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Delta: 'Comprehensive' Changes Ahead  
User currently offlineFlynavy From , joined Dec 1969, posts, RR:
Posted (6 years 4 months 2 weeks 5 days 13 hours ago) and read 15741 times:

The speculation is abound here on the Delta campus, specifically at departmental meetings (including my own earlier tonight). I'm eagerly awaiting the "news" which should come next week some time. Simply put, our emergence plan in 2007 was tailored to $60 per barrell oil. Today that price has nearly doubled. This news follows the axing of four regional jet markets: ISP, ACY, BLI, and FAR.

Quote:
Earlier this week, Richard spoke at the Federal Aviation Administration Forecast Conference in Washington, D.C., about the major challenges facing the airline industry.

“The first and foremost issue I talked about was fuel,” Richard said. “On Monday when I spoke, it was $105 a barrel. By the end of this week, it had climbed to $111. Keep in mind just a year ago fuel was $60 a barrel. That’s 85 percent above what fuel was a year ago, and it has a huge impact on the entire airline industry.”

“The bit of frustration we all have, whether at the gas pump or with the fuel bill for heating our homes, is that we don’t have an energy policy in U.S. other than jawboning OPEC, and that’s not an energy policy,” Richard added.

“As we say in Delta’s ‘Rules of the Road,’ speed wins,” he said. “Being decisive and executing quickly is the difference between success and failure – and you will see us taking quick action to revise our business plan for 2008. We’ve worked very hard to return Delta to a position of strength, and we must do everything we can to ensure that we remain strong and viable.”

Quote:
Delta CEO: 'Comprehensive' Changes Ahead
Friday March 14, 4:06 pm ET
By Harry R. Weber, AP Business Writer
Delta Will Revise Business Plan to Deal With Higher Fuel


ATLANTA (AP) -- Delta Air Lines Inc. will be overhauling its business plan to deal with soaring fuel prices, the chief executive of the nation's third-largest carrier said Friday.

CEO Richard Anderson did not provide any details in a recorded message to employees, including whether the "comprehensive" plan to be announced next week will include job cuts.

URL: http://biz.yahoo.com/ap/080314/delta_strategy.html?.v=2

Regards,
Chris in ATL

[Edited 2008-03-15 02:57:40]

129 replies: All unread, showing first 25:
 
User currently offlineFlyASAGuy2005 From United States of America, joined Sep 2007, 7004 posts, RR: 11
Reply 1, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15709 times:

Things that make you go hmmm. Would be interesting to see what "comprehensive" measures would be taken. I would suspect ATL, CVG, and SLC would see a reduction in capacity on more of its 50 seater routes. Further job cuts? Slowing of its international push.

The list goes on...



What gets measured gets done.
User currently offlineSunking737 From United States of America, joined Feb 2005, 2038 posts, RR: 8
Reply 2, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15712 times:

Thanks for sharing this. I think many airlines could shut down by the end of 2008. This price madness must stop or the whole world will grind to a halt.


Just an MSPAVGEEK
User currently offlineFlynavy From , joined Dec 1969, posts, RR:
Reply 3, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15723 times:



Quoting FlyASAGuy2005 (Reply 1):
I would suspect ATL, CVG, and SLC would see a reduction in capacity on more of its 50 seater routes.

 checkmark 
Quoting Sunking737 (Reply 2):
Thanks for sharing this. I think many airlines could shut down by the end of 2008.

Indeed. In fact, the CEO of Champion Air has said that if fuel costs continued to rise that they would be forced to close their doors.

[Edited 2008-03-15 03:08:29]

User currently offlineBrianDromey From Ireland, joined Dec 2006, 3919 posts, RR: 9
Reply 4, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15708 times:

I know it sounds crazy, but maybe they could raise fares by enough to partially offset the increase in fuel? Everyone is going to be feeling this. There is just no other option but to raise fares unless the carriers want to sink into the red once again.

Brian.



Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Reply 5, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15695 times:

It would be interesting to launch an investigation as to how much of the last years fuel-price explosion is speculation and how much is really increased demand driven...
Yes-China and India do import more fuel-but does that REALLY justify a 85% increase ?????
I bet out of the current 110$/barel price-tag,40% are speculative driven...



