Delta Memo looking at planning for new narrowbody aircraft for MAINLINE

[johnsonrod]

Just got this from a friend of mine at Delta. Looks like Delta is planning on getting new planes for mainline, including small narrowbodies. (no 100 seaters for Comair or Skywest) The memo also states the number of 50 seaters parked and Saabs. I hope to be a part of the Big D someday myself!



Delta begins long-term planning for domestic aircraft fleet
January 13, 2011

Delta is beginning to plan for the future of its domestic mainline fleet and is accepting requests for proposals or RFPs to replace more than 200 narrowbody aircraft to provide long-term mainline domestic growth.

Late December, Delta sent a RFP to several major aircraft manufacturers for the eventual replacement of aircraft such as the Airbus A320, the DC9-50 and the Boeing 757-200, and to provide for long-term mainline domestic growth.

The proposal marks the next phase of Delta’s mainline fleet strategy, as older domestic mainline aircraft begin to approach retirement age, smaller regional jets and turboprop are phased out and the airline works to grow its domestic business.

During the past year, Delta has focused on combining the Delta and former Northwest fleets and investing in existing aircraft, with improvements including WiFi on all two-class domestic aircraft, interior upgrades and the installation of additional first class seats. Delta also has made some strategic aircraft acquisitions, including new and used aircraft, supplementing DC-9s and other aircraft that have retired from service.

Since 2007, Delta has invested in 60 mainline aircraft, including 10 Boeing 777-200LRs, 12 Boeing 737-700/800s, five used Boeing 757-200s and 33 used MD-90s.

At the same time, the airline has removed more than 70 50-seat regional jets and 25 Saab 340 turboprops from the fleet.

“Our strategy has worked well, with the improvements to our existing aircraft and the cost-efficient airplanes we’ve added to the domestic fleet,” said Nat Pieper, v.p.-Fleet Strategy and Transactions. “We’re now starting to plan for the long term, to ensure that we continue to maintain a flexible, cost-efficient fleet that meets our customers’ needs in the years to come, replace retiring airplanes and provide for domestic mainline growth.”

The RFP asks for proposals to deliver 100 to 200 firm aircraft, with an option for 200 more, starting in early 2013. It asks the manufacturers to consider large, medium and small narrowbody planes to be operated by Delta as mainline aircraft.

Nat said that Delta also continues to look for opportunities to purchase used aircraft.

He added that the request for proposals is a first step, and no decisions have been made regarding future aircraft purchases.

“We’ll evaluate all of our options,” he said

 

[General Lee]

Just got this from a friend of mine at Delta. Looks like Delta is planning on getting new planes for mainline, including small narrowbodies. (no 100 seaters for Comair or Skywest) The memo also states the number of 50 seaters parked and Saabs. I hope to be a part of the Big D someday myself!



Delta begins long-term planning for domestic aircraft fleet
January 13, 2011

Delta is beginning to plan for the future of its domestic mainline fleet and is accepting requests for proposals or RFPs to replace more than 200 narrowbody aircraft to provide long-term mainline domestic growth.

Late December, Delta sent a RFP to several major aircraft manufacturers for the eventual replacement of aircraft such as the Airbus A320, the DC9-50 and the Boeing 757-200, and to provide for long-term mainline domestic growth.

The proposal marks the next phase of Delta’s mainline fleet strategy, as older domestic mainline aircraft begin to approach retirement age, smaller regional jets and turboprop are phased out and the airline works to grow its domestic business.

During the past year, Delta has focused on combining the Delta and former Northwest fleets and investing in existing aircraft, with improvements including WiFi on all two-class domestic aircraft, interior upgrades and the installation of additional first class seats. Delta also has made some strategic aircraft acquisitions, including new and used aircraft, supplementing DC-9s and other aircraft that have retired from service.

Since 2007, Delta has invested in 60 mainline aircraft, including 10 Boeing 777-200LRs, 12 Boeing 737-700/800s, five used Boeing 757-200s and 33 used MD-90s.

At the same time, the airline has removed more than 70 50-seat regional jets and 25 Saab 340 turboprops from the fleet.

“Our strategy has worked well, with the improvements to our existing aircraft and the cost-efficient airplanes we’ve added to the domestic fleet,” said Nat Pieper, v.p.-Fleet Strategy and Transactions. “We’re now starting to plan for the long term, to ensure that we continue to maintain a flexible, cost-efficient fleet that meets our customers’ needs in the years to come, replace retiring airplanes and provide for domestic mainline growth.”

