Delta Connection Flying - 100 Aircraft Reduction

[JonnyKnoxville]

The Delta conference call had that 15 Saabs and 35 fifty seat regional jets will leave the fleet this year with 50 regional aircraft leaving the Delta Connection fleet in 2011.

Anderson also said something about having good flexibility in the regional contracts in the next 18-24 months to pull down these aircraft.

He also said that the fifty-seat flying was by far the least profitable flying Delta has.

 

[79%N1]

I'm guessing all 85 RJ's will come from ASA. Heck, maybe even Comair with a few. We seem to be the whipping boys for the "New Delta"! (Much to the Glee of Gen. Lee)

 

[amcnd]

Who's contract is up in the next 18-24 months.. I don't think its ASA's???

 

[Draginass]

This is just the start. The 50 seat airplanes are rapidly becoming obsolete in all but a few very high-yield markets. If oil spikes to $100, the Mojave is going to be littered with these 50 seat Budweiser cans.

 

[bri5150]

The Delta conference call had that 15 Saabs and 35 fifty seat regional jets will leave the fleet this year with 50 regional aircraft leaving the Delta Connection fleet in 2011.

Anderson also said something about having good flexibility in the regional contracts in the next 18-24 months to pull down these aircraft.

He also said that the fifty-seat flying was by far the least profitable flying Delta has.

Careful now. Does this mean 15 MORE Saabs and 35 MORE fifty seaters than scheduled this year? Or is that the totals from the whole year including the ones that have already been lost this year?

 

[JonnyKnoxville]

I think Comair has quite a few more to be returned to the leasing companies. Mesaba's entire fleet of Saabs will be gone. I am not sure how many more that is though? The big question is where the rest come from. Freedom and the lawsuit...I doubt it. RA spoke very matter of fact on the reduction and the Freedom deal is up in the air with the lawsuit.

My guess is Chautauqua. I think a deal could have been worked out with Bedford to get rid of the Chautauqua flying with for Delta. Bedford wants out of the 50 seat market and so does Delta. Also, I know there is a option to get out of that contract (albeit with an early-out penalty) from this month going forward, but that is just my opinion.

I thought ASA was locked up with Delta for like a million more years or so.

 

[Cpt Oveur]

Looks like Uncle Rico will pony up 20 50 seaters if it means grabbing 10 900s from someone. Anyone guesses as to who they are currently flying for? Pinnacle already flies in the northeast with the 900s in addition to Comair. I see Comair 900s transferred to ASA while loosing 20 more 50 seaters. Pinnacle will fly the routes in the northeast and CVG that Comair already does, and ASA will go back to flying the 900s on routes out of ATL.

 

[JonnyKnoxville]

Careful now. Does this mean 15 MORE Saabs and 35 MORE fifty seaters than scheduled this year? Or is that the totals from the whole year including the ones that have already been lost this year?

Nothing to be careful about. He stated it in the conference call and I am repeating it. I do not know what is included if anything and he did not say. If planes have already been parked since January, I could only ASSUME that he included those in his numbers to investors.

 

[Tarzan]

I thought ASA was locked up with Delta for like a million more years or so.

7,265.45 Years to be a little more exact.

 

[Cpt Oveur]

Who's contract is up in the next 18-24 months.. I don't think its ASA's???

It all depends on ASA getting their costs in line. ASA still needs to become the second cheapest DCI carrier (of the original DCI carriers at the time this thing was inked) by 5 years, which oddly enough is THIS YEAR. Do you think Delta is going to sit idly by if this goal isn't reached? Do you really?

 

[rumorhasit]

This industry suxs sooo bad!!!! Pilots are pawns in this nightmare!!!!!

 

[sweptback]

It all depends on ASA getting their costs in line. ASA still needs to become the second cheapest DCI carrier (of the original DCI carriers at the time this thing was inked) by 5 years, which oddly enough is THIS YEAR. Do you think Delta is going to sit idly by if this goal isn't reached? Do you really?

If ASA isn't the second lowest cost carrier, all that happens is that ASA only gets reimbursed from Delta at that rate. So, effectively, we make less profit.

Our contract doesn't get canceled unless the boys in SGU determine that we can't make any money at that rate.

 

[SPDBRD747400]

The big question is where the rest come from. Freedom and the lawsuit...I doubt it. RA spoke very matter of fact on the reduction and the Freedom deal is up in the air with the lawsuit.

Mesa Sucks!

 

[CX880]

I can just imagine it.... Riddle Diddle taking their kids to the grave yards on the desert for a CRJ-200 expedition. Then just letting them loose on the grave yard to play with the CRJ and its cockpits. I can just see all the smiling faces. They may even have a plan to pool their parents money to bring one CRJ home to school.

 

[Baronman]

Before anyone breaks out the champagne waiting for more -900's. Isn't DL maxed out on big RJs? Could it just be.....a reduction and nothing more? No trades?

 

[Metro752]

Mesa was in court with Delturd today if that is any consolation on the 50 seaters.

 

[Raskal]

Before anyone breaks out the champagne waiting for more -900's. Isn't DL maxed out on big RJs? Could it just be.....a reduction and nothing more? No trades?

As I understand it, yes, the 76 seaters are maxed.

 

[JonnyKnoxville]

Before anyone breaks out the champagne waiting for more -900's. Isn't DL maxed out on big RJs? Could it just be.....a reduction and nothing more? No trades?

They talked about (I think) two 737-800s coming this year and (I think) six MD-90s. They said they would park (I think) three 757s and quite a few DC-9s. That was about it. 737-800s would replace the few 757s and MD-90s would replace some DC-9s.

