MIflyer12 wrote:WayexTDI wrote:MIflyer12 wrote:
There are radically different views of fewer-type cost savings, even within the U.S. industry:
DL, 898 mainline planes, 11 types (as of 12/31/2019)
WN, 736 mainline planes, 1 type (They paid ~$160 million up-front to make the 717s go away. Plus all the training costs, and markets they had to exit because 737-700s were too big.)
Maybe even more than parts inventories holding costs, I'll suggest that the bigger cost is fragmented pilot crews. Too many reserve planes (or an unreliable operation), and too many on reserve who routinely don't fly. DL just reported their weighted cost of capital (and now I can't find it.) From memory, 4.3 or 4.5%. That gives a financial holding cost of $45 million on $1 Billion in parts. $45 million a year really doesn't get you very many reserve pilots on mainline.
If WN has 1 plane type (737 in this case), then DL has 8 types (A220, A320Family, A330, A350, Boeing 717, 737, 757 and 767); not 11 types.
You cannot compare WN and DL: WN has a domestic network (international flights are a small part of WN and they are to neighboring countries) that relies on itself (no codeshare agreement or airline alliance), while DL has a worldwide network (onto other continents) and are one of the founders of SkyTeam. That's comparing apples to trucks...
Delta describes itself as having 13 'fleet families' in 2019, as recently as last month at the Bernstein investor conference.
https://s2.q4cdn.com/181345880/files/do ... erence.pdf
No, it can't have a single type like WN given both intercon service and service to 50+ smaller domestic destinations that WN doesn't serve at all, but it declares that a reduction from 13 fleet families to nine in 2025 is a good strategic move. Really, DL has finally gotten on board with the concept of fleet simplification. Used A350s and 739ERs are an easy 'more of the same' fleet acquisition strategy.
List the 11 types they operate today (13 in 2019 - MD88 - MD90) for the sake of argument; I listed their current fleet and can only find 8.