stlgph
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Delta Air Lines "speaks"

Wed Dec 14, 2011 3:17 pm

Highlights from this morning -

- 4th quarter profit margin outlook boosted on increase of fares
- lost money on Europe this year, expects profit return in 2012
- int'l. travel demand falls 7.4% for Delta, above industry rate of 3%
- Latin America travel demand rising, outperforming Atlantic/Pacific
- Japan is 10% of revenue
- fuel costs rose 30% this year
- expects 2011 profit of $800 million
- expects full profit in 2012
- will continue to 2/3% network cuts
- expects $150-$200m savings in smaller jets in coming years
- financial services bookings up 19% in last four weeks
- corporate travel revenue up 14% in past month
- DAL sees opportunities in AMR restructuring
- DAL expects more industry consolidation
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DL WIDGET HEAD
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 3:23 pm

Good news all...wonder what the "AMR" opportunities will be...
 
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kc135topboom
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 3:28 pm

Hopefully DL will make DFW a focus city, or a mini-hub again.
 
4holer
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 3:32 pm

That's all well and good, but do they address the question of smoking on any Delta flight?  


Interesting that they report "past four weeks" results. Does that mean that prior to the last month, these metrics were not so good?
Ghosts appear and fade away.....................
 
727LOVER
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 3:35 pm

I'm curious if Japan traffic has recovered since the disaster.
Love Trumps Hate
 
stlgph
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 3:37 pm

Quoting 4holer (Reply 3):
Interesting that they report "past four weeks" results. Does that mean that prior to the last month, these metrics were not so good?

Didn't get a chance to have it answered. Usually it's the "latest and greatest" to measure current operations as Anderson prepares to speak at the investors conference in New York City.
if assumptions could fly, airliners.net would be the world's busiest airport
 
FlyASAGuy2005
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 4:37 pm

Quoting KC135TopBoom (Reply 2):
Hopefully DL will make DFW a focus city, or a mini-hub again.

AMR being in bk or not, I don't see then encroaching on the true hubs like DFW or MIA. I do, however, see them cherry picking others and capitalizing on their state but grabing more corporate contracts in LAX and LGA. With the LGA swap, it's almost certain that AA will loose out on a lot more traffic and contracts than they already have over the past 12 months. I think LAX will be a huge focus for Delta in 2012. And as i've stated before, rumor is they've been trying to pry the RDU-LHR subsidy from them for almost 2 years now. DL has grown a pretty nice operation at RDU over the years and the station hovers around 50 flights a day; a little more during the summer months.

Quoting 727LOVER (Reply 4):
I'm curious if Japan traffic has recovered since the disaster.

It has but not fully. That should speak volumes with the fact that they say it accounts for 10% of revenue. That's HUGE. They've also been doing nicely on Asia-Hawaii.

Quoting DL WIDGET HEAD (Reply 1):
Good news all...wonder what the "AMR" opportunities will be...
Quoting stlgph (Thread starter):
- DAL sees opportunities in AMR restructuring

My biggest question. It may simply mean, we will steal more of their traffic and corporate contracts, or it may mean something bigger. Who knows. I've also 'heard' that US has been eyeing SkyTeam for a while. Let's face it. they are the ugly redhead stepchild, much like CO was in ST. As the old saying goes, if you can't beam-em, join-em.
What gets measured gets done.
 
panamair
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 4:52 pm

Quoting stlgph (Thread starter):
DAL sees opportunities in AMR restructuring

I wouldn't make much of that comment at all...it was in the context of capacity discipline and that the AMR restructuring will involve capacity discipline, which will be good for everyone....

Quoting stlgph (Thread starter):
- lost money on Europe this year, expects profit return in 2012

Made lots of money on transatlantic during peak season, but the low winter season always comes back and eats away all the summer profits. Hence the big transatlantic capacity cuts for this winter.

Quoting 4holer (Reply 3):
Interesting that they report "past four weeks" results. Does that mean that prior to the last month, these metrics were not so good?

Overall Q4 2011 RASM growth of 11-12%:
October saw 10% growth year-over-year
November saw 14.5% growth year-over-year
December coming in at 11-12% growth.

