Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
Antoli0794 wrote:With recent news of United and American growing out their respect hubs. Delta’s mega hub ATL and BOS SEA seem to get the most attention. Unlike AA or UA growing out most of their hubs not just focusing on DFW(AA) or ORD(UA). Delta has a big departure gap between ATL and it’s other large hubs DTW/MSP compared to UA and AA. DFW has 900 and CLT is close to 700 not to far behind.
UA Hubs departure: as of S19
ORD 637
IAH 533
DEN 504
EWR 432
AA
DFW 915
CLT 688
ORD 546
PHL 417
DL
ATL 1070
DTW 461
MSP 450
SLC 281
Any thought, now I’m not saying Delta should do the same but just showing the differences.
enilria wrote:I think you make a good point that Delta has neglected their core hubs outside ATL. DL’s hubs are smaller than all the others’ hubs except PHL/EWR which are infrastructure limited. OTOH, Delta is more profitable than they are.
Antoli0794 wrote:enilria wrote:I think you make a good point that Delta has neglected their core hubs outside ATL. DL’s hubs are smaller than all the others’ hubs except PHL/EWR which are infrastructure limited. OTOH, Delta is more profitable than they are.
Yes Delta still is the most profitable one. All other Hubs have more potential.
Phoenix757767 wrote:
Delta has hubs at JFK and LGA also.
Atlwarrior wrote:The most important output the income statement is all that matters.
MIflyer12 wrote:Antoli0794 wrote:enilria wrote:I think you make a good point that Delta has neglected their core hubs outside ATL. DL’s hubs are smaller than all the others’ hubs except PHL/EWR which are infrastructure limited. OTOH, Delta is more profitable than they are.
Yes Delta still is the most profitable one. All other Hubs have more potential.
How do you know hub potential better than DL Revenue Management? Why do you think XX has ### departures out of ZZZ, but DL only has ### out of DTW/MSP is, in any way, a valid comparison of hub potential?
You could learn a lot from FSDan's work with departures and gauge by hub. viewtopic.php?f=3&t=1420609
Then review O&D passenger counts by major U.S. airports and explain - in detail, please - why you think DTW or MSP ought to have as many departures (and seats or ASMs as better measures) as DEN.
bkflyguy wrote:Antoli0794 wrote:With recent news of United and American growing out their respect hubs. Delta’s mega hub ATL and BOS SEA seem to get the most attention. Unlike AA or UA growing out most of their hubs not just focusing on DFW(AA) or ORD(UA). Delta has a big departure gap between ATL and it’s other large hubs DTW/MSP compared to UA and AA. DFW has 900 and CLT is close to 700 not to far behind.
UA Hubs departure: as of S19
ORD 637
IAH 533
DEN 504
EWR 432
AA
DFW 915
CLT 688
ORD 546
PHL 417
DL
ATL 1070
DTW 461
MSP 450
SLC 281
Any thought, now I’m not saying Delta should do the same but just showing the differences.
A better metric might be ASMs, as Delta is upgauging regional filghts from 50-> 76, 76->100 etc. That is where you are probably seeing growth, not in the number of flights.
klm617 wrote:bkflyguy wrote:Antoli0794 wrote:With recent news of United and American growing out their respect hubs. Delta’s mega hub ATL and BOS SEA seem to get the most attention. Unlike AA or UA growing out most of their hubs not just focusing on DFW(AA) or ORD(UA). Delta has a big departure gap between ATL and it’s other large hubs DTW/MSP compared to UA and AA. DFW has 900 and CLT is close to 700 not to far behind.
UA Hubs departure: as of S19
ORD 637
IAH 533
DEN 504
EWR 432
AA
DFW 915
CLT 688
ORD 546
PHL 417
DL
ATL 1070
DTW 461
MSP 450
SLC 281
Any thought, now I’m not saying Delta should do the same but just showing the differences.
A better metric might be ASMs, as Delta is upgauging regional filghts from 50-> 76, 76->100 etc. That is where you are probably seeing growth, not in the number of flights.
This is only happening in ATL. As they ungauge in Detroit for instance they are cutting frequency to balance the capacity so there is near zero growth at Detroit.
Atlwarrior wrote:The most important output the income statement is all that matters.
PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
winginit wrote:klm617 wrote:bkflyguy wrote:
A better metric might be ASMs, as Delta is upgauging regional filghts from 50-> 76, 76->100 etc. That is where you are probably seeing growth, not in the number of flights.
