Delta to cut MEM by 25%, mostly RJs

[DoinTime]

I was at United prior to Delta, with corporate in between during my furlough. RJs aren't financially smart for any feed when oil prices are really high, really over about $60 a barrel. And DC9s aren't viable either, and they are also being parked within the next 12-18 months. Try not to take any of that personally. If you are crying already about an actual article stating what I initially posted, then you are in for a tough road ahead. This industry is not easy, and I have had a long furlough to prove it.


OYS

So if RJs arent delivering feed, what is? The hub operations die without feed. Passengers hate props and they are willing to pay a premium to not fly on them. This marketing effect was well documented through the 90s and is the reason why we have so many RJs right now. Currently, the industry is going thorough a rationanalization of their RJ use but all indicators are that they will be around for a long time.

 

[bri5150]

Currently, the industry is going thorough a rationanalization of their RJ use but all indicators are that they will be around for a long time.

What indicators are you talking about? Are you and RJloser buds or what? Nothing but talking up how good the 200's are.

 

[General Lee]

So if RJs arent delivering feed, what is? The hub operations die without feed. Passengers hate props and they are willing to pay a premium to not fly on them. This marketing effect was well documented through the 90s and is the reason why we have so many RJs right now. Currently, the industry is going thorough a rationanalization of their RJ use but all indicators are that they will be around for a long time.

Why not cut the number of flights, and then just use mainline jets with more seats to cover the cost of fuel? If you put RJs up against an LCC airplane like a 717 or 737, WE LOSE. Cut 7 daily 50 seaters and add 3 MD88s or A319s. That works. Our CEO said in a recent meeting that 100 RJs and Saabs will be parked this year alone. That should say something about their costs. Who do you think you work for? Amtrack? We are getting rid of DC9s also, but we are also getting 60 more MD90s over the next two years. That should take up some slack, eh?


Bye Bye---General Lee

 

[the palm]

Why not cut the number of flights, and then just use mainline jets with more seats to cover the cost of fuel? If you put RJs up against an LCC airplane like a 717 or 737, WE LOSE. Cut 7 daily 50 seaters and add 3 MD88s or A319s. That works. Our CEO said in a recent meeting that 100 RJs and Saabs will be parked this year alone. That should say something about their costs. Who do you think you work for? Amtrack? We are getting rid of DC9s also, but we are also getting 60 more MD90s over the next two years. That should take up some slack, eh?


Bye Bye---General Lee

Oh, General, thanks for taking the time out of your hectic schedule to grace us with your presence. What exotic destination has Delta taken you to this week? Libya? Iran? Bosnia? I know I speak for all the other posters in the regional forum when I say we anxiously await your updates.

 

[79%N1]

Why don't we REALLY hedge against the cost of fuel and put 777's on all the routes???? Why take 130 to TRI, CHA or CSG when we could take 250 people at once!!!! BRILLIANT IDEA, me! I should be management. At least I could make Gen cream his shorts! Yep....that's it! Triple sevens on EVERY FLIGHT! Heck, scratch that. New idea! Why waste a flight to GSP or CAE with only 250 seats............let's order some A380's and take 500 people! Now we are getting somewhere, here! We can really spread those fuel costs out now!

Pwew! Problem solved. Gen, get your bid in!

 

[DoinTime]

What indicators are you talking about? Are you and RJloser buds or what? Nothing but talking up how good the 200's are.

Not saying that they are great but they serve a very relevant purpose and that purpose does not go away with the price the fuel. So long as passengers are willing to pay a premium to fly on a jet (and they have proven that they will), turboprops will continue their decline and be relegated to niche markets.

 

[bri5150]

Not saying that they are great but they serve a very relevant purpose and that purpose does not go away with the price the fuel. So long as passengers are willing to pay a premium to fly on a jet (and they have proven that they will), turboprops will continue their decline and be relegated to niche markets.

I couldn't agree more that they serve a relavent purpose. That purpose can be fulfilled with a very small fraction of the amount currently in use. That's the problem (or not, depending on your viewpoint).

 

[DoinTime]

I couldn't agree more that they serve a relavent purpose. That purpose can be fulfilled with a very small fraction of the amount currently in use. That's the problem (or not, depending on your viewpoint).

I also agree that the 50-seat RJ is overpopulated in the industry although reductions to the extent of a "small fraction" is probably overstated. In terms of DAL, there have already been steep reductions in the number of 50-seaters with another 60 to be removed this year. I'd bet that another 10% reduction looms after this year as well but IMO their fleet is getting pretty close to a rational level of small RJs. With the Saabs being permanently parked, the 50-seaters will be picking up whatever small cities wants to continue service into so that will extend their usefulness at DAL too.

 

[180ToTheMarker]

Why not cut the number of flights, and then just use mainline jets with more seats to cover the cost of fuel? If you put RJs up against an LCC airplane like a 717 or 737, WE LOSE. Cut 7 daily 50 seaters and add 3 MD88s or A319s. That works. Our CEO said in a recent meeting that 100 RJs and Saabs will be parked this year alone. That should say something about their costs. Who do you think you work for? Amtrack? We are getting rid of DC9s also, but we are also getting 60 more MD90s over the next two years. That should take up some slack, eh?


Bye Bye---General Lee

How dare you come on FI and make sense...shame on you GL!!!

 

[RJLoser]

What indicators are you talking about? Are you and RJloser buds or what? Nothing but talking up how good the 200's are.

WTF?!? I never boasted about the 200. I'm just sick of the sky is falling mentality.

