"Delta Air Lines Inc. (DAL) on Tuesday said it won't generate enough cash to meet its needs this year, raising new alarms the airline could have to file for bankruptcy in the next few months."
Interesting statement. Here is what an S&P Analyst has to say...
"Unless they sell at least one of their regional carriers, they will be forced to file for bankruptcy within the next six months," Standard & Poor's analyst Jim Corridore said. "And if they did sell a regional carrier, it still wouldn't change their overall situation. It would just buy them more time out of bankruptcy court."
Bridogger6 From United States of America, joined Apr 2005, 719 posts, RR: 9
Reply 3, posted (10 years 11 months 3 weeks 4 days 22 hours ago) and read 4112 times:
That's too bad.. only had one trip on Delta but I liked them a lot.. PHX-SVO.. but then I've also heard they're a lot better on their international flights. Their 757 seemed unusually cramped but maybe I was just tired. Other than a rude ticket counter agent here in Phoenix (can't expect them all to be nice!), service and experience was great, I hope they make it!
Indy From United States of America, joined Jan 2005, 4624 posts, RR: 16
Reply 4, posted (10 years 11 months 3 weeks 4 days 22 hours ago) and read 4096 times:
I have had my best and worst experiences in travel with Delta. Best one was a return flight from Frankfurt, Germany to Atlanta, GA. Maybe I liked it so much because the flight was 1/3rd full and I was sitting in the back and there was no one around me. Of course the cute girl in customs didn't hurt either First time in my life I ever wanted to be inspected again. lol
Lnglive1011yyz From Canada, joined Oct 2003, 1627 posts, RR: 12
Reply 5, posted (10 years 11 months 3 weeks 4 days 14 hours ago) and read 4019 times:
Sad indeed --
As I have mentioned to a friend of mine who frequents this website, who is a DL employee, it is a truly sad state of affairs..
But again, as I've even mentioned to him, at some point something needs to give with these companies that are loosing SO much money. They can try to cut wages, remove pensions, cut benefits, reduce service, reduce the little "frills", but it's just not going to work.
UA, DL and US should pack it in, and let the stronger carriers move on. I do NOT want to see people out of jobs, but I'd hope that the other carriers would need to pick up the slack, pick up more aircraft, and in turn, re-hire some of the people who would be out of jobs..
It's NOT an idea situation, but the governments need to stay out of it, and let the strong be strong, and the weak fail, when it comes to business.
Indy From United States of America, joined Jan 2005, 4624 posts, RR: 16
Reply 6, posted (10 years 11 months 3 weeks 4 days 13 hours ago) and read 3980 times:
The airlines definately need to get a grip on expenses. Maybe discontinue future pensions and go with a 401k plan but you cannot default on a promise you made to someone that is now retired. They definately need to rethink their routes and go with something more like what WN does. This pretty much says it all...
"Network airline hub profitability is heavily dependent on high value local traffic, according to a recent Lehman Bros. report. Connecting traffic does not cover allocated airline costs and is profitable only in a marginal context, according to Lehman."
This is a good reason why WN has had great success. They made a living on going after local traffic. They didn't get where they are by running fortress hubs where they were running 50% or less O/D. And if you are a legacy carrier you shouldn't make the mistake of cutting service to your passengers. If you want to survive you have to be better than the other guy. Give people a reason to come to you. If it comes down to price as a legacy you will lose. So win your customers with great service and frills.
Manage your costs better, rethink your routes, and provide better service.
Milesrich From United States of America, joined Jul 2003, 2078 posts, RR: 6
Reply 14, posted (10 years 11 months 3 weeks 3 days 19 hours ago) and read 3620 times:
Delta already terminated their pension plans, in a phase out that is supposed to end on June 30, 2010. The best thing that could happen is if they sold both ASA and Comair. Then they could negotiate the split in fares, and guess what, the ruse that these airlines make money would be over. As someone else said, at CVG, there is no LLC competition. Delta's real problem right now is the cost of fuel. The jerks who ran the airline and I guess the ones who do now, never hedged fuel. So airlines like WN are paying an average price for fuel based on $32.00/bbl of oil and Delta is paying spot market prices at 50.00+/bbl.
