Delta Q1 Report more aircraft phase outs

[General Lee]

there goes any hiring at big D. 60 50 seaters - WOW, are these in addition to the previous reductions in 50 seat RJ's?

Wrong. These DC9 parking announcement were already made, and now infact they have been delayed. DL was going to park 6 DC9s this year, and the rest next year, but decided they were actually going to put those 6 through C or D checks and keep them flying. Compass was originally going to get 12 more E175s from Australia, but they could only get 6, so DL keeps the DC9s longer. Delta will also receive 60 (yes, 60) MD90s in the next 3 years to cover for those DC9s leaving. The MD90s will do longer stage lengths (they have better range than the DC9s), which means some additional hiring may be needed for that reason alone.

Delta will dump more RJs though, mostly Comair that was already announced. They will be down to only 44 total aircraft soon. The Saabs were announced too, and they may go to USAir at LGA, although the LGA Slot Swap is still on, and now that SWA got DCA slots via Airtran, both DL and USAir are looking to complete that LGA/DCA deal. I don't know if USAir will need those Saabs in DCA if the deal goes through.

As far as After Labor day downsizing, this happens every year at DL. Usually the frequency is cut from ATL to Europe, and the layovers turn a bit longer (which can be nice), and the planes do more yearly MX in ATL. It has always been like that, since not as many people go to Europe after Summer. But, the media and Wall Street sure like to hear about it, and DL stock went up 97 cents after hearing about it. The Japan stuff was a big hit on DL and revenues, but the yeilds there are coming back according to the conference call, so that is promising. Also, fare hikes for the higher fuel have mostly stuck, and SWA even agreed to an additional one the other day. They have their own mounting costs in ATL, where they will have to pay each Airtran employee almost double the current Airtran rate. That won't help when you say you will come in and lower fares.

But, I have mentioned that high oil and 50 seat RJs don't mix. And, retirements and hiring will still happen together, with over 2000 current Delta pilots between age 60 and 65. Eventually, it will happen. And, last year Q1 also had a large loss, with Q2 and 3 adding huge profits. Analysts and DL management have stated they are still confident of a full year profit at Delta. It may not be as large as last year's, but a profit is a profit. Fingers crossed!


Bye Bye--General Lee

 

[RJLoser]

GL your softening. As things/morale improve, large numbers in hiring begins, I will miss the old F-the RJ's/regionals GL.

 

[no1pilot2000]

Comair will soon be gasping for air if they aren't already doing so.

 

[wmuflyguy]

I see Comair's 70/90 being sold to someone as part as a 2 50's parked for 1 70 seater deal. Just another way for DL to trim capacity. It sucks, I was going to lose my job because of the cuts, and I got a bad feeling about the future there.

 

[screech]

Wrong. These DC9 parking announcement were already made, and now infact they have been delayed. DL was going to park 6 DC9s this year, and the rest next year, but decided they were actually going to put those 6 through C or D checks and keep them flying. Compass was originally going to get 12 more E175s from Australia, but they could only get 6, so DL keeps the DC9s longer. Delta will also receive 60 (yes, 60) MD90s in the next 3 years to cover for those DC9s leaving. The MD90s will do longer stage lengths (they have better range than the DC9s), which means some additional hiring may be needed for that reason alone.

Delta will dump more RJs though, mostly Comair that was already announced. They will be down to only 44 total aircraft soon. The Saabs were announced too, and they may go to USAir at LGA, although the LGA Slot Swap is still on, and now that SWA got DCA slots via Airtran, both DL and USAir are looking to complete that LGA/DCA deal. I don't know if USAir will need those Saabs in DCA if the deal goes through.

As far as After Labor day downsizing, this happens every year at DL. Usually the frequency is cut from ATL to Europe, and the layovers turn a bit longer (which can be nice), and the planes do more yearly MX in ATL. It has always been like that, since not as many people go to Europe after Summer. But, the media and Wall Street sure like to hear about it, and DL stock went up 97 cents after hearing about it. The Japan stuff was a big hit on DL and revenues, but the yeilds there are coming back according to the conference call, so that is promising. Also, fare hikes for the higher fuel have mostly stuck, and SWA even agreed to an additional one the other day. They have their own mounting costs in ATL, where they will have to pay each Airtran employee almost double the current Airtran rate. That won't help when you say you will come in and lower fares.

