797
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Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 4:28 pm

Delta's CEO, Ed Bastian, interviewed by Airways Magazine today.

Few takeaways:

- "You compare us to our biggest competitors, American and United. The reason why we have the margin advantage that we have, despite paying the best profit sharing in the industry, is we have the revenue to sustain it."

- "I get very excited thinking about the international opportunities. So I expect in the next five, 10, 20 years the international growth rate will outpace our domestic growth. That will come about through the partnerships. That will come through investing in a better product. It ultimately has to come by our customers choosing Delta over any other competitive source."

- And also hits Boeing on the CSeries spat: "Everyone’s clear what Boeing was trying to do. I felt so strongly about the fact that Boeing was trying to interfere in our business, wasn’t competitive in the marketplace and was hiding behind the government to create opportunities that should not be availed.

Full interview here: https://airwaysmag.com/interview/edbastian/
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iyerhari
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 4:32 pm

Thank you. Very interesting comments on BOS - DL is clear that they have set their eyes on B6 there.
 
Dieuwer
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 4:33 pm

Delta has the better margins because they successfully brainwashed AA and UA to have them copy the worst parts of DL while at the same time have them continue to suffer from reliability issues.
Just imagine what will happen when UA decides to gut their mileage program and charge 1,000,000 miles for SFO-JFK in F. Will be their undoing.
 
jetmatt777
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 4:42 pm

Dieuwer wrote:
Delta has the better margins because they successfully brainwashed AA and UA to have them copy the worst parts of DL while at the same time have them continue to suffer from reliability issues.
Just imagine what will happen when UA decides to gut their mileage program and charge 1,000,000 miles for SFO-JFK in F. Will be their undoing.


United has been suffering from reliability issues? That’s news to me.
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727200
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 4:56 pm

Pretty cocky of him to make bold statements. As anyone with a business sense knows, its all cyclical and what is strong today, won't be at some point. We are already seeing it as UA has passed AA and is creeping up on him. Looks like they have finally gotten over the "Jeff" fiasco and concentrating on just the airline. Since they already are the largest carrier in the Pacific, and are opening new routes up left and right, I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on, just a matter of time before we have a 'changing of the guard.' He may not like that, but he wont be in the 'Captains Chair' forever.
 
Bobloblaw
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 4:57 pm

No where in the article does the CEO say what is in the title of the thread. Youd make a great journalist
 
acjbbj
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:00 pm

Considering that DL hasn't been in the headlines that much compared to UA or AA...
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SPREE34
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:11 pm

727200 wrote:
......I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on,..........


Those, so called by you, "antiques", are part of why Delta is so far ahead. UA has taken that page out of Delta's book and is using it. Your next UA flight may be on a 319 or 737 that was previously owned and operated by other airlines. If your antiques comment targets the MD line, remember, they came off the assembly line with up to a 40% longer airframe life than either Boeing or Airbus, both of which have developed life extension programs that still fall short of the original MD specifications. It's about the bucks.

You could load a DC-8 or 707 with a refurbed interior full of passengers today, and they wouldn't know and would't care what it was, when it was built, or who built it. They just want to get there, and on what they think is a cheap fare.
I don't understand everything I don't know about this.
 
SteelChair
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:18 pm

727200 wrote:
Pretty cocky of him to make bold statements. As anyone with a business sense knows, its all cyclical and what is strong today, won't be at some point. We are already seeing it as UA has passed AA and is creeping up on him. Looks like they have finally gotten over the "Jeff" fiasco and concentrating on just the airline. Since they already are the largest carrier in the Pacific, and are opening new routes up left and right, I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on, just a matter of time before we have a 'changing of the guard.' He may not like that, but he wont be in the 'Captains Chair' forever.


He is a little cocky and that's a little irritating.

As far as the antiques, they 88s and 90s are starting to retire at a more rapid rate, Delta has more than 100 739s in service and 58 new 321s, with 272 more 321s coming (counting options) plus 125 A220s. Seems like the fleet is finally being upgraded.
 
jbs2886
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:18 pm

Dieuwer wrote:
Delta has the better margins because they successfully brainwashed AA and UA to have them copy the worst parts of DL while at the same time have them continue to suffer from reliability issues.
Just imagine what will happen when UA decides to gut their mileage program and charge 1,000,000 miles for SFO-JFK in F. Will be their undoing.


Brainwashed? :roll: Or maybe AA and UA followed because it was profitable.
 
