May 10, 2018
SUBJECT: Update from DRC on Endeavor Pass Policy Change
After DRC’s inquiry to Mr. Rob Kight, Senior Vice President – Global HR Services and Labor Relations, we received the following response. We are disappointed that no retiree pass enhancements which DALRC requested are being considered at this time. Please take note in Mr. Kight’s last sentence: “While we are not prepared to make that change at this time, direct feedback like this is an important part of our decision making process as we consider future changes to our policy.” DRC will continue to act as a conduit and take your feedback and ideas to the appropriate individuals at Delta.
Memo from Mr. Rob Kight, Senior Vice President –
Global HR Services and Labor Relations.
“Mr. Bastian asked me to follow up with DALRC, Inc. regarding your inquiry on Endeavor pass policy changes. I understand flights are full, and retiree travel is becoming harder. However, I would note that we have some very practical reasons for making this change (discussed more below) and that the odds of retirees actually getting displaced by Endeavor employees are quite small since they represent about 2% of the population that uses the S3B standby code.
Now as to the rationale for the change, Endeavor is a wholly-owned airline, operating flights solely on Delta’s behalf, which plays a vital part in our overall financial success. Attracting and retaining top talent at Endeavor is critical and offering competitive flight privileges contribute to employee retention. In this regard, our old policy, which put Endeavor employees behind nearly half a million S3B riders was highly uncompetitive. For example, at another major carrier who has wholly owned regional carriers, the employees of those regionals fly at an even higher priority, essentially equal to actives. So, we had a strong need to make this change in order to improve our ability to attract and retain the best employees at Endeavor. And importantly, particularly for flight crews, providing active Endeavor employees a higher priority will make it easier for employees to get to work which reduces the operational risk to Delta.
We value the contributions and service of our retirees and continue to offer a generous pass travel program. Even with as good a job as we do filling airplanes these days, S3B riders still completed more than 1 million segments last year with 12% of those being in the front cabin, and we don’t expect the relatively small number of Endeavor employees to materially impact that usage in any way. When making changes to the program we are always considering the impact to all who may be affected while also making sound business decisions. I have heard often from retirees about the idea of higher priority passes for retirees each year. While we are not prepared to make that change at this time, direct feedback like this is an important part of our decision making process as we consider future changes to our policy.”
Richard E. Ealey Fred DiSano
Chair – DRC Vice Chair - DRC
