Delta to trim future domestic, int'l capacity

[pb4ufly]

Delta Air Lines to trim future domestic, international capacity; Carrier cites slowing demand

By HARRY R. WEBER , Associated Press
November 21, 2008
ATLANTA - Nine days after announcing new overseas routes for 2009, Delta Air Lines Inc., the world's biggest carrier, said in a regulatory filing Friday it plans to reduce future domestic and international capacity because demand for seats has slowed amid the global financial crisis.
The Atlanta-based airline did not provide specifics, but did say it would give more details about its outlook in early December.
Spokeswoman Betsy Talton said Delta still plans to add starting next spring the 15 new international routes it announced Nov. 12, but the company will continue to monitor performance.
It was unclear if future capacity reductions would mean a net reduction in international capacity next year or simply smaller growth. When the new overseas routes were announced, a Delta executive told reporters that overall international capacity in 2009 would be slightly larger than in 2008, while overall domestic capacity would be slightly smaller.
In a Securities and Exchange Commission filing Friday, Delta said that demand has slowed over the course of the fourth quarter, which began Oct. 1 and ends Dec. 31. Domestic advance bookings are running two points higher year-over-year, reflecting capacity reductions in the domestic system. International bookings are down 4 to 5 points, Delta said.
"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," Delta said.
Delta said that as a result of its $2.8 billion acquisition of Northwest Airlines, which it completed Oct. 29, Delta's consolidated reported results for the fourth quarter will include Northwest results from Oct. 30 through the end of the year, in addition to Delta's standalone results for the entire quarter. The comparable 2007 figures will include only Delta standalone results.

The airline said its guidance in its investor update Friday excludes special items and the impact of applying purchase accounting to the merger.
Delta said that for the fourth quarter, it expects operating margin to be 0 percent to minus 2 percent. Operating margin is operating income as a percentage of sales or revenue.
It said consolidated revenue per available seat mile would be up 2 percent to 4 percent. It said system capacity would be down 4 percent in the quarter.
Delta's shares fell 1 cent to $7.01 in morning trading Friday.

 

[ACL65PILOT]

reposted article

 

[Tanker Clown]

What is Anderson going to ask for first: Paycuts or furloughs? Or will the Delta guys offer up the paycuts? Interesting times.

 

[recallsomeday]

Heard Bastien speak the last week, with the current economy and revenues his opinion was that the industry would reduce capacity another 7-10%.

He definitely said we were not in the market for more RJ's, and actually have been getting rid of RJ's.

Hopefully, it will be a system reduction with a continuation of RJ reduction ! (domestically obvious)

 

[crj567]

Bring those 767-400s to DHN!!!!

-Welcome Back, Gen!

 

[General Lee]

Bring those 767-400s to DHN!!!!

-Welcome Back, Gen!

Thanks, but I've always been back. And, most of those cities should probably have connecting VAN service, and maybe you could get your commercial drivers license and get hired. That would be FANTASTIC for you. Don't go slow in the left lane please, and watch out for the Blue Supper Shuttle vans, those guys are heartless.


Bye Bye--General Lee

 

[SoberIrishman]

Thanks, but I've always been back. And, most of those cities should probably have connecting VAN service, and maybe you could get your commercial drivers license and get hired. That would be FANTASTIC for you. Don't go slow in the left lane please, and watch out for the Blue Supper Shuttle vans, those guys are heartless.


Bye Bye--General Lee

I make my own "supper", don't need a van to bring it to me!

 

[General Lee]

I make my own "supper", don't need a van to bring it to me!

You don't get those SUPPER Shuttle vans in your area? I think they are Jenny Craig. They bring DAMN FANTASTIC food, but their drivers are crazy.

Bye Bye--General Lee

 

[~~~^~~~]

Heard Bastien speak the last week, with the current economy and revenues his opinion was that the industry would reduce capacity another 7-10%.

He definitely said we were not in the market for more RJ's, and actually have been getting rid of RJ's.

Hopefully, it will be a system reduction with a continuation of RJ reduction ! (domestically obvious)

Delta is pulling down some flying over the North Atlantic and replacing it with Africa. Reflecting the increased block hours there is currently an open bid for ~ 220 767ER slots in CVG.

 

[Twotter Driver]

Are they still going to pull some 30 NWA DC-9's out of the desert?

 

[General Lee]

Are they still going to pull some 30 NWA DC-9's out of the desert?

Doubtful. There was a reason for announcing that. That is all I will say. More to come later.

Bye Bye--General Lee

 

[Poahi]

Doubtful. There was a reason for announcing that. That is all I will say. More to come later.

Bye Bye--General Lee

Flowback with Pinnacle?