SteelChair
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:31 pm

Its a little tiresome hearing him opine about the great employee culture when DL has 30,000 fewer employees than AA because DL has contracted so much out....
 
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:43 pm

They also have a superior product, which is to be expected! Obviously despite the fact that they don't cost cut as much on the product front compared to UA or AA, they still manage to carry more passengers and command a revenue premium! Bravo to Delta!
To me, it will always be:
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- Airbus A321neoLR and A321neoXLR
- EMBRACER ERJ-170, ERJ-175, ERJ-190, and ERJ-195
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FSDan
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:44 pm

727200 wrote:
Pretty cocky of him to make bold statements. As anyone with a business sense knows, its all cyclical and what is strong today, won't be at some point. We are already seeing it as UA has passed AA and is creeping up on him. Looks like they have finally gotten over the "Jeff" fiasco and concentrating on just the airline. Since they already are the largest carrier in the Pacific, and are opening new routes up left and right, I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on, just a matter of time before we have a 'changing of the guard.' He may not like that, but he wont be in the 'Captains Chair' forever.


You didn't actually read the article, did you?

I didn't think anything he said came off as blatantly cocky or overly bold (unlike Doug's "we will never loose money again" comment a while back). Sure, he said DL is beating UA and AA on revenue... Do you doubt that? I feel like he's just stating a fact there.

Also, your statement about "antiques" seems misplaced. DL is set to retire most of their oldest aircraft over the next few years, largely being replaced by brand new aircraft. And in the article, Ed refers to the deal with WN to take the 717 fleet as one of the biggest game-changing deals they've made. Nothing wrong with used or older aircraft if they are maintained and updated properly!
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Bobloblaw
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 5:54 pm

AA is still #1 on revenue though revenue per passenger Delta is higher but United outpaces both on revenue per passenger...so not sure how Delta is "winning"

Though Delta is probably highest based on revenue per employee
 
toobz
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:17 pm

The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.
 
UpNAWAy
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:20 pm

A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.
 
dmstorm22
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:24 pm

toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


In reality, one can spin 'antiques' into an advantage that Delta has capitalized on really well, rightfully understanding that for most passengers how the plane looks on the inside is more noticeable/important than the age of the plane.

It is right to say that Delta keeps a lot of older planes in its fleet. It is also right to say they upgrade them well so it is barely noticeable to most passengers.Both are true.
 
winginit
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:30 pm

Bobloblaw wrote:
AA is still #1 on revenue though revenue per passenger Delta is higher but United outpaces both on revenue per passenger...so not sure how Delta is "winning"

Though Delta is probably highest based on revenue per employee


You're accurately pointing out that Delta commands more revenue per passenger and more revenue per employee and yet not sure how Delta is 'winning'? Really? I suppose you could look through the lens of an investor or shareholder, but there you'd be sure to find that Delta is mopping the floor with both AA and UA when it comes to EPS, Market Cap, Dividend, etc. etc. But you're not sure how Delta is 'winning'?
 
winginit
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:37 pm

UpNAWAy wrote:
A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.


That's certainly a component of it (ATL comprises 17% of DL's ASMs as of YE2018 whereas, for a point of comparison, DFW comprises 14% of AA's ASMs for the same time period) but it's a trade off with all of the US3. Just look at DL's second largest hub by ASM composition: New York (7% of their ASMs are in and out of JFK whereas 2% are in and out of LGA), where they're up against the world in a market where it's exceptionally difficult to make money (especially when you're up against UA's fortress in EWR). In contrast, AA's second largest hub is MIA (8% of their ASMs), which I think you could pretty easily consider a fortress. It'd be a interesting analysis but I think it would be a stretch to say that ATL as a hub explains away a majority of DL's success compared to their peers.
 
soflaflyer
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:39 pm

UpNAWAy wrote:
A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.


Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop
 
jumbojet
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:41 pm

727200 wrote:
Pretty cocky of him to make bold statements. As anyone with a business sense knows, its all cyclical and what is strong today, won't be at some point. We are already seeing it as UA has passed AA and is creeping up on him. Looks like they have finally gotten over the "Jeff" fiasco and concentrating on just the airline. Since they already are the largest carrier in the Pacific, and are opening new routes up left and right, I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on, just a matter of time before we have a 'changing of the guard.' He may not like that, but he wont be in the 'Captains Chair' forever.


LOL, in your wildest dreams.

