DL 4th Qr Loss and parking RJ's

[~~~^~~~]

Open Skies - what makes you think US Airlines will be the loser in Open Skies? Who do you think has higher costs? Luthansia, British Airways, AirFrance, or Delta?

With the value of the dollar - we yanks don't make nearly what the guys getting paid in Euros do.

Of course this helps the Connection pilots too. Hamburg to Huntsville type traffic.

 

[PositionandHold]

Yeah if anything, it just means we'll be getting more ATRs.

 

[PCL_128]

(Can AirTran, or JetBlue, afford to park their jets with high lease payments?)

Not hearing anything about parking airplanes yet, but we've already deferred deliveries for next year (down to only 10 new aircraft next year), and I've been hearing rumors of a major schedule reduction in the January-February time frame. One rumor has us eliminating an entire bank of flights out of the ATL hub for the winter slow season after the holidays.

 

[Citrus531]

Yep....instead of 2-3 "early nights" a week we(AirTran) will be eliminating all last bank flights for everyday in Jan and into late Feb in ATL....a ton of flights going bye-bye...just got the new a/c plot/routing the other day from MCO

We have the option in OPS to take undertime every day or come in earlier to finish earlier so we're not staying there until midnight when the last flight leaves @ 9 pm

 

[fatdumbandhappy]

Open Skies - what makes you think US Airlines will be the loser in Open Skies? Who do you think has higher costs? Luthansia, British Airways, AirFrance, or Delta?

With the value of the dollar - we yanks don't make nearly what the guys getting paid in Euros do.

Of course this helps the Connection pilots too. Hamburg to Huntsville type traffic.

I just think the U.S. airlines will get some stiff competition on the high profit int. routes that have help keep then afloat the last few years. We (USA) got a sweat deal with open skies, we can do inter-eroupe/etc. while foreign airlines can't do inter-state in the US.

 

[B-J-J Fighter]

I saw on the from page of the Wall St. Journal that Delta has very little fuel hedged in 08 and 09. If I remember correctly (was in last weeks paper) SWA, followed by US Airways had the highest percentage of fuel hedged at the lowest prices.

 

[General Lee]

Most of this has already been announced. CHQ is parking all 15 of its 135s, plus Comair is parking 14 CRJ 100s. In return SA is getting EMB 175s and OH is getting CRJ 900s.

Would be surprised if DL parked the ATRs given the price of fuel. If fuel stays high, look for 50 seaters to be parked and be replaced by a mix of 70-90 seaters and turboprops in the markets that wont support a 70 seat aircraft. Bombardier and Embraer have anticipated this and have already made plans to convert 37 and 50 seaters into business jets.

The 50 seat jets just don't make financial sense with fuel prices where they are. They were an artificial creation of mainline scope clauses, and now that these clauses permit larger aircraft more 50 seaters will be swapped for CRJ 700s, 900s, and EMB 170 family aircraft. Look for DL to place turboprops on shorter routes (already happening in CVG with BE 1900s). Wouldn't be surprised to see more turboprops next year, particularly if fuel stays high.....

Look for Delta to place turboprops on shorter routes? Those BigSky BE-1900D's are going to places we have never flown to before--like Owensboro, KY and Jackson, TN from CVG. The BOS BE1900 feed is essentially taking over Commutair and Colgan's old routes from BOS. They are not covering any previous regional or mainline flights, rather they are an experiment. The SH E170s are being traded ONE FOR ONE for E175s, and those older E170s are going to United. The CR9s and E175s take up a full gate, and therefore do not bring in as much revenue as a mainline plane that could take it's place in that limited asset (the gate). You are right, Pinnacle, Freedom, and ASA will be getting some CR9s in 08 for us, but not a ton of them. Look for more mainline planes to come online in mid to late 08--9 MD90s from China and 7 new 737-700s(coming in July at 2 per month). The AT7s will probably stick around, especially to fill niche cities like Panama City, FL and Hilton Head, SC. Are there any used large turboprops out there? The SAS Dash-8-400s---but very unlikely they would go to ASA--probably Lynx, Horizon, or Porter in Canada. I don't see any other large turboprops available unless they come off the production line, and there are plenty of orders out there. The 50 seat and 37 seat RJs just do not make money with high oil.


Bye Bye--General Lee

 

[General Lee]

I just think the U.S. airlines will get some stiff competition on the high profit int. routes that have help keep then afloat the last few years. We (USA) got a sweat deal with open skies, we can do inter-eroupe/etc. while foreign airlines can't do inter-state in the US.

Can you think of any intra-Europe routes we have right now? Europe, even in the UNION, is not really one country. We can't fly to London and then fly pax to Manchester (both in England) separately---which is what essentially would happen if British Air got to fly passengers between New York and Miami (without originating in England first). Not really the same thing. Just because there is an EU---doesn't mean it is one country. There are plenty of countries within it, and a couple, like Albania, are not a part of the EU.