This is only happening in ATL. As they ungauge in Detroit for instance they are cutting frequency to balance the capacity so there is near zero growth at Detroit.
Wrong. Again.
In 2019 (12 months ending Oct 2019), DL will have flown 290,116 flights in/out of DTW comprised of 32.3M seats with of course some small adjustments for cancellations, etc.
In 2020 per the schedule (12 months ending Oct 2020), DL will fly 304,150 flights in/out of DTW comprised of 34.5M seats.
Do better.
PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
klm617 wrote:PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
Or the usual suspects defending Delta at the expense of the airports and customers in DTW, SLC and MSP. Just because you don't agree with a fact doesn't mean it isn't true. The good people of DTW, MSP and SLC are paying for the cheap seats that are being dumped into BOS at the moment. One thing I must say it was a great move by Delta consolidating the M88 flying out of ATL so when there is a service disruption there the system is less impacted than it was before.
klm617 wrote:winginit wrote:klm617 wrote:
This is only happening in ATL. As they ungauge in Detroit for instance they are cutting frequency to balance the capacity so there is near zero growth at Detroit.
Wrong. Again.
In 2019 (12 months ending Oct 2019), DL will have flown 290,116 flights in/out of DTW comprised of 32.3M seats with of course some small adjustments for cancellations, etc.
In 2020 per the schedule (12 months ending Oct 2020), DL will fly 304,150 flights in/out of DTW comprised of 34.5M seats.
Do better.
2020 hasn't happened yet.
TTailedTiger wrote:klm617 wrote:PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
Or the usual suspects defending Delta at the expense of the airports and customers in DTW, SLC and MSP. Just because you don't agree with a fact doesn't mean it isn't true. The good people of DTW, MSP and SLC are paying for the cheap seats that are being dumped into BOS at the moment. One thing I must say it was a great move by Delta consolidating the M88 flying out of ATL so when there is a service disruption there the system is less impacted than it was before.
I haven't heard any issues with MD-88 reliability. The MD-88's are consolidated in ATL because there are many short flights with mainline demand that the MD-88 can operate efficiently.
winginit wrote:klm617 wrote:winginit wrote:
Wrong. Again.
In 2019 (12 months ending Oct 2019), DL will have flown 290,116 flights in/out of DTW comprised of 32.3M seats with of course some small adjustments for cancellations, etc.
In 2020 per the schedule (12 months ending Oct 2020), DL will fly 304,150 flights in/out of DTW comprised of 34.5M seats.
Do better.
2020 hasn't happened yet.
You're aware that airlines ... sell tickets... in advance ... right?
klm617 wrote:winginit wrote:klm617 wrote:
2020 hasn't happened yet.
You're aware that airlines ... sell tickets... in advance ... right?
Absolutely but I have been schedule changes because the flight I booked in advance didn't exist anymore.
PSU.DTW.SCE wrote:TTailedTiger wrote:klm617 wrote:
Or the usual suspects defending Delta at the expense of the airports and customers in DTW, SLC and MSP. Just because you don't agree with a fact doesn't mean it isn't true. The good people of DTW, MSP and SLC are paying for the cheap seats that are being dumped into BOS at the moment. One thing I must say it was a great move by Delta consolidating the M88 flying out of ATL so when there is a service disruption there the system is less impacted than it was before.
I haven't heard any issues with MD-88 reliability. The MD-88's are consolidated in ATL because there are many short flights with mainline demand that the MD-88 can operate efficiently.
There are some issues being confounded some of that.
The MD88s were originally consolidated to ATL for a variety of reasons in Summer 2018, primarily to start the preparation for the fleet draw-down.
The MD88s were first pulled from LGA/JFK for a combination of product and allegedly due to space/upgrade capabilites on the FMS
Then MD88s were consolidated to ATL as a way to consolidate to a single pilot base, enable all the aircraft to fly out-and-backs from ATL, and consolidate spare parts inventory. Thus the net effect of increasing operational reliabiltiy as well as simplifying complexity across the network.
Some of this wasn't just for MD-88s, DL started on an initiative last year to rationalize the number of fleet types and/or RONs in outstations where it was feasible. Thus to help reduce operational complexity, enable better IRROP recovery, and increase operational reliability. This helped with crew scheduling, overnight maintenance, tail swaps/aircraft routing, spare parts and the like.
winginit wrote:klm617 wrote:winginit wrote:
You're aware that airlines ... sell tickets... in advance ... right?