The RFP asks for proposals to deliver 100 to 200 firm aircraft, with an option for 200 more, starting in early 2013. It asks the manufacturers to consider large, medium and small narrowbody planes to be operated by Delta as mainline aircraft.

Nat said that Delta also continues to look for opportunities to purchase used aircraft.

He added that the request for proposals is a first step, and no decisions have been made regarding future aircraft purchases.

“We’ll evaluate all of our options,” he said

Wait, didn't Box Office say DL was going to turn into an INTL only airline, with Comair or ASA flying all of the doemstic planes? It says here that Delta is looking at up to 400 new planes for DOMESTIC flying, and that doesn't count the relatively new planes we have received lately, like 737NGs. Oh well, what does she know anyway? She works for CHQ.


Bye Bye---General Lee

 

[Cpt Oveur]

Good for Delta. I hope they're able to place an absurdly large order for more fuel efficient aircraft, they're going to need every advantage possible to compete on a price point with Southwest's 39 dollar fun fares.

 

[RJLoser]

All us RJ pukes are gonna be mainline pilots. I can't wait to hang with GL.

 

[makersmarc]

Wait, didn't Box Office say DL was going to turn into an INTL only airline, with Comair or ASA flying all of the doemstic planes? It says here that Delta is looking at up to 400 new planes for DOMESTIC flying, and that doesn't count the relatively new planes we have received lately, like 737NGs. Oh well, what does she know anyway? She works for CHQ.


Bye Bye---General Lee

I think she moved on from CHQ. DL perhaps?

 

[Poahi]

Makes sense. Fuel prices are rising, interest rates are going to creep up and they have do do something with the DC 9. The environment for fleet renewal is ripe.

 

[crj567]

Makes sense. Fuel prices are rising, interest rates are going to creep up and they have do do something with the DC 9. The environment for fleet renewal is ripe.

The environment for paying a captain $157 per hour to fly to places ATRs used to go is not very ripe.

I wouldn't be too shocked to see DAL throw a few 100 seaters to mainline, but anything smaller is going to stay with connection. The other thing mainline is looking at is how much cheaper the regionals are than what they were. Regionals have come off their 6 or 8% profit margins, and some are even doing "at risk" flying now. This environment gives mainline a chance to fly connection feed for peanuts. Mainline is cheaper than they used to be, but regionals are super dirt cheap now. Why would mgmt. ignore that factor?

-I would expect that whenever DAL gets a new pilot contract, the captain of the smallest aircraft will top out near $200 per hour. Add enhanced retirement, and all sorts of other goodies, and then the regionals will really be a steal. I just can't see DAL agreeing to fly 100 seaters to DHN and MGM while paying some guy around $200 per hour, when they could contract it out at half the cost (or less) that they used to. Do the math on that.

 

[RJLoser]

They got you believing they can't afford to pay pilots. Brilliant.

 

[crj567]

They got you believing they can't afford to pay pilots. Brilliant.

I didn't say they can't afford it, but when one pilot makes 1/2 what the other ones does, and the planes are nearly the same size, things start to add up.

-Factor in how much DAL mechanics, dispatchers, FAs, and so forth and so on make, and pretty sure you will find that wasting a whole lot of those people to support regional feed is not very smart. (For some of those guys, the pay difference is far greater than it is between pilots.)

 

[johnpeace]

Omg! A company memo said that!? It MUST be true.

 

[Erlanger]

Before anyone gets their panties all up in a wad, this says nothing about Delta getting new planes for domestic ops. It just says Delta is asking for proposals. What proposals Delta gets in the end may not be feasible for them to operate anyway. If I were a mainline guy I'd be worried that Delta will present this info to the pilots to show that mainline can't economically operate these planes so they want more scope relief for the regionals. The retirement of the 50 seaters is old news anyway so everyone relax.

 

[johnpeace]

It's funny how eager everyone is to believe what they want to be true.

 

[LearLove]

If I were a mainline guy I'd be worried that Delta will present this info to the pilots to show that mainline can't economically operate these planes so they want more scope relief for the regionals. The retirement of the 50 seaters is old news anyway so everyone relax.

Not only wrt Delta guys but all mainline pilots: they (management) can "present" all they want, but unless it is going to be flown by mainline pilot then they can go pound sand.

Lets just say management is right and we (any major) will go under if we don't cave on scope. Then so be it. Either way I (the junior mainline pilot) is going to lose his/her job either by the whole company going under or be furloughed when 100+ seat flying is contracted out. I'd rather go down fighting at this point.

