Tech Ops Mexico is now reality.

[WorldTraveler]

Dawg is certainly not happy but....

http://finance.yahoo.com/news/delta-air-lines-grupo-aeromexico-140000540.html

the ceremony attracted the President of Mexico.

The facility is the largest aircraft maintenance, repair and overhaul center in Latin America, with its total surface area measuring over 100,000 square meters. Its three hangars can accommodate up to nine aircraft simultaneously. Aircrafts will be serviced with cutting-edge technology and the highest quality and safety standards.

now we can see the impact on DL Tech Ops... which I continue to believe will be positive for DL Tech Ops employees.

DL has developed its partnership with Gol of Brazil (also in which DL owns equity) and the DL name is very apparent at G3's facilities including an identically sized billboard inside GRU to what AA has) as well as on G3 aircraft (something no other US airline has on every plane in another carrier's fleet).

DL's goal with Gol (pun intended) is to increase DL's presence and its revenues for the long haul, not give away what DL could have done elsewhere at perhaps lower upfront costs. The AM maintenance partnership is no different.


I'm more than willing to be proven wrong if that turns out to be the case.

 

[robbedagain]

pretty darn sad when an American airliner opens up a major facility outside the usa   pathetic  cheap labor at best

 

[WorldTraveler]

you can't seem to grasp that the work has been going to contractors and goes out the door at far higher percentages from airlines like US, WN, and UA.

The difference is that DL actually controls the process in México and can bid for entire maintenance contracts allowing AM to do the part it can do profitably while DL can do the part that technically AM can't do, such as extensive engine and component maintenance.

just a quick question, robbed.

Is your continous anger at DL expressed here because you couldn't get hired by DL as your father was? You knew DL for years until your pass benefits and your DL insurance ended.

 

[Kev3188]

you can't seem to grasp that the work has been going to contractors and goes out the door at far higher percentages from airlines like US, WN, and UA.

Except this thread is about DL, is it not?

The difference is that DL actually controls the process in México and can bid for entire maintenance contracts allowing AM to do the part it can do profitably while DL can do the part that technically AM can't do, such as extensive engine and component maintenance.

That's quite a rationale. So are they "controlling the process," or does this really run counter to what you said here:

Note that the message - and the campaign - has been led by DL pilots and its management who is trying to protect jobs for American workers.

You can't have it both ways.

 

[Kev3188]

just a quick question, robbed.

Is your continous anger at DL expressed here because you couldn't get hired by DL as your father was? You knew DL for years until your pass benefits and your DL insurance ended.

Just a quick question, WT:

Is your continuous anger on this board a matter of frustration at taking what is likely the worst timed exit run in US aviation history, or is it simply a matter of trying to stave of your increasing distance from what happens at your former employer?

 

[WorldTraveler]

uh, yes, it does very much make sense.

DL is controlling the maintenance process in México better than it ever has with any contractor and DL stands to gain a share of the profits the facility generates from other customers PLUS gain work which AM can't do.

Tell me which other outsourcing facilities that US carriers use can say the same thing.

I have no idea how you can connect that reality with a joint DL mgmt and ALPA plan to attempt to stop Norwegian which will hurt DL employees and the company.

 

[700UW]

How can DL control the work when there wont be DL mechanics staffed there?
 
Or is that where the DTW mechanics are being forced to since DL cut 40+ jobs there?

 

[WorldTraveler]

Just a quick question, WT:

Is your continuous anger on this board a matter of frustration at taking what is likely the worst timed exit run in US aviation history, or is it simply a matter of trying to stave of your increasing distance from what happens at your former employer?

My presence here is just aimed at the low information posters which seem to make up such a high percentage of the board population.

Low information was your term, not mine.

 

[robbedagain]

wt  first of all I have no anger at all towards dl    I don't need their insurance or anything   what ever prompted you to ask me those just make you look like a fool    as for insurance  don't think its really revelance here or there but just to answer that  ive always had it.    you really need help     may be the pope can help you

 

[Kev3188]

uh, yes, it does very much make sense.

DL is controlling the maintenance process in México better than it ever has with any contractor and DL stands to gain a share of the profits the facility generates from other customers PLUS gain work which AM can't do.

Tell me which other outsourcing facilities that US carriers use can say the same thing.

I have no idea how you can connect that reality with a joint DL mgmt and ALPA plan to attempt to stop Norwegian which will hurt DL employees and the company.

 
You tell us. It's you who in one thread is painting DL as looking out for the American worker, and in another rationalizes just the opposite.

 

[WorldTraveler]

you can't grasp that DL was outsourcing this work already... M80s have been going to MEX for years... now the planes will be maintained under a joint venture in which DL can gain something.

Can you answer the question about what other carriers get any financial gain - including additional inhouse maintenance - from the companies to which they outsource. Profits thru a joint venture?

 

[Kev3188]

Not an issue of "grasping." It's an issue of you being completely unable to take a side and stick to it.


You can't have it both ways.

 

[WorldTraveler]

Kevin,
count to three and listen.

DL isn't moving any jobs in/or out of DL that are being done by US workers.

The airframe overhauls that were being done on these same aircraft were outsourced, some of it by AM in México already, others in other places including Asia. Other carriers outsource to other parts of the world including Central América.

The AM-DL joint venture hasn't resulted in the loss of a single DL job.

When you or Dawg find evidence otherwise, be sure and let me know.

 

[eolesen]

Opening up a factory in a foreign country is hardly what I'd call a good faith effort towards your employees...

Sure, the work was being outsourced, and you're right that there have been no jobs lost, but you're glossing over the bigger impact.

I'm sure DL will strive to maintain the current balance of work on DL airframes at ATL and QRO, so that there's no further perception of job losses.

The fact is at some point, TechOps will grow the business, and they'll have to decide when take on new work if it is done in QRO or ATL.

The conventional wisdom is they'll chase margin, and the decision to grow in QRO is due to cost being lower. Regulatory oversight will be less because it's offshore, and in general, the labor laws work to the company's benefit.

So... the real impact you're missing is future job growth.

The growth ain't gonna be in land-locked ATL, no matter how you want to try and make an argument for it.

 

[WorldTraveler]

DL has repeatedly said it will grow Tech Ops. If that doesn't happen, then there is a basis to complain.

But Tech Ops is the largest airline MRO in the western hemisphere and no US airline comes even close to the size of insourcing that DL does. DL can grow its MRO business without adding space- and DL does have facilities, including IIRC in MSP.

Further, AA did have the reputation of having the best ratio of maintenance outsourcing but AA is moving aggressively to outsource. It is hard to know where AA will end up but the chances are real high that AA will end up having an outsourcing ratio closer to US' current ration instead of AA's current ratio.

Again, I'm not defending that DL does any outsourcing... but DL does insource levels equivalent to about 25% of what DL spends on its maintenance and the whole Mexico deal is about bringing outsourcing to a more central location instead of being spread over multiple companies spread around the world, none of which DL has any chance of gaining any new business from them in return.