Absolutely but I have been schedule changes because the flight I booked in advance didn't exist anymore.
Let's be very clear here - DL will deploy more capacity in/out of DTW in 2020 when compared to 2019 - that's called growth, and here it's worth pointing out that they grew from 2018 to 2019. To say that DL is not growing in DTW is a false statement. the end.
MSPNWA wrote:Atlwarrior wrote:The most important output the income statement is all that matters.
For the company, partially. For the public, generally no. For those that are paid by stock price, generally yes.
Restricting capacity at MSP, DTW, SLC, ATL, etc. is likely harming the income statement in some important metrics. What I mean by that is if DL is running a margin-maximizing strategy (a Wall Street favorite), total revenue and profit are sacrificed for margins. It's quite likely that DL is taking less profit to retain high margins. It's most evident at MSP, DTW, and ATL. We know in previous years that they were mentioned as having the highest margins, and this is a company running margins in the teens. That indicates to us that margins at those hubs are likely at least ~20+%, maybe even 25-30% during peak times. Additional capacity at those margins can be assumed to have a healthy margin of profit. However if you're running for margins, you generally hold back capacity up to the margin maximizing level. Strategic plays such as SEA and BOS not only "take away" from the high margin hubs operationally in the form of airplanes and staff, it also "takes away" financially in the form of capital and profit goals. Let's say SEA and BOS are break-even. In order to attain an overall margin of X percent, the high margin hubs have to provide a certain margin to counteract low margins with the strategic capacity additions. Under that margin goal, DL won't add very profitable capacity that misses overall margin goals. DL has high incentive not to add capacity above and beyond a general natural demand increase. The only way this situation ends is if competition increases, but currently the meager competition at MSP at DTW is actually declining (I haven't checked ATL and SLC). Until then, local passengers at DL fortress hubs have to deal with low supply and high fares, and part of that is for the benefit of travelers in cities such as SEA, BOS, NYC, and more. It's a frustrating position to be in as a passenger.
Short conclusion: DL won't be unusually growing MSP, DTW, and SLC anytime soon.PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
And it's off the rails . . .
klm617 wrote:MIflyer12 wrote:Antoli0794 wrote:
Yes Delta still is the most profitable one. All other Hubs have more potential.
How do you know hub potential better than DL Revenue Management? Why do you think XX has ### departures out of ZZZ, but DL only has ### out of DTW/MSP is, in any way, a valid comparison of hub potential?
You could learn a lot from FSDan's work with departures and gauge by hub. viewtopic.php?f=3&t=1420609
Then review O&D passenger counts by major U.S. airports and explain - in detail, please - why you think DTW or MSP ought to have as many departures (and seats or ASMs as better measures) as DEN.
The point of this thread is not to defend Delta's business practice but to brainstorm why it might not work in their favor over the long haul as it loses customer loyalty because it refuses to grow at it's other hubs.
winginit wrote:klm617 wrote:winginit wrote:
Wrong. Again.
In 2019 (12 months ending Oct 2019), DL will have flown 290,116 flights in/out of DTW comprised of 32.3M seats with of course some small adjustments for cancellations, etc.
In 2020 per the schedule (12 months ending Oct 2020), DL will fly 304,150 flights in/out of DTW comprised of 34.5M seats.
Do better.
2020 hasn't happened yet.
You're aware that airlines ... sell tickets... in advance ... right?
bluefltspecial wrote:winginit wrote:klm617 wrote:
2020 hasn't happened yet.
You're aware that airlines ... sell tickets... in advance ... right?
Per winginit's figures that's about an 7% increase in planned seats, year over year, which is a pretty good increase for an operation that size.
PSU.DTW.SCE wrote:https://www.sec.gov/Archives/edgar/data/27904/000168316818003681/delta_8k-ex9902.htm
To understand the role of the hubs, go here to pages 15-17
Core Interior Hubs that focus on connectivity (ATL, DTW, MSP, SLC)
- Industry leading margins
- Ideal geographies
- Strong local position (O&D, in particularly premium demand)
- Best customer experience
- High operational reliability
- Low cost per emplanement
Coastal Gateway for Future Margin Improvement: (NYC, SEA, LAX, BOS)
winginit wrote:Let's be very clear here - DL will deploy more capacity in/out of DTW in 2020 when compared to 2019 - that's called growth, and here it's worth pointing out that they grew from 2018 to 2019. To say that DL is not growing in DTW is a false statement. the end.
klm617 wrote:Atlwarrior wrote:The most important output the income statement is all that matters.