Please respect animals - don't eat them...
User currently offlineFlynavy From , joined Dec 1969, posts, RR:
Reply 6, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15691 times:

Quote:
“As a result of the 70% to 80% increase in fuel prices experienced over the last year, we continue to fight rising fuel prices through capacity reductions in the U.S. and by shifting more aircraft to international routes,” said Joe Esposito, managing director-Schedule Planning. “During 2008, we are trimming domestic schedules in select domestic markets at off-peak times and reducing the number of regional jets in our fleet, while at the same time growing our international capacity.” Other domestic regional jet markets that have been canceled previously as a direct result of increased fuel prices include Corpus Christi and McAllen, Texas, and Tupelo, Miss.

And this isn't just affecting Delta. As I said above, Champion Air might be forced to shut their doors. Additonally, there are rumors at Horizon that the CRJ-700 will be completely eliminated from their fleet should fuel costs continue to rise.

Last I heard, ASA had "temporarily halted" hiring pilots pending this upcoming announcement.

[Edited 2008-03-15 03:29:24]

User currently offlineFlyASAGuy2005 From United States of America, joined Sep 2007, 7004 posts, RR: 11
Reply 7, posted (6 years 4 months 2 weeks 5 days 12 hours ago) and read 15655 times:

I can also see Delta aquiring MORE tubo-prop aircraft for their shorter routes. I've always said that I don't see why most of the markets in Georgia is served by CRJ's. I can also see MCN being closed all together. They ahave done a pretty good job on the mainline side of the house but the DCI program needs a HUGE over-haul.


What gets measured gets done.
User currently offlineMaddog888 From United Kingdom, joined Apr 2007, 162 posts, RR: 0
Reply 8, posted (6 years 4 months 2 weeks 5 days 11 hours ago) and read 15554 times:



Quoting Beaucaire (Reply 5):
I bet out of the current 110$/barel price-tag,40% are speculative driven...

Which is relevant/helps how? The airlines cannot produce a business plan that ignores the current oil price just because it is speculative driven. There may be no consumption driven reason why the price should be so high, but it is at the level it is and is unlikely to change until the wider economic situation improves and that is going to take quite some time.

MD


User currently offlineFlyASAGuy2005 From United States of America, joined Sep 2007, 7004 posts, RR: 11
Reply 9, posted (6 years 4 months 2 weeks 5 days 11 hours ago) and read 15518 times:



Quoting Maddog888 (Reply 8):
Which is relevant/helps how? The airlines cannot produce a business plan that ignores the current oil price just because it is speculative driven. There may be no consumption driven reason why the price should be so high, but it is at the level it is and is unlikely to change until the wider economic situation improves and that is going to take quite some time.

I don't think that was the poster's intent. He was merly looking at it from an econmic/political standpoint.

With that said, I totally agree with him. I oil/fuel consumtion has been proven to have NOT risen that much in the past few years, yet we have seen the price of oil rise and risE and riSE and rISE, and RISE. Trying to twist OPEC's arm is not cutting it. This is being felt everywhere. Take a look at the price of the US $, housing market, lending institutions, etc. Not saying it has anything to do with the price of oil. What I'm saying is that the airlines aren't the only ones going through hard times right now.

Back on topic, like Flynavy said, this will not onl affect Delt. United's original plan was based on an even lower oil price projection than Delta's $60. I would suspect sweeping changes across the industy as a who this fiscal year.



What gets measured gets done.
User currently offlineMaddog888 From United Kingdom, joined Apr 2007, 162 posts, RR: 0
Reply 10, posted (6 years 4 months 2 weeks 5 days 10 hours ago) and read 15468 times:



Quoting FlyASAGuy2005 (Reply 9):

I don't think that was the poster's intent. He was merely looking at it from an economic/political standpoint.

OK, in that case I misunderstood his intent. I thought he was saying that because it was speculative then the airlines should ignore the price increase.

MD


User currently offlineSacamojus From United States of America, joined Dec 2006, 228 posts, RR: 1
Reply 11, posted (6 years 4 months 2 weeks 5 days 9 hours ago) and read 15328 times:

I saw on the news today that CO and UA raised r/t fares by $50. A large chunk of the oil price is speculative driven by security concerns in the Middle East, Venezuela, and Nigeria. Kind of sucks that we have to pay more for people's fears, but that is the markets for you.