Bye Bye--General Lee

 

[SPDBRD747400]

My question is:

What is the "current" cap for DL in regards to the 70 & 76 seat airplanes? Are we close to reaching the limit on 700's and 900's? If not what is the most DL Connection can operate total? I'm wondering just for the "possible" introduction of 900's to ASA and how many they might be able to operate for DL.

 

[WSurf]

Delta's Losing Money? G.L. whats going on over there?
Come on up to EWN and I will treat you and Plyt to a great weekend for free.

 

[General Lee]

I saw on the from page of the Wall St. Journal that Delta has very little fuel hedged in 08 and 09. If I remember correctly (was in last weeks paper) SWA, followed by US Airways had the highest percentage of fuel hedged at the lowest prices.

That is true, with Southwest the clear winner in hedging. But, Southwest does not have any INTL routes (lucrative due to the dollar vs the Euro and floreigners snapping up our "cheaper" tickets) to fall back on, and even they are forcasting lower domestic demand and growth. If they could, they would pour assets into INTL routes, but they cannot. USAir also has pretty good hedges, along with terrible employee morale and a leader hoping for a merger with someone, anyone. Delta has positioned itself well with plenty of INTL routes to offset a slower US economy and capitalize on growing INTL demand to come to the USA. Our domestic feed is overrun by RJs that can't make us money with high oil, and that will change a bit when we park some of those RJs.

Bye Bye--General Lee

 

[General Lee]

Delta's Losing Money? G.L. whats going on over there?
Come on up to EWN and I will treat you and Plyt to a great weekend for free.

The article said we could see a small operating loss, but overall the year has been profitable. We won't know until the end of the quarter, so we'll have to see. I might take you up on that offer in the Spring, though.

Bye Bye--General Lee

 

[Jmoney]

Treat...

The article said we could see a small operating loss, but overall the year has been profitable. We won't know until the end of the quarter, so we'll have to see. I might take you up on that offer in the Spring, though.

Bye Bye--General Lee

Come visist my place and I will treat you to a swift kick in the nuts, and maybe throw in a 'round the world wedgie for free.

GET A LIFE! DORK!!

 

[Airline Driver]

Open question to anyone here. There was a rumor going around a while back that Delta was thinking of operating the E190/195 on their certificate, is that still a possibility or has it gone by the way side??

 

[General Lee]

Open question to anyone here. There was a rumor going around a while back that Delta was thinking of operating the E190/195 on their certificate, is that still a possibility or has it gone by the way side??

We have pay rates for them, but have not heard lately about any future orders. I guess we could get them if we bought Jetblue and then gave back the A320s to the lessors.

Bye Bye--General Lee

 

[Airline Driver]

We have pay rates for them, but have not heard lately about any future orders. I guess we could get them if we bought Jetblue and then gave back the A320s to the lessors.

Bye Bye--General Lee

I also herd of the rumor that you guys were thinking about getting some 319's or 320's and getting away from Boeing's is that still a rumor??

 

[General Lee]

Come visist my place and I will treat you to a swift kick in the nuts, and maybe throw in a 'round the world wedgie for free.

GET A LIFE! DORK!!

Dude, I do not want to be your date. Please, go to E-Harmony or Match.com and find a mate that you can give wedgies to. I don't go that way. (not that there is anything wrong with that) Maybe you need to talk to a group called "Unusual Attitudes."

Bye Bye--General Lee

 

[michael707767]

What is the "current" cap for DL in regards to the 70 & 76 seat airplanes? Are we close to reaching the limit on 700's and 900's? If not what is the most DL Connection can operate total?

the number of 76 seaters is tied to fleet growth, so a reduction in the Delta fleet count or at least a reduction in the growth, affects that number. Not sure where we are at now, but last I heard it was something like 50-60 total 76 seaters allowed.

The total number of 70 and 76 seat RJs cannot exceed 200. I have no idea how many 70 seaters are flying around.

 

[General Lee]

I also herd of the rumor that you guys were thinking about getting some 319's or 320's and getting away from Boeing's is that still a rumor??

I doubt that. Rumors I have heard are that we are getting used MD90s from all over the world (more than 50 are out there available supposedly), 20-25 737-700s, and 20-25 777LRs. You never know, though. No 787s supposedly for awhile since our 767-300ERs are fairly new, and they will get winglets installed on most of them for extra range.

Bye Bye--General Lee

 

[737 Pylt]

Delta's Losing Money? G.L. whats going on over there?
Come on up to EWN and I will treat you and Plyt to a great weekend for free.

Sold! I'll even bring the german beer!

737