PSU.DTW.SCE
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Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 4:05 pm

The links below show the documents for DL's investor day.

There is a lot to read here. An excellent summary of their business strategy and of their initiatives for investors who want an good overview but may not pay attention to all of the little day-to-day press releases and announcements.

Presentation (Delta website)
http://ir.delta.com/files/doc_presen...Presentation-with-Non-GAAPs(1).pdf

Presentation (SEC filing)
http://www.sec.gov/Archives/edgar/da...670/0001019687-14-004670-index.htm

Webcast links:
http://ir.delta.com/news-and-events/...014/Investor-Day-2014/default.aspx
 
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tlecam
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 4:33 pm

Thanks for posting, very interesting to read.
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 4:46 pm

Quoting PSU.DTW.SCE (Thread starter):

hopefully seeking alpha will do a transcript of the event. Its a little long for most of us to sit and listen to.
 
PSU.DTW.SCE
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 5:09 pm

What I find to be very interesting throughout the presentation, is this is the first time in a several years where they have actually come out forthright and even mentioned "capacity growth". Granted, its modest capacity growth of 3%, and its almost all achieved through additional seats per aircraft (new deliveries & mods to existing) and higher utilization of assets

For years that was (and still is) viewed as an evil word by Wall Street. Look how much a few analysts attempted to fry them after the last quarterly earnings call.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 5:28 pm

Quoting PSU.DTW.SCE (Reply 3):

but you notice how quickly they toss out that are cutting back the total number of aircraft.

Trying to do what is right for the airline but word it correctly so Richard doesn't have to be that guy again on the Q4 call in      
 
panamair
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 5:33 pm

I drifted in and out of the webcast, but did catch some points either in the prepared remarks or Q&A sessions:

- Q4 2014 operating margin higher than previously reported: expect it to be in the 11.5 - 12.5% range (previous estimate of 10-12%)
- About $125m to $150m profit from the VS JV in 2014; expect that to increase to around $200m+ in 2015
- Unit revenues to LHR up dramatically
- First time profitable in NY on a fully allocated segment basis in 2014
- JFK T4 extension for the DCI operation will open Jan 14 2015. Current T2 DCI gates will be converted back to mainline gates
- up to 151 days so far this year of 100% maintenance completion factor days (i.e., 151 days of zero mechanical cancellations)
- up to 84 days so far this year of 100% completion factor days
- NRT rescaled and reoptimized; despite yen devaluation, able to maintain profitability of NRT hub
- SEA domestic is profitable with margin expansion despite huge increase in capacity
- 70% done with what needs to be done in SEA.
- 80% of customers looking at Basic Economy (those mimic-Spirit no-frills fares) reject Basic Economy and select other Main Cabin products instead.
- Jet crack spread still increasing (up $2.50 per barrel this quarter compared to last year), so Trainer is definitely helping, and should help lower fuel expense by $70m this quarter.
 
PSU.DTW.SCE
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 5:35 pm

Yep.

They also mention LAX several times throughout the presentation. First time, again, they've acknowledged opportunities in LAX and aligning their west coast network through the integration of SEA/SLC/LAX.
 
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enilria
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 5:37 pm

Quoting panamair (Reply 5):

If SEA is 70% done, why do they need 30 gates???
 
deltal1011man
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 5:50 pm

Quoting PSU.DTW.SCE (Reply 6):

they just added a new VP spot dealing with LAX/SLC/SEA

Quoting enilria (Reply 7):

not every airline likes trying to turn 10 flights a day out of a gate. 200 flights is 7ish flights per day per gate. Gives them a little room for growth also.

I think you'll find Delta has a larger amount of gates and less flights at JFK.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 6:37 pm

Quoting PSU.DTW.SCE (Reply 6):
They also mention LAX several times throughout the presentation. First time, again, they've acknowledged opportunities in LAX and aligning their west coast network through the integration of SEA/SLC/LAX.

Did you catch this Enilria?? SLC is a key component of the west coast network, just as I have stated previously.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 6:48 pm

Quoting panamair (Reply 5):
- About $125m to $150m profit from the VS JV in 2014; expect that to increase to around $200m+ in 2015
- Unit revenues to LHR up dramatically

Nice!

Quoting panamair (Reply 5):
- SEA domestic is profitable with margin expansion despite huge increase in capacity
- 70% done with what needs to be done in SEA.

Good info.