I do see a reduction in capacity and planes grounded from all airlines.

Does anybody have any speculation of stations that would need a reduction or service terminated. I sure hope ROA doesn't see that. But then again I don't see how ROA isn't making airlines money at high oil prices with its ridiculously high fares and still full planes.


User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 12, posted (6 years 4 months 2 weeks 5 days 9 hours ago) and read 15266 times:

I could have sworn I saw the same thread yesterday, and for some reason that was deleted. Anyway, I'll just copy what I tried to post in that previous one:
Pessimist view:
-Job cuts, lots of route cuts, service cuts, and cutting all further PTV additions on 738/757/763s to save money

Deltoid view:
-Ordering new fuel-efficient Boeing jets to replace those fuel-guzzling MadDogs, order more 77Ls and lease 787s for international expansion, expand on-board product further to entice more customers.

What seems realistic, and what would expect (and in part hope for):
-Drastic scaling back of RJ operations, by cutting thing long routes, and replacing CRJs, as well as ATRs and EM2s, with new Q400s on short hops out of ATL, CVG, SLC, thereby also reducing the number of flights yet keeping enough frequencies where demanded; perhaps even dropping one or two Delta Connection carriers *cough*Mesa*cough*; adding winglets to all 763, -ERs and non-ERs, as well as more 738s and 757s; perhaps, if the deal is still on, bring in ex-China MD-90s to replace CRJs on a 1-for-4/1-for-5 basis; job cuts throughout the board; finally announce plans for the new JFK facility


User currently offlineBrianDromey From Ireland, joined Dec 2006, 3919 posts, RR: 9
Reply 13, posted (6 years 4 months 2 weeks 5 days 9 hours ago) and read 15222 times:

As posted above I think fares will simply have to rise, not just at DL but across the board, I think we can also expect increased "ancillary" revenues from luggage charges, BOB extended throughout the network, etc.

The 50 seat jets will simply have to go, but they can not all be replaced by Q400etc, as there is a backlog for these aircraft too. I think a lot of routes will be 'right sized' where there are 5/6+CRJs a day into markets these will be replaced with 2/3 MDs/737, which will be freed from reducing frequency further up the chain. LH uses its regional carriers well, using them for off-peak services on key, high yield routes and mainline on peak services. The displaced RJs are then used on lower volume routes on other lower volume routes with only 2/3 flights per day anyway. I think this is the way the American carriers are going to have to go.

Surely 3/4 services per day are enough in most low density markets?



Next flights: MAN-ORK-LHR(EI)-MAN(BD); MAN-LHR(BD)-ORK (EI); DUB-ZRH-LAX (LX) LAX-YYZ (AC) YYZ-YHZ-LHR(AC)-DUB(BD)
User currently offlineAA757200 From United States of America, joined Dec 2006, 157 posts, RR: 0
Reply 14, posted (6 years 4 months 2 weeks 5 days 9 hours ago) and read 15155 times:



Quoting Flynavy (Thread starter):
put, our emergence plan in 2007 was tailored to $60 per barrel oil. Today that price has nearly doubled.

I, like so many others at the time, was quite vocal about the $60 per barrel oil assumption being a HUGE flaw in the exit plan by DL (and UA and NW and US - I know they all did not assume $60, but they guessed way to low), and is no doubt going to end up being a huge issue going forward. Time to pay the piper, for you wild a$$ guess which anyone with two neurons hooked together knew at the time was so detached from reality.

I'm very interested to see what measures they come up with. I know they cut most of the fat during BK, so what's left to cut besides routes/stations?


User currently offlineAA757200 From United States of America, joined Dec 2006, 157 posts, RR: 0
Reply 15, posted (6 years 4 months 2 weeks 5 days 9 hours ago) and read 15133 times:



Quoting BrianDromey (Reply 4):
but maybe they could raise fares by enough to partially offset the increase in fuel

Lets not forget we are in a recession - worst of both worlds for the airlines right now. Costs are increasing, and your ability to sustain price increases is decreasing. This goes so far beyond DL too. Champion is an insignificant blip on the screen - I would think more along the lines of B6, F9, FL, U5, and the like.


User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 16, posted (6 years 4 months 2 weeks 5 days 9 hours ago) and read 15121 times:



Quoting BrianDromey (Reply 13):
The 50 seat jets will simply have to go, but they can not all be replaced by Q400etc, as there is a backlog for these aircraft too.

