Alias1024 From United States of America, joined Oct 2004, 2747 posts, RR: 2 Posted (10 months 3 weeks 4 days 15 hours ago) and read 5289 times:
Announced this afternoon that Delta will join the S&P 500 index September 10th. Shows just how far DL has come from its bankruptcy, to now be included in the index. The hard work of everyone at Delta is paying off.
suseJ772 From United States of America, joined Aug 2005, 815 posts, RR: 1
Reply 6, posted (10 months 3 weeks 4 days ago) and read 4191 times:
I love aviation. I love Delta. And I am very proud of what they have done over the years coming out of bankruptcy and becoming the airline they are. But as Gerard Aprey once said, airlines are bad investments. The high cost of capital, the relatively low margin and the dependence on forces way beyond your control (fuel prices, weather, regulatory bodies, etc...) make it tough to consider them a long-term investment.
I am glad they are riding the wave in the good times, but in the airline industry the good times are never the "GREAT" times and the bad times can be some horrible times.
jetblueguy22 From United States of America, joined Nov 2007, 2760 posts, RR: 4
Reply 7, posted (10 months 3 weeks 3 days 21 hours ago) and read 3416 times:
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Quoting suseJ772 (Reply 6): But as Gerard Aprey once said, airlines are bad investments. The high cost of capital, the relatively low margin and the dependence on forces way beyond your control (fuel prices, weather, regulatory bodies, etc...) make it tough to consider them a long-term investment.
I used to completely agree with you. But in recent times, not so much. Margins are slowly but surely improving. Mergers have meant less capacity into many markets. The market is a lot different than where it was 10 years ago. It has drifted from the "glory days" of flying into a realistic business model. Airlines are better utilizing space on aircraft, they are charging for bags and meals on short sectors, they are constantly evaluating ways to lower fuel burn, etc. Yes they have always been a business. But I think they are now starting to evolve into realizing declaring bankruptcy every 5-10 years isn't sustainable. Yeah there are things outside their control like fuel and weather, but they are getting smarter about how they deal with those situations.
Congrats to DL. This is pretty huge. It goes to show how the leadership has done an excellent job of running the airline and evolving it. DL's product may not be sexy like some other airlines, but I can always count on them to get me from A to B comfortably, on time, and staffed with a nice and professional crew. I'm a DL fanboy so I'm always going to talk them up. But I really do hope some of the stragglers can get their act together. It would be awesome to have a somewhat stable industry for once.
You push down on that yoke, the houses get bigger, you pull back on the yoke, the houses get bigger- Ken Foltz
LipeGIG From Brazil, joined May 2005, 11418 posts, RR: 59
Reply 8, posted (10 months 3 weeks 3 days 20 hours ago) and read 3321 times:
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Quoting jetblueguy22 (Reply 7): I used to completely agree with you. But in recent times, not so much. Margins are slowly but surely improving.
In fact I believe airlines are adapting to these times. They learn how to create new sources of revenue, took advantage of credit card agreements as a working capital source, focus on keeping high yield and people that travel a lot.
Learn also that they need to do a non-stop investment in capital looking to keep their fleet as new as possible and always reducing fuel consumption.
Delta on S&P 500 just shows that's the way to do it.
New York + Rio de Janeiro = One of the best combinations !
FlyASAGuy2005 From United States of America, joined Sep 2007, 7004 posts, RR: 11
Reply 12, posted (10 months 3 weeks 3 days 12 hours ago) and read 2088 times:
Quoting rwy04lga (Reply 11): A lot of former 'Red Tails' were bad-mouthing him prior to the IAM vote. I don't see what their problem was with him. I think he's doing a top-notch job and rue the day he leaves Delta.
He truly is a great leader. Many changes have happened right before my eyes over the past five years. Goals that I thought were completely impossible, we're hitting on a daily basis. The KPIs for one although many hate them serves a tremendous purpose and is the driving force of our top tier performance.