Quoting enilria (Reply 7):
If SEA is 70% done, why do they need 30 gates???

Oh no you didn't!

Quoting jetlanta (Reply 9):
Did you catch this Enilria?? SLC is a key component of the west coast network, just as I have stated previously.

It is, right up until it isn't.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 6:54 pm

Quoting PlanesNTrains (Reply 10):
It is, right up until it isn't.

generally don't add upper management positions for hubs that your closing up in the near term.
 
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enilria
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:00 pm

Quoting jetlanta (Reply 9):
Did you catch this Enilria?? SLC is a key component of the west coast network, just as I have stated previously.
Quoting Deltal1011man (Reply 8):
not every airline likes trying to turn 10 flights a day out of a gate. 200 flights is 7ish flights per day per gate. Gives them a little room for growth also.

I think you'll find Delta has a larger amount of gates and less flights at JFK.
Quoting enilria (Reply 7):
If SEA is 70% done, why do they need 30 gates???

I did catch it, but as we previously talked, if the 30 gate ask is just a negotiating trick in SEA then SLC is safe. If they really need 30 gates in SEA in the near term than SLC is threatened. This statement says that the 30 gate need isn't real or at least isn't consistent with the ask.

Quoting PlanesNTrains (Reply 10):
It is, right up until it isn't.

There is that. They have no past track record of saying MEM is profitable and their lowest cost hub that the other hubs should emulate right before demolishing it.  
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:01 pm

Quoting panamair (Reply 5):
- 80% of customers looking at Basic Economy (those mimic-Spirit no-frills fares) reject Basic Economy and select other Main Cabin products instead.

Not sure I understand this bullet. 80% of DL customers are purchasing Basic Economy fares? Or 80% of DL customers are rejecting Basic Economy Class and are purchasing fares in higher RBDs with fewer restrictions, etc?
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:02 pm

Quoting PSU.DTW.SCE (Reply 3):
For years that was (and still is) viewed as an evil word by Wall Street. Look how much a few analysts attempted to fry them after the last quarterly earnings call.

IMO, the major airlines blew it a couple years ago by not increasing capacity. Higher total profits and market share were available to be had. Instead they caved in to Wall Street and only focused on margins.

Quoting jetlanta (Reply 9):
Did you catch this Enilria?? SLC is a key component of the west coast network, just as I have stated previously.
SLC is now third fiddle in the West. It's a component, but it's definitely not a key one anymore for DL.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:08 pm

Quoting AABB777 (Reply 13):
Or 80% of DL customers are rejecting Basic Economy Class and are purchasing fares in higher RBDs with fewer restrictions, etc?

Yes.

Recall that Basic Economy fares are presently offered only in a limited number of city pairs (for now). The list was explicit in the fare/cabin classification announcement last week.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:11 pm

Quoting enilria (Reply 12):
This statement says that the 30 gate need isn't real or at least isn't consistent with the ask.

How in the world are you getting that? 200 flights per day is the target(ish)

if its 200 flights a day 30 total gates would be just a little under 7 flights per day per gate.

that is literally higher than every single hub Delta has expect LAX, ATL and LGA. For the most part it is 2-3 flight per day per gate higher. I don't get how you think it isn't real? Delta isn't Southwest, they don't expect 16 turns from one gate.

Quoting enilria (Reply 12):
If they really need 30 gates in SEA in the near term than SLC is threatened.

SLC is threatened over ~60-80 more flights? So in other words you just expect Delta to completely pack up and leave the west outside of the west coast....

United hopes that you are right.....but your not.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:11 pm

Quoting panamair (Reply 5):
NRT rescaled and reoptimized; despite yen devaluation, able to maintain profitability of NRT hub

Good to see that NRT remains profitable.

Quoting panamair (Reply 5):
SEA domestic is profitable with margin expansion despite huge increase in capacity

Interesting. I assume their not mentioning SEA international implies that it's not yet overall profitable (though I'm sure some of the flights are on their own). That said, it's good to see that SEA domestic is performing profitably for them, especially given all the pontification and speculation on here about whether it's a profitable operation or a money pit.

Quoting jetlanta (Reply 9):
Did you catch this Enilria?? SLC is a key component of the west coast network, just as I have stated previously.

Lies, all lies. SLC will absolutely close and all intra-West flows will be handled through SEA and LAX.
Hughes Airwest - Top Banana In The West
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:14 pm

Quoting MSPNWA (Reply 14):
SLC is now third fiddle in the West. It's a component, but it's definitely not a key one anymore for DL.

so the third fiddle is the largest of the three by over 100 flights?

