New Delta Capacity Cuts

[crj567]

This is a big cut. They decided that there was just not enough of a load to warrant keeping the lift for the Fall Quarter. After picking through the power point and the 8K it might be more of a frequency and gauge reduction. Now they cannot do a ton of this in overseas markets, so I see some sort of staffing shift. The benefit is that the CVG 767 base is now an ER base. They can transition then to all domestic flying if need be. That would save a lot of the ER catagory from displacement. That would equate to a bigger cut on the 767 domestic catagory. This could be done in ATL, SLC or LAX. Just a guess.
The bennifits are that there is a good amount of metal showing up in the next 12-24 months. Much of this will pick up the overstaffing.
I would be very surprised if we got though this without any furloughs. I would not be surprised to see 200-300 furloughs. That said it is only a guess. We still have the CPS flow in place. This equates to a lot of excess money to be spent. It is the best furlough protection there is. Post SOC we were looking to be slightly understaffed to adequately staffed. The managers will need to run the metric on this to determine if they need to make the cuts. This is a huge pull down, but furloughing may not give them justifiable gains to do so.

I agree with your points.... It really gives me no pleasure to point out how horrible this situation is, but the point I am trying to make is that your mgmt. is really screwing the place up.

DAL went thru the whole INTL mess in the early 90s. They almost went BK back then. Seems like the current guys would have figured out that INTL is a huge double-edged sword. Very expensive routes which must be supported-full or empty.

It was foolish of them to think that only the domestic market would tank. The world's economies are all so inter-dependent these days, there was no logical reason to expect that domestic would tank while INTL travel into/out of the U.S. would boom. This strategy was plain foolish.

Now, if they succeed in putting AirTran out of business (which has been their stated goal,) they will have smacked a hornet's nest by getting SWA (a much, much stronger competitor-with a huge route structure, compared to AirTran's) right into their home hub.

I hate to see anyone furlough-it is bad for the whole industry, but DAL investors and stakeholders need to wake up and recognize that they have a very poor mgmt. team making some really stupid moves.

-Steenland and Anderson will destroy the company if they are left in charge for a couple more years-investors and employees should be doing everything they possibly can to get rid of these guys!

 

[WSurf]

Aviation, gotta love it!!!!

Great Job, Aweful Career.

 

[General Lee]

I agree with your points.... It really gives me no pleasure to point out how horrible this situation is, but the point I am trying to make is that your mgmt. is really screwing the place up.

DAL went thru the whole INTL mess in the early 90s. They almost went BK back then. Seems like the current guys would have figured out that INTL is a huge double-edged sword. Very expensive routes which must be supported-full or empty.

It was foolish of them to think that only the domestic market would tank. The world's economies are all so inter-dependent these days, there was no logical reason to expect that domestic would tank while INTL travel into/out of the U.S. would boom. This strategy was plain foolish.

Now, if they succeed in putting AirTran out of business (which has been their stated goal,) they will have smacked a hornet's nest by getting SWA (a much, much stronger competitor-with a huge route structure, compared to AirTran's) right into their home hub.

I hate to see anyone furlough-it is bad for the whole industry, but DAL investors and stakeholders need to wake up and recognize that they have a very poor mgmt. team making some really stupid moves.

-Steenland and Anderson will destroy the company if they are left in charge for a couple more years-investors and employees should be doing everything they possibly can to get rid of these guys!

Again the Fry Cook doesn't understand. A lot of our latest "INTL Expansion" was due to the merger. We gained a lot compared to being the old DL. We haven't added hardly any new routes in Asia since the merger, but the economics of those routes have changed thanks to the failing auto industry. Detroit has been the hardest hit, and a lot of Japan has been hit too. Did Delta see an Auto Meltdown coming? Did you?

We have added a lot of new routes to Europe though, and have already axed a lot of them before they have even started (RDU-CDG, etc). Those can be down guaged to smaller planes (767s to 757ERs) because the distances are shorter. Going DTW to Nagoya (Toyota's Japan Headquarters) can't be flown by a 767 nonstop, although a 744 could be down guaged to a 777 I guess.

Even though a cutback like this is major, if you have the flexibility of different types of fleets, it doesn't have to be too bad. There are some routes though that won't make it through the process I am sure. And those execs you like to slam still think we will have an overall 09 profit thanks to lower gas.


The Fry cooker is still beeping! Do something! Pull up, Pull up!


Bye Bye--General Lee

 

[johnsonrod]

Instead of the bickering between CRJ567 and GL, perhaps we can think about how this will impact the lives of both low seniority DAL/NWA people as well as their counterparts at Compass. Not good news at all even though it wasn't a huge surprise given the economy.

