Delta to put 100 Rj's to the desert

[jetracer5]

Delta said they would shed the equivalent of 100 rj's by the end of the year through lease returns and contract changes. Anybody know what they mean by "equivalent"? This hole thing dosent sound good..... (Source was Q2 earnings call)

 

[Flyer1015]

Well, Pinnacle got an extension until the end of September for 9 CRJ-900s. Once September 30th comes around, we'll know more. But that's 9 out of 100 that Delta can cut.

 

[CX880]

Good luck to MeSA

 

[TailHeavy]

Well, Pinnacle got an extension until the end of September for 9 CRJ-900s. Once September 30th comes around, we'll know more. But that's 9 out of 100 that Delta can cut.

I believe that Delta wants to park 50 seaters not 76 seater.

 

[TristarJS30]

Isn't roughly 35 or 40 Chautauqua 35 seaters coming out of the fleet? On top of the 10-15 Comair is losing?

 

[MYFpilot]

100 - 23 Expressjet birds = 77 from the rest of the Delta Connection kids. Mesa proved a Contract is a Contract, even if you suck. I wouldn't want to be wholly owned by Delta or NWA right about now.

 

[king10pin02]

Isn't roughly 35 or 40 Chautauqua 35 seaters coming out of the fleet? On top of the 10-15 Comair is losing?

CHQ only had 15 135s, 11 still in the fleet, all parked by end of Sept. the remaining 22 145s are safe...for now

 

[king10pin02]

100 - 23 Expressjet birds = 77 from the rest of the Delta Connection kids. Mesa proved a Contract is a Contract, even if you suck. I wouldn't want to be wholly owned by Delta or NWA right about now.

remember it was only a temporary injunction, the chances of mesa(freedom) keeping the 50 seat flying is not good. only two reasonable outcomes. 1. delta pays a big fine, flying gone. 2. delta gets off if the judge agrees that their performance was below contractual minimums

 

[Medeco]

Temp or not, DAL has decided that Mesa and Pinnacle are done. I'd bet on it, regardless of a judge and trial.

Medeco

 

[Troy208]

.......

.....

 

[Medeco]

yeah, whatever I'm betting we see a different story down the road.

Good luck though!

Medeco

 

[pinn82]

Sorry Medeco Pinnacle is keeping their Delta flying.

 

[meyers9163]

100 - 23 Expressjet birds = 77 from the rest of the Delta Connection kids. Mesa proved a Contract is a Contract, even if you suck. I wouldn't want to be wholly owned by Delta or NWA right about now.

I'd say look at AWAC/RAH/Colgan to name a few. PDT has yet to furlough and PSA has only done 27. Right now AWAC has about 80 they are calling, RAH 200 and Colgan possibly more. Right now I'd say the wholly owns at USairways are sitting pretty. I'd imagine the same for DAL. Oh and before you say they have to give us a minmum hours. Yeah that's what those above companies said as well. Guess things change.

 

[DYLIN]

Not to mention one wholly owned, Compass, is receiving a new aircraft every few weeks and there are provisions in place in the event that it is sold. That flying seems to be the last that would be cut as it is DC-9 / Airbus replacement (unfortunately).

 

[WSurf]

I'd say look at AWAC/RAH/Colgan to name a few. PDT has yet to furlough and PSA has only done 27. Right now AWAC has about 80 they are calling, RAH 200 and Colgan possibly more. Right now I'd say the wholly owns at USairways are sitting pretty. I'd imagine the same for DAL. Oh and before you say they have to give us a minmum hours. Yeah that's what those above companies said as well. Guess things change.

I agree. You have to remember companies like RAH are making millions off their codeshare while the company they are codeshing with is losing million. Boy, now that makes sense.

I think you might soon see more of a tread of more control and ownership of regionals by their mainline carrier.
Look at Delta, they would rather park Mesa airplanes and pay a fee, then to pay for the gas and have them flown.

 

[General Lee]

I'd take that bet......

Temp or not, DAL has decided that Mesa and Pinnacle are done. I'd bet on it, regardless of a judge and trial.

