Although Delta generally has the best working relationships of the “big three” American carriers, the company’s pilots have had a serious disagreement with management over scope for a number of years. The union representing pilots brings this to the fore again, especially since Delta pilots are on the verge of getting fired.
Delta pilots complain of ‘unforgettable’ outsourcing
The Delta Air Lines chapter of the Air Line Pilots Association (ALPA) again raises important scope issues, claiming that Delta pilots outsource in an unacceptable manner.
Delta Air Lines has spent the past many years building a global network of air partners, through a combination of joint ventures and equity investments.
In a note to members, ALPA expresses concern about how the pandemic has reduced flying to negative levels, and that when flying back is added, Delta’s joint venture partners fly faster and disproportionately compared to Delta.
The union offers the following examples of how flights are added with joint venture partners:
- Across the Pacific, Korean Air operates 39 flights per week, while Delta operates 15 flights per week (so Korean Air operates ~ 72% of flights)
- Across the Atlantic, Air France operates 39 flights a week, while Delta operates 18 flights a week (so Air France operates ~ 68% of flights)
- Also across the Atlantic, Virgin Atlantic operates six additional flights per week compared to Delta
Just to be clear, in each of these cases, Delta not only has an interest in the airline, but it also has a joint venture. With a joint venture, airlines share revenue, which means Delta benefits even when a partner airlines add flights.
The union’s letter to pilots is about the following:
This is immutable. Delta must honor our scope agreements, especially with Delta pilot jobs at high risk. We can not allow our flights to be outsourced to foreign carriers while management threatens Delta pilots with bird runways.
Delta spent billions on failed international partners; money that we could certainly use in these difficult times. We cannot reverse management’s previous decisions to sink billions into these carriers. Still, we can maintain our scope and insist on similar flights in the future. When international travel returns, Delta must be ready to offer customers our premium product worldwide.
Delta pilots and management have long held similar agreements
Delta pilots are right here
Some may call the tendency “shaky unions, the pilots should just be happy to have jobs now.” The truth is that the pilots here are actually in good shape, even though this may not seem like the ideal time to choose this fight.
First, an important part of Delta’s global aviation strategy has been absolutely to outsource flights to other airlines. Last November, Delta’s CFO more or less acknowledged this. During an investor conference, he stated that the transatlantic joint venture Delta will enable “to expand the network internationally and globally with a much more effective return on invested capital formula than it would be for us to buy widebody aircraft and grow that organically.”
From the perspective of pilots, who primarily benefit from Delta actually adding more flights on its own metal, I can understand how frustrating this is.
But it is not only that these actions have caused frustration, but rather management has violated the agreement with pilots.
The union claims that Delta has committed 21 damage increases during this contract cycle, including 10 related to Korean Air, seven related to Aeromexico, three related to WestJet, and one related to the A350.
Th uny has won grievances against the airline related to scope, and settlements have even been reached for pilots.
The union has even set up a special website for this issue – dalscope.org – which has all sorts of details about the terms being violated (including some videos that give a good overview of what is happening).
While this may not be the right time to point out imbalances between Delta and partners given the extraordinary circumstances, I can also not blame pilots for the payoff, as their jobs depend on it.
Delta pilots have major layoffs for October, and pilots feel there would be fewer layoffs if Delta did not outsource so many of its flights to partner airlines.
Delta pilots do not like how much transparent flying Korean Air does
Bottom line
Delta pilots have long been embroiled in controversy with management over the way there has been a disproportionate growth in partner Airlines. In many cases, Delta’s breach agreement with pilots is breach, and the union has won.
While I change the imbalance of flights at this very point may seem small in the circumstances, I can not blame pilots because their jobs are at risk.
