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DL 4th Qr Loss and parking RJ's

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I saw on the from page of the Wall St. Journal that Delta has very little fuel hedged in 08 and 09. If I remember correctly (was in last weeks paper) SWA, followed by US Airways had the highest percentage of fuel hedged at the lowest prices.


That is true, with Southwest the clear winner in hedging. But, Southwest does not have any INTL routes (lucrative due to the dollar vs the Euro and floreigners snapping up our "cheaper" tickets) to fall back on, and even they are forcasting lower domestic demand and growth. If they could, they would pour assets into INTL routes, but they cannot. USAir also has pretty good hedges, along with terrible employee morale and a leader hoping for a merger with someone, anyone. Delta has positioned itself well with plenty of INTL routes to offset a slower US economy and capitalize on growing INTL demand to come to the USA. Our domestic feed is overrun by RJs that can't make us money with high oil, and that will change a bit when we park some of those RJs.

Bye Bye--General Lee
 
Delta's Losing Money? G.L. whats going on over there?
Come on up to EWN and I will treat you and Plyt to a great weekend for free.

The article said we could see a small operating loss, but overall the year has been profitable. We won't know until the end of the quarter, so we'll have to see. I might take you up on that offer in the Spring, though.

Bye Bye--General Lee
 
Treat...

The article said we could see a small operating loss, but overall the year has been profitable. We won't know until the end of the quarter, so we'll have to see. I might take you up on that offer in the Spring, though.

Bye Bye--General Lee

Come visist my place and I will treat you to a swift kick in the nuts, and maybe throw in a 'round the world wedgie for free.

GET A LIFE! DORK!!
 
Open question to anyone here. There was a rumor going around a while back that Delta was thinking of operating the E190/195 on their certificate, is that still a possibility or has it gone by the way side??
 
Open question to anyone here. There was a rumor going around a while back that Delta was thinking of operating the E190/195 on their certificate, is that still a possibility or has it gone by the way side??

We have pay rates for them, but have not heard lately about any future orders. I guess we could get them if we bought Jetblue and then gave back the A320s to the lessors.

Bye Bye--General Lee
 
We have pay rates for them, but have not heard lately about any future orders. I guess we could get them if we bought Jetblue and then gave back the A320s to the lessors.

Bye Bye--General Lee
I also herd of the rumor that you guys were thinking about getting some 319's or 320's and getting away from Boeing's is that still a rumor??
 
Come visist my place and I will treat you to a swift kick in the nuts, and maybe throw in a 'round the world wedgie for free.

GET A LIFE! DORK!!

Dude, I do not want to be your date. Please, go to E-Harmony or Match.com and find a mate that you can give wedgies to. I don't go that way. (not that there is anything wrong with that) Maybe you need to talk to a group called "Unusual Attitudes."

Bye Bye--General Lee
 
What is the "current" cap for DL in regards to the 70 & 76 seat airplanes? Are we close to reaching the limit on 700's and 900's? If not what is the most DL Connection can operate total?

the number of 76 seaters is tied to fleet growth, so a reduction in the Delta fleet count or at least a reduction in the growth, affects that number. Not sure where we are at now, but last I heard it was something like 50-60 total 76 seaters allowed.

The total number of 70 and 76 seat RJs cannot exceed 200. I have no idea how many 70 seaters are flying around.
 
I also herd of the rumor that you guys were thinking about getting some 319's or 320's and getting away from Boeing's is that still a rumor??

I doubt that. Rumors I have heard are that we are getting used MD90s from all over the world (more than 50 are out there available supposedly), 20-25 737-700s, and 20-25 777LRs. You never know, though. No 787s supposedly for awhile since our 767-300ERs are fairly new, and they will get winglets installed on most of them for extra range.

Bye Bye--General Lee
 
"The No. 3 U.S. carrier lowered its operating profit margin target to a range....blah, blah, blah"

Warnings of lower profit margin targets have become standard operating proceedure in today's corporate America. It's the new anit-Enron game.

Remember Enron, WorldCom, Tyco, etc. Accounting games where employed purely in the interest of jacking the stock price, whereupon the corporate officers sold their stock at a hyped price and further lined their own pockets. Well, when the S.E.C. finally got wise to the bogus accounting methods, corporate America could no longer employ those same accounting tactics. Instead, the M.B.A.s, C.F.O.s, and C.E.O.s now give "warnings of lower profit margin targets", only to have "surprise earnings" when quarterly/annual results are announced next quarter. And guess what the corporate robber barons do in the mean time. They buy a bunch of stock and take stock options at the depressed price, only to realize a personal fortunace gain when "surprise earnings" are announced in January. Then, do you have any idea what they'll do next? That's right. They'll AGAIN warn of lower "operating profit margin target(s)" for the next quarter and the game continues.

My only question is what took Delta so long to come to the party. Is their CFO that slow? That far out of touch with today's Generally Accepted (wink) Accounting Principles?
 