True, but it would be start for DL to actually order any modern props to begin with  Wink . Personally I have wanted DL to get the Q400 ever since it was launched,

Quoting BrianDromey (Reply 13):
Surely 3/4 services per day are enough in most low density markets?

Most definitely. Routes like CVG-SDF, where you have 7 (week-)daily RJ flights, with an average of 52 seats per flight, just need to be reduced. If you don't want to go mainline on such a route, put the Q400, or perhaps the ATR-72-600, on the route with 5 flights. Less flights clogging the skies, yet still plenty enough frequencies to allow flexibility for customers, as well as improved economics on the route.
Or SLC-SUN. Does such a route really need 10 flights on EMB-120s? Especially when you have multiple times throughout the day when 2 planes literally depart within half an hour of each other.
And there's many more examples like that throught Delta's network.


User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 17, posted (6 years 4 months 2 weeks 5 days 8 hours ago) and read 15016 times:



Quoting BrianDromey (Reply 13):
Surely 3/4 services per day are enough in most low density markets?

To be perfectly honest, surely 3/4 services per day are enough in most high density markets also if the right aircraft are used. I do honestly think that the Business Traveler mentality of using airlines like bus companies entirely at their whim needs to end......while I certainly understand there are the odd scenario's, in general their 'business schedule' needs to be adjusted around when it is possible to fly somewhere. I completely fail to be convinced that every business trip is a life or death situation without compromise. Clue, how was business conducted successfully in the past?


User currently offlineDiscoverCSG From United States of America, joined Jan 2007, 830 posts, RR: 0
Reply 18, posted (6 years 4 months 2 weeks 5 days 8 hours ago) and read 14935 times:



Quoting FlyASAGuy2005 (Reply 7):
I can also see MCN being closed all together.

Here in CSG, it boggles my mind how DL can be making money flying CRJ's to and from ATL multiple times a day. Since the drive is about 90 minutes, you have to assume virtually all traffic is connecting, for fares usually not more than $50-100 more than the nonstop out of ATL. If my perceptions are correct, most seats on those flights are going for $25-50 per leg. Does this REALLY make money?


User currently offlineRJNUT From United States of America, joined Dec 1999, 1217 posts, RR: 0
Reply 19, posted (6 years 4 months 2 weeks 5 days 8 hours ago) and read 14875 times:

There will be a pending collapse of RJ operations nationwide , airline -wide, as this operating model is no longer sustainable...say good bye to frequency, many hubs, 50 seaters, and small,thin marklets... Mark my words, there will be a temporary and smallish collsapse of the entire domestic network as oil prices have become so off the chart, very few operating plans are viable, and any CEO who thinks that simply waiting for mega-mergers to take place in order to sovle all their problems should be fired...things have to happen NOW and drastically!

I think the SKY is falling!


User currently offlineLAXdude1023 From India, joined Sep 2006, 7512 posts, RR: 24
Reply 20, posted (6 years 4 months 2 weeks 5 days 7 hours ago) and read 14726 times:



Quoting BrianDromey (Reply 4):
I know it sounds crazy, but maybe they could raise fares by enough to partially offset the increase in fuel? Everyone is going to be feeling this. There is just no other option but to raise fares unless the carriers want to sink into the red once again.

I say do it. Its whats necesary to keep the airlines profitable. In addition they might have to cut capacity to alot of markets. That should be ok since ATL has so many flights that it probably wouldnt feel the sting so much.



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlinePapatango From United States of America, joined Dec 1999, 519 posts, RR: 0
Reply 21, posted (6 years 4 months 2 weeks 5 days 7 hours ago) and read 14718 times:



Quoting RJNUT (Reply 19):

Agree the days of the 50 seater are numbered.


User currently offlineLAXdude1023 From India, joined Sep 2006, 7512 posts, RR: 24
Reply 22, posted (6 years 4 months 2 weeks 5 days 7 hours ago) and read 14691 times:



Quoting Papatango (Reply 21):
Agree the days of the 50 seater are numbered.

I believe so too. That being the case CO better have some sort of plan because they rely so heavily on the ERJ.