Nothing cocky about his statements. Delta will be at the top for a very long time.
 
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:45 pm

Lol , re: DL and the C-Series and Boeing using the government to block it .... pot calling the kettle black. Didn’t DL try to use the government to block EK ? DL hypocrisy at its finest ...
 
jumbojet
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:46 pm

toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


And don't forget the investments and additions DL is making to its domestic fleet. While UA and AA are removing IFE, Delta is adding it. While UA and AA put 10 across on their 777, DL sticks to 9 across.

People do pick up on these things and they notice and don't forget. Sure, some will take the lowest fare no matter what but others will spend the extra $10.00 - $15.00 to fly Delta. DL does in fact command a premium over its competitors.
Last edited by jumbojet on Mon Aug 06, 2018 6:53 pm, edited 1 time in total.
 
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:51 pm

I am glad to hear that he stood up and shared his feelings about Boeing. I really think Boeing hosed itself by doing what it did. Boeing has been bold, using its bully tactics it uses on its employees, now trying to use it in the marketplace. I doubt any lessons were learned by Boeing execs, and that is a real shame.

I am hopeful that Delta finds the C Series as bonus, and orders many more of them. I also hope other US Airlines jump on the C Series opportunities as well. Delta has really come a good ways since its merger with Northwest. Thankfully the airline is investing more on its customer experience, unlike a few other airlines that joined in on the merger mania. Its been a pleasure to see Delta blossom!
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:53 pm

phxa340 wrote:
Lol , re: DL and the C-Series and Boeing using the government to block it .... pot calling the kettle black. Didn’t DL try to use the government to block EK ? DL hypocrisy at its finest ...


The real irony is DL hiding behind the Canadian government and its massive subsidy of the DL order. That order would have never, ever happened otherwise.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
ericm2031
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:55 pm

soflaflyer wrote:
UpNAWAy wrote:
A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.


Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop


According to Wiki now, WN has 127 Daily departures, 18 gates, 39 cities served nonstop

Their main rationale has been that AirTran was connecting much more traffic through ATL than WN wants/needs to. WN has been focusing more on O&D as they already have plenty of focus cities around there that are already serving their needs.

They are also using 143-seat 73G's and 175-seat 738's vs AirTran's 117-seat 717's and 137-seat 73G's, so that's quite a few more seats per departure.
 
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 6:55 pm

acjbbj wrote:
Considering that DL hasn't been in the headlines that much compared to UA or AA...


That would depend where you find your information (or rumor/innuendo/hit jobs as the case may be) or who your friends are in the mainstream mass-distributed media. Delta it much more than just an Airbus fanboy.
 
travelin man
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:02 pm

797 wrote:
Delta's CEO, Ed Bastian, interviewed by Airways Magazine today.


- And also hits Boeing on the CSeries spat: "Everyone’s clear what Boeing was trying to do. I felt so strongly about the fact that Boeing was trying to interfere in our business, wasn’t competitive in the marketplace and was hiding behind the government to create opportunities that should not be availed.

Full interview here: https://airwaysmag.com/interview/edbastian/


Sound like Delta with the ME3.
 
ericm2031
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:03 pm

dupe
Last edited by ericm2031 on Mon Aug 06, 2018 7:11 pm, edited 1 time in total.
 
Bobloblaw
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:10 pm

winginit wrote:
Bobloblaw wrote:
AA is still #1 on revenue though revenue per passenger Delta is higher but United outpaces both on revenue per passenger...so not sure how Delta is "winning"

Though Delta is probably highest based on revenue per employee


You're accurately pointing out that Delta commands more revenue per passenger and more revenue per employee and yet not sure how Delta is 'winning'? Really? I suppose you could look through the lens of an investor or shareholder, but there you'd be sure to find that Delta is mopping the floor with both AA and UA when it comes to EPS, Market Cap, Dividend, etc. etc. But you're not sure how Delta is 'winning'?


They dont have more revenue per passenger than United. If Revenue per passenger was the sole metric, then Southwest is losing badly. Define "winning" exactly. As for market cap, eps, etc, I can make more $$ investing in other industries, does that mean other industries are "winning" So what exactly does Delta "Win" by having a higher EPS and market cap???? What does Delta get by "mopping the floor" with AA and UA?

So define "winning" Id say there is no such thing as "Winning" because the US market is large enough for all three legacy carriers to thrive successfully. It is a pointless statement.

