Dl Makes $137m

[PCL_128]

The regulators need to realize that suicide is not competition.

Very well said.

 

[av8tor4239]

From the Delta weekly specials Email:
Atlanta, GA (ATL) to Providence, RI (PVD)$119

From the Greyhound Bus website:
Departing: Jul 22, 2008
From: Atlanta, GA
To: Providence, RI
Miles: 1134
Schedule: 1066
At: 02:30am

Select Fare Type
PurchaseFare TypeQtyPassengerEachTotal Refundable Fare 1
Adult
$167.00
$167.00 Non-refundable 1
Adult
$150.00
$150.00
From Amtrak webstie:

Atlanta, GA (ATL) To Providence, RI (PVD) SelectServiceDepartsArrivesDurationAmenitiesSeats/
Rooms $271.00 20 Crescent

Atlanta, GA
(ATL)
8:21 pm
22-JUL-08 New York, NY
- Penn Station
(NYP)
2:02 pm
23-JUL-08 17h 41mDining car, Lounge, Checked baggage 1 Reserved Coach Seat
Other Options Sold Out 176 Northeast Regional

New York, NY
- Penn Station
(NYP)
3:30 pm
23-JUL-08 Providence, RI
(PVD)
7:17 pm
23-JUL-08 3h 47mSnack car 1 Reserved Coach Seat

 

[~~~^~~~]

The facts are , and have been stated by several economist, mergers are expensive and risky. Combine that with a down enviroment and the results are plain to see.

For you or anyone to play this as something it isn't is disingenious at best. The facts are the cost of this merger is being downplayed.

They are revising their figures in a positive direction. Either something is going better than planned, or they were too conservative, or all this is eyewash.

Delta today doubled its target for new revenue and savings from the planned merger with Northwest Airlines Corp. to $2 billion, and said it will pull 30 more regional jets out of service to save on fuel. ... Delta said its profit was $137 million for the quarter, or 35 cents a share.

New Savings Target
The carrier created $12.3 billion in goodwill when it left court protection in April 2007. That accounting step reflected the excess value of the reorganized company over the estimated fair market value of its assets at that time. Delta wrote down about half of its goodwill in the first quarter.

Delta's new savings target for the merger compares with its April goal of $1 billion. Analysts including UBS Securities LLC's Kevin Crissey have said the previous target fell short of necessary cost cuts.

One-time merger integration costs will be $600 million over three years, Delta said today, less than the $1 billion it estimated in April.

Delta will park 100 regional jets after the peak summer travel season is over, up from its earlier goal of 70. Delta is also pulling as many as 20 of its larger mainline planes out of service as it tries to reduce domestic seats by 13 percent by the end of the year to lower costs.

So far what has been stated has been accurate (with the exception of Anderson's statement that he wasn't here to do a merger and subsequent announcements that the merger was off). I trust Delta's management, but am not as sure of the work done by the outside consultants. In particular, I am not a fan of McKinsey's "work."

 

[spinproof]

"Delta will park 100 regional jets after the peak summer travel season is over, up from its earlier goal of 70. Delta is also pulling as many as 20 of its larger mainline planes out of service as it tries to reduce domestic seats by 13 percent by the end of the year to lower costs."


I hear you brother...so to save money on the merger you just cut more employees???

 

[~~~^~~~]

From the Delta weekly specials Email:
Atlanta, GA (ATL) to Providence, RI (PVD)$119

When I go to the Delta web site I get $1,388 to $1,578 for one of three ASA flights daily.

Mainline Delta does not seem to serve PVD. Best fare is $1,076 through JFK on Comair.

You probably did get the e-mail, I don't doubt you. But if they are doing that to throw away last minute inventory you can bet some of that service will be cancelled this fall.

They should consider using some RJ's to cover misconnected mainline passengers. What is the cost of 50 hotel rooms, meal vouchers, lost bags and ill will? Seems like they could use some of that paid for flying time to pick up the 50 to 100 extra people always standing around the gate in Vegas, San Fran, Regan National, etc...

Load factors this summer have been very near 100% on most flights. There is no make up room when something cancels. The RJ's flying is paid for, they go everywhere, Delta has scheduling control... why not?

 

[spinproof]

Congrats to DAL! Very impressive in this current environment.

Yeah very impressive..."Delta will park 100 regional jets after the peak summer travel season is over, up from its earlier goal of 70. Delta is also pulling as many as 20 of its larger mainline planes out of service as it tries to reduce domestic seats by 13 percent by the end of the year to lower costs."

Your ALPO dollars at work!...or should I say in a coma!

 

[maxblast72]

Wow - If you find it so easy to dismiss your fellow pilots it makes me hope that your airline does fold so that I can keep my job.

If my airline folds because of a bad business plan and folds, and your airline benefits because of it, then so be it. I can only blame myself for having my head in the sand and not having my resume out to airlines that have better business plans.

If bad business plans continued to get propped up by all sorts of means, then the 100,000 airlines pilots in this country will all continue to suffer instead of just 5,000-10,000. We got Eastern pilots pilots here at Airtran (both sides of the strike) that suffered after the shutdown while Delta and USAir pilots (major East Coast players) benefitted in the mid 1990's when the economy gained strength.

 

[PCL_128]

Yeah very impressive..."Delta will park 100 regional jets after the peak summer travel season is over, up from its earlier goal of 70. Delta is also pulling as many as 20 of its larger mainline planes out of service as it tries to reduce domestic seats by 13 percent by the end of the year to lower costs."

