the article:

With fuel prices expected to stay high, Bastian said the company was squarely focused on cutting non-fuel costs and garnering more passenger revenue from new sources such as first-class upgrades [emphasis added].

So.... how did purchasing MQMs work out for everyone?

Knowing DL they will make this change retroactive to 1-1-12 and charge everyone who got a complimentary upgrade since the first of the year.

DL has repeatedly stated they are committed to no involuntary RIFs. Early retirements and buyouts will be used as part of the effort to keep costs flat.

They have done some involuntary RIFs for non-front line employees. I know some PMNW people that are hoping they do early retirements, so maybe no involuntaries this time

Shouldn't be surprising. All corporate revenues are at an all-time high and yet jobs aren't being added. The duty of a corporation is to make as much money as possible for as long as possible.

Corporations, viewed as a person, are what we used to call sociopaths. Like an intelligent liar, they may give LIP SERVICE to caring about the customers or employees, all they really care about is executive bonus & options. These sorts are always very good at the WORDS and empty gestures but it is always secondary to waiting for the right opportunity to go through your pockets when they find you asleep. A sociopath can be a contributing member of society but it baffles me why we elevate them to godhood and seem to regard them as examples of morality.

With revenue up, someone in management needs to get a bonus. But how do you pay for the bonus without impacting the bottom line? CUT STUFF!!!!!

What a novel concept: a corporation trying to maximize shareholder value.

There's always room for debate on if decisions are good for the short term shareholder or the long term share holder.

Precisely. Maximising revenue 1 year (e.g. if upgrades for elites were to go down significantly due to given preference to aggressively selling paid upgrades) might indeed show a short term revenue uptick and is very easy to gauge. Having disenfranchised elites move their business, or just book lowest carrier and skip over paying a higher fare to stay loyal DL - the financial impact there is harder to gauge.