Quoting 727LOVER (Reply 4):
I'm curious if Japan traffic has recovered since the disaster.

Japan recovering nicely. Japan point-of-sale (POS) has recovered to pre-quake levels already last quarter. US POS to Japan has been slower.
 
stlgph
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 4:54 pm

Quoting FlyASAGuy2005 (Reply 6):

From my own personal view, I'm in agreement that LAX and LGA will be a focus for DAL in 2012. I could always be wrong ...

I know their marketing department has been shopping out long-term advertisement contracts in the NYC local market.
if assumptions could fly, airliners.net would be the world's busiest airport
 
BoeingGuy
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 4:56 pm

Quoting stlgph (Thread starter):
DAL expects more industry consolidation

I wonder what they are expecting in terms of further consolidation, that they buy out AS and then gut it like US + PSA or AA + QQ, which is what likely would happen.

Maybe consolidation benefits the executives or somebody, but I've sure never personally reaped any benefits from consolidation, except maybe higher fares and fewer flights to some places.
 
FlyASAGuy2005
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 4:59 pm

Quoting panamair (Reply 7):
Made lots of money on transatlantic during peak season, but the low winter season always comes back and eats away all the summer profits. Hence the big transatlantic capacity cuts for this winter.



RA himself said earlier in the year that they are done with making tons of money over the summer only to give away the farm towards the end of the year. Makes sense IMHO.

Quoting panamair (Reply 7):
Overall Q4 2011 RASM growth of 11-12%:
October saw 10% growth year-over-year
November saw 14.5% growth year-over-year
December coming in at 11-12% growth.



The numbers are truly exciting to watch and I look forward to what 2012 has in store. 2011 also proved to be a great year operationally. 2011 summer vs 2010 was like night and day. All hubs have been breaking internal records as far as bag deals, on-time performance, customer complaints, etc. Have to keep the momentum going through next year.
What gets measured gets done.
 
FURUREFA
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:03 pm

Quoting BoeingGuy (Reply 9):
but I've sure never personally reaped any benefits from consolidation, except maybe higher fares and fewer flights to some places.

Like increased stability in an industry that has never made money in which every pre-deregulation carrier except WN and AS have filed for bankruptcy?
 
peanuts
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:07 pm

Thanks for the synopsys.

Quoting stlgph (Thread starter):
DAL expects more industry consolidation

Definitely. No doubt in my mind.
It may even involve DL, as union issues with PMNW are resolved, for now.
This industry is extremely costly to operate. More consolidation makes sense. It would also help the CRJ "issue". Will it benefit some, hurt others? Sure.

Quoting stlgph (Thread starter):
DAL sees opportunities in AMR restructuring

Duh!

Quoting stlgph (Thread starter):
financial services bookings up 19% in last four weeks
Quoting stlgph (Thread starter):
corporate travel revenue up 14% in past month

Mmm... Economy really bouncing back? Or folks packing up and leaving?   

Quoting stlgph (Thread starter):
fuel costs rose 30% this year

Just insane these volatile conditions this industry is being subjected to.
And the vocal ones keep yapping about "bag fees". Whatever.

Quoting stlgph (Thread starter):
Japan is 10% of revenue

The earthquake shocked DL's numbers as well...

Quoting stlgph (Thread starter):
Latin America travel demand rising, outperforming Atlantic/Pacific

Expect a nice effort on DL's part developing this segment. GOL was just the start.

Quoting stlgph (Thread starter):
int'l. travel demand falls 7.4% for Delta, above industry rate of 3%

Japan factor, as well as Europe issues. DL is more exposed in these areas. More risks as well. In this case it turned for the worse.

Quoting stlgph (Thread starter):
4th quarter profit margin outlook boosted on increase of fares

Some hard work starting to pay off.
LGA is gonna help this as well.
 
Cubsrule
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:10 pm

Quoting FlyASAGuy2005 (Reply 6):
I've also 'heard' that US has been eyeing SkyTeam for a while. Let's face it. they are the ugly redhead stepchild, much like CO was in ST. As the old saying goes, if you can't beam-em, join-em.