Your ALPO dollars at work!...or should I say in a coma!

As far as I'm concerned, parking fuel-guzzling replacement jets is a good thing.

 

[spinproof]

As far as I'm concerned, parking fuel-guzzling replacement jets is a good thing.

...and the ALPO pilots that go with them? That's OK with you,huh PFT boy?

 

[~~~^~~~]

If oil swings to $100 bbl after Oct 15th (my cutoff date for major hurricane damage in Gulf), then some of the hedges may be under water or a wash. In either case, oil at $100 bbl will help the industry at the end of 08 and all through 09. The key will be each airlines ability to coordinate a steep reduction in capacity and still keep their head above water.

If you want to invest in this industry here in the US, just wait until after 10/15/08, and place your bets on the probable survivors.....the ones that won't need a bailout.....as the Fed may just may not be able to help the airline industry and instead let foreigner's in the hen house.

imp: ​

Lowcur:

You are right. Some are saying that this DAL/NWA deal is worth doing because it puts the Company #1 at the bail out table. But, as you point out, Delta already told AirFrance/KLM to keep their money for now.

With either party in office I would think it would be tempting to let the French bail out the US based "World's Largest Airline."

I hope we don't go there for a variety of reasons. For starters, I don't want ALPA negotiating 777 and A330 scope with the French on the top end.

A lot will come together in October. In addition to the hurricane season we probably have a new administration in Washington. Much of the market malaise is driven by what Bill Clinton would have called a "funk" that existed when Senior left office. The failure of the dollar is a result of bad policy and loss of faith. A new administration will probably restore some faith and might fix policy.

I'd be getting out of oil right now, but I said that months ago and was wrong then.

 

[~~~^~~~]

From today's conference call, today's adjustment should be the last:

Thanks for joining us on the call today. This morning we announced Delta’s financial results for the June, 2008 quarter. Excluding special items Delta recorded net income for the second quarter of $137 million in spite of record high fuel prices that drove more then $1 billion in additional fuel input costs year-over-year. This compared to net income of $274 million in the June quarter of 2007.
On a GAAP basis we recorded a $1 billion loss driven mainly by a $1.1 billion non-cash impairment charge and you’ll recall last quarter we had the first part of that charge and this is the final true-up and a $96 million severance charge and I’d note on the $96 million severance charge, that was part of our process that we initiated earlier in the year to reduce overall staffing at the airline and that process has gone well and will result in significant payback within the year.

Generating positive earnings for the quarter given the unprecedented rise in the price of jet fuel is something that not many of our competitors will be able to report and it is a testament to the hard work of all the people at Delta Air Lines. They are delivering on our internal financial goals and they’re running a great airline. For the last 12 months Delta ranks number two among our competitive set for on time performance. In addition the latest view of key statistics ranked Delta in the top five for baggage performance in May and we had a 32% decline in the number of mishandled bags year-over-year in the June quarter.

This improvement reflects our ongoing investment in technology and process reengineering so we appreciate and want to thank all the Delta employees for their great work. They received $10 million in shared reward payments during the quarter for achievement of operational performance goals. So really great work by our people and we all want to thank them.

 

[9rj9]

So why don't you guys and gals demand you pension and pay cuts back. Just glad to have a job hun?

 

[~~~^~~~]

They are, hence the number of Delta pilots who say they will vote no.

I like the idea of having my own investments sitting in a 401K & roth than putting my faith in an airline maintaining a defined benefit plan.

At the end of the contract I think Delta will be the highest paid in the industry again. Not that is saying a lot with the devalued dollar, but is effectively deflects statements like:

So why don't you guys and gals demand you pension and pay cuts back. Just glad to have a job hun?

 

[9rj9]

I guess you forgot about Fedex, Ups and Southwest.

Its pathetic how pilots have caved into management and will accept anything. The company robbed the pilot group during banruptcy and they never even asked for a dime back. Weak sisters. ALPA is doomed, but you already knew that, its every pilot for himself.

 

[9rj9]

It will never deflect the fact that they sold out. NEVER

 

[General Lee]

It will never deflect the fact that they sold out. NEVER

Have you graduated to day flying yet? Thanks to age 65, it will take you longer, and you will look old, but you will be RICH. Great.


Bye Bye--General Lee

 

[PCL_128]

It will never deflect the fact that they sold out. NEVER

So which shining beacon of airline trade unionism do you work for?

 

[General Lee]

So which shining beacon of airline trade unionism do you work for?

UPS. He flies mostly at night, and is starting to look 30 years older than he already does, and he knows it. But hey, he has the money for botox.


Bye Bye--General Lee

 

[PCL_128]

UPS. He flies mostly at night, and is starting to look 30 years older than he already does, and he knows it. But hey, he has the money for botox.


Bye Bye--General Lee

In that case, maybe he can explain why the payrates he negotiated with a company that makes over $1 billion in profit per quarter are still far below the payrates that DAL and UAL negotiated almost a decade ago? Still want to throw those stones, brownie?

 

[9rj9]

so you didn't defend not asking for anyhting back, just bashing me personally. I never said general lee sold out, i said you and all your weak sisters sold out. Thats what i was asking, why direct your rage toward me and not the guy who stole your money.

anyway, I do day trips out of Miami. see ya.