Delta details planned capacity cuts

[nonstop]

http://hosted.ap.org/dynamic/stories/D/DELTA_OUTLOOK?SITE=WVEC&SECTION=HOME&TEMPLATE=DEFAULT

December 2, 2008
Delta details planned capacity cuts

By HARRY R. WEBER AP Airlines Writer
Delta Air Lines Inc. hinted Tuesday that more job cuts could be on the way as it disclosed that it will reduce consolidated system capacity by 6 percent to 8 percent in 2009, compared to the current year.
The Atlanta-based carrier's president, Ed Bastian, spoke to investors during a conference in New York.
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
The news comes as a global financial crisis hits airlines hard by reducing demand for seats.
"Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," Bastian and Chief Executive Richard Anderson said in a memo to employees. "These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity. Remember that speed wins so we will be decisive and not delay."
The memo also said that Delta is analyzing the impact on staffing as it pertains to the planned further capacity reductions and "as in the past, we will offer voluntary programs to adjust staffing needs." The memo did not elaborate.
"We are taking these actions to secure your careers and return us to sustained profitability," the two executives said.
In connection with capacity reductions put in place earlier this year, Delta said it would cut roughly 4,000 jobs.
Delta acquired Northwest Airlines Corp. on Oct. 29. It is in the process of integrating the two carriers' operations.

 

[On Your Six]

http://hosted.ap.org/dynamic/stories/D/DELTA_OUTLOOK?SITE=WVEC&SECTION=HOME&TEMPLATE=DEFAULT

December 2, 2008
Delta details planned capacity cuts

By HARRY R. WEBER AP Airlines Writer
Delta Air Lines Inc. hinted Tuesday that more job cuts could be on the way as it disclosed that it will reduce consolidated system capacity by 6 percent to 8 percent in 2009, compared to the current year.
The Atlanta-based carrier's president, Ed Bastian, spoke to investors during a conference in New York.
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
The news comes as a global financial crisis hits airlines hard by reducing demand for seats.
"Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," Bastian and Chief Executive Richard Anderson said in a memo to employees. "These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity. Remember that speed wins so we will be decisive and not delay."
The memo also said that Delta is analyzing the impact on staffing as it pertains to the planned further capacity reductions and "as in the past, we will offer voluntary programs to adjust staffing needs." The memo did not elaborate.
"We are taking these actions to secure your careers and return us to sustained profitability," the two executives said.
In connection with capacity reductions put in place earlier this year, Delta said it would cut roughly 4,000 jobs.
Delta acquired Northwest Airlines Corp. on Oct. 29. It is in the process of integrating the two carriers' operations.

Are we talking more RJs on the way out or are we talking about parking Diesel 9s and 747Fs? Anyone have any guesses?

 

[hockeypilot44]

Furloughs to be announced December 9th. I hope not, but it does not sound good.

 

[MJ42]

Furloughs to be announced December 9th. I hope not, but it does not sound good.

Hopefully that won't happen, but we may get a chance to see if the flow BACK works. How much of a cushion is there? 330+ pilots at Compass and about 15 at Mesaba so about 350 total? Hate to ask this question, but it's becoming more of a reality every day. Hope more 50 seaters are cut and more old guys RETIRE(get the hell out please!!!)instead.

 

[BID]

Furloughs to be announced December 9th. I hope not, but it does not sound good.

You serious? furloughs????

I have quite a few friends that just went over there. That would not be good.

 

[Fly4hire]

Are we talking more RJs on the way out or are we talking about parking Diesel 9s and 747Fs? Anyone have any guesses?

Or maybe MD88 and MD90's.

 

[contrail67]

I thought you had a no furlough clause....what are you worried about?

 

[stlflyguy]

You guys really thought your airline wouldn't get smaller after a merger? For everyone's sake, I hope that's not the case...but I don't see it remaining simply the size of one airline plus the other.

stlflyguy

 

[Fly4hire]

Or maybe MD88 and MD90's.

Or more DCI cuts and European 767 flying....

 

[Scope out RJ's]

Or maybe MD88 and MD90's.

Or maybe A320/319 or selling 757's. Naah. Probably more Asia A330 cuts.
Oh yeah, they've done that already.

 

[Voice Of Reason]

...and yet, ALSO this morning....

