AirTran to cut service!!!!!

[SFR]

I just read this article in the WSJ. They are to decrease system flying by 13% in 2008.


What happened? I thought you guys have a great business plan? What is going on over there?


WSJ says you plan to pull out of San Diego. What??

 

[Headfake14]

in today's paper?

 

[N1VIBS]

I just read this article in the WSJ. They are to decrease system flying by 13% in 2008.


What happened? I thought you guys have a great business plan? What is going on over there?


WSJ says you plan to pull out of San Diego. What??

$115 -$120 oil prices can screw up any companies business plan!!

 

[Kharma Police]

I just read this article in the WSJ. They are to decrease system flying by 13% in 2008.


What happened? I thought you guys have a great business plan? What is going on over there?


WSJ says you plan to pull out of San Diego. What??

Old news Sean.

 

[CHQ Pilot]

It looks like AirTran may be looking at reducing current aircraft in the fleet to meet some of its cost cutting measures. From the 10-K filing.


We have revised our fleet plan and based on scheduled and or planned fleet actions, we expect to end 2008 with 141 aircraft. Currently, we anticipate having 141 aircraft at the end of 2009 and 148 aircraft at the end of 2010. We intend to accomplish the reduction in our rate of growth, as measured by, among other things, available seat miles and number of aircraft, by taking one or more of the following actions:
• deferring deliveries of new aircraft,
• selling, leasing or subleasing new aircraft scheduled for delivery,
• selling, leasing or subleasing existing aircraft


• First, because we negotiated what we believe to be very favorable aircraft purchase prices in 2003 and because we believe demand for new fuel-efficient aircraft should continue-particularly outside of the U.S. where potential purchasers may also have favorable currency exchange rates -we should have the ability to monetize and intend to monetize selected aircraft assets. We have sold three new B737 aircraft since April 2007 and have signed or are negotiating memoranda of understanding to sell five additional B737 aircraft in the remainder of 2008. In addition to generating cash proceeds, each sale of new aircraft scheduled for future delivery frees up existing cash which would normally be paid as part of the purchase price and avoids the need for associated financing for the aircraft. We likewise are marketing the sale or lease of existing aircraft which we believe, in the case of a sale, would result in a gain to us or, in the case of a sublease, rental income to us in excess of our lease payments.

 

[BR715]

Does this mean the F word?

 

[SFR]

Actually,I prefer to be called Sebd.

 

[spitfire1500]

$115 -$120 oil prices can screw up any companies business plan!!

I don't think this kind of crap helps either. What are the people in AAI HQ thinking!......."fuel is through the roof.......so lets have a sale!!! I hear the loads are very high so........ why?
I bought some AAI the other day when it went way down....I hope it wasn't a mistake! This looks like Mesa's plan in Hawaii and look where it's got them!




Sale Fares in Bloom Now on AirTran Airways
Thursday April 24, 5:00 am ET


- Take a Vacation with Fares As Low As $39* -

ORLANDO, Fla., April 24 /PRNewswire-FirstCall/ -- AirTran Airways, a subsidiary of AirTran Holdings, Inc. (NYSE: AAI - News), today launched a sale with fares starting as low as $39*. Travelers may purchase these sale fares at airtran.com or via AirTran Airways' reservations system at 1-800-AIR-TRAN. For Spanish, call 1-877-581-9842.
These special fares are available for purchase through April 25, 2008 and are good for travel on nonstop flights on Tuesdays and Wednesdays through June 11, 2008. Like all AirTran Airways fares, prices included in this sale are available for one-way travel and do not require a roundtrip purchase or an overnight stay.
Following is a sample of the one-way sale fares. All fares require a 10-day advance purchase and are valid in either direction:
Sample Fares: Tue/Wed Akron/Canton - New York (LaGuardia) $49 Atlanta - Baltimore/Washington (BWI) $59 Atlanta - Denver $89 Atlanta - Las Vegas $109 Atlanta - Orlando $49 Bloomington/Normal - Orlando $59 Boston - Milwaukee $54 Burlington - Baltimore/Washington (BWI) $39 Buffalo/Niagara - Atlanta $59 Baltimore/Washington (BWI) - Orlando $64 Baltimore/Washington (BWI) - Portland, Maine $49 Dallas/Ft. Worth - Orlando $64 Daytona Beach - Atlanta $49 Dayton - Orlando $64 Denver - Atlanta $89 Ft. Lauderdale - White Plains (Westchester) $64 Flint - Las Vegas $99 Gulfport/Biloxi - Atlanta $49 Houston (Hobby) - Atlanta $64 Jacksonville - Atlanta $44 Las Vegas - Milwaukee $94 Milwaukee - San Diego $89 Milwaukee - San Francisco $89 Newark - Atlanta $64 Newport News/Williamsburg - Tampa $54 New York (LaGuardia) - Orlando $64 Orlando - Pittsburgh $64 Phoenix - Atlanta $109 Philadelphia - Orlando $64 Pittsburgh - Atlanta $59 St. Louis - Orlando $64 San Antonio - Atlanta $64 San Francisco - Atlanta $109 San Juan - Orlando $79 Savannah/Hilton Head - Atlanta $39 Washington DC (Dulles or Reagan National) - Milwaukee $49 Wichita - Atlanta $59 White Plains (Westchester) - Atlanta $59

 

[Adiabatic Pilot]

It looks bleak.

 

[SFR]

WE NEED HIGHER TICKET PRICES!!! Period. The only companies that will survive are ones that will offset fuel with higher prices.

 

[Captain Overs]

I hate to say it, but I think its a double edged sword. In case you guys don't realize it, most of America is feeling an economic pinch. I agree ticket prices should go up, but how many people would not be able to travel at those prices? People are having to buy basic things on credit, I doubt they will be able to purchase as many airline tickets.