Guess CVG is top dog over MSP, DTW, ATL, LGA and JFK too.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:28 pm

Quoting Deltal1011man (Reply 18):
so the third fiddle is the largest of the three by over 100 flights?

Guess CVG is top dog over MSP, DTW, ATL, LGA and JFK too.

Yes. It's not a matter of flights but by importance. SLC clearly doesn't have the importance of LAX or SEA, and DL's strategy of status quo in SLC is reflective of that. The bottom line is that SLC is just SLC. It's a small market for a hub, and DL can't do much more with it, especially when any expansion could poach from LAX and SEA.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:38 pm

Personally, I found the chart on the Pacific most interesting - detailing the substantial capacity cuts anticipated in 2015, proceeding complete retirement of the 747s by 2017, and of course the continuing shift of more and more capacity, frequency and emphasis from NRT to SEA - down from 12 to 5 intra-Asia routes since 2009. Telling.

Additionally, I thought this word choice on the West Coast chart was very interesting: "Refine Los Angeles hub with completion of schedule build-out and facility upgrades" (emphasis mine). Again - "interesting" word choice.

Quoting MSPNWA (Reply 19):
Yes. It's not a matter of flights but by importance. SLC clearly doesn't have the importance of LAX or SEA, and DL's strategy of status quo in SLC is reflective of that.

The relative "importance" of one hub versus another is often - thought not always - subjective, but while I could perhaps see SEA's higher "importance" being debatable, I don't think there is any plausible argument that LAX - in the context of Delta's entire network - is truly more "important" than SLC.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:42 pm

Quoting Deltal1011man (Reply 11):
Quoting PlanesNTrains (Reply 10):
It is, right up until it isn't.

generally don't add upper management positions for hubs that your closing up in the near term.
Quoting enilria (Reply 12):
Quoting enilria (Reply 12):
Quoting PlanesNTrains (Reply 10):
It is, right up until it isn't.

There is that.

To be fair, I was probably just stirring the pot with my non-comment.  
Quoting AABB777 (Reply 13):
Not sure I understand this bullet. 80% of DL customers are purchasing Basic Economy fares? Or 80% of DL customers are rejecting Basic Economy Class and are purchasing fares in higher RBDs with fewer restrictions, etc?

The latter. I think this bodes well for DL because it means they are luring people in with Basic but those people are largely trading up to standard Economy.

Quoting OA412 (Reply 17):
Interesting. I assume their not mentioning SEA international implies that it's not yet overall profitable (though I'm sure some of the flights are on their own).

Often was ISN'T said is as important as what IS said.  
Quoting MSPNWA (Reply 19):
Yes. It's not a matter of flights but by importance. SLC clearly doesn't have the importance of LAX or SEA, and DL's strategy of status quo in SLC is reflective of that. The bottom line is that SLC is just SLC. It's a small market for a hub, and DL can't do much more with it, especially when any expansion could poach from LAX and SEA.

Maybe they don't need SLC to do anything else? They are the dominant carrier, it feeds many cities not served from SEA or LAX, and it puts them in a better position than AA in the west, IMHO.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
SLCSFOPDX
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:57 pm

I guess we can ignore that DL is starting SLC-MEX this month and that the SLC-AMS flight is not really a big deal?

SLC works because it can help DL's western presence in a way that neither LAX or SEA can. It was only a matter of time until SLC was third fiddle out west for DL. And honestly that is fine for SLC. If DL was wanting to truly grow, then they needed two more large hubs out west. There was no way DL could truly grow and have SLC be their biggest and most important hub out west. So it's fine that SLC is third, if you want to call it that.

It's funny how all you a.netters think that it's always SLC vs SEA vs LAX because how close they are. DL has hubs in JFK/LGA and BOS, which are closer than the one's out west. Also MSP, DTW, and CVG are also a lot closer than the one's out west and they all manage to compliment each other....just like how SLC, SEA, and LAX do.
 
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enilria
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 7:59 pm

Quoting MIflyer12 (Reply 15):
Recall that Basic Economy fares are presently offered only in a limited number of city pairs (for now).

The fact that they are in ERI tells me that the existing markets are just test markets for a MAR roll-out.