Stewed...Lewd...Crude...Irreverent...Belligerent
User currently offlineCOalways From United States of America, joined Feb 2008, 361 posts, RR: 0
Reply 23, posted (6 years 4 months 2 weeks 5 days 7 hours ago) and read 14539 times:

CO is a little better off as they have 737 on orders that are suppose to take over some of the Express routes and they have the introduction of the Q400 already flying in and out of the Hubs

User currently offlineNWAESC From United States of America, joined Aug 2007, 3383 posts, RR: 9
Reply 24, posted (6 years 4 months 2 weeks 5 days 7 hours ago) and read 14539 times:



Quoting DAL767400ER (Reply 12):
I could have sworn I saw the same thread yesterday, and for some reason that was deleted.

You did. I started a thread about it, but the mods deleted it due to not including a "fair use" excerpt of the article I cited.

Quoting Flynavy (Reply 6):
As I said above, Champion Air might be forced to shut their doors.

Between the loss of NBA charters and NWA pulling their MLT business from Champion, I can't see them lasting much longer, regardless of oil prices.

Anyway, back to DL...

I would predict some or all of the following:

1. Continuing the pull down of smaller markets (like the previously mentioned stations).

2. Rationalization of others. Less flights, but bigger gauge A/C. Using an above post as an example, maybe they can shift some of the "excessive" EMB-120 flights to replace CRJs else where? For example, instead of 10 SUN flights daily, why not have,say, 5 flights? They could then use that capacity in a market where CRJs are. Just a thought.

