ord
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USA Today: Delta & SLC

Thu Sep 02, 2004 11:07 pm

Not a ton of information but interesting nonetheless...

http://www.usatoday.com/travel/news/2004-09-02-delta-utah_x.htm

Delta rep says Salt Lake will remain in the airline's picture

SALT LAKE CITY (AP) — A Delta Air Lines representative did not say whether Salt Lake City will retain its hub status, but he said the city definitely will remain in the picture after the airline's restructuring.
"We are committed to this community, and the Salt Lake hub is important to us," Sargon Younan, Delta's Rocky Mountain regional district sales manager, told the Utah Air Travel Commission on Wednesday. "We're looking to become more profitable, and definitely Utah is in that picture."

Younan said details of Delta's restructuring plan will be released in the next two weeks.

Industry analysts have speculated that Delta may have to scrap money-losing leisure routes and smaller hubs like Salt Lake City.

Airport officials continued to decline comment on Delta's restructuring and its possible effect on Salt Lake City International Airport.

Air travel commission member Keith Christensen said he is being careful not to read too much into Younan's statement. "Yeah, he said Salt Lake is definitely in the financial mix (but) I don't think you can read much more or less into that comment."

Delta is seeking $1 billion in concessions from its pilots and has threatened to file for bankruptcy if it doesn't get those cuts.

Copyright 2004 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.








 
Boeing7E7
Posts: 5512
Joined: Sat Jul 31, 2004 9:35 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 12:01 am

I woudl not be shocked if JetBlue moved in if DL turns SLC into a focus city vs. a Hub.
 
LambertMan
Posts: 1696
Joined: Tue Aug 19, 2003 1:26 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 12:22 am

Oh my, those statements sound precariously similar to what AA was saying here in STL. I think its agreed on this board that the wild card in this restructuring is SLC. Everybody has said one thing or another, and it will certain be interesting to find out what DL's plans are.
 
anthsaun
Posts: 510
Joined: Thu Apr 22, 2004 3:32 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 1:02 am

Somehow Delta is announcing a big collapse. A statement as the one presented by Younan is a sarcasm or a big lie.

Watch out for Continental, JetBlue, Frontier and maybe Southwest.
Over 80 years in business say a lot about success
 
atcboy73
Posts: 1084
Joined: Sat Sep 08, 2001 10:09 am

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 1:10 am

How many people think we might be seeing a major reduction or dropping of both the DFW and SLC hubs?

Its hard for me to tell which one is the weaker? DFW has more RJs, ok. But SLC has more mainline. Right now nothing seems to be making money.
 
kim777fan
Posts: 497
Joined: Fri Aug 06, 2004 11:47 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 7:10 am

"did not say whether Salt Lake City will retain its hub status, but he said the city definitely will remain in the picture after the airline's restructuring."

Talk about tepid, lukewarm reassurance to officials in Salt Lake City.
 
MAH4546
Posts: 24557
Joined: Wed Jan 24, 2001 1:44 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 7:32 am

I don't think they will cut the SLC hubs, but I do think there will be even more RJ flying out of SLC after the cuts are announced. The SLC hub is important part of their western network.
a.
 
swardu
Posts: 76
Joined: Fri May 07, 2004 9:06 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 12:37 pm

I would be a little surprised to see DL pull their "hub status" out of SLC, especially with all the $$$ that has been sunk into the "E" Concourse for the RJ's. But then again, if the O & D's just aren't there, then I guess it's possible. Apparently AA is also thinking about the viability of SLC as a destination as there are rumors circulating that SLC is a money losing city for them, but I've been hearing that for every day of the 8 yrs I spent with AA in SLC, so who knows.  Confused
 
iowaman
Posts: 3878
Joined: Thu May 20, 2004 2:29 am

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 12:44 pm

Watch out for Continental, JetBlue, Frontier and maybe Southwest.

I wouldn't think F9 would try that with DEN being not far away, especially after what happened when they started service in LAX( it was pretty much a failure esp. MSP). B6 doesn't have a whole lot of aircraft at the moment, when the E190's come they may have a few more available. I wouldn't think CO would want to try that, I don't think they would be very interested. WN already has a presence at SLC, that would be the best bet if DL downsized.
 
Tango-Bravo
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RE: USA Today: Delta & SLC

Fri Sep 03, 2004 1:13 pm

"We are committed to this community, and the Salt Lake hub is important to us," Sargon Younan, Delta's Rocky Mountain regional district sales manager, told the Utah Air Travel Commission on Wednesday. "We're looking to become more profitable, and definitely Utah is in that picture."

Gotta love this example of airline-speak. Seems to me that an airline (or any business for that matter) must become profitable before it can become more more profitable. Didn't Delta just recently announce a 2Q loss in the billion$? But then again, it seems like a main tenet of airline-speak is to make diametrically opposite statements on the basis of the audience for which statements are intended. Could it actually be that Delta, in the never-never land of airline speak can be making a profit and losing billion$ at the same time? Big grin
 
ckfred
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Joined: Wed Apr 25, 2001 12:50 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 1:39 pm

AA has been flying to SLC since the early 70s. The flights to ORD have to be somewhat profitable, since WN does not fly SLC-MDW.
 
SESGDL
Posts: 2614
Joined: Sat Jan 13, 2001 6:25 am

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 1:45 pm

I don't think that O&D is the major factor for DL at SLC. DL has faired EXTREMELY well at CVG, which is a smaller O&D market than SLC. SLC doesn't benefit from having service to a large number of destinations, unlike SFO, LAS, and DEN, all hubs within just a few hundred miles of SLC. Until DL is able to offer service to more places with more flights, SLC will not be a viable connecting hub. Look at DEN, UA and other carriers offer service to Eastern cities like RDU, BNA, CLT, and others, DL serves BOS, JFK, EWR, IAD, DCA, ATL, and MCO. They simply can't compete with other airlines with a hub like they currently have.

Jeremy
 
dobbs764
Posts: 3
Joined: Tue Jan 27, 2004 10:44 am

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 8:52 pm

If Delta cuts any hub it should be DFW for the fact that they do fly more RJ's in and out of there. More passangers would rather fly on bigger mainline aircraft than on the RJ's. Delta could pull most of the mainline fleet out of DFW and use them on more profitable routes.
 
kim777fan
Posts: 497
Joined: Fri Aug 06, 2004 11:47 pm

RE: USA Today: Delta & SLC

Fri Sep 03, 2004 11:51 pm

"Gotta love this example of airline-speak. Seems to me that an airline (or any business for that matter) must become profitable before it can become more more profitable."

I hear what you're saying, but most people generally consider moving from heavy losses to lighter losses or to the break-even point as becoming "more profitable" even though a profit may not actually be made. His target audience was well aware of DL's financial losses.

Maybe a phrase like "work toward a more economically viable position" would have been more accurate than "more profitable," but that's just bigger words saying the same thing.