Quoting Deltal1011man (Reply 16):
How in the world are you getting that? 200 flights per day is the target(ish)
Quoting Deltal1011man (Reply 16):
SLC is threatened over ~60-80 more flights? So in other words you just expect Delta to completely pack up and leave the west outside of the west coast....

This month they have 81 daily departures. If they are "70% done" as they say they are, that means they will have 114 flights per day when "done". 114 flights divided by 30 gates = 3.8 flights per gate. If they tell SEA-Tac that they want 30 gates to operate 114 flights, my guess is that they won't get 30 gates.

One or more of these things isn't true, but we don't know which ones...
1) We are 70% done with SEA
2) We need 30 gates in SEA
3) We are fully committed to SLC
4) We plan to grow LAX into a hub

I'm fairly certain that the comment that "SEA is profitable" is either not true or intended to mislead. For example, perhaps it was profitable on Thanksgiving weekend or for the month of July. LOL
 
SLCSFOPDX
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 8:03 pm

DL is committed to SLC. There is no arguing that point. All you a.netter's need to put the whole, "DL will drop SLC" topic to bed. DL is keeping SLC as hub and will be a hub for DL for decades to come.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 8:25 pm

Quoting enilria (Reply 23):
1) We are 70% done with SEA

Could be based on ASM's, which if most remaining additions are domestic might be true.

Quoting enilria (Reply 23):
2) We need 30 gates in SEA

Ask for 30, get 22. Sounds like any good negotiation, and the icing on the cake is you make Alaska sweat.

Quoting enilria (Reply 23):
3) We are fully committed to SLC

And the 787 rolled out on 787 and was going to fly in August....right up until it didn't.

Quoting enilria (Reply 23):
4) We plan to grow LAX into a hub

Not hard to say when all three legacies have similar "hub" dreams at LAX.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
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OA412
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 8:39 pm

Quoting commavia (Reply 20):
continuing shift of more and more capacity, frequency and emphasis from NRT to SEA - down from 12 to 5 intra-Asia routes since 2009. Telling.

Telling in what sense? I think the writing's been on the wall for NRT for quite a while now, and it's been clear that SEA was their choice to replace most of what they have at NRT.

Quoting enilria (Reply 23):
This month they have 81 daily departures. If they are "70% done" as they say they are, that means they will have 114 flights per day when "done".

Per the PDF linked above, they plan on having 120 daily flights at SEA in 2015. The 70% figure noted above is pretty ambiguous. It could mean flights, it could mean their overall goals, it could mean a lot of things. I don't necessarily think it's necessarily limited to 70% of our daily schedule goal has been achieved.

Quoting PlanesNTrains (Reply 25):
Ask for 30, get 22. Sounds like any good negotiation, and the icing on the cake is you make Alaska sweat.

Exactly. You always aim high so that you end up with the number you really want. Any good negotiator will tell you that.

Quoting enilria (Reply 23):
We plan to grow LAX into a hub

Where do they say this or where has DL said this? I don't think they've ever said anything other than LAX is going to be turned into a strong focus city for them, nothing more, nothing less.
Hughes Airwest - Top Banana In The West
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 8:47 pm

Quoting MSPNWA (Reply 19):
SLC clearly doesn't have the importance of LAX or SEA, and DL's strategy of status quo in SLC is reflective of that.

So where is this list of hub importance rankings for Delta?

Quoting commavia (Reply 20):

The relative "importance" of one hub versus another is often - thought not always - subjective, but while I could perhaps see SEA's higher "importance" being debatable, I don't think there is any plausible argument that LAX - in the context of Delta's entire network - is truly more "important" than SLC.

I don't believe X hub is more important than Y hub. Every hub in every network has a place. As I have said before, Delta is looking to build a network that looks something like United's out west. you have rocky mt hub in SLC(DEN for UA) the large O&D type hub with some international flying thrown in there at LAX and you have the main west coast gateway to Asia at SEA(SFO for UA).

If Delta was planning on dumping SLC they would be pulling back capacity. They would be shifting things over to LAX/SEA. Wall street HATES the G word. Delta said it anyways....

Quoting PlanesNTrains (Reply 21):

Maybe they don't need SLC to do anything else? They are the dominant carrier, it feeds many cities not served from SEA or LAX, and it puts them in a better position than AA in the west, IMHO.

exactly.

