ASA July 5 Announcement

[michael707767]

I'm kind of wondering what to do when Delta gets into more serious trouble. CRJ's are not the answer to high fuel costs. Maybe many of us will be flying Eclipse Jets 12 months from now.

CRJs are not the answer with high fuel costs. It fascinates me that Delta keeps on adding them.

 

[General Lee]

CRJs are not the answer with high fuel costs. It fascinates me that Delta keeps on adding them.

hey, they are FREE (great financing), and we have to keep some marketshare when we park the 737-200s.


Bye Bye--General Lee

 

[MedFlyer]

Fins,
Come on now, you really are pushing it again. It doesn't matter how high fuel gets, as long as you add fare increases to cover the costs. 7 fare increases have already been added.

Delta Air Lines Inc., the third-largest U.S. airline, said again that it might have to file for bankruptcy if it can’t reduce costs to stem losses or if cash drops to an “unacceptably low level.” Delta said in a regulatory filing Wednesday that its ability to pay “significant obligations” and avoid bankruptcy this year will depend on jet-fuel prices and average fares. The price of fuel has increased 56% this year, and average fares rose less than 1% last month over 2004.
http://aogdesk.org/v-web/b2/index.php?p=877&c=1#comments


Apparently, those fare increases aren't doing as much as you might think. What you don't realize is that many of the fare increases only stick for a short period of time (a week or so), then they get rolled back with fare sales. Plus, fares are falling on other routes as LCC's launch new routes. Grinstein has said repeatedly that the fare increases aren't enough and since you believe everything Grinstein says, you must believe this too.

Airtran is adding a lot of 737s, but they have lately been added to routes like DFW to LAS and LAX, and BWI to FLA. None of those routes affect DL.

I guess Airtran adding ATL-CLT, ATL-SRQ, ATL-IND, ATL-RIC and ATL-CUN has no effect on DL either.

The reason DL has held off on selling ASA (or Comair) is that they are waiting to see if they will have to file CH11. There's no point in selling ASA/Comair if you know you're going to have to file anyway. DL will need those assets in order to get out of CH11.

 

[ATR-DRIVR]

It's like flying the Delta side except the passengers don't come out one at a time and we do manual manifests.

Ours don't come down one at a time and why do you do manual manifests?

 

[General Lee]

Delta Air Lines Inc., the third-largest U.S. airline, said again that it might have to file for bankruptcy if it can’t reduce costs to stem losses or if cash drops to an “unacceptably low level.” Delta said in a regulatory filing Wednesday that its ability to pay “significant obligations” and avoid bankruptcy this year will depend on jet-fuel prices and average fares. The price of fuel has increased 56% this year, and average fares rose less than 1% last month over 2004.
http://aogdesk.org/v-web/b2/index.php?p=877&c=1#comments


Apparently, those fare increases aren't doing as much as you might think. What you don't realize is that many of the fare increases only stick for a short period of time (a week or so), then they get rolled back with fare sales. Plus, fares are falling on other routes as LCC's launch new routes. Grinstein has said repeatedly that the fare increases aren't enough and since you believe everything Grinstein says, you must believe this too.



I guess Airtran adding ATL-CLT, ATL-SRQ, ATL-IND, ATL-RIC and ATL-CUN has no effect on DL either.

The reason DL has held off on selling ASA (or Comair) is that they are waiting to see if they will have to file CH11. There's no point in selling ASA/Comair if you know you're going to have to file anyway. DL will need those assets in order to get out of CH11.

Didn't we just add another $10 roundtrip fare increase? I think we did. Now NW wants another $50 for walkup fares, which may or may not happen. And, as far as the announcement you produced, DL has to ALWAYS give the WORST CASE scenario to the SEC, incase bad things do happen.

You are right, Airtran did add those new cities to ATL---but on the 737? (I was referrring to Fins comments about the 737 only). Also, Airtran added a bunch of new flights from IND alone to SRQ, MCO, and TPA. That is aimed at NW and their new IND service. Airtran is really going after everyone, not only DL. Since DL's main hub is ATL and so is Airtran's, we do get new competition from them to new cities. But, those new cities often branch new service against others---like PHL service against USAir, IND service against NW, and DFW service against AA. Not everything is targeted against DL directly---and that is good for us. There is also limited space at ATL for them to grow, since their C and D concourse gates are almost at capacity. We still offer more flights per day and will continue to get even more due to our operation clockwork initiative. And, we still have a price premium advantage over Airtran due to the large amount of cities we fly to which they do not from ATL. They are continuing to try to find other cities and hubs to raid, and that is smart for them to do.

I agree that DL would need Comair and ASA to bail us out if we do have to file. Maybe we won't have to sell them, but maybe we will. Who knows at this point, but our management is preparing for every eventuality. Pension reform could be our next life raft for the time being.


Bye Bye--General Lee

 

[Stifler's Mom]

Ours don't come down one at a time and why do you do manual manifests?

Correct, they come out all at once, unfortunately it is usually 10 minutes before departure.

 

[viper548]

Ours don't come down one at a time and why do you do manual manifests?

In SLC, they trickle out, 1 at at time.
The UAL side does not do the automated manifests.

 

[sstearns2]

Ours don't come down one at a time and why do you do manual manifests?

United's computer system seems to date from about 1986. It's ironic to walk into a Skywest outstation and see modern printers and PCs with internet access and then walk into the United station on the next leg and see dot-matrix printers and old text only Apollo stations.

Scott

 

[~~~^~~~]

If you want your own annoucement from ASA, look for 404-766-1400 on your caller ID and answer the phone over the holiday weekend. Any of you seen open time? July 4th looks like junior man city.

 

[ATR-DRIVR]

If you want your own annoucement from ASA, look for 404-766-1400 on your caller ID and answer the phone over the holiday weekend. Any of you seen open time? July 4th looks like junior man city.

Can't even touch me, with that lovely integration I ended up with a 97.48 month!

 

[Flyguy801]

I do not want to spread rumors or add to them, far as I know if this deal is to go thru, it would have to be approved by the DOT and filed with the SEC. SkyWest or Mesa can come out and say they have intensions of buying ASA, however, I think the SkyWest deal is more likely than Mesa, my close friend works for Mesa and they were approched with this deal but thought it was in the best intreste of Mesa not to deal with Delta for ASA, Mesa wants more of the C90s than the 70s or 50s.....however, this is what she has been told by the bigger fish with in Mesa.....but it odd how SkyWest is hiring like crazy, i F/A interviews twice a month in SLC or other hub cites or one big on in the outstations.

My question is, what about ComAir? Aren't they also for sale?

 

[General Lee]

Can't even touch me, with that lovely integration I ended up with a 97.48 month!

Yeah, but you're RICH now. (a rich Zombie)


Bye Bye--General Lee

 

[Tomct]

Yeah GL, that just goes to show you how much we have to fly to stay off of food stamps! It SUCKS!! STRIKE BAB!

 

[Flyguy801]

My question is if ASA is for sale, isn't ComAir also? Or is DL keeping it?

 

[General Lee]

Our DL management is looking at all of the options, and I have heard they MAY sell ASA and possibly IPO Comair. Could that be true? I don't know. They may be holding on to them so they have something to bargin with to get out of a possible Chap 11 situation. It depends on whether or not we at DL really need the cash, and I would think they would go back to the employees first before they give up DCI. Maybe they will sell if the price is right.


Bye Bye--General Lee