Delta to order 200 plane by end of the year, and invest in Aeromexico

[fam62c]

Not if your real objective was to eliminate a competitor

You eliminate a competitor that is weak and has overlap with your business, you absorb a competitor that is strong, has little overlap and can be additive to your business. AT does a lot of flying that SW wants to continue and the combined network has a lot of connectivity opportunities for new city-pairs. They're not going to get rid of 80+ airplanes that can't be quickly replaced when they need all the deliveries they can get to replace their 300's. Start listening to what the SW CEO is saying in public to the media, industry analysts, shareholders and employees.

Anything can happen in this business we all know that but you have to look at the information that is available to determine what is probable and what makes sense. The 717's will be operated through their lease terms until they can be replaced by the newest, most fuel efficient, re-engined 737's and Boeing will give SW excellent lease terms on the planes if SW agrees to replace them with the latest 737 version when it comes out. The 717's are just part of the SW/Boeing mating ritual.

 

[BILL LUMBERG]

All kidding aside.....

Why would GK dump 717's on the market to a competitor that could be used against SWA?

Delta learned a hard lesson by selling its DC-9's to an upstart called Valujet who became Airtran who became part of SWA. Delta was responsible for it's own competition.

On a title thread note, any investment of my BK givebacks makes me nervous......the glass half full version would be to look at this like the Continental/Copa investment back in the day. AeroMexico is THE carrier in Mexico now, so cornering the bull in the ring may be a good call.

But this is FI and having a happy thought is NOT ALLOWED (Delta Stew waving her finger)

 

[GuppyWN]

All kidding aside.....

Why would GK dump 717's on the market to a competitor that could be used against SWA?

It's a trade of your -700's and some -800 delivery slots. The fragmentation language says they go with the jets so.......... have fun with that ALPA merger policy.

Gup

 

[BILL LUMBERG]

Gup,

Sounds like the SWAPA one uses a stapler.....nice!

 

[GuppyWN]

Hey they gotta fight for what they think is right. I am not going to knock them for that. But ALPA/ALPA "mergers" are much more cut and dried than our deal. That's all I'm saying.

Gup

 

[Skyboy722]

The deal includes codesharing for all Delta and Aeromexico flights between the United States and Mexico, flights within the carriers’ domestic networks and other international destinations, Delta said.

Outstanding Work General!!!!!

I expect no more Volaris comments from you.

 

[fam62c]

It's a trade of your -700's and some -800 delivery slots. The fragmentation language says they go with the jets so.......... have fun with that ALPA merger policy.

Gup

Anything is possible but why would DAL give up 737NG delivery slots to get 717's that they will eventually have to replace anyway? If SW wanted to get rid of the 717's because they think the plane is less efficient than a 737NG wouldn't DAL see the same inefficiencies and prefer the 737's?

Again, anything is possible but this doesn't make sense from a business standpoint. 737NG delivery slots are highly desired and not easy to come by, I just can't see DAL giving those up to get 717's. Also, by doing this DAL would be helping SW to become more efficient and be a tougher competitor against them in ATL.......why would they do that?

 

[On Your Six]

Outstanding Work General!!!!!

I expect no more Volaris comments from you.

Delta has codeshared with Aeromexico for years. They were both original members of Skyteam. Where have you been? SWA downplays any codeshare relationships, yet GK gives more details of the deal in that LAS article. You're not as clean as you thought. In your case it's like pregnancy, either you are or you're not.


OYS

 

[On Your Six]

Anything is possible but why would DAL give up 737NG delivery slots to get 717's that they will eventually have to replace anyway? If SW wanted to get rid of the 717's because they think the plane is less efficient than a 737NG wouldn't DAL see the same inefficiencies and prefer the 737's?

Again, anything is possible but this doesn't make sense from a business standpoint. 737NG delivery slots are highly desired and not easy to come by, I just can't see DAL giving those up to get 717's. Also, by doing this DAL would be helping SW to become more efficient and be a tougher competitor against them in ATL.......why would they do that?

Maybe Delta has a big Airbus order coming up instead? Just guessing.


OYS

 

[BILL LUMBERG]

Outstanding Work General!!!!!

I expect no more Volaris comments from you.

Easy Junior.....you couldn't find Mexico on a map, ok.....well maybe you could.....but not your route map!!!