Quoting enilria (Reply 23):

This month they have 81 daily departures. If they are "70% done" as they say they are, that means they will have 114 flights per day when "done". 114 flights divided by 30 gates = 3.8 flights per gate. If they tell SEA-Tac that they want 30 gates to operate 114 flights, my guess is that they won't get 30 gates.

so you are at this point tossing crap against the wall trying to get something to stick

or you just don't really know what you are talking about.

Alright, few key points here. The context of the we are 70% done in SEA was 120 daily flights at SEA. Not the current 81. Delta will almost never ever say something like that and not count already announced expansion.
second thing, Delta has already said, at least 600 times, that they plan on being at 150+ daily flights by 2017 in SEA. There have been countless threads on this, and most you which is full of your "this is getting cut for SEA, doom for CVG, Doom for SLC blah blah" even though it has been pointed out to you many times Delta is growing ~3% in the domestic market place.

So if we figure they are 70% done at 120 flights, we are talking about a ball park of 180-200 flights per day. That is going to come out to 6.5-7 flights per day per gate with 30 gates.

Quoting enilria (Reply 23):
One or more of these things isn't true, but we don't know which ones...

Yes we do. This just boils down to you don't know nearly as much about Delta as you like to act like you do.

Quoting enilria (Reply 23):

I'm fairly certain that the comment that "SEA is profitable" is either not true or intended to mislead. For example, perhaps it was profitable on Thanksgiving weekend or for the month of July. LOL

Ah so now not only are you going to tell us just how the network is going to shape up and such but the exactive team is also just a bunch of lying or misleading people.

You are losing so much credibility in this thread and so very quickly.

Quoting enilria (Reply 23):
1) We are 70% done with SEA

should be about true. If the end game goal is 150-200 flights that would be about 70% finished.

Quoting enilria (Reply 23):
2) We need 30 gates in SEA

Again, 6-7 flights per day per gate sounds about right.

Quoting enilria (Reply 23):
3) We are fully committed to SLC

Nothing has shown, at all, that that isn't true. Adding flights along with backing the new terminal as well as adds like AMS/MEX don't spell doom and gloom to most of us.

Quoting enilria (Reply 23):
4) We plan to grow LAX into a hub

LAX is already a hub. It is also a hub that doesn't have much more room to grow outside of some kind of deal with LAWA for more gates. 160 flights per day is a hub. Smaller side but its still a hub.

I am not sure where you have been but they have been planning a LAX hub for the last few years now.

Quoting commavia (Reply 20):

Additionally, I thought this word choice on the West Coast chart was very interesting: "Refine Los Angeles hub with completion of schedule build-out and facility upgrades" (emphasis mine). Again - "interesting" word choice.

?
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 8:48 pm

Quoting OA412 (Reply 26):

Where do they say this or where has DL said this? I don't think they've ever said anything other than LAX is going to be turned into a strong focus city for them, nothing more, nothing less.

LAX is being called a hub now.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 8:56 pm

Quoting OA412 (Reply 26):
Where do they say this or where has DL said this? I don't think they've ever said anything other than LAX is going to be turned into a strong focus city for them, nothing more, nothing less.

Actually, the presentation is quite clear in calling LAX a hub; and it was also referred to as a hub by Hauenstein in his remarks

Quoting enilria (Reply 23):
This month they have 81 daily departures. If they are "70% done" as they say they are, that means they will have 114 flights per day when "done". 114 flights divided by 30 gates = 3.8 flights per gate. If they tell SEA-Tac that they want 30 gates to operate 114 flights,

No, the 70% was based on next summer's schedules of about 120+ flights.

Quoting enilria (Reply 23):
I'm fairly certain that the comment that "SEA is profitable" is either not true or intended to mislead

Oh good God, I know it might not fit within your attempts to dramatize everything about airlines' behaviors, but why is it so hard to believe that domestic could be profitable? The US domestic business is currently "on fire" for everyone with great loads and yields. International is not doing as well, and I am sure that some of the SEA international routes are not profitable yet (HND, LHR, HKG) - hence they didn't mention anything about SEA international profitability.
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:00 pm

Quoting panamair (Reply 5):
- SEA domestic is profitable with margin expansion despite huge increase in capacity

Gee. I guess those a.netters who have cursed the name of DL for having a nonprofitable operation in SEA can swallow their pride now, eh?
"KEEP CLIMBING" -- DELTA
 
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:00 pm

Quoting enilria (Reply 23):
The fact that they are in ERI tells me that the existing markets are just test markets for a MAR roll-out.