Let's see their balance sheet in about 5 years when they have neglected the hubs that make them money in favor of trying to send AS and B6 a message. Plus they reduce capacity at their other hubs to balance out capacity growth at places like SEA and BOS.
TTailedTiger wrote:klm617 wrote:PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
Or the usual suspects defending Delta at the expense of the airports and customers in DTW, SLC and MSP. Just because you don't agree with a fact doesn't mean it isn't true. The good people of DTW, MSP and SLC are paying for the cheap seats that are being dumped into BOS at the moment. One thing I must say it was a great move by Delta consolidating the M88 flying out of ATL so when there is a service disruption there the system is less impacted than it was before.
I haven't heard any issues with MD-88 reliability. The MD-88's are consolidated in ATL because there are many short flights with mainline demand that the MD-88 can operate efficiently.
aemoreira1981 wrote:DL can't really grow at JFK and LGA, out of which they operate a combined approximately 500 daily flights, but they are up-gauging.
DL747400 wrote:aemoreira1981 wrote:DL can't really grow at JFK and LGA, out of which they operate a combined approximately 500 daily flights, but they are up-gauging.
Upgauging while retaining existing frequency at slot controlled airports is growth.
aemoreira1981 wrote:DL can't really grow at JFK and LGA, out of which they operate a combined approximately 500 daily flights, but they are up-gauging. The days of 50-seat Delta Connection jets at either will soon be history, and at LGA, most MD service has been replaced by A321 service. Smaller markets to JFK or LGA will likely see a connection switched to BOS or ATL or get axed completely.
Fex180 wrote:Seems like JFK would have a lot of room to grow if regional frequencies were reduced and/or upgauged. For instance, DL flies 3x daily JFK-PWM on CRJ9'S and CRJ2's. That could easily change to 2x daily with CRJ9's or 1x daily 717/A319.
PSU.DTW.SCE wrote:https://www.sec.gov/Archives/edgar/data/27904/000168316818003681/delta_8k-ex9902.htm
To understand the role of the hubs, go here to pages 15-17
Core Interior Hubs that focus on connectivity (ATL, DTW, MSP, SLC)
- Industry leading margins
- Ideal geographies
- Strong local position (O&D, in particularly premium demand)
- Best customer experience
- High operational reliability
- Low cost per emplanement
Coastal Gateway for Future Margin Improvement: (NYC, SEA, LAX, BOS)
MSPNWA wrote:winginit wrote:Let's be very clear here - DL will deploy more capacity in/out of DTW in 2020 when compared to 2019 - that's called growth, and here it's worth pointing out that they grew from 2018 to 2019. To say that DL is not growing in DTW is a false statement. the end.
It's safe to say there will be more capacity in 2020, but it's not a fact at this point. And the amount that it will grow is absolutely not something to count on. The vast majority of 2020's schedule is subject to change. It's very common for capacity to be scaled back as the lead time winds down. It's actually a sly way of improving business too.
P.S. We're not far from DL traffic shrinking at DTW (2017 - I couldn't find 2018 data)
MSPNWA wrote:It's safe to say there will be more capacity in 2020, but it's not a fact at this point. And the amount that it will grow is absolutely not something to count on. The vast majority of 2020's schedule is subject to change. It's very common for capacity to be scaled back as the lead time winds down. It's actually a sly way of improving business too.
P.S. We're not far from DL traffic shrinking at DTW (2017 - I couldn't find 2018 data)
TTailedTiger wrote:klm617 wrote:PSU.DTW.SCE wrote:This thread is likely to go off the rails in short order and we're going to hear the same old arguments about how DL is screwing DTW, MSP, SLC from the usual suspects.
Let's at least acknowledge each airline is different from their network strengths, how they deploy domestic capacity, and their business strategy.
Its a fallacy to assume that all hubs could be equal.
Or the usual suspects defending Delta at the expense of the airports and customers in DTW, SLC and MSP. Just because you don't agree with a fact doesn't mean it isn't true. The good people of DTW, MSP and SLC are paying for the cheap seats that are being dumped into BOS at the moment. One thing I must say it was a great move by Delta consolidating the M88 flying out of ATL so when there is a service disruption there the system is less impacted than it was before.
I haven't heard any issues with MD-88 reliability. The MD-88's are consolidated in ATL because there are many short flights with mainline demand that the MD-88 can operate efficiently.