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Katrina/ MSY Closing Impact On Airlines (non-fuel)  
User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Posted (9 years 3 weeks 2 days 3 hours ago) and read 2277 times:

With MSY said to be closed to commercial service until November, possible longer, what impact will this have on airlines? Southwest operated 60-80 flights per day there, probalby involved about 10-15 aircraft. WN, known for their high a/c utilization isn't likely to park these planes for 2-3 months or are they?

Possible actions...

Increased a/c retirements (esp DL)

CH 11 filings (esp DL, possible DH or NW)

Revised schedules nationwide (all airlines)

Thoughts?


Experience is what you get when what you thought would work out didn't!
4 replies: All unread, jump to last
 
User currently offlineLitz From United States of America, joined Dec 2003, 1765 posts, RR: 0
Reply 1, posted (9 years 3 weeks 2 days 3 hours ago) and read 2245 times:
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Quoting RL757PVD (Thread starter):
Increased a/c retirements (esp DL)

I don't see DL increasing retirements over this, unless they chuck some old 732s and repurpose aircraft used for MSY ... remember, that airport WILL reopen, and there WILL be traffic to/from there in a few short months.

That traffic will likely be high - New Orleans is going to need TONS of help rebuilding and air travel is going to be a key part of getting the people they need into the city.

Cutting your fleet now would shoot yourself down the road when you need that fleet again.

Quote:
CH 11 filings (esp DL, possible DH or NW)

This is much more likely, but not because MSY is closed. It's because (although your topic says "not fuel" - you're gonna slap me) of fuel. Yes, I said it ...

Moreso, to DL and FL, Hartsfield gets all its fuel via pipeline from the gulf coast (as does atlanta, for gasoline, for cars). None of that is flowing. Earliest estimates are 2-3 weeks before it flows.

The airport has a MAX of 7-10 days supply, and nobody's talking about how much was actually on hand. Importing the amount of fuel an airport that large needs by truck, air, or rail, is a huge undertaking.

This could be a killing blow that puts DL in to chapter 11, and could severely hurt FL's finances, too.

It's just Wednesday, 2 days after landfall, and pumps are already running dry at local gas stations.

- litz


User currently offlineRL757PVD From United States of America, joined Dec 1999, 4676 posts, RR: 11
Reply 2, posted (9 years 3 weeks 2 days 2 hours ago) and read 2209 times:

Quoting Litz (Reply 1):
I don't see DL increasing retirements over this, unless they chuck some old 732s

Exactly what they would likely do, or likely just speed up the process by a month or two...

Quoting Litz (Reply 1):
That traffic will likely be high - New Orleans is going to need TONS of help rebuilding and air travel is going to be a key part of getting the people they need into the city

I agree, however, much of that may be in the form of UPS or Fedex. Local traffic will surely be down, as vacation is the last thing on people's minds. Also tourist traffic will surely be down sharply for at least rhe next 6 months, probably at least 1 year.

Quoting Litz (Reply 1):
Moreso, to DL and FL, Hartsfield gets all its fuel via pipeline from the gulf coast (as does atlanta, for gasoline, for cars). None of that is flowing. Earliest estimates are 2-3 weeks before it flows

I have heard unconfirmed reports that the fuel supply at ATL is not in danger as once thought.



Experience is what you get when what you thought would work out didn't!
User currently offlineBigGSFO From United States of America, joined Jun 2005, 2925 posts, RR: 6
Reply 3, posted (9 years 3 weeks 2 days 2 hours ago) and read 2167 times:

In the event of a mandatory closing such as this (or when air traffic was shut down after 09/11), are airlines responsbile for airport lease payments? That might be a naive question, but I am not sure.

Airlines however will continute to pay salaries/benefits of the employees based in MSY. And with a clsed airport, there will be some revenue lost, however MSY is not a hub or focus city, so airline operations really won't be impacted too much.

However Reuter's reports Katrina could hasten DL's BK filing:

http://biz.yahoo.com/rb/050831/airlines_katrina_snp.html?.v=1


User currently offlineTheSonntag From Germany, joined Jun 2005, 3596 posts, RR: 29
Reply 4, posted (9 years 3 weeks 2 days 1 hour ago) and read 2107 times:

I didnt find another threat that fast, but I just want to express my sympathies to all Americans on what happened, I really feel sad. Please do not think that the voices of some idiots like J�rgen Trittin who criticise the US about the Kyoto treaty right now speak for everybody in Germany or Europe. We know that this was a horrible tragedy, and we feel with you and hope that it will not end as bad as it is feared to be.

Michael


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