They are just non-stop routes, so it's just the DTW-ERI route that is involved. I checked and there are no actual E fares available for DTW-ERI. I wouldn't really read much into it and suspect it could be a typo. I don't really expect to see E fares on connecting routes because there's really no margin there. You'd be giving away bargain fare seats on not just one flight, but two. There's more money to be made allocating those seats to other more profitable routes.
 
commavia
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:02 pm

Quoting Deltal1011man (Reply 27):
?

What is "?" referring to?

Delta's own presentation said that in 2015 they planned "completion" of the "schedule build-out" at LAX - I thought that was interesting word choice. To the point - perhaps, as many have been suggesting for months, Delta actually is running out of proverbial "runway" for meaningful growth at LAX due to facility/gate constraints?
 
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mayor
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:04 pm

Quoting OA412 (Reply 17):

Lies, all lies. SLC will absolutely close and all intra-West flows will be handled through SEA and LAX.
Quoting MSPNWA (Reply 19):

Yes. It's not a matter of flights but by importance. SLC clearly doesn't have the importance of LAX or SEA, and DL's strategy of status quo in SLC is reflective of that. The bottom line is that SLC is just SLC. It's a small market for a hub, and DL can't do much more with it, especially when any expansion could poach from LAX and SEA.
Quoting MSPNWA (Reply 14):
SLC is now third fiddle in the West. It's a component, but it's definitely not a key one anymore for DL.

I suppose the support DL is showing for the new terminal in SLC is a lie and a sham, also?
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
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OA412
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:15 pm

Quoting Deltal1011man (Reply 28):
LAX is being called a hub now.
Quoting panamair (Reply 29):
Actually, the presentation is quite clear in calling LAX a hub; and it was also referred to as a hub by Hauenstein in his remarks

I stand corrected. That said, OP's comment is still not accurate because he mentions DL building an LAX hub, whereas DL has already built their hub at LAX. Therefore, OP's suggestion that this particular part of the presenation was a potentiola lie is incorrect.

Quoting mayor (Reply 33):
I suppose the support DL is showing for the new terminal in SLC is a lie and a sham, also?

My comments were meant to be tongue in cheek. Sometimes I forget to add a smiley, but my over-the-top wording should have been enough to tip most anyone off regarding my intentions. I have a long history of countering the periodic reports of SLC's demise. I also lived in SLC for 16 years and have a good understanding of DL's commitment and the new terminal project.
Hughes Airwest - Top Banana In The West
 
OOer
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:26 pm

Did anyone else notice the $1.7 billion in savings from cheaper oil AND a $1.2 billion loss on the fuel hedges for 2015?

Does it really make sense to hedge fuel anymore?
 
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mayor
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:28 pm

Quoting OA412 (Reply 34):
My comments were meant to be tongue in cheek. Sometimes I forget to add a smiley, but my over-the-top wording should have been enough to tip most anyone off regarding my intentions. I have a long history of countering the periodic reports of SLC's demise. I also lived in SLC for 16 years and have a good understanding of DL's commitment and the new terminal project.

Sorry......but I've seen comments such as yours that were completely serious. BTW, I lived and worked at SLC for 23 years so I am also aware of DL's commitment to that City. If there was ever a time that DL would reduce their importance as a hub, it certainly isn't now.
"A committee is a group of the unprepared, appointed by the unwilling, to do the unnecessary"----Fred Allen
 
DTWPurserBoy
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:33 pm

The Delta presentation was impressive. One thing I do not understand is that they are spending the money to install new interiors on the A319 and A320 fleet but only the A319's will be getting AVOD.

Considering the scheduled leg lengths of some the 320 trips I think AVOD is warranted. Unless DL is planning on retiring them sooner rather than later--some of the earliest frames have already been scrapped. But DL likes to use the 319's and 320's interchangeably as loads increase and passengers that thought they would have AVOD and do not get it are NOT going to be happy. Passengers expect--and should have--a consistent product.