No mention of any CRJ-900 on order or any replacement of RJs with any newer RJs plus Delta is maxed out on big RJs.

 

[CX880]

Mesa was in court with Delturd today if that is any consolation on the 50 seaters.

Mesa will never get rid of the ERJs. They are too important. Delta will have to pry it out of JOs cold dead hands. Good luck to Comair and ASA and Chaniqua.

 

[samballs]

The Delta conference call had that 15 Saabs and 35 fifty seat regional jets will leave the fleet this year with 50 regional aircraft leaving the Delta Connection fleet in 2011.

Anderson also said something about having good flexibility in the regional contracts in the next 18-24 months to pull down these aircraft.

He also said that the fifty-seat flying was by far the least profitable flying Delta has.

15 this yr at comair(we don't fly them already) and 5 next yr

 

[LazyLightnin']

The 20 from ASA would count, you'd think.

 

[Baronman]

He also said that the fifty-seat flying was by far the least profitable flying Delta has.

Wow...This guy makes millions just to tell us that filling up a 777 to Rome can make DL more money than an RJ from ATL to Montgomery?
Who'd a thunkit?

 

[79%N1]

Wow...This guy makes millions just to tell us that filling up a 777 to Rome can make DL more money than an RJ from ATL to Montgomery?
Who'd a thunkit?

Seriously! Who'da thought?!

Except they cant fill the 777 up unless all the RJ's roll in from MGM, BTR, TRI, CRW, PNS, GPT and MOB, etc........

 

[ACL65PILOT]

ASA FFD contract will have a five year reset on Oct of this year. It is correct to state that DAL will determine the pay it offers SKW, and it is at their option to take it. Performace also come in to play here. Remember that not being in the bottom two starts a clock as well.

As for the airframes, that is going forward as I understand it. The 70/76 market is maxed unless there is a concession or we get a lot of jets.

This will be a continual pull down yoy. (That is unless a new ceo comes in and changes the direction)

 

[makersmarc]

It's funny how these CEO's can only think in terms of RASM, CASM et cetera without giving any thought whatsoever to the way that the system works. 50 seat airplanes work fine in the appropriate markets. In those same markets the larger aircraft would lose money.

The larger small aircraft (76 seats) fill a niche as well. Their crews are far cheaper than the legacy pilots and the operating expense is not much more than the 50 seater. So what's killing the 50 seaters? The 76 seaters, and they are capped.

As far as the 50 seaters not being profitable, if they weren't at all profitable, they'd be gone tomorrow. They just aren't as profitable as the larger a/c.

 

[wms]

50-seaters are more profitable than ML aircraft on routes where 50 pax fly at a time. If load factors go up across the board then there would be draw down of 50-seaters.

 

[johnsonrod]

It's funny how these CEO's can only think in terms of RASM, CASM et cetera without giving any thought whatsoever to the way that the system works. 50 seat airplanes work fine in the appropriate markets. In those same markets the larger aircraft would lose money.

The larger small aircraft (76 seats) fill a niche as well. Their crews are far cheaper than the legacy pilots and the operating expense is not much more than the 50 seater. So what's killing the 50 seaters? The 76 seaters, and they are capped.

As far as the 50 seaters not being profitable, if they weren't at all profitable, they'd be gone tomorrow. They just aren't as profitable as the larger a/c.[/QUOTE]

RJs are not profitable on competitive routes. You just can't spread costs across 50 seats that easily in a competitive market. But you need feed from smaller towns to fill the big widebodies.... The point is that there will always be a need for some RJs on non-competitive routes - just not as many as we have now... Watch more fuel efficient and great capacity props like the Q400 become more popular in the future for the feed...

 

[Ridgeback]

It's funny how these CEO's can only think in terms of RASM, CASM et cetera without giving any thought whatsoever to the way that the system works. 50 seat airplanes work fine in the appropriate markets. In those same markets the larger aircraft would lose money.

The larger small aircraft (76 seats) fill a niche as well. Their crews are far cheaper than the legacy pilots and the operating expense is not much more than the 50 seater. So what's killing the 50 seaters? The 76 seaters, and they are capped.

As far as the 50 seaters not being profitable, if they weren't at all profitable, they'd be gone tomorrow. They just aren't as profitable as the larger a/c.

It's funny how these FLIGHTINFO PILOTS can only think in terms of SHINY AND LARGE SHINY, et cetera without giving any thought whatsoever to the way that the system works. 50 seat airplanes work LIKE CRAP in ANY appropriate markets. In those same markets the larger aircraft would JUST TELL PADUCAH TO PISS OFF.

The larger small aircraft (THE "9") fill a niche as well. Their crews HAVE far SPIKEYER HAIR than the legacy pilots and generally HANG THEIR RAYBANS FROM THEIR EPULATES VS. the 50 seater. So what's killing the 50 seaters? GOTTA BE THE UND GRADS and theIR FLIGHT TEAMS.

As far as the 50 seaters being profitable, if they were at all profitable, WE WOULD ALL BE WATCHING "FLYGIRLS" ON OUR IFE FROM NEW YORK TO LA. They just aren't as BAD A$$ as the larger a/c.[/


Sorry I just couldn't resist...I'm sure RA has a FAR better understanding of RASM and CASM then they teach at UND "BECOME AN AIRLINE CEO 101."

 

[crj567]

Wow...This guy makes millions just to tell us that filling up a 777 to Rome can make DL more money than an RJ from ATL to Montgomery?
Who'd a thunkit?

It can also LOSE far more money..... How much do you think that volcano has cost the airline?

 

[SkyNation]

it's amazing we haven't all been graced by the General and heard his all-knowing explanation.

must be his week sucking farts out of the seats for AC in heavy check. (he volunteers)