The trouble is that US brings nothing to Skyteam. CLT is a weaker version of ATL. PHL is a weaker version of LGA/JFK. PHX isn't good for much of anything that SLC and LAX aren't.
I can't decide whether I miss the tulip or the bowling shoe more
 
stlgph
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:35 pm

More tidbits to share --

Delta sees "lots of opportunities" in markets AirTran dropped
Delta execs see AirTran as "less aggressive" than usual
NYC aviation market is worth $14 billion in total
Pilot deal expected by end of 2012
84% of 160 million annual passengers check in digitally
Bookings up at Delta.Com by 4%
More than 1 million people a day visit Delta.com
if assumptions could fly, airliners.net would be the world's busiest airport
 
bobnwa
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:48 pm

Quoting 4holer (Reply 3):
That's all well and good, but do they address the question of smoking on any Delta flight?

Do not get the point of your question, What do you suggest Delta or any airline do,regarding smoking on their flights?
 
BoeingGuy
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:51 pm

Quoting bobnwa (Reply 15):
Quoting 4holer (Reply 3):
That's all well and good, but do they address the question of smoking on any Delta flight?

Do not get the point of your question, What do you suggest Delta or any airline do,regarding smoking on their flights?

There's a joke in there somewhere, that is obvious to him, but we don't get. A lot of people don't get my "dry" sense of humor either.  
 
peanuts
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 5:54 pm

Quoting BoeingGuy (Reply 9):
I wonder what they are expecting in terms of further consolidation, that they buy out AS and then gut it like US PSA or AA QQ, which is what likely would happen.

Not always. It depends on the reasons as to why a carrier is being merged/acquired.
I think we need to take another look at how this is done in the US. Sometimes we are just too focused on changing (integrating) everything over too quickly in order to get the maximum synergy cost savings as quickly as possible.

Ignoring any potential regulatory road blocks, here are my two theoretical examples as crazy as they may seem, just to get my point across:

US Airways. A merger with DL would likely result in full integration/dismantlement of US. CLT and PHL are just too close to existing hubs. US doesn't serve a "niche". they are a full blown east coast competitor.
The stronger brand of the two should remain.

AS and/or HA: These are successful carriers that have a "niche", "boutique" feel to them. DL would be foolish to tarnish with that image. At the expense of not getting full synergy cost savings with a merger, I would keep the brands intact. The pay off long term could be huge. AS is a great example of a carrier that needs to keep its identity within the larger company. It could work. Also, give them all the LOCAL/REGIONAL operations west of Denver, including hub SLC.
HA could also make money for DL as a somewhat autonomous operation.

I know, US carriers have an awful track record with their own "spin-offs". Let's look at Asia and maybe try something different this time around.

[Edited 2011-12-14 10:05:12]
 
panamair
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:04 pm

Other points:

- $375m CapEx in Q4, including the $100m investment in GOL

- Q4 profit sharing expense expected to be $75m

- Interesting slide of DL's corporate business make up:
-19% Financial Services (last 4 wks booked revenue up 19% Y-O-Y)
-17% Manufacturing (up 10% Y-O-Y)
-14% Technology (up 16% Y-O-Y)
- 9% Health Care (up 20% Y-O-Y)
- 7% Auto (up 16% Y-O-Y)
- 3% Banking (up 5% Y-O-Y)

- 2012 non-fuel unit cost increases (est. up 2 to 4%) attributed to:
- Wage cost harmonization, industry standard rates, pension (low interest rates, etc.)
- LGA terminal renovation costs: connector between Terminals C and D, renovation of Terminal C (start March 2012)
- ATL Terminal F (ATL capacity to be flat year-over-year)
- Capacity reduction (fixed cost/overhead absorption)

- New 4-year agreement with AMEX for pre-purchase of miles: $675m to Delta every December for four years interest-free (with "payback" to AMEX in peak summer every year) will help smooth out cash flow during the year (cash to Delta at start of the weak winter period).

- Airport/reservations staff are now only 60% full-time postions and FA temp leave programs helps airline with huge capacity differential between summer peak and winter lows

- About 20-25% of revenue base is from 'managed' corporate traffic. Corp. traffic is down 10-15% relative to the peak of 2007-2008. Domestic is above and ahead of 2008 because of reduced capacity, better product, merger benefits. Premium international is still 10-15% below 2008.