This new 5-tiered cabin service approach is getting cumbersome and confusing. It is going to be VERY difficult to manage onboard--I can see lots of potential flight attendant/passenger conflicts developing over passengers' expectations and reality. How they intend to "assign" overhead bin space is incomprehensible to me--again, impossible to manage effectively. We have a hard enough time now keeping YC customers from stuffing their carryons into the FC bins or the forward YC bins when their seat assignment is at row 28.
Qualified on Concorde/B707/B720/B727/B737/B747/B757/B767/B777/DC-8/DC-9/DC-10/A319/A320/A330/MD-88-90
 
panamair
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 9:44 pm

Quoting DTWPurserBoy (Reply 37):
This new 5-tiered cabin service approach is getting cumbersome and confusing. It is going to be VERY difficult to manage onboard

But it really doesn't change from what is already out there today, especially on board. There will still be just three sections of the aircraft: Premium (either Delta One or First), Comfort Plus (used to be called Econ Comfort), and then Main Cabin (regular coach). The "Basic Economy" is really just on the fare level, and does not involve a separate cabin or separate seats, or any other separate handling when on board. As far as the FA is concerned, there is no difference between the Main Cabin or Basic Economy passenger.
 
tommy767
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RE: Delta Investor Day Presentation - 12/11/14

Thu Dec 11, 2014 11:47 pm

Quoting DTWPurserBoy (Reply 37):
The Delta presentation was impressive. One thing I do not understand is that they are spending the money to install new interiors on the A319 and A320 fleet but only the A319's will be getting AVOD.

Many of the A320s are older, and quite a few likely to hit cycle limits sooner than later (lots of 1991-1992 builds.) The longevity of an A320 is less than a 757, for instance.

The A319 are SIGNIFICANTLY younger. Deliveries started in 1999 and went through the mid 2000s, so no surprise that they are getting AVOD.
"KEEP CLIMBING" -- DELTA
 
PlanesNTrains
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 12:00 am

Quoting tommy767 (Reply 39):
Many of the A320s are older, and quite a few likely to hit cycle limits sooner than later (lots of 1991-1992 builds.) The longevity of an A320 is less than a 757, for instance.

I would imagine it could work out similar to AA: A319/A321/738.

-Dave
-Dave


MAX’d out on MAX threads. If you are starting a thread, and it’s about the MAX - stop. There’s already a thread that covers it.
 
Prost
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 12:05 am

Okay, so the 5 Asian cities that are to be served out of NRT are going to be what? Currently, out of NRT, I count the following cities: SIN, BKK, PVG, TPE, MNL, GUM, ROR, SPN. Is Delta counting GUM, SPN, and ROR as Oceania (which it is) so the other cities are staying?

If so, I guess we can ascertain that there may not be another Asian destination from SEA in 2015.

Also, Financial Times had an article on the Investors Presentation, and I thought these two article were interesting:

Quote:

Delta has also persevered with significantly older — and hence more fuel-hungry — aircraft than other US airlines, betting that it can maintain the passenger jets better than competitors and therefore save on capital spending.

Paul Jacobson, chief financial officer, claimed both strategies were proving successful. The refinery — which has lost money heavily during periods after Delta bought it from ConocoPhillips in 2012 — was expected to contribute $70m to operating profit in the fourth quarter, and the company was successfully managing expenses.
 
panamair
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 12:19 am

Quoting Prost (Reply 41):
Okay, so the 5 Asian cities that are to be served out of NRT are going to be what? Currently, out of NRT, I count the following cities: SIN, BKK, PVG, TPE, MNL, GUM, ROR, SPN. Is Delta counting GUM, SPN, and ROR as Oceania (which it is) so the other cities are staying?

I believe GUM, SPN, and ROR are not included as "intra-Asia". So the existing five will continue into S15: PVG, TPE, MNL, BKK, SIN.

In the presentation, it said this would be down from the 12 NRT-Asia routes in 2009. Those 12 would be PEK (gone), PVG, ICN (gone), PUS (gone), KIX (gone), NGO (gone), TPE, MNL, HKG (gone), BKK, SGN (gone), and SIN. Hence GUM, ROR and SPN aren't included.
 
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 12:35 am

Quoting tommy767 (Reply 39):

Many of the A320s are older, and quite a few likely to hit cycle limits sooner than later (lots of 1991-1992 builds.) The longevity of an A320 is less than a 757, for instance.

I remember when we got the first A320's in 1989 a maintenance chief told me that it was "a twenty year throw away airplane." Guess he was right. But it has been a reliable (if noisy in the cabin) aircraft. There were some teething problems in the beginning but nothing major. The one thing passengers hate is the sound of the screaming hydraulic pumps under the floor while we are on the ground.
Qualified on Concorde/B707/B720/B727/B737/B747/B757/B767/B777/DC-8/DC-9/DC-10/A319/A320/A330/MD-88-90
 
B757Forever
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 3:29 am

Quoting DTWPurserBoy (Reply 43):
The one thing passengers hate is the sound of the screaming hydraulic pumps under the floor while we are on the ground.