I can tell you this. Delta can only look on in envy to see what UA has in DEN and SFO versus what Delta has in SEA and SLC. UA certainly didnt have to drop SFO-HKG. And how AA, UA and WN have a large presence to one of the nation's largest business markets, Chicago and Delta doesnt. As fuel goes up, a lot of DL's marginal markets in BOS for instance will drop away such as SFO.

But what is "winning" and what do you "win"
 
jagraham
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:32 pm

SteelChair wrote:
727200 wrote:
Pretty cocky of him to make bold statements. As anyone with a business sense knows, its all cyclical and what is strong today, won't be at some point. We are already seeing it as UA has passed AA and is creeping up on him. Looks like they have finally gotten over the "Jeff" fiasco and concentrating on just the airline. Since they already are the largest carrier in the Pacific, and are opening new routes up left and right, I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on, just a matter of time before we have a 'changing of the guard.' He may not like that, but he wont be in the 'Captains Chair' forever.


He is a little cocky and that's a little irritating.

As far as the antiques, they 88s and 90s are starting to retire at a more rapid rate, Delta has more than 100 739s in service and 58 new 321s, with 272 more 321s coming (counting options) plus 125 A220s. Seems like the fleet is finally being upgraded.


The MD-80s suffer from Pratt dropping the JT8D like a hot potato. DL had found a niche for the MD-80s; 2 hr or less flights, where the cruise fuel burn advantages of the newer jets are negligible and the high cycle life of the DC9 / MD series aircraft mean they don't cycle out on short runs. There also is a cockpit instrument issue; DL had developed the MD-8K to address that. But the Pratt abandonment of the JT8D was an insurmountable hurdle.
 
jagraham
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:33 pm

SteelChair wrote:
727200 wrote:
Pretty cocky of him to make bold statements. As anyone with a business sense knows, its all cyclical and what is strong today, won't be at some point. We are already seeing it as UA has passed AA and is creeping up on him. Looks like they have finally gotten over the "Jeff" fiasco and concentrating on just the airline. Since they already are the largest carrier in the Pacific, and are opening new routes up left and right, I think as they continue to grow their fleet and not fly those 'antiques' that DL prides themselves on, just a matter of time before we have a 'changing of the guard.' He may not like that, but he wont be in the 'Captains Chair' forever.


He is a little cocky and that's a little irritating.

As far as the antiques, they 88s and 90s are starting to retire at a more rapid rate, Delta has more than 100 739s in service and 58 new 321s, with 272 more 321s coming (counting options) plus 125 A220s. Seems like the fleet is finally being upgraded.


The MD-80s suffer from Pratt dropping the JT8D like a hot potato. DL had found a niche for the MD-80s; 2 hr or less flights, where the cruise fuel burn advantages of the newer jets are negligible and the high cycle life of the DC9 / MD series aircraft mean they don't cycle out on short runs. There also is a cockpit instrument issue; DL had developed the MD-8K to address that. But the Pratt abandonment of the JT8D was an insurmountable hurdle.
 
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:35 pm

soflaflyer wrote:
UpNAWAy wrote:
A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.


Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop


WN didn't want to serve ATL. WN wanted to remove a competitor. They could have bought AS and decimated SEA just as easy.
 
Atlwarrior
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:46 pm

BN727227Ultra wrote:
soflaflyer wrote:
UpNAWAy wrote:
A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.


Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop


WN didn't want to serve ATL. WN wanted to remove a competitor. They could have bought AS and decimated SEA just as easy.


What a dumb statement since they 127 daily flight there.
 
777PHX
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 7:58 pm

toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


It amuses the hell out of me that people get this emotional about an airline.

Not antiques?

Here's average age of the some of the different DL subfleets:

757: 20.8 years
767: 20.9 years
MD80: 25.7 years
717: 16.7 years
A320: 22.8 years
A319: 16.4 years

That's 2/3 of DL's fleet by number of aircraft.
 
Etheereal
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:01 pm

acjbbj wrote:
Considering that DL hasn't been in the headlines that much compared to UA or AA...

Those two headlines are for nefarious things though.
 
afcjets
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:05 pm

Bobloblaw wrote:
winginit wrote:
Bobloblaw wrote:
AA is still #1 on revenue though revenue per passenger Delta is higher but United outpaces both on revenue per passenger...so not sure how Delta is "winning"

Though Delta is probably highest based on revenue per employee


You're accurately pointing out that Delta commands more revenue per passenger and more revenue per employee and yet not sure how Delta is 'winning'? Really? I suppose you could look through the lens of an investor or shareholder, but there you'd be sure to find that Delta is mopping the floor with both AA and UA when it comes to EPS, Market Cap, Dividend, etc. etc. But you're not sure how Delta is 'winning'?


