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Airlines

Delta CEO: Aggressive cost savings hunt planned in NWA merger

Delta Air Lines and Northwest Airlines expect to be able to find more cost-saving "synergies" as the two airlines move toward a merger.

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CAH
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#1
Apr 23, 2008
 
So here comes the thousands of layoffs this merger brings.
tired of it all
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#2
Apr 23, 2008
 

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Executives at the two airlines didn't provide specifics about where the cost savings will come from, and said more of that work would be done after they actually start integrating the airlines.

Let me guess. The boys at the top will not have to fear about losing the multi million dollars golden parachute packages. God forbid they might have to rough it and go without something.

I am all for people getting paid for a job. But the one clown at the top gets an additional 3.6 million to hang out for a few more months to see the merger through......Boy that is big of him. I think I could see myself bucking up and lending a helping hand for a few months also for that kind of money. I am sure he has kids to put through college and a mortgage like the rest of us. I hope he does okay after the merger. I will worry about his well being. As I am sure the rest of you out there will.
Sharon - Eagan
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#3
Apr 23, 2008
 

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Cost saving can't not come from the employee's.
The employee's at Northwest they had too much taken already. Management needs to take a cut in pay!
Publius
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#4
Apr 23, 2008
 

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CAH wrote:
So here comes the thousands of layoffs this merger brings.
Yup. Layoffs and golden parachutes.
Frank
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#5
Apr 23, 2008
 

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Can't you NW people get over it!
call me Al
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#6
Apr 23, 2008
 

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yup, heads are gonna roll....

I'm sure the managers of each area are drawing targets on the backs of the employees as we speak!
Aquinas
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#7
Apr 23, 2008
 

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Sharon - Eagan wrote:
Cost saving can't not come from the employee's.
The employee's at Northwest they had too much taken already. Management needs to take a cut in pay!
"Management" at NWA includes:
- "Executives" (Officers, VPs. Exec VPS)who get stock otions and bonuses
- "Directors" who get bonuses based on their objectives successfully completed (which targets they write themselves so they can be made) and the financial performance of the airline.
- "Managers of People" such as "Manager of Communications" who do not get shares or bonuses.
- All other "Non-represented" (non-union)employees such as audio-visual specialists, pilot/FA/Maintenance ground school instructors, payroll clerks, HR specialists, etc. No shares or bonuses.

All these are included in the big term "Management."

All categories always take pay cuts, usually on a parallel %-age of the segments of their salary,(ie: 5& of the first 10K. 3% of the next 10K, etc.")

It is clear, though, that the upper two groups "hurt" far less than the others.

Direct your ire to those top 2 groups, not the others who are hard working, loyal NWA employees from whom the top groups should be drawn, but never are.
frde
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#8
Apr 23, 2008
 

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Another Fancy-Schmancy way of saying the hourly employees are going to get shafted again. Why doesn't somebody see that it is not the guys in the front offices that are going to give up anything. No, you can bet that it will be the very same people that gave up 40% of their wages and benefits that will lose again. Gee,I thought the idea of the employees giving up so much was to save NWA ,not so that Steenland could sell the whole company down the river.
Let's see if I got this right -- The CEO's sit on each others Board of Directors,one say's "I've got an idea,lets just merge the two companies,screw the NW personel,grab huge paychecks and insentives for ourselves and tell everyone that we are doing it for their own good."
Am I close?
Smedley Butler
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#9
Apr 23, 2008
 

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Why was the breakdown by "Aquinas" of NWA management catagories and how they were paid and how they contributed to pay cuts deleted?

Surely it was not offensive. By removing it you deprived readers of true facts regardding the airline.

Please reinstate it.
call me Al
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#10
Apr 23, 2008
 
Frank wrote:
Can't you NW people get over it!
Get over what? It's just beginning!
not a fine wine
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#11
Apr 23, 2008
 

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Frank wrote:
Can't you NW people get over it!
Maybe if you paid a little more attention to where your tax money went. A whole lot of them wouldn't have anything to get over. You people should have called nwa on the Duluth/Hibbing ripoff. Than you wouldn't be looking like easy marks to the con-men. Hell, they're calling the whole team back together in Atlanta just to finish your state off. Bye bye home town airline. It's a quality of life sorta thing..... The little apple is full of worms, and the twin city is rotten to the core. Yeah, Yeah, I know. Get over it !
AMH2 Con
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#12
Apr 23, 2008
 

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Wow! Combined NW/DL 1st quarter (90 days or so) yields a 10 Billion dollar loss. Hmmm....I kinda thought Doug & Dick were too busy proposing mergers to run their fricking airlines. Where were the fuel hedges? Why are they still only talking about raising fares? I wonder if we would have been better off parking the airplanes and giving us all a holiday. I mean what exactly is the point of working your butt off if your not producing anything but more profits for the oil companies???? Prepair my lead parachute for deployment.
Chris
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#13
Apr 23, 2008
 