So then what? Do the planes go out with fewer people causing bigger losses?

 

[BSkin]

WE NEED HIGHER TICKET PRICES!!! Period. The only companies that will survive are ones that will offset fuel with higher prices.

AMEN BROTHER. With fuel as it is there should be no such thing as low cost carrier (even though I work with FL). Adjustments have to be made, probably more mergers, and lets make flying like it was in the 70's and earlier -- a privilege, not less expensive than a bus or train ticket!

 

[climbhappy]

so then what? Do planes go out with fewer people causing bigger losses

well, not necessarily.. if prices are sufficient to cover cost and there is reduced capacity. it was cheap money due to Fed policy that caused this housing mess. people bought more house than they could afford. and look where we're at.

if prices don't reflect the true cost and companies don't reduce capacity, then they won't be around anyway.
the trucking industry has proven that reducing capacity and raising prices is not only sound business policy, it is common sense.

what would you as a pilot due to safely navigate your company through this unscathed? if you were in charge?

 

[FDJ2]

I'm not an expert on the AAI pilot contract negotiations, but are they still ongoing? If so, what effect does the current environment have on AAI contract negotiations? Does the union leadership believe that they can negotiate a better CBA then what was previously TA'ed?

 

[maxblast72]

If you guys look closer at the fare sale, it only applies to Tuesdays and Wednesdays. I am sure our load factors are low on those days of the week and we are trying to fish to see if more people would fly on those days of the week if the price was right. Unless we do what Allegiant does (park planes on Tues and Wed), this probably brings up the Tues-Wed. RASM (through load factor) even if we are lowering ticket prices on these days.

The weekends on the other hand at Airtran are normally packed. We only lost $6 per person in the first quarter ($35 million loss for 6 million people hauled). You would think with planes as full as they are on Friday-Monday, we could get an extra $10-15 per person. We will see if they can brings prices up enough in the second quarter.

 

[metroplex]

they will leave MKE pretty soon . They were hoping to get Midwest out of there, but they are losing tons of money. I guess they will shift to more profitable routes, running half full out of MKE just is not cutting it. I wish Airtran the best .

 

[TV9Driver]

hmmm.... talking to our CP last week, he said we were doing great out of MKE....

 

[Captainjerky]

Ticket Prices

Like people have said before, we need to raise prices! With very few exceptions, my flights are always running close to or at capacity. Are these people flying on $69 fares? Who cares if the seats are full if we aren't making enough money to pay for the flight?
The public has grown accustomed to cheap tickets, and I am sure there would be the requisite whining and complaining if ticket prices went up. But people need to GET OVER the fact that those days might be over. The airlines just MIGHT have to charge more in order to take you and your family on vacation, and it'll STILL be cheaper and easier than a cross country road trip. Business travelers still need to do a face-to-face to close the deal, etc. So buck up, and let's all just admit fares need to go up so we can all stay airline pilots and come to Flightinfo to complain and rumor-monger!

 

[Kharma Police]

Actually,I prefer to be called Sebd.

Ha! Ha!, you still live in Stockbridge or you and the family move to NJ?

 

[spitfire1500]

If you guys look closer at the fare sale, it only applies to Tuesdays and Wednesdays.

Thats great but gas isn't cheaper on Tue or Wed and most families vacationing in the summer are very flexible. So each family moving to fill this tue/wed slot was a customer you just lost a Thur through Mon full fare on that probably wont fly again until vacation next year.

 

[tailhookah]

Cutting service and airplanes coupled w/ a rock bottom fare sale? Include the stock/bond offering of 65 million... it equates to Airtran being very cash poor, worse than what they're saying and need money, quick liquidity in order to stay out of BK...

'hookah

 

[CatfishVT9]

You guys who are ready to stomp on our grave are probably a bit premature. Regardless of how you think these guys are with regard to labor tactics, I'd put them up against anyone elses management team during tough economic times.

Incidentally, every time we sell a 737 delivery, we make money on it and Boeing likes it because they sell it at a larger profit as well. A win-win.

Stay tuned.

 

[CitationLover]

hmmm.... talking to our CP last week, he said we were doing great out of MKE....

My signature line is what our chief pilot said one month ago. They are clueless.

 

[CatfishVT9]

If it's going to be your signature, you should spell "imminent" correctly.:beer:

Cheers.

 

[Wesb737fo]

Cutting service and airplanes coupled w/ a rock bottom fare sale? Include the stock/bond offering of 65 million... it equates to Airtran being very cash poor, worse than what they're saying and need money, quick liquidity in order to stay out of BK...

'hookah

And which three major airlines do you think are not in danger of filing for BK when kerosene goes to $4.oo/ gal....I'll give you a cookie if you get it right.

 

[captain dad]

Selling off aircraft options is a stop gap. You want to survive, you have to be profitable. What happens when fuel is $150?

Good luck.

 

[scarlet]

What do you think DL/NW with in 6-8 months with 1200-1400 aircraft (with all the rjs) will do?

UAL? CAL? AA? Alaska? JB? Virgin? Spirit? What do you think they will do?

 

[b82rez]

If it's going to be your signature, you should spell "imminent" correctly.:beer:

Cheers.

Not when the CP doesn't know how to spell it.

 

[CatfishVT9]

DOH!!!:laugh:

 

[gt1900]

Scarlett... Your going to have to get off the Alaska kick. They are hedged second only to SWA and have a huge amount of cash. As a matter of fact I believe they did a stock buy back not to long ago because they were getting close to 1 billion in cash on hand. Thats a ton of cash for someone the size of Alaska...