We have pay rates for them, but have not heard lately about any future orders. I guess we could get them if we bought Jetblue and then gave back the A320s to the lessors.

Bye Bye--General Lee
If anyone gets them for Delta, I'd bet on you guys. After all, you agreed to fly them for less than ANY regional out there. Way to hold up the bar...:laugh:
 
the number of 76 seaters is tied to fleet growth, so a reduction in the Delta fleet count or at least a reduction in the growth, affects that number. Not sure where we are at now, but last I heard it was something like 50-60 total 76 seaters allowed.

The total number of 70 and 76 seat RJs cannot exceed 200. I have no idea how many 70 seaters are flying around.
this will hold right up until Delta mgmt. comes to you guys with an offer to layoff only 300 pilots rather than 500 if you'll relax scope on the 900's again. Your pilot group will jump on the offer like a duck on a junebug. Always have.
 
Look for Delta to place turboprops on shorter routes? Those BigSky BE-1900D's are going to places we have never flown to before--like Owensboro, KY and Jackson, TN from CVG.

You forgot Cape Girardeau, MO. Also heard they will be going to London, KY as well. I agree the plan was for these guys to go into EAS cities, but I've heard they may be going into LEX, SDF, HTS and DAY on some of the thinner flights. Doesn't make sense to fly a 135 to LEX at 10 am with 15 people when you could do it with a 1900 and save a lot of Jet A.

The SH E170s are being traded ONE FOR ONE for E175s, and those older E170s are going to United. The CR9s and E175s take up a full gate, and therefore do not bring in as much revenue as a mainline plane that could take it's place in that limited asset (the gate). You are right, Pinnacle, Freedom, and ASA will be getting some CR9s in 08 for us, but not a ton of them. Look for more mainline planes to come online in mid to late 08--9 MD90s from China and 7 new 737-700s(coming in July at 2 per month).

Way I heard it was the 175s are replacing the 15 135s we are losing, but you never know with the way Bedford moves these planes around. I do know they are shifting 170s to United and Frontier and we have a bunch of 170 family aircraft on order. It would be wonderful to see mainline aircraft replacing RJs, but I wouldn't hold my breath. With the way these execs are whining about the price of oil, it smells like they are getting ready to come to ALPA to get scope relaxed. I remember reading a Wall Street Journal article a couple of years ago that predicted that in 10 years all of the domestic narrow body flying would be outsourced, and these airlines would basically be a brand name and what you used to think of as mainline would be flying international widebodies only. Would be lovely to see you guys go into your next contract negotiation and demand that all flying be on one list (if its got a widget on the tail, a Delta pilot should be in the cockpit) to get rid of the whipsaw, but I don't see Delta pilots (or any other pilot group) making the sacrifices to make that happen (i.e. a strike that may put the company at risk). Over the short term more mailine aircraft will come on line to get rid of some of the 50 seat flying, but if I had to bet, I'd say over the long term you're going to see scope get relaxed, and "regionals" flying larger aircraft to replace the 50 seaters.

I've also heard that all the 50 and 35 seaters in CVG are going over to the C concourse, and the A concourse jetbridges are going to be rehabbed for 170s, CR7s, and CR9s. Already the temorary ramps are being removed sometimes to park CR9s and 170s at the A gates with no awnings, and supposedly the gates with awnings will have them removed in the spring.

The AT7s will probably stick around, especially to fill niche cities like Panama City, FL and Hilton Head, SC. Are there any used large turboprops out there? The SAS Dash-8-400s---but very unlikely they would go to ASA--probably Lynx, Horizon, or Porter in Canada. I don't see any other large turboprops available unless they come off the production line, and there are plenty of orders out there. The 50 seat and 37 seat RJs just do not make money with high oil.

This is JMO, but I don't think DL will take the SAS aircraft because they have not been maintained very well. The recent accidents they had were supposedly related to poor maintenance. I think they have been waiting and hoping that oil prices would come down, and possibly crash like they did in the early 80s. Depending on who you believe, either the price of oil is artificially inflated by speculation or we've reached peak oil and prices are going to keep getting higher. If you believe the former, then you hang on by your fingernails rather than invest in expensive new equipment. If you believe the latter, then you start investing in new equipment that is more fuel efficient.

I think DLs executives are leaning to the idea that high oil prices are here to stay, therefore I think you will see them do something to get larger turboprops, probably off the production line. Also you will see larger aircraft (CRJ7s, 9s, EMB 170/175s and mainline aircraft) replacing 37 and 50 seaters.
 
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Rumors I have heard are that we are getting used MD90s from all over the world (more than 50 are out there available supposedly

Sounds familiar, when I worked the ramp at NWA in the late 90s, they were getting DC9s from all over the world. Used to see ex EAL, Alitalia, and Iberia aircraft all the time. Was kind of cool to see the placards in Spanish and Italian on the cargo bins.
 

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