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DAL lost 1.4 billion, Spin it general lee

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Rumored at NATCO DAL is going to park 15-17 757's til demand improves. NWA probably 2-4 757's and bring 10-20 DC-9's out of the sandbox.
 
Rumored at NATCO DAL is going to park 15-17 757's til demand improves. NWA probably 2-4 757's and bring 10-20 DC-9's out of the sandbox.

By the looks of the May APA, I would say that rumor has some validity. Lots of DC-9 awards and some B757 displacements.
 
We still have firm orders for 737-700s and 777s (with augmented crews). Maybe that will midigate any pending furloughs. Fingers crossed...

not to mention we are increasing the utilization of the aircraft on property and eventually the nwa side will be increased to meet the DAL staffing model.(which is already starting)
 
from another forum

Capacity Discipline
In 2008, Delta demonstrated its firm commitment to capacity discipline and its ability to quickly reduce
fixed and variable costs associated with reduced capacity. Delta led the industry in early 2008 in
responding to high fuel prices and the weakening demand environment, resulting in a reduction in
domestic capacity of 11% in the last six months of 2008. Delta’s flexible and cost efficient fleet is a
unique tool that allows the company to reduce capacity quickly. In 2009, the company plans to remove
40-50 mainline aircraft from the fleet as it eliminates the fixed costs associated with its 6 – 8% system
capacity reduction. In addition, in January 2009, Delta offered its second voluntary workforce reduction
program in 12 months to more closely align its staffing with lower capacity levels. Delta will continue to
monitor the demand environment and has full flexibility to further reduce capacity if warranted."

The 40-50 mainline aircraft are the reductions that were already announced - the Delta summary of their press release said:

"Delta will continue to be a leader in capacity discipline. As a result of declining global demand, we announced in December a 6 – 8% system capacity reduction for 2009, including an 8 – 10% decrease in domestic and a 3 – 5% decrease in international capacity. "
 
I have the numbers of what is going to be parked. It is mostly 757's and they are coming from both side, some ER's and a few 88's. We are selling or will sell off some of the older 320's. Also the 742's will be gone in the next 12 months.
None of this is new info, just a restatement of what has been previously announced.
FWIW, I think we need to further cut capacity. The flights are wide open. As in over 100 seat a flight. Now that is on most not all routes.
Few days ago DFW was 100+ avail on every flight. LAX had a 767 leave with only 75 seats filled.
What we see come presidents day weekend will determine how we operate in the 2nd and 3rd quarter.
 
DAL is still forecasting a 1 billion dollar profit for 2009.

And why are they still charging for checking bags and select seating? Pretty disgusting how the airlines continue to nickel and dime consumers when the economy is in the state it's in. The high price of oil was initially the reasoning behind baggage, seat, and beverage/snack fees by the airlines. What's the excuse now?
 
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If you read the 8-K you would see that these pricing practices brought in ~127 million this last quarter.
 
Furloughs coming?

Depends on if we cut more than the 50 mainline jets that are already announced. My assumption would be that any more cuts would lead to furloughs. They may opt to keep the staffing where it is for the sake of all of the training that will be going on in the next few years.
Time will tell.

On a side note, I am not trying to get liquid, yet...
 

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