ASA Bad news is out.

[Speedtape]

You are correct, but there is something that need to be discussed. The 70/90 seat platforms have other issues that just money. DAL knows that. That is why they have started to put limits on them. Three hrs in an RJ is just too long. This management team knows it.

Also yes, an RJ could make more money if they could actually charge more given the fact that we offer fewer seats, but they don't.
We compete with other airlines, and if they do not do exactly what we do, there is no way to employ that strategy. DAL is stuck pricing tickets with the market.
Fact is that with that market they will actually have a better yeild on the lower priced tickets with a larger jet. The RJ's are very costly per seat mile, where as the larger jets are not.

I will grant you that there are a few markets that will see a bump in RJ service due to the netting effect that we will employ with our many hubs. It will not be as great as you think. Moreover, the merger will in effect keep the RJ's that were there, where there was an actual business case to bring in a large jet. For example places like PIA.

When the 100 seat jet actually arrives in a platform that DAL is willing to sign on to, yes, you will see DAL take 40 or seats off a flight in favor of that.
One thing DAL will never admit publically and almost never personally, is that they have seen travelers actually book away from RJ's even if the price is more. That right there is proof in the pudding.

Also the 76 seat jet is not necessrarly a money maker. What it does, is allowes DAL to offer a "preimum" product to medium markets. That is the sole purpose behind it. Not to make more money.

I don't have time to address each of your points--at least for now.

I will keep it simple and say the following: The RJ, no matter what size, is just another layer of flying. Yes, the CASM is higher than an MD88, and the MD88 Casm is higher than the 757, and the 757 Casm is higher than the 777. If you are going to single out one airplane for comparison for your argument, then your argument is flawed. Guaging aircraft size depends on demand/future bookings. Any argument that can be made against the RJ as compared to larger guage aircraft, can usually be made about the next size up to the next size up. Yes, yields are thin and to raise prices right now would further stifle demand. If fuel goes up, there may be markets that no longer make sense to serve with any size aircraft. There are many variables, and right now, the market is very dynamic. Feed is even more critical. Any plan to reduce capacity will affect the whole fleet to some degree. 50's may be further reduced, but they will not go away until there is something of like size that is more efficient to replace it--not a narrow body aircraft.

 

[USCtrojan]

You need to check your facts. You probably weren't around in the business in the '90s but Skywest lead the industry with pay and work rules by far. Almost every pilot at the other regionals were tacking the Skywest rates and work rules to the doors of management and saying just give us this and we'll be happy. I know this for a fact. (OK, so maybe not almost every pilot)

9/11 changed alot and after that Skywest told us all that they'd have to back off from their promise to keep us ahead of everyone else. Jerry Atkin had the foresight to see what was a head. We're not leading anymore or at the top but we're not anywhere near the bottom, morale is better then at most places, we sleep at night and we're not in the same situation as ASA, Comair, ExpressJet and whoever else. Sorry guys but don't be blaming us for anything or accusing us of feeding off anyone else.

You're right, SkyWest isn't in the same situation right now. However, when United files Chapter 7, you'll be lucky to have half your seniority list left. SLC will be all that's left.

Trojan

 

[Erlanger]

You're right, SkyWest isn't in the same situation right now. However, when United files Chapter 7, you'll be lucky to have half your seniority list left. SLC will be all that's left.

Trojan

The only people that talk about United's demise are the fools on FI. United isn't going anywhere other then to maybe merge with Continental.

 

[Data]

The only people that talk about United's demise are the fools on FI. United isn't going anywhere other then to maybe merge with Continental.

Come on people, United, Chicago, work with me here. Who do we know that is also from Chicago that uses his organizational skills to run/save large all-but-dead corporations????? United is the GM of the airlines, maybe they'll save themselves with hybrid airplanes and a couple of billion in AARP, that's TARP for airlines, coming soon to a terminal near you.

 

[USCtrojan]

The only people that talk about United's demise are the fools on FI. United isn't going anywhere other then to maybe merge with Continental.

Yeah, you better hope. United has just about the WORST balance sheet in the industry, on par with US Airways. Add to that the morale -- and rising oil prices. Branson has all but predicted their death. Continental already looked at merging, not gonna happen. Hopefully for you, Obama will rescue (I doubt it, there's no more money). Only option left would be Jerry to give them some of the money he's earned over the years. I doubt it, you don't invest in a sinking ship.

Trojan

 

[imisscorplife]

Just because Skywest employess havent received a furlough notice doesnt mean its not going to happen. Were not immune!

 

[JumpersAway]

Yeah, you better hope. United has just about the WORST balance sheet in the industry, on par with US Airways. Add to that the morale -- and rising oil prices. Branson has all but predicted their death. Continental already looked at merging, not gonna happen. Hopefully for you, Obama will rescue (I doubt it, there's no more money). Only option left would be Jerry to give them some of the money he's earned over the years. I doubt it, you don't invest in a sinking ship.

Trojan

You know it's bad when USAirways doesn't want to merge with United..............

As for it being impossible for them to go away- please reference Pan American and Eastern.................

 

[LazyLightnin']

Just because Skywest employess havent received a furlough notice doesnt mean its not going to happen. Were not immune!

Maybe a total rumor, but I heard a little over 200 could be on the way out soon.

 

[USCtrojan]

Maybe a total rumor, but I heard a little over 200 could be on the way out soon.

I sincerely hope not, for the SkyWest pilots. Please don't take my previous posts as hoping or wishing that on SkyWest or anyone for that matter. This economy sucks worse than mesa, so you know it's pretty bad. Hopefully a year from now things will look a lot different.

Trojan

 

[XPOO]

If projections for Fall 2009 turn out to be correct, then I don't see any way around it. Delta has announced a 15% reduction, instead of the original 10%, and still waiting to hear on United.