They dont have more revenue per passenger than United. If Revenue per passenger was the sole metric, then Southwest is losing badly.


Revenue per passenger mile is more relevant.
 
Bobloblaw
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:10 pm

BN727227Ultra wrote:
soflaflyer wrote:
UpNAWAy wrote:
A huge part of Delta's revenue advantage is Fortress ATL. They have such a high % of flying in that one HUB UA and AA are much more spread out over numerous hubs with varying degrees of competition that Delta just does not see at ATL. Seems like I read a Forbes article that delta has a monopoly on 60% of its routes. I don't know what that number is for AA or UA but I assume it is lower.


Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop


WN didn't want to serve ATL. WN wanted to remove a competitor. They could have bought AS and decimated SEA just as easy.


No, they did want to serve ATL, it was the top request from their corporate clients. FL wasnt much of a competitor. WN spent far more buying FL, than they ever would have lost just leaving FL alone even given the increase in fares by getting rid of FL.
 
bob75013
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:14 pm

Well, it's interesting that Bastian didn't mention WN , because WN's net margin is almost 50% better than DL's and better than anyone else in the U.S.

I guess he didn't want to look bad.

https://farm1.staticflickr.com/848/2978 ... f62d_b.jpg
 
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fanoftristars
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:14 pm

777PHX wrote:
toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


It amuses the hell out of me that people get this emotional about an airline.

Not antiques?

Here's average age of the some of the different DL subfleets:

757: 20.8 years
767: 20.9 years
MD80: 25.7 years
717: 16.7 years
A320: 22.8 years
A319: 16.4 years

That's 2/3 of DL's fleet by number of aircraft.


I would argue their fleet age doesn't even matter if DL achieves class leading operational metrics. If the average passenger walks on an A320 and thinks they're on a brand new plane with new interiors, PTVs, etc., aircraft age is irrelevant. Clearly this strategy is working for Delta as they lead AA and UA in overall performance.
"FLY DELTA JETS"
 
SPREE34
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:15 pm

777PHX wrote:
toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


It amuses the hell out of me that people get this emotional about an airline.
/quote]

He didn't seem emotional to me. Isn't it amusing that some people think 20-25 years make an airplane antique?
I don't understand everything I don't know about this.
 
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TWA772LR
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:16 pm

jumbojet wrote:
toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


And don't forget the investments and additions DL is making to its domestic fleet. While UA and AA are removing IFE, Delta is adding it. While UA and AA put 10 across on their 777, DL sticks to 9 across.

People do pick up on these things and they notice and don't forget. Sure, some will take the lowest fare no matter what but others will spend the extra $10.00 - $15.00 to fly Delta. DL does in fact command a premium over its competitors.

UA is updating their IFE from seat back screens (which weigh a lot) to PED streaming (which doesnt weigh a lot).
When wasn't America great?


The thoughts and opinions shared under this username are mine and are not influenced by my employer.
 
SPREE34
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:18 pm

bob75013 wrote:
Well, it's interesting that Bastian didn't mention WN , because WN's net margin is almost 50% better than DL's and better than anyone else in the U.S.

I guess he didn't want to look bad.

https://farm1.staticflickr.com/848/2978 ... f62d_b.jpg


Apples to Oranges. Buy a ticket on WN to LHR? DUB? JAC? AMS? BZN?
I don't understand everything I don't know about this.
 
bob75013
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:24 pm

SPREE34 wrote:
bob75013 wrote:
Well, it's interesting that Bastian didn't mention WN , because WN's net margin is almost 50% better than DL's and better than anyone else in the U.S.

I guess he didn't want to look bad.

https://farm1.staticflickr.com/848/2978 ... f62d_b.jpg


Apples to Oranges. Buy a ticket on WN to LHR? DUB? JAC? AMS? BZN?


Operating margin to operating margin is very apples to apples.

Net margin to net margin is very apples to apples.

Bastian is bragging that his is the best run airline. The data says that WN is.
 