But, I have mentioned that high oil and 50 seat RJs don't mix. And, retirements and hiring will still happen together, with over 2000 current Delta pilots between age 60 and 65. Eventually, it will happen. And, last year Q1 also had a large loss, with Q2 and 3 adding huge profits. Analysts and DL management have stated they are still confident of a full year profit at Delta. It may not be as large as last year's, but a profit is a profit. Fingers crossed!


Bye Bye--General Lee

This is good information. thanks.

 

[General Lee]

GL your softening. As things/morale improve, large numbers in hiring begins, I will miss the old F-the RJ's/regionals GL.

I don't think I ever directed it directly at the RJ pilots (except for a couple notable ones at Comair). RJs in general have been bad for the industry, because they have been allowed to replace better paying jobs. Who is at fault? Most will say mainline pilots for allowing it. I think that is correct partly, because initially mainline pilots didn't realize the affect it would have, and then the whole can of worms opened up. In BK it got worse, and then high oil started to take it's toll on RJs and the economics were truly shown. They just can't make money with high oil. As far as Comair goes, I don't think Delta ever forgot about the $1 billion they lost during the Comair strike.


Bye Bye---General Lee

 

[General Lee]

Another point about the 8-10% capacity reduction after Labor Day to Europe. If you notice what type of planes are flying out of ATL this Summer to Europe, a lot of them are A330-300s. Dublin, Barcelona, Amsterdam, and a lot of other nonstops from ATL will be A330-300s this Summer, for the first time. Those are big planes, with lots of seats, which is good when the busy Summer season is happening. After that is over, too many seats is a bad thing. If you went from an A330 to a 767, that could be an 8-10% reduction in seats. Those A330s could then be put somewhere where loads might be more full, like Hawaii or South America, or back to Asia if it starts to recover in earnest. That is another way to reduce seats by 8-10%---just throw on a smaller plane.


Bye Bye---General Lee

 

[damnflyboy]

Good luck to everyone. This is going to get ugly (again).

 

[screech]

Another point about the 8-10% capacity reduction after Labor Day to Europe. If you notice what type of planes are flying out of ATL this Summer to Europe, a lot of them are A330-300s. Dublin, Barcelona, Amsterdam, and a lot of other nonstops from ATL will be A330-300s this Summer, for the first time. Those are big planes, with lots of seats, which is good when the busy Summer season is happening. After that is over, too many seats is a bad thing. If you went from an A330 to a 767, that could be an 8-10% reduction in seats. Those A330s could then be put somewhere where loads might be more full, like Hawaii or South America, or back to Asia if it starts to recover in earnest. That is another way to reduce seats by 8-10%---just throw on a smaller plane.


Bye Bye---General Lee

Thats a good thought. I believe Delta's A330-300's are 298 seats. I flew JFK-FCO last september on the 330-300 and it went out full (100% load factor) Actually got stuck for a whole day trying to get out. The smallest equiapment those days were 767-300's. I spoke to a CS sup and according to him EVERY Delta flight went out full from JFK. his words "they're not giving away the seats either" Tel Aviv uses the 744, full. Anyway, reducing the Transatlantic to 330's from 777 and 767 from 330's is still alot of big equipment.
Maybe the 777's can run across the pond to Accra and Lagos or keep the LR's going to ICN and HKG etc...

seems like Delta fleet planning will figure it out. probably a monumental task with 9 types, plus subfleets with different ranges and weights.

 

[screech]

Also, it seems like Delta might be pushing their planes beyond their reasonable range. tried to get back from FCO to ATL, and the 330 was supposedly weight restricted. 5000 miles is well within the A330's max range but maybe they had an alternate or a runway limit.