DAL has lowest unit costs among network carriers!

[tuna pimp]

Cleary DL management has no confidence in mainline as they deferred all mainline deliveries in 2006 to 2008.

This is more an issue of cash/debt managment. The aircraft that we had on the orderbook were 777's & 737-800's. International flying is profitable for everybody right now so the 777's would have made money. The 738's are also versatile, money making aircraft for the airlines right now.

I don't think it's a lack of confidence as much as a lack of cash & borrowing power that drove those deferrments/sales.

 

[MedFlyer]

This is more an issue of cash/debt managment. The aircraft that we had on the orderbook were 777's & 737-800's. International flying is profitable for everybody right now so the 777's would have made money. The 738's are also versatile, money making aircraft for the airlines right now.

I don't think it's a lack of confidence as much as a lack of cash & borrowing power that drove those deferrments/sales.

I think its a combination of both. DL is spending hundred of millions on RJ's while spending nothing on mainline. If DL management felt mainline was performing so strongly, they would take the cash being spent on RJ's and put it toward mainline. With hundreds of millions of dollars freed from RJ purchases, DL could surely buy a small number of mainline planes.

Also, with DL not buying any mainline planes, the overall mainline fleet is going to shrink substantially next year. DL has plans to retire almost 30 planes next year with NO replacements. That's on top of the 26 planes retired this year.

Some of these losses will be offset by increased utilization, but I doubt DL can create 56 extra planes.

 

[General Lee]

I think its a combination of both. DL is spending hundred of millions on RJ's while spending nothing on mainline. If DL management felt mainline was performing so strongly, they would take the cash being spent on RJ's and put it toward mainline. With hundreds of millions of dollars freed from RJ purchases, DL could surely buy a small number of mainline planes.

Also, with DL not buying any mainline planes, the overall mainline fleet is going to shrink substantially next year. DL has plans to retire almost 30 planes next year with NO replacements. That's on top of the 26 planes retired this year.

Some of these losses will be offset by increased utilization, but I doubt DL can create 56 extra planes.

Didn't you initially say here that Delta has lost faith in Mainline? That is ridiculous. If they had, they would have filed already. Our management team is looking for ways to cut costs, as well as not lose marketshare. I guess they figure an RJ is better than nothing up against new LCC competition(?). In the meantime, they have figured out that depeaking the ATL hub has benefits---like the equivalent of 28 new mainline aircraft when decreasing turn times. I am hearing that they plan to do it again from 55 mins to 45 mins for the 738, remaining 73S, and MD88s---which will yield more "new" aircraft. (the larger planes can't turn that fast due to the cargo onboard) There are your replacements. Also, our guy Whitehurst said 3 times on the confrence call that we will use more domestic aircraft in the INTL arena to increase revenue (domestic 767ERs to INTL, and possibly 764s to Europe). We can only hope that they know what they are doing over there. There is some plan---maybe no new aircraft because of a possible merger in the future. You and I will not know exactly until it happens...

I just want to know where those beautiful Comair E170s are? I saw that picture of the new DL Shuttle America E170.


Bye Bye--General Lee