In maintenance, we refer to that sound as "the barking dog".  
The Rolls Royce Dart. Noise = Shaft Horsepower.
 
tommy767
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 3:36 am

Quoting DTWPurserBoy (Reply 43):

Yep sir -- you are correct on the freaking out pax on the hydraulics of the 320. A few buddies of mine were flying UA on FLL to EWR and with a ground hold my friends xanax ran out and he asked the f/a if he could "make that noise stop". I had to tell him what the hubub was all about down there.

I think the 320 is a fascinating place but I don't like how it handles turbulence. It feels like it rattles like a paper airplane from side to side and then pops up before retaining itself. The 738 for instance just goes up and down.
"KEEP CLIMBING" -- DELTA
 
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enilria
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 3:40 am

Quoting OOer (Reply 35):
Did anyone else notice the $1.7 billion in savings from cheaper oil AND a $1.2 billion loss on the fuel hedges for 2015?

Does it really make sense to hedge fuel anymore?

It will when it goes back up, but I actually thinking hedging is a questionable exercise for airlines.
 
tommy767
Posts: 4658
Joined: Sat Aug 09, 2003 12:18 pm

RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 3:42 am

Quoting DTWPurserBoy (Reply 43):

Yep sir -- you are correct on the freaking out pax on the hydraulics of the 320. A few buddies of mine were flying UA on FLL to EWR and with a ground hold my friends xanax ran out and he asked the f/a if he could "make that noise stop". I had to tell him what the hubub was all about down there.

I think the 320 is a fascinating plane but I don't like how it handles turbulence. It feels like it rattles like a paper airplane from side to side and then pops up before retaining itself. The 738 for instance just goes up and down.
"KEEP CLIMBING" -- DELTA
 
DTWPurserBoy
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 3:47 am

Quoting tommy767 (Reply 45):
I think the 320 is a fascinating place but I don't like how it handles turbulence. It feels like it rattles like a paper airplane from side to side and then pops up before retaining itself. The 738 for instance just goes up and down.

I have never noticed a big difference in the way the A320 responds in turbulence. It kind of depends on the source--changes in outside temperature creates a gentle (usually) rocking--but hit some wake turbulence it feels like we hit a brick wall.

The hydraulic pumps make this screaming "vroom, vroom" sound in the forward coach cabin. It tends to freak people out. I once heard--and am not certain this is true--that Airbus decided to bolt the pumps to the floor beams instead of the outer hull resulting in increased noise. I am sure some of our maintenance-savvy folks can clarify this.

The other thing that all Airbuses do is during climb out. As the cabin pressure increases the doors make a loud "CRACK" sound that makes new flight attendants come flying off their jump seats. It is just the door sealing itself harder against the airframe but it can be unnerving.

The A330 has a weird "wiggle" that it does during boarding. As the passengers, bags and freight are loaded, it settles lower on the struts making the whole airplane shake like an earthquake. It frequently causes all of the BC passengers champagne (pardon me, "sparkling wine") to fall over in the front galley making a mess.

Every airplane has its own unique sounds and it takes a while working on it to get used to it. But you do see the panicky look in some passengers eyes when they hear or feel these odd sounds. The Airbuses also have a VERY loud BANG when the landing gear is lowered--just a quirk, I guess.

[Edited 2014-12-11 19:50:05]
Qualified on Concorde/B707/B720/B727/B737/B747/B757/B767/B777/DC-8/DC-9/DC-10/A319/A320/A330/MD-88-90
 
prebennorholm
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RE: Delta Investor Day Presentation - 12/11/14

Fri Dec 12, 2014 4:00 am

Quoting OOer (Reply 35):
Does it really make sense to hedge fuel anymore?

Hedging is gambling, and it always makes as much sense as gambling.

You buy in advance, if the price goes up, you win, and vs.

Just like gambling, in the long run you always lose. The hedging banks make sure that they always win in the long run, just like the casinoes in Vegas.

Hedging is clever when your company is so poor that it folds when fuel prices increase. Otherwise it is not so clever.

If you can stay away from hedging, then in the long run you will cash in the profit, which the hedging companies would take.
Always keep your number of landings equal to your number of take-offs

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