- Flight attendants: strategy is for US-based FAs to do international flying, that's why hiring of language FAs continues. PMNW foreign-based FAs - numbers decreasing - didn't say whether will keep or eliminate them.

- Japan: $100m in revenue benefit anticipated for 2012 due to market recovery

- Looking to further develop alliance(s) with MU and CZ. DL's current slot portfolio at PEK and PVG does not allow for meaningful domestic connections to MU and CZ flights.

- No big new international markets for 2012. Fine-tuning and optimizing what's there now.

- Latin America growth is mostly coming from upgauging. North America - slow but positive growth and good earnings momentum. Europe - anticipating recession next year so planning accordingly (with capacity cuts in the JV)

- Interesting slide about RASM: DL vs industry average Q3 2007 vs Q3 2011:
- Domestic: Was 104%, now 105%
- Transatlantic: Was 93%, now 100%
- Transpacific: Was 98%, now 106%
- Latin: Was 87%; now 88%
- Overall System: Was 100%; now 102%

- LGA slot swap: beef up existing markets with some new markets. 100 new flights to 29 new destinations (I'm sure some of these destinations will be 'new' to DL, but were formerly served by US anyway). Expect >$100m investment in facilities

- NYC: given DL's capacity in NY, should really be getting an additional $200m in revenues. Gap closing (used to be around $300-$350m gap). DL's NY market share grown 3.5 pts from 2009 to 2011, which translates to about a $100m gain. Share gain in primary business markets has been bigger. Brand awareness of DL in NYC now is highest it has been.
- NYC travel market as a whole is $14bn; $8bn is domestic.

- Paid load factor in F (domestic) has risen to 30%; First Class upsells help

- 84% of DL pax check in digitally now. Mobile to account for 10% of check-ins in 2012. Revenues generated through booking on delta.com = >$8 billion in 2011.

- delta.com still on antiquated platform; new platform to debut in phases, starting in April 2012.

-
 
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aloha73g
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:05 pm

Its great to see airlines finally doing well after sooooooooo many years of craziness. Hopefully this trend continues!!

Quoting 4holer (Reply 3):
That's all well and good, but do they address the question of smoking on any Delta flight?
Quoting bobnwa (Reply 15):

Do not get the point of your question, What do you suggest Delta or any airline do,regarding smoking on their flights?
Quoting BoeingGuy (Reply 16):
There's a joke in there somewhere, that is obvious to him, but we don't get. A lot of people don't get my "dry" sense of humor either.

It might have something to do with that fact that, "Smoking is NOT allowed on any Delta flight"  http://www.youtube.com/watch?v=CJ41dmw-LRk&feature=related

-Aloha!
Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
 
FURUREFA
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:19 pm

Quoting panamair (Reply 18):
- Airport/reservations staff are now only 60% full-time postions and FA temp leave programs helps airline with huge capacity differential between summer peak and winter lows

I'm even further convinced that the Ready Reserve program gives DL a HUGE advantage in the area of labor costs. DL is really unique in that its much cheaper for the company do staff its own above-wing employees domestically than contract out.

Ready Reserve is unique in the industry, and I think that will be a major advantage against UA and AA.
 
BoeingGuy
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:19 pm

Quoting aloha73g (Reply 19):
Quoting BoeingGuy (Reply 16):
There's a joke in there somewhere, that is obvious to him, but we don't get. A lot of people don't get my "dry" sense of humor either.

It might have something to do with that fact that, "Smoking is NOT allowed on any Delta flight" http://www.youtube.com/watch?v=CJ41d...lated

Oh yeah, I've noticed the waving finger of doom too (on a real flight, not Youtube). I get it now.
 
FlyASAGuy2005
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:37 pm

Quoting FURUREFA (Reply 20):

Trust and believe that the entire union spat and keeping them out had almost everything to do with the RR program. I don't think they would loose it but the headcount would go down dramatically, with benefited positions going up.
What gets measured gets done.
 
indiansbucs
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:43 pm

Quoting DL WIDGET HEAD (Reply 1):
Hopefully DL will make DFW a focus city, or a mini-hub again.

