Delta Air Lines is asking its pilots to consider taking a pay cut in a bid to avoid permits. The move comes as Delta and the pilots union are working to reduce involuntary permits for more than 2,500 pilots while simultaneously trying to help the carrier survive the current crisis.
Delta asks pilots to cut pay
CNBC reports that Delta has proposed a 15% cut to the minimum wage for pilots in a bid to reduce permits. Essentially, the carrier believes it will be able to avoid permits for a year if pilots accept the lowest guaranteed minimum payment.
The measures come after Delta posted a loss of more than $ 3 billion for the second quarter of 2020. While the airline was optimistic about growing demand for travel and rebuilding its route network, the recent increase of viral cases in the United States has lowered those expectations, and Delta is cutting flights next month.
Additionally, the company’s financial woes are likely to continue, especially with the upcoming fall and winter, which are some of the lowest seasons to travel. Additionally, Delta continues to block intermediate seats (and will likely expand it), reducing capacity on board its aircraft.
The pilots union is not happy
Delta’s pilots union was not impressed. Captain Ryan Schnitzler, Chairman of Delta’s Chief Executive Council, issued a letter exploiting some of the airline’s movements, which Simple Flying saw. Captain Schnitzler stated that the airline did not offer any type of partially paid license, even as other carriers do.
Captain Schnitzler went further by stating that the carrier “treats the 2,558 pilots who received WARN warnings as hostages.” Those notices were sent before the closing of the Voluntary Early Dismissal Program (VEOP) window on July 19.
The one year schedule
What’s interesting about the carrier’s proposal is that Delta believes it can avoid permits for a year, even with less travel demand. The reason for this, however, can be easily deduced.
First of all, pilots are expensive to train and retain operationally. American Airline CEO Doug Parker has repeatedly stated that it is not wise to let a pilot go in October if they are needed next summer. Delta follows a similar pattern by ensuring it is sized appropriately for the summer of 2021 for the fall of 2020.
Federal support for airline employees ends on September 30. This means that starting October 1, airlines can suspend employees and end up with the right size for next summer. However, at the end of that summer season, or about a year after Delta can suspend, it will be the best guess of what the air travel industry would be like.
Much of this will depend on the current timeline of the coronavirus pandemic. If passengers trust to fly again and there is a vaccine, then the carrier will likely continue to rebuild itself and may not need a permit. However, if the situation remains volatile, Delta will likely need to continue the dreaded task.
Simple Flying contacted Delta for comment; however, the carrier was not immediately available for comment.
What do you think about Delta’s proposal to pilots? Let us know in the comments!
