More Delta MD90s

[Speedtape]

This merger should in theory allow larger guage aircraft on many routes. If you had DL pulling pax from IND through ATL and NW pulling pax from IND through DTW you should be able combine those passengers on a larger aircraft to one of the hubs. A much larger enitity should be able to upguage many of the markets served due to the higher number of passengers served. I see the opportunity to convert formerly outsourced feed routes into mainline routes all across the country as quickly as DL can get get out of it's current contracts.

You bring up excellent points. If you followed it in the Congressional Hearings, you will remember that RA argued, and in the context of the statement it was true, that NWA and Delta did not compete head to head, except for a few exceptions, on very many city pairs. Therefore, the proposed merger should not be disapproved.

Of course what he did not mention, is that there was a LOT of competition for Point of Origin to Final Destination traffic, which, if considered, might have shed a different light on the argument. What is meant by this? Most of the traffic is connecting traffic, not non stop! To illustrate, an example would be MSY to LGA. NWA and Delta do not compete head to head on these city pairs--meaning non-stop in RA's argument. However, when one looks at it closer, NWA and Delta do compete on these city pairs--through different connecting hubs. So, a customer could have a choice, pre-merger, either MSY-MEM-LGA or MSY-ATL-LGA. At some point, Post-Merger, things could change. Now, one Company versus 2 is has some unique advantages in controlling that customer(s) travel in the illustration, while making the new Company more efficient.

Should the economy continue to decline, and advanced bookings decline, then the marketing and route folks, could reduce capacity further, but continue to maintain high load factors, by routing that MSY passenger through ATL, or MEM, as the case may be, while impacting the other hub. The end result would be retaining the MSY passenger, but should other factors continue decline, reduce service/capacity on one of the hub routings. This could also cause changing guage to accomodate the loads on the surviving routing. It becomes a Logistic issue. There are other factors. However, my guess is that this is an example of some of the things that were mentioned as the advantage in merger and also, how they mentioned that by streamlining the Post Merger Company, they could gain new efficiencies in a recession with plenty of room to move.

It will be interesting to see how they streamline the new company. In addition, how new opportunities from failed competitors will be captured. Some of these issues are what provide great optimism in the future of this merged company. Along the way, there could be some short term pain for employees through the streamling, but the long term benefits of a strong, competive, and surviving company will provide a much better career--and maybe better job security(knock on wood!)

 

[deadstick]

Little more info would be nice. Like a linky to an actual qoute.

07/25/2009 Delta MD-90-30 N593BC 53552/LN 2163 Bought From BCC Equipment Leasing 6/05/09

 

[BILL LUMBERG]

First, The MD-90's use the same motors as the JB A320's (IAE V2500). So the gas hog moniker doesn't fit...The wing is what slows it down on the efficiency side, but not enough to notice considering the lease/purchase payments on a MD-90 is probably 1/5 th of what an Airbus would run......efficiency in overall cash outage for operation is what we should measure by.

Second, Nobody believe the deliveries until you are on the jet pushing back and the beacon is on with pax onboard.....always remember the first 777's we got!!!

Third, OK so Mesa wins the Freedom injunction......Delta should immediately set up a new DCI operation in Honolulu using Freedom at rock bottm fares and force them to compete against themselves at GO! airlines......Let's see how long Ornstein wants to keep his precious contract alive with Mother D!!!

 

[Sinca3]

Third, OK so Mesa wins the Freedom injunction......Delta should immediately set up a new DCI operation in Honolulu using Freedom at rock bottm fares and force them to compete against themselves at GO! airlines......Let's see how long Ornstein wants to keep his precious contract alive with Mother D!!!

That would be awesome!
...if it worked!