 

[AA717driver]

Look for these terms coming from a DAL spokes-individual soon:

Fleet Rationalization

Right-sizing

Ineffecient Redundancies (sp? I'm too lazy)

Streamlining

Voluntary Reductions

Perfect Storm

Unforseen (fill in the blank)

Delta has tried to avoid involuntary reductions where at all possible

And so on... TC

 

[800Dog]

Delta is pulling down some flying over the North Atlantic and replacing it with Africa. Reflecting the increased block hours there is currently an open bid for ~ 220 767ER slots in CVG.

No growth with the ER in CVG. Just renaming the 75/76 category that already exists in there.

 

[ACL65PILOT]

The growth is the PIT, and RDU flying, and all of the Africa flying. Now we are not getting new jets, so the lift will have to come from somewhere. It will probably come from a reduction to some North Atlantic cities that are under performing. Wait for that announcement.

Because of the type of flying that Africa will entail, you will see longer trips, with different utilization that the flying that these aircraft are currently doing.

 

[~~~^~~~]

No growth with the ER in CVG. Just renaming the 75/76 category that already exists in there.

Agreed. Many have latched on to Delta's press release about the North Atlantic flying and tried to whip up hysteria that Delta will be reducing pilots. I was trying to explain that the redeployment of flying has not generated a surplus.

 

[Superpilot92]

Agreed. Many have latched on to Delta's press release about the North Atlantic flying and tried to whip up hysteria that Delta will be reducing pilots. I was trying to explain that the redeployment of flying has not generated a surplus.

But in the same time you were trying to paint it as a total net increase in positions.

 

[~~~^~~~]

I used the word "replacement." In fact, these are new 767ER positions that did not exist before.

"Replacement" seems to be a confusing word in MSP. DC9's being replaced by RJ's result in a surplus, while 767's being replaced by 767ER's on longer distance routes do not. imp:

I try not to paint. For $10 an hour, I can do something else, like harass you.:nuts:

 

[Superpilot92]

I used the word "replacement." In fact, these are new 767ER positions that did not exist before.

"Replacement" seems to be a confusing word in MSP. DC9's being replaced by RJ's result in a surplus, while 767's being replaced by 767ER's on longer distance routes do not. imp:

I try not to paint. For $10 an hour, I can do something else, like harass you.:nuts:

here is some math for you. You said a few months ago that with the previously planned reduction in DC9s by the end of the year that the NWA side would have a "surplus" of 300-400 pilots. Since that time we have had close to 400 people leave, between PERPS, Medical, and just regular retirements, so how much is the "surplus" now? imp:

That doesnt even consider the fact that the aircraft parkings may not happen and the fact that EVERY original NWA aircraft has to, in the near term, be staffed with MORE pilots.

Ps. You're not harassing me at all. So i hope you aren't being paid to do so or you may get fired!! I am just trying to keep you honest in your assumptions. :beer:

 

[General Lee]

But in the same time you were trying to paint it as a total net increase in positions.

Let's say you have 10 767s and they require 10 Captains and 10 FOs each for domestic operations. Then, you increase the usage of those planes or add INTL flights that now need 1 Captain and 2 FOs. I would say that is an increase in positions.


Bye Bye--General Lee

 

[General Lee]

here is some math for you. You said a few months ago that with the previously planned reduction in DC9s by the end of the year that the NWA side would have a "surplus" of 300-400 pilots. Since that time we have had close to 400 people leave, between PERPS, Medical, and just regular retirements, so how much is the "surplus" now? imp:

That doesnt even consider the fact that the aircraft parkings may not happen and the fact that EVERY original NWA aircraft has to, in the near term, be staffed with MORE pilots.

Ps. You're not harassing me at all. So i hope you aren't being paid to do so or you may get fired!! I am just trying to keep you honest in your assumptions. :beer:

But you see, you have to go into this merger with "what you had", not what you will have. Just like your current pay rates are NOT what you now negotiate with, rather pre DCC pay rates. Everything can change AFTER a merger, but that is not what we brought to the table. Would you have had retirements had you been a stand alone? Probably not, since people were afraid of DL's retirement medical premiums, and they bailed. Had they not bailed, were you going to have furloughs? That memo said likely, and I know it was maybe becuase higher fuel, but I don't see any of those DC9s coming out of the desert (it was a diversion), and the reason you were overstaffed was because you had extra people waiting for the 787s. That is why you had a large displacement bid, that was later pulled.

You can't negotiate what you have NOW, vs what you BROUGHT to the table. The A330 rates were brought up to the 764 rates, and you agreed to NOT use them in the arbitration. Should we just go back on all agreements? (Didn't your lawyer try to bring something up and our guy objected since it was agreed upon prior not to bring it up, and Bloch agreed? I think that did happen)


Bye Bye--General Lee

 

[crj567]

The growth is the PIT, and RDU flying, and all of the Africa flying. Now we are not getting new jets, so the lift will have to come from somewhere. It will probably come from a reduction to some North Atlantic cities that are under performing. Wait for that announcement.

