General Lee
Well-known member
- Joined
- Aug 24, 2002
- Posts
- 20,442
Easy Children........
Come on now. Easy. We all know that late Jan and into Feb is normally slow, since kids are back in school and Spring Break is a couple months away. Yes, the economy is tanking, but oil is down and our hedges go down after Q1. Here is what Ed Bastain said 10 days ago:
Delta president confident despite global drop in airline revenue
By Freesun New s at 18 January, 2009, 10:26 am
Delta Air Lines President Edward Bastian predicts a 10% drop in worldwide airline revenues this year — but it would take a 20% drop at Delta to wipe out an estimated $5 billion the airline will save as a result of lower fuel costs. Bastian also said his company’s October merger with Northwest Airlines would save billions in operating costs, helping the new Delta to ride out the downturn. “We are well prepared both through our cost structure and merger benefits … as well as the fuel savings to be able to withstand the challenges and actually come out in a better spot,” he told reporters in Tokyo on Thursday.
I talked with a buddy of mine in the CP office here in ATL and there was a large conference call today with all base CPs and Flight Ops managers (all FNWA bases included too), and no mention of furloughs at all. Apparently they are still aiming for early 2010 for SOC, and increasing DC9 hours flown per day. Yes, the economy is bad and there are lots of empty seats out there, but remember what usually happens in late Jan EVERY YEAR. Not the busiest times for any airline. Delta has always been a big Spring and Summer airline, and it will probably continue that way. If we have a very slow Summer, then things could change, but I think we have already cut capacity and by that time our exposure to high fuel hedges will be decreased. RA did state a solid year profit for 09, so we'll just have to see how bad the recession will be.
Bye Bye--General Lee
Heyas,
Agreed. Despite what the pundits say, domestic and international traffic has fallen off a cliff. Oil could be free and it wouldn't make any difference. There are no passengers at any price.
The recession is going to deepen into a full blown depression, with out of control inflation. Expect double digit interest rates and unemployment numbers. Think 1977 except that this time even the rich people are broke.
My guess: Parking another 20-30 mainline aircraft, AT A MINIMUM, plus a WHOLE passel of DCI aircraft.
Furloughs later in 09. DAL side first, then NWA side 2-3 months later.
No recalls until mid 2011, at the earliest.
Nu
Come on now. Easy. We all know that late Jan and into Feb is normally slow, since kids are back in school and Spring Break is a couple months away. Yes, the economy is tanking, but oil is down and our hedges go down after Q1. Here is what Ed Bastain said 10 days ago:
Delta president confident despite global drop in airline revenue
By Freesun New s at 18 January, 2009, 10:26 am
Delta Air Lines President Edward Bastian predicts a 10% drop in worldwide airline revenues this year — but it would take a 20% drop at Delta to wipe out an estimated $5 billion the airline will save as a result of lower fuel costs. Bastian also said his company’s October merger with Northwest Airlines would save billions in operating costs, helping the new Delta to ride out the downturn. “We are well prepared both through our cost structure and merger benefits … as well as the fuel savings to be able to withstand the challenges and actually come out in a better spot,” he told reporters in Tokyo on Thursday.
I talked with a buddy of mine in the CP office here in ATL and there was a large conference call today with all base CPs and Flight Ops managers (all FNWA bases included too), and no mention of furloughs at all. Apparently they are still aiming for early 2010 for SOC, and increasing DC9 hours flown per day. Yes, the economy is bad and there are lots of empty seats out there, but remember what usually happens in late Jan EVERY YEAR. Not the busiest times for any airline. Delta has always been a big Spring and Summer airline, and it will probably continue that way. If we have a very slow Summer, then things could change, but I think we have already cut capacity and by that time our exposure to high fuel hedges will be decreased. RA did state a solid year profit for 09, so we'll just have to see how bad the recession will be.
Bye Bye--General Lee
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