ZASpringboks From , joined Dec 1969, posts, RR: Posted (9 years 9 months 4 days ago) and read 2646 times:
If Delta Airlines continues with financial losses as we have seen this last quarter, what different scenarios might we see regarding their connection carriers? How would this affect carriers like ASA or Comair?
FlyPNS1 From United States of America, joined Nov 1999, 6302 posts, RR: 25 Reply 2, posted (9 years 9 months 3 days 15 hours ago) and read 2340 times:
Comair and ASA aren't really as profitable as some would think. They are profitable simply because they fly a lot of routes where there is little to know low-fare competition plus DL subsidizes a good chunk of ASA's and Comair's costs.
DL's RJ strategy has its up and downs. The upside is that it has allowed DL to maintain a presence on many routes that would have otherwise been abandoned. Without RJ's, there's a good chance the DFW hub would be completely gone. The RJ's have also allowed DL to add service to a lot of new markets...in the next two months DL will start service to SGF, HVN, CMI, EUG and TVC.
The downside is that RJ's have a very high CASM and do not compete well with LCC's. DL has lost a lot of marketshare trying to compete with against LCC's with RJ's. RJ's have also driven away many of DL's previously loyal customers...lack of F class upgrades and generally poor service has been a major problem. Plus, the reduced feed by RJ's can hurt the remaining mainline flights making it harder to fill DL's large domestic widebody fleet.
If DL goes BK (and even if they don't), there's a good chance DL will eventually sell either ASA or Comair to raise cash. Also, if DL goes BK, look for DL to abandon the ACA FRJ contract as fast as possible. Right now, Comair and ASA are limited to 57 CRJ700's by the DL pilots mainline contract. However, in BK I would expect DL to push to get more CRJ700's for ASA/Comair and possibly attempt to get a 90 seater for ASA/Comair. Of course, DALPA would (and rightfully so in my opinion) fight against this.
BoingGoingGone From , joined Dec 1969, posts, RR: Reply 3, posted (9 years 9 months 3 days 14 hours ago) and read 2187 times:
The downside is that RJ's have a very high CASM and do not compete well with LCC's.
Not true. Unit cost wise, yes. I've seen SkyWest crush SWA in several markets. It's a balance of load vs. capacity. A 50 seater 9 times a day will beet a 737 4 times a day in any small or medium hub market, or short hop high frequency route. This is why SWA doesn't make short hops like SAN-LAX.
Papatango From United States of America, joined Dec 1999, 510 posts, RR: 0 Reply 4, posted (9 years 9 months 3 days 14 hours ago) and read 2165 times:
FLYPNS why do you believe DALPA has the right to fight more 70 seaters for the connection carriers? Do you think DALPA/ALPA rghts overshadow driving the airline into BK and putting over 60000 other emp out of work? DALPA/ALPA have already curtailed any more 777's at DElta because of their high pilot cost approx 70% more than AMR and they have just about driven Delta into BK single handedly!
FlyPNS1 From United States of America, joined Nov 1999, 6302 posts, RR: 25 Reply 5, posted (9 years 9 months 3 days 14 hours ago) and read 2153 times:
I'd love to see these markets where SkyWest has "crushed" WN. Keep in mind, I'm talking about the Delta Connection system.
It's not the 70 seaters, I think DALPA will really fight against. It's the 90-100 seaters that DALPA will be against. Planes this large belong at mainline and can be profitably flown by mainline. Giving planes this large to ASA would be a disaster...they can barely manage 50 seat planes.
The reason DL has so few 777's isn't solely because of the pilots...although they are certainly a part of the problem. Part of why DL had to sell the 777 deliveries was because they can't get financing for them. DL has taken on so much debt (much of it to finance RJ's), that they can't get financing for the 777's...w/o financing DL can't take the 777's.
Papatango From United States of America, joined Dec 1999, 510 posts, RR: 0 Reply 6, posted (9 years 9 months 3 days 13 hours ago) and read 2101 times:
FLYPNS Wrong DALPA forced Delta into delaying 5 777 just after they had taken delivery of the first 2. DALPA basically told DELTA if you don't give us what we want we will not fly the 777 and based with this DELTA delayed the deliveries from peak season until DEC when they reached an agreement with DALPA. Just look at APLA chart on pay per aircraft type and you will see the DELTA pilots are far away the highest pay almost 70% more than AA.