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Dal Int'l Comes Home To Roost

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lowecur

lowecur

Well-known member
Joined
Sep 14, 2003
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When you skew your business model the way DAL did a few yrs ago, it's bound to come back and bite you. Add in the top heavy pacific routes of NWA, and it stinks of huge cutbacks systemwide with the closing and reduction of existing hubs in the next few yrs.

Good luck to Anderson and crew, and for that matter...the whole industry that relied on International Travel to subsidize the losing domestic market.

Most of the international carriers are reporting traffic is down 10-15% in the quarter.

http://biz.yahoo.com/ap/081121/delta_air_lines_outlook.html?.v=1
 
This is in line with what I have said for the last two months. Fact is that we are taking some of our lift out of Europe. The areas in which we do not have a good code share feed are the hardest hit. (Think London and Great Brittan mostly)
 
I would think some cuts are inevitable. At CX, we are seeing significant drops in load factor, especially in the front-end. We have a pretty diversified route network, and have a high-end product, and are still seeing a big drop all over the system. Maybe you guys are able to get better yields elsewhere, but I would say that counting on international growth to make up for domestic weakness isn't going to be the cure-all anymore. But what do I know, I'm only a pilot....

box
 
So with this reduction, does this mean Delta will not hire in the next couple of months?
 
It is not official yet.
It was unclear if future capacity reductions would mean a net reduction in international capacity next year or simply smaller growth

But like I have said, if we keep our current 09 plans and do not reduce, we will need bodies. If we go ahead and do a pull down, no we will not hire. There will be no need.

That is why the AE yesterday was very important. It shows that we are watching the situation, and did not want to commit to anything drastic yet. We will go one way or another in a few months. If this continues, not hiring will be least of our concerns. I have said it was to early to worry about furloughs. But, if this trend goes for three more months, I think that it will become a real possibility.
 
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Buck, the key there is "anticipated". There are reasons that we cannot hire outside of the economy.
 
ACL65PILOT said:
Buck, the key there is "anticipated". There are reasons that we cannot hire outside of the economy.
Click to expand...


I understand...but those reasons were known before....(dealing with the merger and sli and.....)and we are looking at the continuation of this bad economy as new reasons. Thats all.
 
I totally I agree, but some of the reasons do not have to do with pilots.
As much as the other employee groups despise us, they do look to us with some level of envy. (Envy for pay, QOL, etc) Having us prosper (hire) does not look good when synergies are taking place. Add to that representation votes. Make sense??
 
At least oil is lower. I guess it could be a lot worse.

Bye Bye--General Lee
 
ACL65PILOT said:
...some of the reasons do not have to do with pilots. As much as the other employee groups ... look to us with some level of envy. (Envy for pay, QOL, etc) Having us prosper (hire) does not look good when synergies are taking place. Add to that representation votes. Make sense??
Click to expand...
A lot of sense.
 
It's becoming pretty obvious that, barring a massive national economic stimulus package (many trillions), this industry is in for some very hard times in the near term. If your sitting there looking at your beaten down retirement portfolio and you or your neighbors looking for work, are you going to make that trip you don't really need to make? Luckily fuel is down to more manageable levels, thanks to the economy. Batten down the hatches if you haven't already.
 
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Delta moves aggressively. This Africa flying is allowing Paris hub bypass.

In this market, I'm impressed that they are always looking for opportunity and making adjustments.

Fortunately fuel prices are helping. If we had experienced this downturn and high fuel prices it would be game over for most airlines.
 
NEW YORK, Nov 21 (Reuters) - Delta Air Lines Inc (DAL.N: Quote, Profile, Research, Stock Buzz) said on Friday it plans to cut flights even further next year as it sees more signs of air travel demand slipping.
Delta, which closed its deal to buy rival Northwest Airlines last month, has already cut its capacity sharply this year, primarily to save fuel costs.
The airline, which is now the world's largest by traffic, said it expected overall capacity -- the number of seats it puts up for sale multiplied by miles traveled -- would fall about 4 percent in the fourth quarter.
That reflects a 12 percent decline in domestic capacity and a 9 percent increase in more lucrative international capacity.
However, it said on Friday that international bookings are running lower than last year.
"Demand has slowed over the course of the quarter," said Delta in a regulatory filing. "As a result, we are evaluating our capacity plans for 2009 on both the domestic and international system and expect to reduce future capacity to better align supply with current levels of demand."
The airline said it would provide financial guidance for 2009 at its Dec. 9 investor day.
Delta shares rose 5.4 percent to $7.38 on the New York Stock Exchange. (Reporting by Bill Rigby, editing by Dave Zimmerman



I wonder if Delta will bring those 30 DC9s out of the desert now? How will global demand hurt our cargo ops? Also, anyone see when our investor day is? Could it be after the SLI comes out? The company wanted our SLI done prior to it, and asked the arbitrators to accomplish that.


Bye Bye---General Lee
 
There is a multi-tiered strategy going on general. We are not just looking at the near term economy, but five plus years down the road.

The rumor of those DC-9's returning is there for a few reasons. It exerts pressure on Boeing for some of those 100 seat jets we are looking for as well as DCI contract changes. If they come out of the desert something will give. Either a order with Boeing, and or some of the DCI lift. It is putting pressure where it needs to be put.

We were probably never going to see them anyway.
 
ACL65PILOT said:
There is a multi-tiered strategy going on general. We are not just looking at the near term economy, but five plus years down the road.

The rumor of those DC-9's returning is there for a few reasons. It exerts pressure on Boeing for some of those 100 seat jets we are looking for as well as DCI contract changes. If they come out of the desert something will give. Either a order with Boeing, and or some of the DCI lift. It is putting pressure where it needs to be put.

We were probably never going to see them anyway.
Click to expand...

Gotcha.

Bye Bye--General Lee
 
DTW320 said:
Sorry, I'm not following you there. What is that?
Click to expand...

The day after the SLI announcement. Supposedly a lot of company news too.


Bye Bye--General Lee
 
boxjockey said:
I would think some cuts are inevitable. At CX, we are seeing significant drops in load factor, especially in the front-end. We have a pretty diversified route network, and have a high-end product, and are still seeing a big drop all over the system. Maybe you guys are able to get better yields elsewhere, but I would say that counting on international growth to make up for domestic weakness isn't going to be the cure-all anymore. But what do I know, I'm only a pilot....

box
Click to expand...
Bloomberg had a piece on ANA last night, and they said traffic is way down. It's not just the European market that's hurting, it's global.

:pimp:​
 

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