Geez, Delta finally taking my advice

[Ty Webb]

Now, this, to me, is a much better idea than Song, although I guess they could compliment each other.

http://www.thestreet.com/_yahoo/markets/ericgillin/10127318.html

I have been saying here for the past two years that Delta ought to focus on being Delta . . . (providing a premium product) and to stop fighting the LCC's for the lowest-paying customers.

Unfortunately, they still want to match AirTran's coach price, so it'll be a money loser. More 20th Century thinking, which, judging by Leo's haircut and wardrobe, is where he feels most comfortable.

 

[FLB717]

It is my understanding that these are the shuttle aircraft from the NYC to WASH area that are not being used because CMA/ASA are flying a lot of those flights. So the aircraft are already outfitted and catered with papers and candy. No real change other than using the aircraft that are on hand and spinning the reason. Im sure Ill be corrected if wrong.

 

[General Lee]

No, they are the same 738's as the Shuttle, and they didn't want to put them back to the normal config, so they tried this. I think a lot of people like it. They are thinking outside the box on this one, and maybe it will catch on. As far as Ty is concerned, fares have been going up lately, and anything more is better than earlier in the year. Also, it looks like we will be taking some sort of a paycut soon, so the costs will come down further.

Bye Bye--General Lee

 

[wms]

According to travel net ASA does one JFK/BOS, ACA flies a few with the DOjet.

The BOS/LGA/DCA shuttle is flown with the 733. Some single class, some two class.

 

[wms]

Well, last week when the other thread on this subject came up there were some two class 733s, all I see for next week is single class.

 

[46Driver]

According to travel net ASA does one JFK/BOS, ACA flies a few with the DOjet.

I don't know if we ever have any passengers, just mainline non-revs! I think the record is 30 non-revs to JFK on our 32 seat airplane.

 

[FLB717]

Thanks for the info. the best part of DAL raising fare's, is we can too, yeah!

More money = more planes = more pilots = more money = more pay.

 

[Palerider957]

General:

Even if the DAL pilot group takes a pay cut, will that be a significant cost savings for DAL, or is this all a bunch of crap. I know you guys make about 3x what we make, but even at that pay rate, will it help DAL's bottom line???

 

[General Lee]

WMS,

Yes, the actual Shuttle aircraft are 737-300G's (G is for Glass). We have other 737-300s based in SLC, and they do not have glass tubes, but steam gauges and one FMS for LNAV navigation. (Southwest uses those too, along with 737-700s etc...) The 737G's on the Shuttle were purchased from Germania (a German charter) 6 or 7 years ago, and were parked last year but added back to the Shuttle becasue we were still paying $8,000 a day for the lease payments, with 9 of them sitting in the desert. So, the 9 of them went to LGA for the Shuttle, and the 16 737-800s that were flying the Shuttle in one class configuration are now flying certain routes out of ATL (now to MCI and HOU) to attract business passengers---with extra amenities etc.... That is what TY is referring to.

Palerider,

I don't know how much of a paycut, but I think we will take one in the 15% range, which may or may not include the May 1st, 2004 raise we have due which will equal an extra 4.5%. (That will probably be included, or maybe added on??) I think the reason Dalpa will do this is to help get us more access to capital markets for refinancing debt. I have seen the charts and it looks like 2005 will be an expensive year for us, but things recently have showed us some positive signs. The House yesterday passed a bill that would let airlines push the yearly pension payments back a couple years, in order to catch up with the payments. Apparently that will save us around $180 million next year alone.(maybe more in 2005) The economy is getting better, which will also help. Someday the fuel prices will go down (didn't we take over Iraq???), and that will help everyone. If they economy was still going down the tubes and people were still scared to fly, this would be an even darker time. I think Dalpa just wants to help out, but not give them everything they want---just what they NEED. I still think Dalpa will ask for help from other parts of the company---and the flight attendants recently were smacked with some cuts and work rule changes (like being able to fly 10 hours per day---which can't happen with us obviously). As far as work rule changes from us, I think some slight modifications, but we retired 630 Capts this year, and we will be adding back 8-10% capacity next year (all planes coming out of desert except MD-11s and 727s/L1011s), so it shouldn't hurt the current pilots, and hopefully start bringing back some furloughs. So, the paycuts will probably be in the range of 15-20% total, including that raise.
We shall see.....?

Bye Bye--General Lee

 

[wms]

I've been following what DAL is doing with the 738s. My mom lives in KC and is looking forward to the experience when she non-revs next month.

 

[General Lee]

WMS,

Good, I hope she likes it. I have ridden on them on a flight from ATL to LGA and thought it was nice. The seats are all leather, with a little more room than normal. (These were Shuttle aircraft for God's sake....) Apparently they give out free papers in the morning and a free drink on the afternoon and evening flights. I don't know if this concept will work or be more attractive, but we have 16 738's that are configured this way, and we might as well try something. I think TY was right (I can't believe I said that--now he will really get cocky) when he said that we should somewhat target the business passenger, as well as the low fare person on Song. I don't know why they chose MCI and HOU---but there might be some other cities that would be attracted to this. (I read also that they use these same 738's on the ATL-MDW service, but aren't offering the free paper and drinks just yet on that route). After she flies on it, ask your Mom how she liked it.


Ty,

Here is some other good news:

U.S. airlines show pricing gains in October

Thursday November 20, 2:05 pm ET

NEW YORK, Nov 20 (Reuters) - The airline industry's pricing power
strengthened in October despite weak leisure travel and the return of
government-imposed fees, and coming months should show similar
signs that the sector's legs might be steadying, Wall Street analysts
said on Thursday.

"The holiday season is shaping up well, and we expect the positive
trend will endure in November and December," Lehman Brothers
analyst Gary Chase said, though he did not expect revenue
improvements to top those seen in July and August.

Monthly data from the Air Transport Association released late on
Wednesday showed that October revenue per unit rose 5.9 percent
from the year earlier at the largest U.S. airlines.

The results topped industry analysts' expectations.

Credit Suisse First Boston analyst Jim Higgins, who had expected a 4
percent to 5 percent increase, was encouraged by the stronger unit
revenue performance, and expected industry revenue for the coming
few months to outperform expectations.

Indications that the sector is now in "recovery mode" should help
provide a floor for the already-battered share prices of airline stocks,
which have dropped sharply since early November, Merrill Lynch
analyst Michael Linenberg said.

But analysts also cautioned that the recovery is still fragile because
overall travel demand remains sluggish. Total October passenger
revenue grew only 0.2 percent.

Shares of most U.S. airlines traded higher on Thursday, led by a 3
percent gain at Northwest Airlines (NasdaqNM:NWAC - News), a 2.5
percent gain at Delta Air Lines (NYSE: DAL - News) and even bigger
gains at smaller carriers.



Bye Bye--General Lee