 

[General Lee]

Oh, General, thanks for taking the time out of your hectic schedule to grace us with your presence. What exotic destination has Delta taken you to this week? Libya? Iran? Bosnia? I know I speak for all the other posters in the regional forum when I say we anxiously await your updates.

Thanks Hairy Palm,

My recent 6 day trip had two Paris layovers, and was worth 36 hours. Our hotel is close to the Eiffel Tower, and there are plenty of good restaurants nearby. The last dinner I had there was FANTASTIC. It was Confit du Canard, which consisted of Duck with potatoes and was cooked to perfection. I had some great croissants there too before I left back to the States. Just wonderful. The weather was pretty nice too, mostly sunny with a high in the low 60s. I also visted the Louvre, and ran along the Seine river.

Next week, I go to Milan, and I may go to Lake Cuomo while there and say hi to my pal George Clooney. Last time I talked to him he said he wanted you to stop sending him love letters. After that I have a Santiago layover, followed by Dublin. If you want updates, just ask again. Have fun out there! Tootles.


Bye Bye---General Lee

 

[Poahi]

Well, at least Obama is pro-labor.

 

[damnflyboy]

Thanks Hairy Palm,

My recent 6 day trip had two Paris layovers, and was worth 36 hours. Our hotel is close to the Eiffel Tower, and there are plenty of good restaurants nearby. The last dinner I had there was FANTASTIC. It was Confit du Canard, which consisted of Duck with potatoes and was cooked to perfection. I had some great croissants there too before I left back to the States. Just wonderful. The weather was pretty nice too, mostly sunny with a high in the low 60s. I also visted the Louvre, and ran along the Seine river.

Next week, I go to Milan, and I may go to Lake Cuomo while there and say hi to my pal George Clooney. Last time I talked to him he said he wanted you to stop sending him love letters. After that I have a Santiago layover, followed by Dublin. If you want updates, just ask again. Have fun out there! Tootles.


Bye Bye---General Lee

Be careful about running in France. They might think a retreat is underway and the country will follow into panic.

 

[Freebrd]

LMAO! Good one!

 

[go!ng for broke]

Be careful about running in France. They might think a retreat is underway and the country will follow into panic.

Its a nightmare out there. Tummy swords are everywhere!

 

[Speedtape]

Why not cut the number of flights, and then just use mainline jets with more seats to cover the cost of fuel? If you put RJs up against an LCC airplane like a 717 or 737, WE LOSE. Cut 7 daily 50 seaters and add 3 MD88s or A319s. That works. Our CEO said in a recent meeting that 100 RJs and Saabs will be parked this year alone. That should say something about their costs. Who do you think you work for? Amtrack? We are getting rid of DC9s also, but we are also getting 60 more MD90s over the next two years. That should take up some slack, eh?


Bye Bye---General Lee

Did he mention all the 767/757's that were being cut? If fuel continues to increase, demand will decrease. Bastian commented that domestic capacity will be cut 3% by the end of the year versus a previously planned 2% increase. That's a five point swing. That will affect more than RJs. Rjs don't fly to Japan and points beyond. Projected losses of flights through Japan are approaching a half billion dollars a year.

Sounds like you may be getting more junior, Junior.

 

[General Lee]

Did he mention all the 767/757's that were being cut? If fuel continues to increase, demand will decrease. Bastian commented that domestic capacity will be cut 3% by the end of the year versus a previously planned 2% increase. That's a five point swing. That will affect more than RJs. Rjs don't fly to Japan and points beyond. Projected losses of flights through Japan are approaching a half billion dollars a year.

Sounds like you may be getting more junior, Junior.

Ummmm, not really chief. First of all those Japan flights are being delayed until late May. That's it. The loss there for this year could be between $250-400 million. They are delaying the Haneda flights flown with 777s, but can use them now on certain Europe or South America flights that are full currently. Here are the actual notes from the recent linecheck meeting in ATL the CEO attended: copied from APC.net


From the LCP meeting in ATL with RA

1. Capacity up 1-2 % for the year but a 4% drawdown from the ATL after the summer schedule. Extra pilots would be absorbed by longer block times. Delta "is not a furlough airline"

2. Should still make a small profit for the year

3. DC-9 gone by SEP 2012

4. 14 more MD90's this year. 60 more over the next 2 years.

5. 100 Saab/CRJ's gone this year

6. Decision on 110/190 seaters by 3Q of this year

7. Likes the C-series for the 110 seaters, but needs more info on the engines (geared turbofans) 737-900 or 321 for the 190 seater.

8. Still have firm orders for the 787 but doesn't think the -800 will work.

9. Marketing will try to send the same type A/C to the same stations to help with Maintenance issues. i.e. all MD-88 ATL-LGA.

10. NO BIG BASE MOVES in the near future. Too expensive.

11. Fuel hedge as of today +500 mil

12. Just hired a "Fuel Czar" from the oil industry to run our fuel purchase program.

13. LGA Slot swap should happen soon, Help WIN NYC.

"Not in a hiring mode" but looking forward the next 4-6 years could need 800 pilots a year but can only train 600 at the max.




Bye Bye----General Lee

 

[Plainsman]

Good post Mr. Lee.

 

[SennaP1]

"Not in a hiring mode" but looking forward the next 4-6 years could need 800 pilots a year but can only train 600 at the max.




Bye Bye----General Lee

Points 1-13 sounds good, lets hope that last part rings true when the time comes.

I thought the HND (from DTW, anyhow) were 744 though.

 

[On Your Six]

Points 1-13 sounds good, lets hope that last part rings true when the time comes.

I thought the HND (from DTW, anyhow) were 744 though.

Initial loads were not good due to HND slot times. Delta then changed it to 777s, and now delayed it.

OYS