3. Furloughs across the board.

4. Hopefully, some sort of retirement package to offset #3.



"Nothing ever happens here, " I said. "I just wait."
25 WorldTraveler : Fares cannot be raised to the point to cover costs because there is too much capacity in the market and supposed low cost carriers are turning around
26 Nucsh : We had a gentleman on campus this past week from ASA pilot hiring who simply said that the minimums were raised (500/50), so I don't think hiring has
27 TVNWZ : I remember when I filled my 60 chevy with 15-cent a gallon gas. In 1973 I filled my 72 Torino with 55 cent gas and thought the world economy would imp
28 YamahaR1 : I work right now for Skywest Airlines as a FA and in a email we just got yesterday from head office,we were asked if anyone would like to take the mon
29 Post contains images Breaker1011 : The woes of the US dollar are primarily to blame for the oil mess. The Fed purposely keeps devaluing the dollar by cutting rates, and since oil is sol
30 SLCUT2777 : I'm suspecting SLC will see the majority of the CRJ cuts, and there will be many 50 seat CRJs parked between the terminal E concourse and the west ru
31 STT757 : CVG which is dominated by 50 seat Regional Jets is in big trouble if these high oil prices continue.
32 DeltaL1011man : and replace them with....? right now I wouldn't worry to much about mainline as much as DLC. CR1s and CR2s will have to go. I can see an order for ma
33 Post contains images SLCUT2777 : Poetic justice would be aside from electing a Democratic administration and wider control of the left of center party in congress, the oil speculatio
34 Breaker1011 : I just don't think we're going to see many new orders, despite my hopes to the contrary. WT is correct, in the end, the troubles of the domestic airl
35 ConcordeBoy : Indeed... Kellner didn't either in his (CO) message, which I found interesting, considering that he was so quick to state that they wouldn't be askin
36 Skibum9 : While I am not condoning the SUVs, I do think that they are unfairly targeted as there are many vehicles that get just as bad of fuel economy. Howeve
37 LawnDart : I would expect to see about 5-10% reduction in domestic mainline capacity, with the parking of double-digit numbers of narrow-body aircraft (the kind
38 MD-90 : A minor amount is driven by increased demand in other countries, but most of it is due to the incredible weakness of the dollar. Well, that and in th
39 WorldTraveler : without turning this into a p8793ng contest between airlines, CO is in better shape in terms of fuel efficiency of their mainline fleet but they aren
40 Sxf24 : Yes. The demand (and yields) are there. Unfortunately, the EMB is the only aircraft in DL's fleet that can operate into SUN.
41 Bmacleod : How would the shutdown of RJ operations save money? They use less fuel than the bigger 737s and MD-88s. Surely there has to be a place for them. Corr
42 FWAERJ : Comair is owned by Delta (though it is for sale). ASA is not owned by DL (though it used to be owned by DL)... it is owned by SkyWest's parent compan
43 Skibum9 : Easy - less seats to cover the fuel usage and other operating costs than a mainline jet. While the RJ may burn less fuel overall, it burns more fuel
44 A330323X : MCN is an EAS route that they've been trying to drop for a year, but no one else wants to pick it up. So DL is stuck flying it, but they're being com
45 WorldTraveler : OH is not officially for sale. DL would probably accept an offer if someone made one but that seems rather unlikely given the current economical envi
46 DeltaL1011man : DL said OH is NOT for sale.....they want to keep as many assets as they can for a merger. (there was a PR about this but I'm to lazy to look it up)
47 Flynavy : EAS should be put to pasture. Either that, or the government should subsidize the entire cost (loss) of operating each EAS market.
48 Klkla : It seems that the consensus is that RJ's will be used less, which makes sense. What I wonder is if they will spread the cuts out between all the hubs
49 Post contains images A330323X : I don't get what you're saying. The government *does* subsidize the entire loss of each EAS market, plus a 5% profit margin for the airline.
50 Aloha73G : For those who earlier were speculating about WHY the price of oil has gone up, quite simply ALL of the recent increase is due to the decrease in value
51 FlyASAGuy2005 : Well, CSG is, for the most part, served by the ATR which has a FAR BETTER operating cost than the CRJ for a route of it's length. So I go back to my
52 Flynavy : (Non-)Essential air service.[Edited 2008-03-15 13:51:53]
53 Delta4eva : It's not as simple as that. Additional demand for oil from developing countries has also caused increases in oil costs.
54 FlyASAGuy2005 : LOL. How in the hell is MCN-ATL considered essential? Wow.
55 SpencerII : I think you're going to see DL go back to some more of the CRJ routes that had been "pay per departure" to fly at your own risk, for the connection ca
56 Post contains images DAL767400ER : Because to some, appearantly driving 80 miles on a 3-lane interstate is about as much of a hassle as driving 160 miles along some single-lane mountai
57 Flynavy : As is Visalia, CA's case. Apparently it's too much of a hassle to drive up to Fresno, just 36 miles.
58 Post contains links SLCUT2777 : I think there might be some different arrangements with OO on some routes at a certain point. We'll know more after Tuesday next week when Ed Bastian
