Delta Capacity Cuts Only Scheduled for May

[FDJ2]

Reuters
Delta Air to cut Florida flights, JetBlue shares up
Friday February 24, 7:23 pm ET

NEW YORK (Reuters) - Bankrupt Delta Air Lines (Other OTC:DALRQ.PK - News) plans to slash flights on many routes where its Song unit competes with JetBlue Airways Corp. (NasdaqNM:JBLU - News), news that boosted JetBlue shares by over 6 percent on Friday.

The reduced competition on routes between New York City and Florida is likely to mean higher fares for summer travel and higher revenue for JetBlue, which recently posted its first quarterly loss since 2002.

Delta said the cuts were capacity adjustments to seasonal demand changes and not permanent. "The schedule changes simply reflect a seasonal pull down in capacity for May, which is one of the lowest demand periods to Florida," said Delta spokesman John Kennedy.

JetBlue has made little secret of its struggle to raise ticket prices amid stiff competition from Song and from Continental Airlines Inc. (NYSE:CAL - News), which has also added seats between the New York area and Florida.
The Delta capacity cuts, effective this summer, are of about 13 flights a day, or 25 percent, according to brokerage JP Morgan, which raised its rating on JetBlue shares to "neutral" from "underweight."

JetBlue, which has forecasted a loss for 2006, said the move would give it a boost.

"It's always good to see some rationality taking place," said David Ulmer, vice president of route and schedule planning. "This is certainly less capacity than we would have been assuming, though about what we hoped for."

In addition to the Florida reductions, Delta is slightly reducing flights to Los Angeles and Seattle, he said.

Delta's Kennedy said the adjustments in those two markets were partly due to the airline integrating Song into its network and adding first-class seats to its flights.

The No.3 U.S. carrier, which filed for bankruptcy protection in September, announced the following month that it planned to fold Song in May, about three years after it began flying. But it had kept rivals guessing about what that would mean for capacity.

Ulmer said he agreed with JP Morgan analyst Jamie Baker that the Delta change could mean more revenue than forecast starting in May and a full-year profit instead of a loss for JetBlue.

JetBlue shares closed up 74 cents, or 6.7 percent, at $11.82 -- a three-week high -- on Nasdaq.

 

[pgcfii2002]

Not a big surprise......Delta has always cut and run when it comes to competing with other airlines. They butchered a majority of the markets and flights out of LAX after they bought Western. I don't think they even fly to Canada and Mexico from the West Coast anymore. They seem to always dump hubs and markets where they have stiff competition (LAX....DFW....MCO). Look at their other hubs they have not cut (ATL, CVG, SLC), they hold a virtual monopoly in all markets.

 

[General Lee]

Ummmm, ok. Since we are moving a lot of the domestic 767-300ERs to the INTL side (new routes to Kiev, Budapest, etc) we are now filling those previous flights with 757s, and some of those used to fly the Song flights up and down the East Coast. Our ex-Song 757s will still fly North South in the Winter when there is demand, but more West Coast to ATL and NYC in the Summer, when more people want to go there. Normally you could fly two flights up and down the East Coast (NYC--MCO--NYC) in the time you could fly one flight to the West Coast--(NYC to SFO)---hence the appearance of less flights. Same plane, one leg versus two, and hopefully the SFO flight will get more revenue in the Summer. I just looked at some of the new Summer schedule and it looks like our route planners are actually trying to "right size" the planes and routes. They will have MD88s flying from BOS to PBI and RSW, instead of 757s that may be too big for Summer flights (Jetblue will probably fly E190s on those) That is probably a smart thing to do when we are used to losing money on those routes now. And, it is great that the outlook for Jetblue can change with only 13 less flights scheduled on our side. Wow.


Bye Bye--General Lee

 

[zkmayo]

13 flights makes a difference, but the bigger difference will be if DAL puts MD 88s and 737-8s on those FL routes as a replacement. That alone will take about 1/3 of DAL's ASMs in the NY-FL mkt and really drive some pricing power in the mkt.

 

[General Lee]

13 planes makes a difference, but the bigger difference will be if DAL puts MD 88s and 737-8s on those FL routes as a replacement. That alone will take about 1/3 of DAL's ASMs in the NY-FL mkt and really drive some pricing power in the mkt.

13 PLANES or 13 FLIGHTS? IT was 13 flights, and that is seasonal. We aren't parking any more of our planes (unless we strike.....). And, we are right sizing our planes to the routes, which is smart. Yeah, the MD88s won't have IFE, but we will be saving money on gas and throwing the correct plane on there.