I would say... more likely MIA... for the next reasons:

Quoting stlgph (Thread starter):
Latin America travel demand rising, outperforming Atlantic/Pacific
Quoting peanuts (Reply 12):
Expect a nice effort on DL's part developing this segment. GOL was just the start
Quoting DL WIDGET HEAD (Reply 1):
Good news all...wonder what the "AMR" opportunities will be...

... DL already started a mini network in MIA via codesharing and a few routes to slowly become a solid #2 carrier there in the future.
 
FlyASAGuy2005
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 6:55 pm

Quoting indiansbucs (Reply 23):

Idk about that indiansbucs. DL will ALWAYS be left with the low hanging fruit in MIA. American Airlines is Miami and the bk will not change that. DL does not have the resources to but up the kind of agressive campaign needed to make a dent in the market. I think what RA/Bastian is talking about is crippling AA in LGA and LAX through corporate and premium traffic. If you look at corporate contract growth YoY for DL, the numbers are through the roof. They've bee. Taking a piece of the pie, little by little, quarter by quarter and it will only get worse IMHO.

A jewel that I don't see many talking about is JFK-LatAm/Caribbean. They've been relatively weak in the market compared to B6 and AA. In the DR for example, JetBlue has been printing money for quite a while now. I think DL could do much better in this arena and much of the growth can be made organically with what they have and won't take much resources.

[Edited 2011-12-14 10:58:23]
What gets measured gets done.
 
lucky777
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:11 pm

Quoting stlgph (Thread starter):
expects 2011 profit of $800 million

Since the 2nd quarter saw $200M profit and the 3rd quarter saw $550M, that means they're only expecting a profit of $50M for the 4th quarter? How could you set aside $75 million for profit sharing then?
 
FlyPNS1
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:17 pm

Quoting panamair (Reply 7):

Made lots of money on transatlantic during peak season, but the low winter season always comes back and eats away all the summer profits. Hence the big transatlantic capacity cuts for this winter.

True, though DL is cutting Transatlantic capacity even for next summer.

Quoting lucky777 (Reply 25):
Since the 2nd quarter saw $200M profit and the 3rd quarter saw $550M, that means they're only expecting a profit of $50M for the 4th quarter? How could you set aside $75 million for profit sharing then?

Remember though that DL had a loss in the 1st quarter, so I expect the profit in the 4th quarter will actually be in the range of 300-400 million.
 
PIEAvantiP180
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:20 pm

What really disappoints me is that they are not planning any new big route announcements next year. With ATL to PVG now suspended I was hoping for an announcement of SEA to PVG. And with a new growing partnership with GOL maybe
a JFK to GIG. But all in all Im glad to DL doing good and continuing to be profitable in these tough economic times. Best of luck to DL and all of its employees.
 
panamair
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:24 pm

Quoting lucky777 (Reply 25):
Since the 2nd quarter saw $200M profit and the 3rd quarter saw $550M, that means they're only expecting a profit of $50M for the 4th quarter? How could you set aside $75 million for profit sharing then?

GAAP Net Profit:

Q1 2011: -$318m (loss)
Q2 2011: +$198m
Q3 2011: +$549m

Therefore Q4 2011 should be a Net Profit of $370million.

[Edited 2011-12-14 11:25:22]
 
DL WIDGET HEAD
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:24 pm

Quoting PIEAvantiP180 (Reply 27):
What really disappoints me is that they are not planning any new big route announcements next year.

I must have missed this comment from the webcast. Despite the 2-3% capacity reduction planned for next year I wouldn't be surprised by a "big" route announcement or two throughout 2012.
 
stlgph
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:30 pm

$318 million loss in the 1st quarter of this year.

oh, and for what it's worth

E-Bay & GoGo InFlight teaming up to offer 30 mins free wifi on Delta now through Jan 2
if assumptions could fly, airliners.net would be the world's busiest airport
 
PIEAvantiP180
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 7:32 pm

Quoting DL WIDGET HEAD (Reply 29):

If you read panamair recap of the presentation it states no big international route announcements for 2012.
 
FlyASAGuy2005
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 8:34 pm

Quoting PIEAvantiP180 (Reply 31):

That's what they say now, based on the current market. Doesn't mean they can't drop a bomb or two next year if the opportunity presents itself...  
What gets measured gets done.
 