59 WorldTraveler : perhaps the talk about acquiring more MD90s and trading off some CRJs will finally come to fruition. Incidentally, while it is true that the cost of o
60 SpencerII : I would agree. I do however believe cities being dropped like BLI & FAR will result in the city being offered to a carrier such as OO as a "for risk"
61 STT757 : CO already walked away from about 69 Expressjet ERJs, they have the ability to walk away from more including their current arrangement with Chataqua.
62 MD-90 : A wholly owned small jet provider isn't much of an asset these days. Delta's most likely not looking to sell because they know they'd take a big loss
63 Post contains links and images Nwaesc : Here's a list of EAS cities by state as of Nov. 2007. You be the judge of what's "essential," and what isn't. http://ostpxweb.dot.gov/aviation/X-50%2
64 Post contains images DAL767400ER : F*ck me, $2 million per year for MCN? Besides Garden City, KS, that's the highest sum of all EAS cities, and Macon probably has the best access to a
65 WorldTraveler : but they can't walk away from anything else now. What they did then had nothing to do with fuel prices. They will have good fuel economy but those pl
66 CODC10 : Continental is paying down quite a bit of the debt... I don't really want to scour the last 10-K but CO did reduce their debt burden quite substantia
67 Sxf24 : DL has already written off most of the goodwill related to OH.
68 WorldTraveler : kind of a narrow definition, don't you think. I'm not sure the fans of AA necessarily like the way you carve up reality.
69 Expressjetphx : Skyrocketing oil prices, especially lately, have less to do with Asian demand (numbers show that overall global demand has not increased significantl
70 CrAAzy : Just clarification that AA is not "far" behind CO with regard to winglets on aircraft. As of Jan 16th conference call AA stated the following: 1) All
71 SESGDL : AA only has 77 737-800s. I don't know where the number 148 came from. Jeremy
72 Post contains links SkyguyB727 : Here's an eye opening figure that I found in a NY Times article from 01 FEB 08. "Exxon Mobil earned more than $1,287 of profit for every second of 200
73 CALMSP : a drastic cutback in LAX?? Who knows. But below is something I would imagine happening. --cut all LAX-east coast cities except the hubs (CMH/JAX/RDU,
74 Post contains links Pixpixpix : It came from AA Fleet profile http://www.aa.com/content/amrcorp/co...orateInformation/facts/fleet.jhtml except that crAAzy read the wrong numbers.. T
75 FlyASAGuy2005 : I didn't see MEI on that list. I always wondered how that station did. Maybe that might be one to "temporarily" close. I was thinkingthe same thing.
76 Post contains images StasisLAX : The US dollar's value is now in free-fall. The U.S. financial industry also is very shaky, as evidenced by the Federal Reserve's bail-out of Bear Ste
77 Post contains images CODC10 : Pot, kettle, black much?   If I wasn't boarding in 3 minutes I'd happily run a search for a plethora of examples! You and I both know a 1993 Chapter
78 FLYACYYZ : Given the spiralling cost of fuel, I think "comprehensive changes" means seeking any and every way to generate additional revenue. Aside from cutting
79 FlyASAGuy2005 : One thing that got me thinking was an article I read this morning about the Delta Shuttle. How beneficial is this service to Delta's bottom line? Anyb
80 Mcdu : The Cost per Available Seat Mile for a CRJ is off the chart compared to the mainline 737 or MD80. The CRJ's were used in the last downturn because fu
81 LawnDart : I'm confused...if, as you state, the cost of flying 3 mainline flights can cost less than flyig 6 CRJs, why will they cut less RJs than mainline?
82 FlyASAGuy2005 : No, read what he said again. He's saying when the cuts is all said and done, there will be less RJ flights and more mainline flights.
83 2175301 : Several years ago in a different forum I projected US auto gas prices to reach $5 per gallon in about 2010 due to supply and demand issues. That did n
84 Rjnut : In general,,, not a bad post, i have a few misgivings, but you seem to have a good grasp of reality... My gripe 5 yrs ago was the refusal of legacies
85 Post contains links Surfdog75 : A little different view here: http://reason.com/news/show/125414.html
86 DTWAGENT : I thought WN did not hedge it's fuel as much in 2008? And they did not do it on further years either. As for Champion, per the DTW news, They are expe
87 Reltney : Do you remember when Pensocola charged airtran 1/10 the cost to fly in and out of the airport compaired to Delta. Delta said you charge the same or w
88 Post contains links Mayor : I believe that Skywest has set a 5 year timetable to get rid of the Brasilias. SUN is currently thinking about building a new airport to accomodate la
89 Panamair : WN is about 75% hedged for Q1 2008, compared with 100% for the same period last year. Here are how the legacies are hedged (roughly) for Q1 2008: UA:
90 MasseyBrown : AA bought some domestic producing properties in the 80's, I believe. They sold them when fuel prices abated and they realized that managing oil produ
91 WorldTraveler : you mean you don't think it is. I absolutely believe that CO figured out how to run their business after their 2nd BK and used it to gain an advantag
92 Panamair : Yes, but I think it's fairly safe to say that none of the carriers' Q1 hedges are remotely near the current spot market price for jet fuel....Most of
93 RJNUT : and building a business plan on bad public information or misconception has been ruinous........defend that!
