How is the SEA "hub" doing at DL from today's conference call?

[General Lee]

Asked whether Wall Street should be concerned with the next round of negotiations over a contract that becomes amendable in 2016, Bastian responded, ?You shouldn?t be concerned about it, simply because of our track record."

Forbes - 4/25/2014 @ 7:53AM

That quote was forwarded to DALPA, but it can be taken a couple ways. Either the group gives in, which is what you are implying, or both groups try to find common ground. I think both are accurate, but not totally giving in. Still, the DL pilots shouldn't have to give up too much during good times. Still, there is always some give and take.


Bye Bye---General Lee

 

[Freebrd]

Still, the DL pilots shouldn't have to give up too much during good times. Still, there is always some give and take.

Bye Bye---General Lee

Such as allowing outsourcing of more 'bigger' RJs Jenny? Huh? What, oh yeah, Delta looking for more 717s to replace 'bigger' RJs. But Jenny, Delta keeps buying bigger RJs too. Especially when y'all cave on scope, again, and again, and.....well you get the idea huh putz!

Oh yeah, don't forget that "successful" refinery that RA will want y'all to help him out on by allowing more RJs with maybe a small raise. And what if RA just won't negotiate Jenny? It costs Delta nothing to keep your current agreement in place. Your current agreement might just be all RA will give you.

 

[Hpilot]

But once again....not a kool-aid drinker, but the elephant in the room is the 41mil loss because of Trainer. Now they told us this thing was a slam dunk and the big D spin machine is doing its best to hide that it isn't working. That is a direct drag on the balance sheet....those are C2k wages with lots of money to spare.

One indirect thing about it that is working is that it has kept all the other refiners in line and competitive which results in lower fuel for all airlines.

Well, it's nice that you had the money to try, a rarity in this industry. I have to say thank you though, because Delta operating that refinery helped push down the cost of jet fuel for the rest of us. Glad to hear about Seattle, too bad I suggested a while a go we expand in Seattle, AA used to have a base there. Oh well, I thought we should acquire Northwest too, before you made your move, but nobody listens to me, not even my dog.

 

[General Lee]

Such as allowing outsourcing of more 'bigger' RJs Jenny? Huh? What, oh yeah, Delta looking for more 717s to replace 'bigger' RJs. But Jenny, Delta keeps buying bigger RJs too. Especially when y'all cave on scope, again, and again, and.....well you get the idea huh putz!

Oh yeah, don't forget that "successful" refinery that RA will want y'all to help him out on by allowing more RJs with maybe a small raise. And what if RA just won't negotiate Jenny? It costs Delta nothing to keep your current agreement in place. Your current agreement might just be all RA will give you.

Uhhhhh, turd, more 717s would replace older CR7s and maybe remaining 50 seaters. Looks like management likes them, and the acquisition costs of used 717s are half of new RJs.

Also, as Lumberg just stated, the refinery did lose some money, but it was offset by fuel hedge gains. Here is part of what the CFO said about it during the conference call:

"On the fuel side, our fuel cost of $3.03 per gallon this quarter included $107 million in hedge gains, which help to offset direct losses at the refinery.

For the March quarter operations at the refinery produced a $41 million loss. Production was reduced during the quarter as we shut down one of our crude units for scheduled modifications. These modifications to the crude unit are part of our initiative to increase the production of higher value distillates intellect jet and diesel, which we expect to account for roughly 50% of the production slate at Trainer going forward."




So, they lost $41 million on the refinery, but gained $107 million in fuel hedge gains. Sounds like they are doing fine Turd...... They also put in $99 million into employee profit sharing. That will be really nice, and Q1 is normally the least profitable quarter. This year is looking to be a great one Turdy....



Bye Bye---General Lee