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fanoftristars
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:27 pm

bob75013 wrote:
SPREE34 wrote:
bob75013 wrote:
Well, it's interesting that Bastian didn't mention WN , because WN's net margin is almost 50% better than DL's and better than anyone else in the U.S.

I guess he didn't want to look bad.

https://farm1.staticflickr.com/848/2978 ... f62d_b.jpg


Apples to Oranges. Buy a ticket on WN to LHR? DUB? JAC? AMS? BZN?


Operating margin to operating margin is very apples to apples.

Net margin to net margin is very apples to apples.

Bastian is bragging that his is the best run airline. The data says that WN is.


WN's on time performance and flight completion would definitely say it's not the best run airline. Net margin is only one component of a well run airline.
"FLY DELTA JETS"
 
WkndWanderer
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:29 pm

bob75013 wrote:
Bastian is bragging that his is the best run airline. The data says that WN is.


He's bragging about his airline specifically compared against American and United which are the most comparable carriers, it's pretty clear in the interview. He never made a margin comparison to Southwest. "You compare us to our biggest competitors, American and United. The reason why we have the margin advantage that we have, despite paying the best profit sharing in the industry, is we have the revenue to sustain it."

The only direct reference to Southwest in the entire article was about the 717 deal.
Last edited by WkndWanderer on Mon Aug 06, 2018 8:30 pm, edited 1 time in total.
 
bob75013
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:30 pm

fanoftristars wrote:
bob75013 wrote:
SPREE34 wrote:

Apples to Oranges. Buy a ticket on WN to LHR? DUB? JAC? AMS? BZN?


Operating margin to operating margin is very apples to apples.

Net margin to net margin is very apples to apples.

Bastian is bragging that his is the best run airline. The data says that WN is.


WN's on time performance and flight completion would definitely say it's not the best run airline. Net margin is only one component of a well run airline.


What about customer satisfaction? Do happy customers count?

Whose customers are happiest?
 
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BN727227Ultra
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:34 pm

Atlwarrior wrote:
BN727227Ultra wrote:
soflaflyer wrote:

Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop


WN didn't want to serve ATL. WN wanted to remove a competitor. They could have bought AS and decimated SEA just as easy.


What a dumb statement since they 127 daily flight there.


And what did FL run through Hartsfield? According to Wikipedia, almost 200. Plus, shortly after the takeover, WN removed a large fraction of FL's lift--and it wasn't as if they had scads of 737s stored or underutilized. WN did what they wanted--go after high-margin and fair play to them, but I'm sure DL was happy.
 
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BN727227Ultra
Posts: 636
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Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:39 pm

Bobloblaw wrote:
BN727227Ultra wrote:
soflaflyer wrote:

Speaking of competition, I understood that WN reduced a lot of flying from ATL when they took over AirTran. Is that the case? If so, how much and what was their rationale for reducing at ATL? Seems like a perfect market for them. According to Wikipedia (I know, I know....) AirTran had as of Mar '13:
171 Daily departures
31 Gates
43 Cities served nonstop


WN didn't want to serve ATL. WN wanted to remove a competitor. They could have bought AS and decimated SEA just as easy.


No, they did want to serve ATL, it was the top request from their corporate clients. FL wasnt much of a competitor. WN spent far more buying FL, than they ever would have lost just leaving FL alone even given the increase in fares by getting rid of FL.


I replied to another post, and the point I highlighted above more or less is the same thing I said in that reply--in that WN wanted high-margin, not ATL-MOB, -SAV, -XNA, etc.
 
727200
Posts: 633
Joined: Fri Mar 17, 2017 5:31 pm

Re: Delta CEO: We beat AA/UA because we have the revenue to sustain it

Mon Aug 06, 2018 8:39 pm

777PHX wrote:
toobz wrote:
The same few will always chime in with their own facts..”antiques?” yeah your showing straight up ignorance right now. DLs planes are not antique and look much better on the inside than the other two. Add the better service, employee morale, profitability and record breaking profit sharing and you got yourself a winner. Did I mention TechOps..? Yeah the others don’t have that.


It amuses the hell out of me that people get this emotional about an airline.

Not antiques?

Here's average age of the some of the different DL subfleets:

757: 20.8 years
767: 20.9 years
MD80: 25.7 years
717: 16.7 years
A320: 22.8 years
A319: 16.4 years

That's 2/3 of DL's fleet by number of aircraft.




Maybe I misspoke, and I apologize.

But in looking at those aircraft ages, I should have used the word, "fossils."

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