94 CODC10 : Or someone came in that knew how to run an airline. It was an entirely different cast of characters that really completed CO's revival from about 199
95 WorldTraveler : Which actually says their hedges have yielded positive results on the amount of fuel that was hedged. The problem is that there isn't near enough tha
96 2175301 : " target=_blank>http://reason.com/news/show/125414.html Surfdog & Others: I disagree with the analysis you linked. It is simplistic. Surplus oil prod
97 Post contains links and images ConcordeBoy : ...a Branson hallmark for years View Large View Medium Photo © Carlos Borda[Edited 2008-03-16 15:42:48]
98 LawnDart : 2175301, thank you for your very detailed analysis on oil prices and the pressures exerted upon it...very well written, and enlightening (at least, fo
99 RJNUT : problem solved...(boots) no more incidents.. and Q400 would not respond in same manner...I was in ORD that night and it was a perfect stom of cold ,
100 Skibum9 : This will have little impact on the price of oil. If anything, it will go up as the region will be more destabilized. Most of what we are seeing in p
101 Cv640 : I'm not sure the best way to phrase it is that we want to go to an arbitrator, we'd prefer there to be no merger. It just that a number of pilots here
102 FlyPNS1 : My thoughts: - Heavy reduction of RJ flying at MCO where DL still has quite a few p2p routes - Reduction of RJ flying at LAX, CVG, SLC and to a lesser
103 WorldTraveler : until there is an accident and then the public becomes very aware of what kind of aircraft and airline they are flying. I suspect you are right.... t
104 Surfdog75 : Yeah, a month is plenty long enough considering AWA/US is still fighting about it 2 years later and this deal dwarfs that one. I hope your buddy is w
105 BAW716 : I agree...in part. I think acquiring Northwest might be a smart move. Integrating it into Delta would be a VERY bad idea. Better to operate NW separa
106 Bmacleod : Bad as it may seem, I still think RJs will have a significant role to play in DL's operations. Comair and ASA will survive at least for the near term
107 EXAAUADL : problem is oil is rising as demand si declining so raising fares isnt that mush of an option. For starters DL should discontinue all Florida ptp RJs
108 DAL767400ER : No doubt about that, but there are currently around 500 RJs flying for Delta, with the large majority being 50-seaters. Even if that fleet were cut i
109 Luv2fly : For the most part unlike you, the public has a short memory.
110 Surfdog75 : The merger may be a smart move in the long term but my worry is the short term. DL has said they don't plan to operate the airlines separately and th
111 GSPSPOT : Yeah, WHAT a nice day, eh? Where's a good tele-porting machine when you need one??
112 Post contains links A330323X : Well, it'll be on there soon enough. DL/ASA have filed to exit the MEI market in 90 days. I envision this as being similar to MCN, with DL/ASA gettin
113 GSPSPOT : Where does that leave airports like GSP, who suffer not from lack of service, but sky-high fares as it is now? A good portion of potential pax for th
114 STT757 : According to Flyertalk DL will be closing 9 CRC's in May; -BOS (Main Term will close, second CRC in concourse will remain open) -SEA -HNL -SJU -PHX -D
115 Post contains images ConcordeBoy : ...yayyyy, not MSY's! Though didn't believe they'd close CVG's BizE lounge, with LGW/CDG/FRA/AMS/FCO all still there.
116 DeltaL1011man : The PR i saw said all BizE lounges will become CRCs. Or something like that.
117 Skibum9 : There are two BizE lounges at CVG. They are probably closing the smaler one.
118 Sacamojus : I was just effected by DL possible changes. I was scheduled to fly MCO-MIA on May 5th which is now cancelled as well as my return on May 10th. The pro
119 FFlyer : I would definitely drive.
120 Sacamojus : I am actually flying GSO-ATL-MCO to get married then the cruise which is now MCO-ATL-MIA then MIA-ATL-MCO. the MCO-ATL-MIA was actually bought seperat
121 EXAAUADL : There would be no SLC or CVG hub if you eliminated all RJ flying at those stations. I would cancel all PTP RJ flying that overflys a hub. So for inst
122 FUN2FLY : DL stated today: 10% reduction in domestic flying by end of this year. 15-20 mainline and 20-25 RJ reduction.
123 UAL777UK : And they are offering redundancy to 30,000! Yikes!
124 Post contains images XJET : I would disagree with this. The Mexico flying out of LAX makes the most sense to me. These routes are the ones that I have observed the most growth.
125 DAL767400ER : Sounds pretty bad, but then again, Delta is probably expecting that less than 10% will actually take up that offer, so we're actually talking more li
126 Mayor : I think what they mean is that probably 30,000 employees are eligible for this and they would hope to get at least 1,300 rank and file and 700 admin
127 DAL767400ER : May well be. That would also figure in with what Ed Bastien is saying in another article: The same article also mentions that the domestic capacity c
128 Post contains links FlyPNS1 : Well, not all of it, but a good chunk is going away. DL is cancelling: MCO-LIT/CAE/CHS/GSO/LAS/FLL/MIA DL is "substantially reducing": MCO-BOS/MSY/RI
129 MSYtristar : Hmm I don't know how they can substantially reduce MCO-MSY with only two flights as it is....I guess both of them might get the axe, although they ar
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