 

[General Lee]

Omg! A company memo said that!? It MUST be true.

Ummm, ok, what? So, John, you think it is NOT true? This looks like a company memo outlining to employees what Delta wants to do in the future. Delta does have some older planes, and that has to be addressed. It goes against what YOU THOUGHT would happen though, stating mainline pilots would sell out and you and the ASA'ers would fly most of the domestic stuff. That......doesn't....look..... correct....now does it? Maybe a lot of what you think is off base? Maybe you are hoping for something else, but now it doesn't seem to be going in that direction? Help me here John..... A company memo is definitely more precise than an article on yahoo. Sounds like Delta is putting out the smoke signals for Boeing and Airbus to fight it out for a big DOMESTIC order, and DL already has both types, so this could get good. But, you can just close your eyes and pretend it's not real, John.


Bye Bye---General Lee

 

[Yuppyguppy]

Park the inefficient rjs...i love it!

 

[General Lee]

Before anyone gets their panties all up in a wad, this says nothing about Delta getting new planes for domestic ops. It just says Delta is asking for proposals. What proposals Delta gets in the end may not be feasible for them to operate anyway. If I were a mainline guy I'd be worried that Delta will present this info to the pilots to show that mainline can't economically operate these planes so they want more scope relief for the regionals. The retirement of the 50 seaters is old news anyway so everyone relax.

Again, ummmm, what? A lot of the DL fleet is getting old. DL just got 36 MD90s as a stop gap, and those will be a bandaid until newer planes are available. Why is this hard to believe? I guess new CR9s and 777LRs are the only new planes out there for Delta? If you re-read the memo, it states Delta is interested in 100 to 200 new planes, with an additional 200 options. They could be the A320 family (A319s up to A321s), or maybe additional Boeings if they could bring up more efficient engines for the 737s. And, if they make a big order, they will probably work out some discounts, which would blow that theory away for you. They will make it economically feasable, or they won't get the full 200 plus 200 more options. Another thing that will help them is that our pilot group will be getting a lot younger as 2000 or so super senior (and highest paid) pilots start to retire over the next few years. They will be hiring like mad, and those new pilots will be on first year scale, which will be initially cheaper for them per hour. (it's called being a newhire) Add to that our eventual new pay raises (SWA 737 rates for our 737s, then up from there), and Delta will know what their fixed costs will be. Add the bag fees and all the other charges, and it will be covered. Heck, they made $1.2 billion this last year in fees alone. But hey, if you don't want it all to happen, then I suggest you say it loud and proud as you walk through the ATL terminals. Go for it.


Bye Bye--General Lee

 

[General Lee]

I didn't say they can't afford it, but when one pilot makes 1/2 what the other ones does, and the planes are nearly the same size, things start to add up.

-Factor in how much DAL mechanics, dispatchers, FAs, and so forth and so on make, and pretty sure you will find that wasting a whole lot of those people to support regional feed is not very smart. (For some of those guys, the pay difference is far greater than it is between pilots.)

It's cheaper because Regionals are scared. They don't know what to do with the 50 seaters, and they have started "at risk" flying to try to find routes that could make anything over the long run. But, as the memo states, so far they have parked OVER 70 RJs. It's like they are bragging, maybe it is cool to say that now? Businessmen like that.

You also have to remember that Delta just won A LOT when none of the other groups went union. All of them voted it down. That saves DL big bucks. That means they can spend a little more on us coming up here, and some more on planes.

And, you have no idea what could happen with scope coming up here. The CAL/UAL deal is huge, and I can assure you that we believe the same. We would like more of the 76 seaters on our certificate, and those payscales have already been negotiated. Add a few more % points to the pay in the next contract, and I think it possibly could be done. Then, when your contracts expire, we could find some of your cheap, used planes on the market, and hire some of you back maybe. It's whatever is negotiated.

BTW, it's awesome that you think it is cool that you guys are so cheap. FANTASTIC!


Bye Bye--General Lee

 

[ACL65PILOT]

The memo was put out. Why?

Simple.

Negotiating in public. One or more of the aircraft manufactures are not offering deals DAL thinks they should get.

 

[KarmaPolice]

This memo basically sums up an answer to a question asked to a manager in Indoc this year. The question was, "Why isn't Delta purchasing 737's and busses to replace it's aging domestic fleet?"

They think that by holding out, using cheap MD90s in the meantime, they can get ahold of a newer more fuel efficient airplane that will give them a "next step" advantage over what is out there already.

 

[ePilot22]

Shoot! Wish I could get a mainline job...



eP.