Delta Air Lines could see $5 bln benefit in '09 with $50 oil

By Christopher Hinton
Last update: 8:51 a.m. EST Dec. 2, 2008

NEW YORK (MarketWatch) -- Delta Air Lines (DAL delta air lines inc del com new

<IMG class=pixelTracking height=1 width=1 border=0>DAL) could see a $5 billion benefit in 2009 if oil remains at around $50 a barrel, said Ed Bastian, the company's president. In a Tuesday meeting with analysts in New York, Bastian said the rapid decline in fuel prices have more than offset a decline in passenger numbers and the slower revenue growth that followed. With oil prices most recently around $50 a barrel, passenger revenue would have to decline more than 20% to lose the cost benefit of cheaper fuel, and not even the terrorist attacks on Sept. 11, 2001, were able to do that, he said. For 2008, post-merger Delta will have paid $100 a barrel equivalent for jet fuel. Shares of Delta was up 3.5% in premarket trading to $8.24.

http://hosted.ap.org/dynamic/stories/D/DELTA_OUTLOOK?SITE=WVEC&SECTION=HOME&TEMPLATE=DEFAULT

December 2, 2008
Delta details planned capacity cuts

By HARRY R. WEBER AP Airlines Writer
Delta Air Lines Inc. hinted Tuesday that more job cuts could be on the way as it disclosed that it will reduce consolidated system capacity by 6 percent to 8 percent in 2009, compared to the current year.
The Atlanta-based carrier's president, Ed Bastian, spoke to investors during a conference in New York.
In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.
The news comes as a global financial crisis hits airlines hard by reducing demand for seats.
"Once again, Delta must take the necessary steps to adjust our business accordingly and make certain seat capacity meets customer demand," Bastian and Chief Executive Richard Anderson said in a memo to employees. "These economic hurdles are difficult, and we remain committed to building our company on a durable financial foundation with industry-leading liquidity. Remember that speed wins so we will be decisive and not delay."
The memo also said that Delta is analyzing the impact on staffing as it pertains to the planned further capacity reductions and "as in the past, we will offer voluntary programs to adjust staffing needs." The memo did not elaborate.
"We are taking these actions to secure your careers and return us to sustained profitability," the two executives said.
In connection with capacity reductions put in place earlier this year, Delta said it would cut roughly 4,000 jobs.
Delta acquired Northwest Airlines Corp. on Oct. 29. It is in the process of integrating the two carriers' operations.

 

[ACL65PILOT]

Yep, there is a lot going on here. These announcements are coming out in a specific order.
This was the cut that a few of us have been talking about for a few months.
Nothing new. Frequency on international routes, with redeployment of these jets to low utilization route. Some mainline cuts but the majority "SHOULD" be DCI.

 

[qxdash8]

This reduction in service INCLUDES the previously announced reductions. A good chunk of the domestic reduction will be on the regional side - the international cuts will be mostly a reduction in weekly service, not a cut in cities served. We will be pulling 767ER's out of service for the winglet mods and increasing the amount of 757ER service. That alone means a reduction in seats flown but not a reduction in flying.

Bottom line: if you are a Delta pilot, don't panic yet. Get your logbook up to date, yes. But don't panic.

 

[contrail67]

This reduction in service INCLUDES the previously announced reductions. A good chunk of the domestic reduction will be on the regional side - the international cuts will be mostly a reduction in weekly service, not a cut in cities served. We will be pulling 767ER's out of service for the winglet mods and increasing the amount of 757ER service. That alone means a reduction in seats flown but not a reduction in flying.

Bottom line: if you are a Delta pilot, don't panic yet. Get your logbook up to date, yes. But don't panic.

If it includes the already announced reductions....why is it new...news then??

 

[FmrFreightDog]

Get your logbook up to date, yes. But don't panic.

Yeah, because there's so many flying jobs out there to apply to right now...

 

[qxdash8]

If it includes the already announced reductions....why is it new...news then??

There are additional cutbacks, but the total numbers include the previously announced reductions. So this is new news, but its not as big as it first seems.

 

[qxdash8]

Yeah, because there's so many flying jobs out there to apply to right now...

Good point never mind.

 

[Superpilot92]

internal memo out that discusses this. These are primarily previously announced reductions.

 

[Correcting]

In a regulatory filing ahead of the speech, the world's biggest carrier said domestic capacity in 2009 will be reduced 8 percent to 10 percent compared to 2008, while international capacity will be reduced 3 percent to 5 percent next year compared to this year.

There are additional cutbacks, but the total numbers include the previously announced reductions. So this is new news, but its not as big as it first seems.

Are you sure this includes previously announced numbers? The wording in the article is a bit confusing. "A reduction of 8 to 10 percent compared to 2008." Well, which part of 2008. January, or November? Didn't Delta cut about 12% already this fall? Because the way I interpret the article, it seems that Delta is now cutting capacity an additional 8 to 10 percent beyond the cutbacks they already made this fall.

 

[ACL65PILOT]

Yes, it is what it is stated on the internal memo.

Also that is year over year looking at summer numbers. It is taking in to account the cuts that were made for Q4 of 08. (The cuts made after Labor Day)

 

[iaflyer]

Yes, it is what it is stated on the internal memo.