Aquinas wrote:
<quoted text>
"Management" at NWA includes:
- "Executives" (Officers, VPs. Exec VPS)who get stock otions and bonuses
- "Directors" who get bonuses based on their objectives successfully completed (which targets they write themselves so they can be made) and the financial performance of the airline.
- "Managers of People" such as "Manager of Communications" who do not get shares or bonuses.
- All other "Non-represented" (non-union)employees such as audio-visual specialists, pilot/FA/Maintenance ground school instructors, payroll clerks, HR specialists, etc. No shares or bonuses.
All these are included in the big term "Management."
All categories always take pay cuts, usually on a parallel %-age of the segments of their salary,(ie: 5& of the first 10K. 3% of the next 10K, etc.")
It is clear, though, that the upper two groups "hurt" far less than the others.
Direct your ire to those top 2 groups, not the others who are hard working, loyal NWA employees from whom the top groups should be drawn, but never are.
I'm just curious, out of approx 36,000 employees, how many fall into the category of "management" at NWA?
kruser 59
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#14
Apr 23, 2008
 
hey richard how about starting with the extra money nwa is paying steenland
to keep him around for a few more months. That should save several million.
Google-man hnl
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#15
Apr 23, 2008
 
Chris wrote:
<quoted text>
I'm just curious, out of approx 36,000 employees, how many fall into the category of "management" at NWA?
Try, 7,500 to 8,000 for starters, the "Checchi Group" believes in 'Corporate Cushion' of responsibility, should anything go terribly wrong, so they can Pass the Buck to their Underlings ..
call me Al
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#16
Apr 23, 2008
 

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Google-man hnl wrote:
<quoted text>Try, 7,500 to 8,000 for starters, the "Checchi Group" believes in 'Corporate Cushion' of responsibility, should anything go terribly wrong, so they can Pass the Buck to their Underlings ..
Micro managing has never worked in any company in my opinion.

Too many chiefs not enough indians equals disaster.
Chris
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#17
Apr 23, 2008
 
Google-man hnl wrote:
<quoted text>Try, 7,500 to 8,000 for starters, the "Checchi Group" believes in 'Corporate Cushion' of responsibility, should anything go terribly wrong, so they can Pass the Buck to their Underlings ..
That doesn't surprise me. I think AA,DL and UA were around 1 mgmnt person for every 22 or so.. Quite a bit when you consider an efficient business runs 1 for 75 plus or minus.
KJO
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#18
Apr 23, 2008
 
Chris wrote:
<quoted text>
I'm just curious, out of approx 36,000 employees, how many fall into the category of "management" at NWA?
about 30000 the rest are frontline..that's why their service sucks so bad
KJO
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#19
Apr 23, 2008
 

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frde wrote:
Another Fancy-Schmancy way of saying the hourly employees are going to get shafted again. Why doesn't somebody see that it is not the guys in the front offices that are going to give up anything. No, you can bet that it will be the very same people that gave up 40% of their wages and benefits that will lose again. Gee,I thought the idea of the employees giving up so much was to save NWA ,not so that Steenland could sell the whole company down the river.
Let's see if I got this right -- The CEO's sit on each others Board of Directors,one say's "I've got an idea,lets just merge the two companies,screw the NW personel,grab huge paychecks and insentives for ourselves and tell everyone that we are doing it for their own good."
Am I close?
Close?? you are right on! As sure as the sun rises and sets every day..you are as sure about this. I think the plan is to get rid of all NWA clock punchers and keep Delta workers and NWA management
KJO
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#20
Apr 23, 2008
 
Aquinas wrote:
<quoted text>
"Management" at NWA includes:
- "Executives" (Officers, VPs. Exec VPS)who get stock otions and bonuses
- "Directors" who get bonuses based on their objectives successfully completed (which targets they write themselves so they can be made) and the financial performance of the airline.
- "Managers of People" such as "Manager of Communications" who do not get shares or bonuses.
- All other "Non-represented" (non-union)employees such as audio-visual specialists, pilot/FA/Maintenance ground school instructors, payroll clerks, HR specialists, etc. No shares or bonuses.
All these are included in the big term "Management."
All categories always take pay cuts, usually on a parallel %-age of the segments of their salary,(ie: 5& of the first 10K. 3% of the next 10K, etc.")
It is clear, though, that the upper two groups "hurt" far less than the others.
Direct your ire to those top 2 groups, not the others who are hard working, loyal NWA employees from whom the top groups should be drawn, but never are.
There are no such things as "managers of people and "managers of communications"..if NWA really had these..they wouldn't have such a morale problem
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