Medeco

Pinnacle Airlines, Delta Reach Agreement

Existing Contract to Remain in Effect

updated 1 hour, 24 minutes ago

MEMPHIS, TN - Pinnacle Airlines Corp. (NASDAQ: PNCL) reported today that its Pinnacle Airlines, Inc. subsidiary will continue to fly for Delta Air Lines as a Delta Connection carrier under its existing contract, which expires in 2017. Delta previously served notice that it intended to terminate the contract, effective July 31.
"We have tremendous respect for the people at Delta," said Phil Trenary, Pinnacle Airlines Corp.'s president and chief executive officer. "Our discussions with them were amicable and we were able to resolve the issues at hand. We look forward to building on our hard-earned reputation for operating a safe, reliable and cost-effective airline to serve what will soon be the largest air carrier in the world."
Pinnacle entered into an agreement with Delta in April 2007 to operate 16 CRJ-900 aircraft as a Delta Connection carrier and began operations under the agreement in December. Pinnacle has already taken delivery of nine of the 16 CRJ-900 aircraft on order. As part of the resolution between the parties, the in-service dates of the remaining seven aircraft will be deferred until between January and May 2009. The 76-seat CRJ-900 NextGen jet has operating costs that are the lowest among comparably sized regional jets, providing for an economic, efficient aircraft in the Delta network.



Bye Bye--General Lee

 

[callowayhd]

mesa sucks

and 1 one year from now when mesa is gone pinnacle sucks will be all over fi.com

 

[79%N1]

Look for a good number to come from ASA. My guess I 25. I've heard 91 50's from a couple sources. Remember, 80% of less is less. People think ASA can't be downsized in ATL are flat wrong.

Hugh reductions are coming! 100 planes is a lot. Spread over 5 or 6 carriers is a lot for each, even if evenly spread.

 

[ohplease!]

Delta said they would shed the equivalent of 100 rj's by the end of the year through lease returns and contract changes. Anybody know what they mean by "equivalent"? This hole thing dosent sound good..... (Source was Q2 earnings call)

How many MD88/DC9's are equivalent to 100 crj's?

 

[pdub20s]

If Mesa Mgt was smart, they would start training us ERJ guys to fly the 900...But I dont see that happening

 

[General Lee]

How many MD88/DC9's are equivalent to 100 crj's?

Richard Anderson stated recently that we will be keeping all of the larger DC9s (-40 and -50 series---41 of them will stay) until 2012, and I haven't seen anything about when the MD88s will be gone. 20 DC9-30s will be parked soon though, probably after the 1st of the year. Unfortunately 100 50 seat RJs sounds about right, and we all know they don't make money in a high fuel environment.

Bye Bye--General Lee

 

[Speedtape]

Look for a good number to come from ASA. My guess I 25. I've heard 91 50's from a couple sources. Remember, 80% of less is less. People think ASA can't be downsized in ATL are flat wrong.

Hugh reductions are coming! 100 planes is a lot. Spread over 5 or 6 carriers is a lot for each, even if evenly spread.

Your source? ASA may make a contribution--but it will not be a "good number!"

ATL is the fortress. There will not be much change there. CVG, SLC, and MEM is another story!

What's a "Hugh" reduction?
Your guess is "I 25"? Please translate.

Drinking and Keyboarding don't Mix!

 

[DoinTime]

yeah, whatever I'm betting we see a different story down the road.

Good luck though!

Medeco

Hows that crow taste?

 

[DoinTime]

Unfortunately 100 50 seat RJs sounds about right, and we all know they don't make money in a high fuel environment.

Bye Bye--General Lee

Judging by the $1,000,000,000 quarterly loss I would say nothing is making money in the high fuel environment. When you are losing nearly a half a million dollars an hour you have problems that parking some RJs wont fix.

 

[General Lee]

Judging by the $1,000,000,000 quarterly loss I would say nothing is making money in the high fuel environment. When you are losing nearly a half a million dollars an hour you have problems that parking some RJs wont fix.