Bye Bye--General Lee

 

[zkmayo]

my bad, i meant 13 flights. been a long day.

 

[spinproof]

General

Is the paragraph spacing thing not within your mental grasp or am I on your ignore list?

 

[MedFlyer]

13 PLANES or 13 FLIGHTS? IT was 13 flights, and that is seasonal. We aren't parking any more of our planes (unless we strike.....). And, we are right sizing our planes to the routes, which is smart. Yeah, the MD88s won't have IFE, but we will be saving money on gas and throwing the correct plane on there.

Bye Bye--General Lee

DL still has another 40 planes scheduled to be parked. They're all 732's and 733's, but DL mainline will still be shrinking for some time into the future.

 

[FDJ2]

DL still has another 40 planes scheduled to be parked. They're all 732's and 733's, but DL mainline will still be shrinking for some time into the future.

DL also has firm orders for about 50 737-800s and I believe 5 B777s.

How many CMR aircraft are being parked?

 

[MedFlyer]

DL also has firm orders for about 50 737-800s and I believe 5 B777s.

How many of those planes do you think DL will actually take delivery of? Do you think the financiers are lining up to finance planes for DL, when DL's pilots are threatening to liquidate the company?

 

[General Lee]

How many of those planes do you think DL will actually take delivery of? Do you think the financiers are lining up to finance planes for DL, when DL's pilots are threatening to liquidate the company?

Air canada was days away from liquidation, and then eventually ordered 30 777s and 18 787s. How did that happen? I think Delta will take delivery of a lot of new planes, but it might be in the form of a merger with NW and then a bid to Airbus and Boeing for the lowest price. Where are those E170s at Comair? How about the Dash-8-400s?

Bye Bye--General Lee

 

[uba757]

Hey General when do you get your bonus from mother Delta? UBA757

 

[MedFlyer]

Air canada was days away from liquidation, and then eventually ordered 30 777s and 18 787s. How did that happen?

Because Air Canada is the only major airline in the entire country and the Canadian gov't would never let it fold. Can Delta say the same? No.

Where are those E170s at Comair? How about the Dash-8-400s?

Bye Bye--General Lee

What's with the Comair obsession? This thread is about DL mainline capacity reductions and both you and FDJ2 bring up Comair. Pretty childish.........

 

[johnsonrod]

Because Air Canada is the only major airline in the entire country and the Canadian gov't would never let it fold. Can Delta say the same? No.



What's with the Comair obsession? This thread is about DL mainline capacity reductions and both you and FDJ2 bring up Comair. Pretty childish.........

My understanding is that many of these aircraft financing deals are based on future income/revenue projections vs. current balance sheet situation. Air Canada, like Delta, had a great brand and an established route structure with advanced bookings and it could demonstrate where the future revenue would come from to help pay down any aircraft financing. Plus, it could sell its 767s and older Airbus aircraft to rapidly-expanding Asian or ME airlines/leasing companies to help pay for the downpayments.

Delta has a tremendous international route structure that will make it money if it can properly equip the routes with the best capacity - and the lenders/lessors realize that. Air Canada is a great example because it shows that you don't have to be the most profitable airline in the moment to order the best equipment. Air Canada has proven itself historically and future bookings on existing/new routes is what really counts for the bankers - future revenue to pay down future debt...

 

[General Lee]

Hey General when do you get your bonus from mother Delta? UBA757

It's coming soon. Probably in the form of new stock, which will be sold quickly. My buddy at UAL who is a 9 year 777 FO got $100,000 in stock and sold it immediately, and rolled it into his 401K or IRA. Not bad.

Bye Bye--General Lee

 

[General Lee]

Because Air Canada is the only major airline in the entire country and the Canadian gov't would never let it fold. Can Delta say the same? No.



What's with the Comair obsession? This thread is about DL mainline capacity reductions and both you and FDJ2 bring up Comair. Pretty childish.........

Oh come on. I guess Westjet, Airtransat, or Canjet wouldn't have a problem with that? Air Canada isn't the only airline in Canada, and how did the gov't allow it to get within DAYS of liquidation? You are wrong.

And, I didn't bring up Comair until you came in and said Delta couldn't and wouldn't get financing for new airplanes. I gave a good example (Air Canada) on how it could happen, and then you get upset. How did United get $3 billion in exit financing after "losing" $12 billion last quarter? So many questions out there.

Bye Bye--General Lee

 

[BLUE BAYOU]

Regardless of whether or not Delta puts back flights to FL, alone, the addition of first class seats on their Song 757s will equate to a 6-7% reduction in available seats on those planes.

