Delta reports 4Q loss

[imacdog]

Let's see how Lee Moak handles any future negotiations regarding scope.

Yeah how's the track record on that so far? :laugh:

 

[General Lee]

General: Listen to the conference call before making any more "RJ getting parked" predictions.... pick up the recording around 38:30

Can you give it to me now? What did it say?

Bye Bye--General Lee

 

[General Lee]

Yeah how's the track record on that so far? :laugh:

He says he can stop a merger. Let's see if he can produce results.


Bye Bye--General Lee

 

[John Pennekamp]

Just wondering.....
Who wants the ATR parked? Sky or DAL?
It would seem that the ATR is weight restricted a lot less then the rj is!?

737

We're really not sure who's leading the charge to get rid of it. but its definitely going away.

And it's weight limited A LOT less than the -200. But more often than the -700.

 

[John Pennekamp]

Fair enough, the lastest versions of the ATR-72 would work too. I would look at acquisition cost as well - which manufacturer (ATR or Bombardier) could provide the best volume-discount deal. We always forget the financing cost in the equation vs. operating cost.

That's exactly the point. In their usual bean counting, short sighted fashion, Delta is looking only at the acquisition cost, not the operating cost and maintenance. There's hundreds of parked used Q400s sitting in Europe that they could get at fire sale prices. ATRs are fetching top dollar, and the waiting list for a new one is long and distinguished. But the ATR has much lower operation and maintenance costs. Delta is much more likely to buy the used Q400s and pay some bottom feeder to fly them.

 

[imacdog]

He says he can stop a merger. Let's see if he can produce results.


Bye Bye--General Lee

No no, I didn't mean "can he talk the big talk". I'm talking about real action here.

 

[~~~^~~~]

Can you give it to me now? What did it say?

Bye Bye--General Lee

With regard to fleet flexibility in the event of a down turn... Delta had already reduced contracted RJ flying to the minimum utilization requirements in those agreements. The next step would be to reduce utilization of mainline jets on days of the week which traditionally have had lower demand. The next step after that would be parking airplanes that are inexpensive to park, paid for, or with low lease costs.

I'm paraphrasing, so I suggest listening to it directly, somewhere around 38:30

Of course, this is balanced with international expansion, the majority of trans oceanic revenues coming from off shore and surprisingly good demand, which was talked about earlier in the call.

 

[~~~^~~~]

Delta is much more likely to buy the used Q400s and pay some bottom feeder to fly them.

Do either of them work with a jetway (not counting that jerry rigged deal in CHA?

It seems like the 737-800 sized footprint of the Q-400 was an issue.

 

[General Lee]

With regard to fleet flexibility in the event of a down turn... Delta had already reduced contracted RJ flying to the minimum utilization requirements in those agreements. The next step would be to reduce utilization of mainline jets on days of the week which traditionally have had lower demand. The next step after that would be parking airplanes that are inexpensive to park, paid for, or with low lease costs.

I'm paraphrasing, so I suggest listening to it directly, somewhere around 38:30

Of course, this is balanced with international expansion, the majority of trans oceanic revenues coming from off shore and surprisingly good demand, which was talked about earlier in the call.

Thanks for the update.

Bye Bye--General Lee