You obviously didn't read the article about the loss. It was all a paper loss, looking at the value of the combined company with our decreased stock price due to high fuel. We actually had a $137 million operating profit, and our fuel hedging actually saved us over $313 million. Here is part of the article written by Reuters:


DELTA RESULTS
Delta, which has agreed to buy Northwest Airlines Corp, reported a quarterly net loss of $1 billion, or $2.64 per share. Excluding special charges, however, Delta said it earned $137 million, or 35 cents per share.

Delta, which said the special charges were mainly for the impairment of goodwill, emerged from bankruptcy at the end of April 2007, so many year-earlier figures were unavailable.

Revenue rose about 10 percent to $5.5 billion. Delta ended the quarter with $4.3 billion in unrestricted liquidity, including $1 billion available under its revolving credit facility.

The airline said it expects capacity for the second half of 2008 to be down 4 percent compared with 2007, with its domestic capacity down 13 percent and international capacity up 14 percent.

During the quarter, Delta hedged 49 percent of its fuel consumption and realized $313 million in gains.
Delta said its merger is likely to close in the fourth quarter and it has reached a pre-merger joint bargaining agreement between the Delta and Northwest pilots.
The company upped its forecast for merger-related synergies to $2 billion from $1 billion by 2012. Delta said the savings and revenue will come mainly from combining the two carriers' networks.


I hope that makes you feel better......(how's that crow taste)



Bye Bye--General Lee

 

[DoinTime]

Just what is "impairment of goodwill"?

 

[General Lee]

Just what is "impairment of goodwill"?

I don't really know, but I think it was stating the company could be worth X Amount after a merger, and watching the stock go down and now saying it will be worth less. I think that is right.


Bye Bye--General Lee

 

[jetracer5]

How many MD88/DC9's are equivalent to 100 crj's?

This is the part I find interesting. Delta never said it was parking 100 RJ's. They said the EQUIVALENT and every time they said parking planes they ALWAYS said the equivalent of 100 RJ's. I think something fishy is going on over at fort Delta. Or maybe I am just reading into it too much!

 

[Speedtape]

I don't really know, but I think it was stating the company could be worth X Amount after a merger, and watching the stock go down and now saying it will be worth less. I think that is right.


Bye Bye--General Lee

Goodwill is an intangible asset. It is the additional cost, or premium, above net asset value that a company is willing to pay in an acquisition of another company, under the concept of on-going concern, recognizing some "intrinsic or intangible value." It also can be the value recognized in combining the synergies of two companies. More simply, it is an accounting recognition of the premium paid above the net asset value.

The "impairment" means that there was a significant, negative change that took place during the accounting period that mandated an adjustment in the previous estimate of the value of Goodwill. Most likely, as the General stated, the adjustment was required due to the significant change in the stock prices for both Delta and NWA, and the significant and increased cost of fuel, which is the highest operational cost of running an airline.

However, it is interesting to note, in the recent report, the original cost savings potential in combining the two airlines has doubled from $1 Billion to $2 billion a year by 2012. This can only mean, over the next 3 years, that there will be aggressive moves and restructuring made, after merger approval, to attain those cost savings. The cost savings cannot be attained unless there is a drastic change in the status quo of the combined companies--can you say, Major OVERHAUL?

 

[Speedtape]

This is the part I find interesting. Delta never said it was parking 100 RJ's. They said the EQUIVALENT and every time they said parking planes they ALWAYS said the equivalent of 100 RJ's. I think something fishy is going on over at fort Delta. Or maybe I am just reading into it too much!

Hmmm.....You may be on to something! This is better than the Da Vincci Code with EQUIVALENT being the beginning of the riddle!

One thing we do know is the EQUIVALENT of 100 RJ's means about 5,000 seats! 5000/140 = about 35 to 36 mainline narrow bodies.

However, it seems that there were some ratios in the scope where 3 RJs could be added for every mainline plane added. One would think, in a reduction, the reverse would hold true to conform to the above logic. Therefore, should 33 mainline airplanes (any size) be parked, it would require 99+ or 100 rj's to be parked.

General, Please feel free to weigh-in!