PIEAvantiP180
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 8:58 pm

Quoting FlyASAGuy2005 (Reply 32):

I'm hoping that you are more then right. All those idling wide bodies need work, they belong in the air. Well something that I just realized is that allot of the widebodies will be going thru mods. Either way I'm hoping for something. Maybe new configured 747 to SYD and redeploy the 777 to either BNE or MLB to strengthen the JV with VA.
 
BoeingGuy
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 9:05 pm

Quoting PIEAvantiP180 (Reply 33):
Maybe new configured 747 to SYD and redeploy the 777 to either BNE or MLB to strengthen the JV with VA.

I understand what you meant, but it's MEL. MLB is that smaller town in Florida with the same name.

But yeah, it would be nice to see DL expand to AKL, CHS, MEL and BNE. That way us AS mileage plan members can also earn elite qualifying points to that region.   (QF participates in AS's plan, but you don't earn EQM). And nothing against QF, but their 744 coach seats are horribly cramped. One thing to have like 30" seat pitch on a short CRJ flight; it's another thing on a 15 hour flight.
 
peanuts
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 9:09 pm

Quoting PIEAvantiP180 (Reply 33):
Either way I'm hoping for something.

Eagerness for growth is understandable.
DL is going to grow in a measured way, however. There are a lot of things going on behind the scenes. Some patience will pay off at some point. Probably not as quickly as you would like but that's just the way it is.

If you look back 3-4 years though, you'd have to admit: a lot has been done already...
You look back again 3-4 years, 4 years from now, you'd probably be surprised, again.

Just enjoy the journey.  
 
BoeingGuy
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 9:16 pm

Quoting peanuts (Reply 35):
Quoting PIEAvantiP180 (Reply 33):
Either way I'm hoping for something.

Eagerness for growth is understandable.

So what's on the possible list for international growth?

SLC-AMS
PDX-CDG
SEA-PVG
SEA-LHR (again)
LAX-AKL
SJC-NRT
 
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ERJ170
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RE: Delta Air Lines "speaks"

Wed Dec 14, 2011 9:20 pm

Quoting FlyASAGuy2005 (Reply 6):
And as i've stated before, rumor is they've been trying to pry the RDU-LHR subsidy from them for almost 2 years now. DL has grown a pretty nice operation at RDU over the years and the station hovers around 50 flights a day; a little more during the summer months.

Upgrade some of the RJ routes to mainline and I would agree. RDU recently (last 4 months or so I believe) became a connection opportunity. I believe before that, it was strictly O&D for the route additions DL made. I could see them using these connection opportunities for some international flights.

Right now, RTRP is ready to pay for LHR, CDG, and FRA. The new airport director in town is now looking at offering incentives for SJC or SFO, SEA, and somewhere else (can't remember). But the majority of those destinations are right up DLs alley. Will be interesting to see what will happen.

RTRP = Research Triangle Regional Partnership; seperate from RDUAA; usual source for subsidy
Aiming High and going far..
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 12:55 am

Quoting ERJ170 (Reply 37):
Upgrade some of the RJ routes to mainline and I would agree. RDU recently (last 4 months or so I believe) became a connection opportunity. I believe before that, it was strictly O&D for the route additions DL made. I could see them using these connection opportunities for some international flights.

They mentioned that specifically in their winning in NYC slides.

For those interested, the call on PDF below. Very interesting read and well put together. What's great is the amount of debt they've managed to pay down since 2009 and they are actually on track for 2013. Performance numbers are also very strong moving into next year.

http://images.delta.com.edgesuite.ne...l_reports/DeltaInvestorDay2011.pdf
What gets measured gets done.
 
