Airline profits for overseas flying dries up

[lowecur]

Just wait until you hear the changes (for the better) we will be announcing after the merger. You will be saying "Nice job....." and meaning it.


Bye Bye--General Lee

The merger will be a good thing, no doubt....and there better be lots of pulldown in international flying and a strategic bump in some domestic. Watch for CVG and MEM to all but disappear as hubs in the next few years.

1. The news you will be hearing the last half of this year will be how the world economy is going into recession. China's economic bubble is about to pop, and the rest of the world is hurting from a poor US economy.
2. Russia is re-exercizing it's military might and will continue to try and reign in some lost territory. Let's not forget they are a police state run by the old KGB.
3. The stock market will continue to crumble as institutional investors sell into these traders rally's.

You got some smart people leading DL, and you are positioned to be nimble enough to make these moves. I see NWA just wrote off the $200M Midwest Investment. That not working out for AAI was a blessing in disguise, as they should be able to make continued inroads as the old Midwest is dismantled.

Looks like oil is headed down to the 70-90 bbl until the world economy heats up again. That's a good thing for the airline industry, and continued contraction is mandatory. It's also good for the low cost carriers and bad for most legacy's that will have a hard time shrinking fast enough to remain profitable.

imp: ​

 

[RJAA]

I dont know about the rest of you all but this guy seems jealous hes on the wrong team. In the end he will have waisted his time trying to put down others while he should be updating his resume and looking for another dispatching job. My two cents FWIW.

PS- You should have never let your route planners get away.

Who is putting who down? Are you that deep in the cool aid to see not everything Delta does prints money? You didn't even respond contructively to what I said. ICN is down to 3 times a week. I hear China is also not so hot lately, and that goes for everyone. Look at your PVG. The costs are way up. See what sticks. Trial and error I guess, sounds like a great planner, and keep your Delta propaganda up. And no, I wouldn't be looking for another job. Delta is not the only international airline in the U.S. Ciao.

 

[Frank Lorenzo]

I just did Dakar and Cape Town and the flights were completely full.

Irrelevant.

What were your YIELDS?. (and how do you know? Are you, as a line pilot, privy to the inner workings of the yield management team?)

I'm sure Skybus had a lot of full planes too.

BTW, you are ASSuming that no other airlines will start up service to some of your "winners." You think other airlines like UAL, AA, or CAL don't know what kind of LF or yield you are pulling down on some of those markets? You are the lab rats. Anything that pans out as a winner over the course of a few months will soon be invaded by at least one if not all competitors.

When this merger is done, it will start shrinking like George Costanza fresh out of the cold pool. I can't wait to hear the spin job...

"Shrinkage is actually GOOD for us. Delta's management actually knows that shrinking this airline is unparalleled genius...."

Pure entertainment.

 

[General Lee]

Oh come on, you are happy about Budapest? You also made another airline very happy by bailing out of JFK-BOM non-stop. How long did that last?? I thought it was carrying all kinds of goodies on shiney B777-200LR. I mean, you gotta ask yourself why Delta bailed and the airplanes had to be sent to ATL to fall back on its connection feed when there are more B777-200LRs coming in just a few months to launch ATL-BOM at will. Nice Job! Good luck routing premium traffic back up to the northeast after 18 hrs of flying. It's a tough sell. They might just cross the river for the non-stop action.

You obviously have never been to Budapest. Beautiful city, especially compared to Bucharest. Regardless, this obviously shows one thing though, if a city is not doing well, we will and can abandon it quickly, whereas in the olden days we would have stayed and incurred more losses.

Did you know about the competition to BOM from the NYC area? CAL goes nonstop to DEL ad BOM. Air India does the same, and Jet Airways does one stop service through BRU from JFK and EWR also. Sounds a bit crowded. Apparently our nonstop had mostly ATL connections anyway, and since ATL is the busiest airport in the WORLD, we thought it would be better to allocate our resources towards that. Our plane can do it, and the people wanted it. That's called being fexible. It's great that you think ONLY people in NYC go to India. That's the same thing people said about our initial nonstop Tel Aviv service from ATL (which is doing very well). Oh yeah, we recently added 767ER service too from NYC..... Did I just hear a "nice job" from you? Yes, yes I did. Thanks.

Bye Bye---General Lee

 

[General Lee]

Irrelevant.

What were your YIELDS?. (and how do you know? Are you, as a line pilot, privy to the inner workings of the yield management team?)

I'm sure Skybus had a lot of full planes too.