Because of the type of flying that Africa will entail, you will see longer trips, with different utilization that the flying that these aircraft are currently doing.

Yeah-, BABY!

AFRICA- That is where the money is! Just you wait and see-and untapped Gold Mine! (Could there possibly be a reason it remains untapped?)

-Here's a proposition, CL65. You could have every cent of profit from all of Africa, and I would get a delicious cup of onion soup instead...... Who do you think would come out ahead?

-Just back up the money wagon!

 

[General Lee]

Yeah-, BABY!

AFRICA- That is where the money is! Just you wait and see-and untapped Gold Mine! (Could there possibly be a reason it remains untapped?)

-Here's a proposition, CL65. You could have every cent of profit from all of Africa, and I would get a delicious cup of onion soup instead...... Who do you think would come out ahead?

-Just back up the money wagon!

Those RJs sure are profitable. So much so, Delta is getting rid of 100 this year. Do you like onion soup? Get used to it.


Bye Bye--General Lee

 

[Schwanker]

But you see, you have to go into this merger with "what you had", not what you will have.
Bye Bye--General Lee

So you had 8 777s? Or was it 10 777s?

How does this compare with NWA's 31 747's and 32 A-330s?

The rest of DAL jets "NOT SO PREMIUM" 767's and smaller.

Schwanker

 

[skywav8r]

For years I heard rj guys make fun of prop guys. Then its mainline thinking they are so much better than scumbag rj pilots. Now its super premium 747 pilots making fun of the little baby 767's. What a joke!! My dad is bigger than your dad. My johnson is longer than yours blah blah blah. Were are own worst enemies. Oops, I forgot I was freight trash too. At least I love my job and every plane I've ever flown. The money's not like it was but at least I'm not doing drywall again. My glass is half full and looking forward to a prosperous future with our Northwest brothers..and a few sisters.

 

[crj567]

Those RJs sure are profitable. So much so, Delta is getting rid of 100 this year. Do you like onion soup? Get used to it.


Bye Bye--General Lee

These stupid decisions "big daddy D" is making will have implcations for you one day, Gen.... Even as big as you ego has become.

Dumping all DALs eggs into the Europe and Africa basket will destroy the company-everyone thought PanAm was too big to fail-how are they looking these days?. DAL almost made this same mistake in the early 90s, but they were smart enough to pull back. This time they have extended far too much and far too heavily into these areas.

International ops are very expensive-especially to craphole places like Africa-which no one has ever made money flying to (with the possible exception of S. Africa.) Europe's economy is tanking worse than ours-Africa has not got enough money to buy a '78 Pontiac in all its countries combined (excluding S. Africa.) Looks extremely stupid to anyone who has seen DAL make this mistake before.

-Good luck Gen, with this kind of complete moron mgmt. you will need it. Welcome to the new NWA-the old DAL is gone.

 

[Cobraair75drvr]

crj567,

Just curious who you work for, how long? Are you new to the industry, a rj lifer wishing ill will on mother d or just trying to ruffle pvt. lees feathers?? I agree with some of your points though. Some of the posters remind me of Leo Decrapio on Titanic when he is on the bow yelling "I am the king of the world" or some crap like that, when it comes to dal. As much as I would like that, the realistic(cynical,pessemistic, glass almost empty side) gets the best of me..

These stupid decisions "big daddy D" is making will have implcations for you one day, Gen.... Even as big as you ego has become.

Dumping all DALs eggs into the Europe and Africa basket will destroy the company-everyone thought PanAm was too big to fail-how are they looking these days?. DAL almost made this same mistake in the early 90s, but they were smart enough to pull back. This time they have extended far too much and far too heavily into these areas.

International ops are very expensive-especially to craphole places like Africa-which no one has ever made money flying to (with the possible exception of S. Africa.) Europe's economy is tanking worse than ours-Africa has not got enough money to buy a '78 Pontiac in all its countries combined (excluding S. Africa.) Looks extremely stupid to anyone who has seen DAL make this mistake before.

-Good luck Gen, with this kind of complete moron mgmt. you will need it. Welcome to the new NWA-the old DAL is gone.

 

[Scope out RJ's]

So you had 8 777s? Or was it 10 777s?

How does this compare with NWA's 31 747's and 32 A-330s?

The rest of DAL jets "NOT SO PREMIUM" 767's and smaller.

Schwanker

Because NWA's "super premium" widebody's came with "not so super premium" pay!

 

[DTW320]

And yet, ALPA records of duesable income shows that NWA pilots made more than DAL pilots in 2007.

 

[~~~^~~~]

Delta had a bunch of new hires in 2007. ~10% 1st year pay & probationary pilots (zero dues) threw ALPA's numbers off.