 

[FDJ2]

How many of those planes do you think DL will actually take delivery of? quote]


All of them.

How are things at CMR going?

 

[MedFlyer]

How are things at CMR going?

What's Comair got to do with it? I thought this thread was about Delta.

The lack of maturity shown by you and many other DL pilots goes a long way to explain why you are in your current situation.

 

[uba757]

Hey Med dont worry about it, FDJ2 will get his very soon. He is going to either loose more pay or loose his job. UBA757

 

[FDJ2]

What's Comair got to do with it? I thought this thread was about Delta.

What's the matter Med, it's a simple question. Those jets you took concessions for working out o.k. for ya?

 

[uba757]

FDJ2, Those 737 deliveries are pushed back to around the year 2011 right. Only 5 more years. You should become a mature man by then. UBA757

 

[elag777]

13 PLANES or 13 FLIGHTS? IT was 13 flights, and that is seasonal. We aren't parking any more of our planes (unless we strike.....). And, we are right sizing our planes to the routes, which is smart. Yeah, the MD88s won't have IFE, but we will be saving money on gas and throwing the correct plane on there.

Bye Bye--General Lee

Had a peak at the Dal schedule for Direct JFK-FLL reduced 50% in May and 33% June through Sept, Same look to JFK-PBI. Still offer one stop options though.

 

[FDJ2]

FDJ2, Those 737 deliveries are pushed back to around the year 2011 right. Only 5 more years. UBA757

Wrong. Scheduled for delivery

2007: 7 B737-800s, 2 B767-300s, 1 B767-400

2008: 25 B737-800s, 2 B767-300s, 2 B767-400s, 3 B777-200s

and in January 2009 2 more B737-800s and 1 more B777.

Let me see that's a total of 34 B737-800s, 4 B767-300s, 3 B767-400s and 4 B777s, or put another way 45 new airframes in the next 3 years.

How many 70 seaters are you scheduled to get in the next 3 years? Any of those shiny new E jets scheduled to come your way?

 

[FDJ2]

Had a peak at the Dal schedule for Direct JFK-FLL reduced 50% in May and 33% June through Sept, Same look to JFK-PBI. Still offer one stop options though.

I don't think the schedule has been fully loaded yet, but I might be wrong. Check back in a day or so and give us an update.

 

[General Lee]

FDJ2, Those 737 deliveries are pushed back to around the year 2011 right. Only 5 more years. You should become a mature man by then. UBA757

We've moved up 2300 numbers in 18 months, and there is a possibility 200-250 more will go by early Summer if and when our pension fund reaches 80% full, which will happen in the next few months anyway. And, FDJ2 and I can hold MD88 Captain right now, and MAY BE awaiting class right now. Your put downs aren't very good. I think some of those 738 deliveries are now for 2008-09. It doesn't matter much, since most of our MD88 leases were just re-upped. Have a good one.

Bye Bye--General Lee

 

[MedFlyer]

What's the matter Med, it's a simple question. Those jets you took concessions for working out o.k. for ya?

It is a simple question because you aren't capable of asking any thought provoking questions. However, it isn't relevant to the topic.

Your immaturity on this thread speaks volumes about the kind of person you are.

 

[General Lee]

Had a peak at the Dal schedule for Direct JFK-FLL reduced 50% in May and 33% June through Sept, Same look to JFK-PBI. Still offer one stop options though.

BOS to FLL was reduced to two daily 757s I believe, and JFK to FLL was 3 maybe? We moved some other stuff around, like a daily 757 from LAS to JFK now in the early afternoon, instead of an allnighter, to allow connections to Europe. We are also doing a couple 757s from MCO to JFK, along with a couple MD88s and one 764. That 764 will continue on to Shannon or Dublin. Those route planners are doing some major tinkering, which hopefully will produce profits rather than losses.


Bye Bye--General Lee

 

[General Lee]

It is a simple question because you aren't capable of asking any thought provoking questions. However, it isn't relevant to the topic.

Your immaturity on this thread speaks volumes about the kind of person you are.

I think we do know how Comair is doing, and you are likely getting ripped like we are. We are both along for the ride, and we will both hopefully stand up when it is time to negotiate. I know we will.


Bye Bye--General Lee

 

[737 Pylt]

Hey Med dont worry about it, FDJ2 will get his very soon. He is going to either loose more pay or loose his job. UBA757

Its too bad a'holes like you find joy in someone losing their job! If you ever had to endure the hardship of a furlough you would understand that and shut your nut drainer now!
737