KrisFlyerGold
Posts: 21
Joined: Thu Dec 15, 2011 12:55 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 1:10 am

It's no surprise to me at least, that after DL focused so much on expanding international flying to the point where it is almost the only profitable venture they operate, that they would some day have a reckoning. Given the US Dollar is in the toilet as well as the economy, not to mention the onerous / punitive US visa and customs requirements, many if not most foreigners have decided to forgo the USA as a tourist spot, and even as a connection point. After all, why bother dealing with the ridiculous TSA, when you can just bypass them by using Air Canada, LAN, or a European carrier to get where you're going. There's a reason why US intl travel has stagnated since 9/11 while every other region has exploded with growth. Some things are simply too much of a hassle to deal with, like the TSA - American legacy carriers.
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 1:26 am

Quoting KrisFlyerGold (Reply 39):

What are you talking about?? You have it backwards. Europe-USA has been booming because of the weak USD. Europeans have been able to afford relatively cheap vacations in the US because of it and local tourist markets such as MCO are more than willing to bend over backwards and offer ridiculously cheap packages to keep the numbers up. It's USA-Europe that's hurting because the US POS simply cannot afford the summer vacations over there anymore.
What gets measured gets done.
 
NWAROOSTER
Posts: 1031
Joined: Mon Feb 14, 2005 2:29 pm

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 1:47 am

Which 140 less efficient aircraft does Delta plan on retiring? I know they want o eliminate the 50 seat RJs and the Saab 340s. I do not know the numbers. Anyone know?   
Procrastination Is The Theft Of Time.......
 
peanuts
Posts: 826
Joined: Thu Dec 24, 2009 1:17 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 2:02 am

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Quoting KrisFlyerGold (Reply 39):
Some things are simply too much of a hassle to deal with, like the TSA - American legacy carriers.

Woosh...
May I recommend SQ, for you? Don't worry about the rest.
 
FlyASAGuy2005
Posts: 3965
Joined: Sun Sep 23, 2007 4:55 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 2:08 am

Quoting NWAROOSTER (Reply 41):


Beating the same drum. The same 140 they've been talking about since last year. The Saabs, CR2s, DC9-50s and some 757s.
What gets measured gets done.
 
FSDan
Posts: 922
Joined: Mon Jan 03, 2011 5:27 pm

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 2:30 am

Quoting PIEAvantiP180 (Reply 27):
What really disappoints me is that they are not planning any new big route announcements next year.
Quoting PIEAvantiP180 (Reply 31):
If you read panamair recap of the presentation it states no big international route announcements for 2012.

Actually (according to panamair's post above) they said "no big new international *markets*". Something like SEA-PVG would not involve opening a new station anywhere...

Quoting ERJ170 (Reply 37):
Upgrade some of the RJ routes to mainline and I would agree. RDU recently (last 4 months or so I believe) became a connection opportunity. I believe before that, it was strictly O&D for the route additions DL made. I could see them using these connection opportunities for some international flights.

I wouldn't expect DL to grow RDU much more. They will need planes for the LGA hub.
This is my signature until I think of a better one.
 
PIEAvantiP180
Posts: 486
Joined: Tue Sep 15, 2009 6:04 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 6:23 am

Quoting FSDan (Reply 44):

While I'm hoping you are right, there are two ways to read that. The way you are reading it and the way I originally read it. Just because PVG would not be a new international station a SEA-PVG would certainly be a new big international route.
 
SkyTeamTriStar
Posts: 245
Joined: Tue Dec 11, 2007 2:47 pm

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 2:15 pm

Quoting NWAROOSTER (Reply 41):
I know they want o eliminate the 50 seat RJs and the Saab 340s.

The Saabs have been retired within the last couple weeks, or so. Per RA
 
superjeff
Posts: 707
Joined: Fri Feb 05, 2010 2:14 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 2:28 pm

Quoting FSDan (Reply 44):

Don't forget the flip side of LGA - they've given up a lot of slots at DCA to US in the trade, so they should have the equipment available that previously served DCA to use at the new LGA hub-let.

Jeff
 
panamair
Posts: 3767
Joined: Fri Oct 12, 2001 2:24 am

RE: Delta Air Lines "speaks"

Thu Dec 15, 2011 3:07 pm

Quoting superjeff (Reply 47):
Don't forget the flip side of LGA - they've given up a lot of slots at DCA to US in the trade, so they should have the equipment available that previously served DCA to use at the new LGA hub-let.

Also, I won't be surprised to see some of the current JFK domestic flying being shifted to LGA. For example, they have 3-5 flights a day (depending on the season) each to places like BUF, PIT, RIC, CLT, etc. They can simply leave one or two of those at JFK for international connections, and then shift the rest to LGA.