Cloudboy From United States of America, joined Jan 2004, 1107 posts, RR: 0
Reply 19, posted (10 years 11 months 3 weeks 3 days 15 hours ago) and read 3499 times:
The problem is that the airlines have found that they get better response if they simple hover near or in bankruptcy than try to be profitable. Do you think the execs are really that concerned with the service they provide? They get their big bucks no matter what happens. Why work to become better if you can just use the threat of bankruptcy to get every concession you need and loans from the government?
The other problem is too many pundits who incessantly try to make the LCCs out as being the best thing to hit the market. Try and get a flight from your home city to Portland, ME using only Southwest, Jet Blue, Spirit or Independence air. They LCCs can get away with only serving the profitable routes. Unfortunately America has put all their efforts into air travel, and so we are stuck with having o keep airlines afloat.
I think the big thing that needs to happen, but won't until people stop revering the LCC model, is that the airlines have to improve their offerings and make air travel at least tolerable, if not pleasant. When it comes down to it, air travel right now sucks and people are avoiding it as much as they can.
"Six becoming three doesn't create more Americans that want to fly." -Adam Pilarski
John From United States of America, joined Sep 1999, 1374 posts, RR: 5
Reply 20, posted (10 years 11 months 3 weeks 3 days 12 hours ago) and read 3432 times:
It just amazes me how DL can sustain BILLION dollar losses and continue to operate. How much longer can this go on? How they've managed to stay out of bankruptcy for this long is beyond me.....I guess that's a good thing, though.
Richierich From United States of America, joined Nov 2000, 4530 posts, RR: 6
Reply 21, posted (10 years 11 months 3 weeks 3 days 12 hours ago) and read 3426 times:
Try and get a flight from your home city to Portland, ME using only Southwest, Jet Blue, Spirit or Independence air. They LCCs can get away with only serving the profitable routes. Unfortunately America has put all their efforts into air travel, and so we are stuck with having o keep airlines afloat.
This is a dumb statement, Cloudboy. If Portland, ME was not making money (I know this is hypothetical), then the airline shouldn't fly there. There is no reason I should be paying a legacy airline rip-off charges just to subsidize a huge network of unprofitable airports. That's bullshit. The LCCs are picking the most profitable routes (note: I didn't say 'ripping-off') which, to me, only makes sense. Why the F would they pick routes that are not profitable. I really don't understand your argument.
If the people of Portland, ME can't support a major carrier, then sorry. They'll have to drive to BOS or MHT. Ditto this for dozens of other airports around the country. That's they way it is.
Personally, I am not too fond of my tax dollars subsidizing major legacy pension plans... it is not my fault that these airlines made terrible business decisions and made promises they couldn't keep to their unions. I feel badly for the regular-guy who has worked all of his life for this, but, it ain't my fault!
BTW - is there anyone else who wonders how much Song is costing Delta? Must be a fortune!
NonRevKing From , joined Dec 1969, posts, RR:
Reply 22, posted (10 years 11 months 3 weeks 3 days 11 hours ago) and read 3387 times:
Quoting Richierich (Reply 21): The LCC's are picking the most profitable routes (note: I didn't say 'ripping-off') which, to me, only makes sense.
Wait, lemme go back...
Quoting Richierich (Reply 21): There is no reason I should be paying a legacy airline rip-off charges just to subsidize a huge network of unprofitable airports.
So it's ok if it's an airline that you like doing it...gotcha.
Quoting Richierich (Reply 21): If the people of Portland, ME can't support a major carrier, then sorry. They'll have to drive to BOS or MHT. Ditto this for dozens of other airports around the country. That's they way it is.
Yeah, if Jetblue won't fly to your city, screw you! You'll drive to where they do and like it!
Quoting Richierich (Reply 21): Personally, I am not too fond of my tax dollars subsidizing major legacy pension plans...
I'm not too fond of my tax dollars subsidizing an LCC to provide new service into a city that a major has supported for years, so that works out nicely, huh?
Quoting Richierich (Reply 21): BTW - is there anyone else who wonders how much Song is costing Delta? Must be a fortune!
Nope, just you. Those of us on Earth know better. Rich, you are a pioneer in the field of ignorance. This dead horse has been beaten enough. Song is profitable, end of story. I find it hilarious that you start off your post by calling someone else's thoughts a "dumb statement", but end it with your typical nonsense.