Also that is year over year looking at summer numbers. It is taking in to account the cuts that were made for Q4 of 08. (The cuts made after Labor Day)

So do you think these are reduction in addition to what was already been announced, or taking the cuts that have been made and adding some cuts?

ie: if they have already announced say, a 4% cut, are these 6%-8% on top of that, making it a 10%-12% cut?

 

[ACL65PILOT]

These are the total cuts planned for now. If we do not see this offset the drop in loads, of course there will be more cuts. That is when we may see a trimming of the ranks, but none is planned as of today.

 

[Superpilot92]

So do you think these are reduction in addition to what was already been announced, or taking the cuts that have been made and adding some cuts?

ie: if they have already announced say, a 4% cut, are these 6%-8% on top of that, making it a 10%-12% cut?

From the memo

"Systemwide 2009 capacity will be down 6-8% year over year. Domestic capacity will be down 8-10% and international capacity will be down approximately 3-5%. These numbers include the full impact of previously announced 2008 capacity reductions."

 

[iaflyer]

From the memo

"Systemwide 2009 capacity will be down 6-8% year over year. Domestic capacity will be down 8-10% and international capacity will be down approximately 3-5%. These numbers include the full impact of previously announced 2008 capacity reductions."

Yeah, I read that too, but I was confused. Because they were comparing 2009 to 2008 - I was thinking perhaps the percentage cuts were comparing the 2009 to most recent 2008 numbers (which had already been cut from earlier in 2008). I think I have it straight now.

 

[AA717driver]

Until the recession bottoms out, this is all irrelevant. There will be more cuts everywhere. TC

 

[Fly4hire]

As for speculation about which frames/routes, from the memo:

we will announce plans to decrease systemwide capacity, for both Delta and Northwest, during 2009.​

In the meantime, we are analyzing the impact on staffing as it pertains to these capacity reductions and, as in the past, we will offer voluntary programs to adjust staffing needs. ​

​

 

[whatitdoing?]

Like this wasn't expected. Furloughs are coming sooner than later. ACL65PILOT will chime in with his c2=a2+b2 equation as to why Delta is the best airline and how great it is to get his nuts waxed before every flight. Who wouldn't when you're at the bottom of this combined list? Not knocking you CL, but I told you this was going to happen....and I'll remind you when DL starts the furloughs. It's unfortunate that so many DL people think that their "new" management is any better than all the rest. They just wanted you on board. This might "read" capacity reduction, but it's the start to an overall reduction. Hang on.....enjoy the ride.

 

[whatitdoing?]

Until the recession bottoms out, this is all irrelevant. There will be more cuts everywhere. TC

You're absolutely right!! No one is safe and I fully expect to be furloughed from CAL in the near future. Blows...for everyone.

 

[ACL65PILOT]

Like this wasn't expected. Furloughs are coming sooner than later. ACL65PILOT will chime in with his c2=a2+b2 equation as to why Delta is the best airline and how great it is to get his nuts waxed before every flight. Who wouldn't when you're at the bottom of this combined list? Not knocking you CL, but I told you this was going to happen....and I'll remind you when DL starts the furloughs. It's unfortunate that so many DL people think that their "new" management is any better than all the rest. They just wanted you on board. This might "read" capacity reduction, but it's the start to an overall reduction. Hang on.....enjoy the ride.

Fact is that the best laid plans are worthless with the economy going where it is. All I have stated is that given what is in front of the management team here, furloughs are not planned.
If you read what I post, you would realize that, I have stated that further cuts would result in pilot staffing being looked at.
I know you like to bust my back, but seriously, give it a break.

It is too bad, I enjoyed you being gone for a few days.

For your enlightenment. I know I am just a number and a commodity here at DAL. Just like you. My management will do what is necessary to keep this place a float. I do not take that personally. I understand that business decisions are not personal. I am quite content on who my employer is. Fact, is that they have done more for employee relations in the last year, than most places have done in the last decade.

 

[crj567]

Fact is that the best laid plans are worthless with the economy going where it is. All I have stated is that given what is in front of the management team here, furloughs are not planned.
If you read what I post, you would realize that, I have stated that further cuts would result in pilot staffing being looked at.
I know you like to bust my back, but seriously, give it a break.

It is too bad, I enjoyed you being gone for a few days.

For your enlightenment. I know I am just a number and a commodity here at DAL. Just like you. My management will do what is necessary to keep this place a float. I do not take that personally. I understand that business decisions are not personal. I am quite content on who my employer is. Fact, is that they have done more for employee relations in the last year, than most places have done in the last decade.

Don't worry about this tool.... Pay just as little attention to him as we all pay to Gen Lee.....

-Equally worthless!

-P.S.-I did enjoy the previous comment about "nut waxing"-NICE!