BTW, you are ASSuming that no other airlines will start up service to some of your "winners." You think other airlines like UAL, AA, or CAL don't know what kind of LF or yield you are pulling down on some of those markets? You are the lab rats. Anything that pans out as a winner over the course of a few months will soon be invaded by at least one if not all competitors.

When this merger is done, it will start shrinking like George Costanza fresh out of the cold pool. I can't wait to hear the spin job...

"Shrinkage is actually GOOD for us. Delta's management actually knows that shrinking this airline is unparalleled genius...."

Pure entertainment.

That's not what a lot of us have heard (but you, being a washed up airline exec have heard differently). And, with oil going down, it may be a total reversal. I have heard that our budget next year is based on $140 a barrel oil, and if it sinks and we can take advantage of some hedging, then I think you will be wrong, again...... Sorry Frank.

Bye Bye--General Lee

 

[upndsky]

Irrelevant.

What were your YIELDS?. (and how do you know? Are you, as a line pilot, privy to the inner workings of the yield management team?)

I'm sure Skybus had a lot of full planes too.

BTW, you are ASSuming that no other airlines will start up service to some of your "winners." You think other airlines like UAL, AA, or CAL don't know what kind of LF or yield you are pulling down on some of those markets? You are the lab rats. Anything that pans out as a winner over the course of a few months will soon be invaded by at least one if not all competitors.

When this merger is done, it will start shrinking like George Costanza fresh out of the cold pool. I can't wait to hear the spin job...

"Shrinkage is actually GOOD for us. Delta's management actually knows that shrinking this airline is unparalleled genius...."

Pure entertainment.

I'm aware of all those issues. But your Skybus analogy is weak. Delta doesn't sell $10 tickets to Cape Town. International fares, especially on thin routes, are traditionally higher than domestic and therefore are going to have better yields. Enough to make money? That I don't know, but it's going to be better than domestic.

One reason you don't see others expanding into some of these international markets is that they don't have the equipment. By happenstance, Delta just happens to have a large fleet of 767s and 757s that could be quickly converted from domestic to international to serve those markets. It wasn't too long ago that most of our 757/767s were doing nothing but domestic. We had the "luxury" to have a fleet that we could adapt to a changing market. Companies like UA, US and NW didn't.

 

[Frank Lorenzo]

That's not what a lot of us have heard

Oh, so it falls under the "I heard" category. Nothing more reliable and accurate then the line pilot's "I heard" grape vine.

Shocking to see that a bunch of airline executives trying to do a sell job on a merger would try to vet an uber-rosy scenario to the rank and file.

 

[RJAA]

You obviously have never been to Budapest. Beautiful city, especially compared to Bucharest. Regardless, this obviously shows one thing though, if a city is not doing well, we will and can abandon it quickly, whereas in the olden days we would have stayed and incurred more losses.

Did you know about the competition to BOM from the NYC area? CAL goes nonstop to DEL ad BOM. Air India does the same, and Jet Airways does one stop service through BRU from JFK and EWR also. Sounds a bit crowded. Apparently our nonstop had mostly ATL connections anyway, and since ATL is the busiest airport in the WORLD, we thought it would be better to allocate our resources towards that. Our plane can do it, and the people wanted it. That's called being fexible. It's great that you think ONLY people in NYC go to India. That's the same thing people said about our initial nonstop Tel Aviv service from ATL (which is doing very well). Oh yeah, we recently added 767ER service too from NYC..... Did I just hear a "nice job" from you? Yes, yes I did. Thanks.

Bye Bye---General Lee

Spin, spin, spin. Something went wrong there. Are you saying Delta left because it was not competive enough in NYC? I just fell out of my chair. Delta clearly got their ass handed to them in the NYC, which is the largest market to India in O&D. Delta has been serving India for at least 10 years longer than Continental. They should have a better market penetration, but clearly don't. Thanks, others will enjoy higher fares. Delta has a handful of 200LRs coming online in a few months to launch new stuff out of ATL to India. Why change so sudden? Being flexible? You mean try something new and cut it often? How is that LA thing going? Try telling that to business traffic who depend on reliable service. ATL being the businest airport in the world does not equate profitability. You would brag about the new Brazilian authority. AA will print money from MIA with their new authority. 2nd tier Brazillian stuff from ATL will face some challenges. Oh, and I have been to Budapest, not on a tiring layover but on a vacation. It's one of my favorite places in Europe.

 

[Superpilot92]

YAWN, just another classic example of some disgruntles pissing on everyone else's parade. What a joke....