Replies

This is not the fault of "unions"; only the pilots of Delta are unionized

The mechanics, baggage handlers, flight attendants are not unionized? I am surprised.

I've also heard that pensions are a major part of the financial overhead problems of the airlines. Same as with the auto industry.

I don't think you can blame this on fuel prices either. Fuel prices can easily be passed on to the consumer via ticket prices.

The mechanics, baggage handlers, flight attendants are not unionized? I am surprised.

Nope. Delta's always been a non-union shop. All the other employees took a 10% pay cut as of January 1st - unilaterally implemented. More will come for them. And they started out making a lot less than the pilots.

The pensions are a large liability. Delta was essentially operating at a competitive disadvantage as long as UAL operated in bankruptcy, as Delta had to fund their pensions and UAL didn't. But they still aren't as big an albatross as fuel costs.

Fuel prices can easily be passed on to the consumer via ticket prices.

Except in an industry like air travel, with enormous fixed capital and labor costs, heavy competition, and an excess of supply, they can't be, at least not in the short- to medium-term. At least not without collusion, which is illegal. Most of the time when one airline has tried to raise its prices, other airlines haven't followed suit, forcing the first airline to rescind their fare hikes.