Nobody is safe in this economy. UAL may vanish. Midwest is basically gone. Layoffs will be rampant in all industries. Let's try to lay off the childish behavior when others are getting this difficult news...

 

[General Lee]

Instead of the bickering between CRJ567 and GL, perhaps we can think about how this will impact the lives of both low seniority DAL/NWA people as well as their counterparts at Compass. Not good news at all even though it wasn't a huge surprise given the economy.

Nobody is safe in this economy. UAL may vanish. Midwest is basically gone. Layoffs will be rampant in all industries. Let's try to lay off the childish behavior when others are getting this difficult news...

Thanks Dad....


Bye Bye--General Lee

 

[Tanker Clown]

The Genital is trying to convince you that the Titanic just has a little leak and it's good for the boat to take on a little salt water. This guy is riot.

 

[FBN0223]

-Steenland and Anderson will destroy the company if they are left in charge for a couple more years-investors and employees should be doing everything they possibly can to get rid of these guys!

Which company is Steenland in charge?

 

[nwaredtail]

]Instead of the bickering between CRJ567 and GL, perhaps we can think about how this will impact the lives of both low seniority DAL/NWA people as well as their counterparts at Compass

.

Compass = sorry, not going to be too many NWA guys worrying about them. They were created as a safety net (sure they were) for the NWA pilots, now DAL as well.

NWA = Short staffed for the transition to new trip rigs, even with ANC base pull down. Also still getting some retirements. DAL will not be pulling down 747-400 flying (big $$$$) or A330 flying with the Int'l reduction. Maybe a bit of 757 to be replaced with A320/DC-9

DAL - Well, overstaffed and flying many older 767's. I predict the majority of the pulldown will affect the DAL side since NWA is such a "SMALL INT'L PRESENCE". (good to be small sometimes) The compass flowdown could be a benefit, but a very small one at that (go to work for 62/hour). Hopefully no furloughs.

 

[ACL65PILOT]

Add to that, they they will want to get everything correct over here after SOC before furloughing people, unless they know that they could take 300 or so furlough them, and know that they will not need them after SOC. That my friends is the big variable here. Lots of stuff is going to happen post SOC.

 

[General Lee]

.

Compass = sorry, not going to be too many NWA guys worrying about them. They were created as a safety net (sure they were) for the NWA pilots, now DAL as well.

NWA = Short staffed for the transition to new trip rigs, even with ANC base pull down. Also still getting some retirements. DAL will not be pulling down 747-400 flying (big $$$$) or A330 flying with the Int'l reduction. Maybe a bit of 757 to be replaced with A320/DC-9

DAL - Well, overstaffed and flying many older 767's. I predict the majority of the pulldown will affect the DAL side since NWA is such a "SMALL INT'L PRESENCE". (good to be small sometimes) The compass flowdown could be a benefit, but a very small one at that (go to work for 62/hour). Hopefully no furloughs.

How are the 744 loads from DTW to KIK and NGO doing? Not great. 2 flights a day to NRT from DTW? I bet that could be trimmed to one. I think a lot of the Asia stuff will be pulled down, and the Atlantic stuff from DTW and MSP too to AMS. Do we need 4 daily flights to AMS from DTW? DTW itself isn't doing well as a city either. We can trade 767ERs for 757ERs on a lot of the JFK to Europe stuff becuase they can still make it range wise. Those 767ERs will then do more Latin America and South America stuff which was mentioned in the company memo. We'll see, but everyone on here can guess where and what will be cut. Our "older" 767s may be the right fit on a lot of those A333 routes.


Bye Bye--General Lee

 

[Mamma]

GL,
Why are you not in charge over at Delta! Wow! Maybe because you spend too much time over here.

How are the 744 loads from DTW to KIK and NGO doing? Not great. 2 flights a day to NRT from DTW? I bet that could be trimmed to one. I think a lot of the Asia stuff will be pulled down, and the Atlantic stuff from DTW and MSP too to AMS. Do we need 4 daily flights to AMS from DTW? DTW itself isn't doing well as a city either. We can trade 767ERs for 757ERs on a lot of the JFK to Europe stuff becuase they can still make it range wise. Those 767ERs will then do more Latin America and South America stuff which was mentioned in the company memo. We'll see, but everyone on here can guess where and what will be cut. Our "older" 767s may be the right fit on a lot of those A333 routes.


Bye Bye--General Lee

 

[Griswold]

Add to that, they they will want to get everything correct over here after SOC before furloughing people, unless they know that they could take 300 or so furlough them, and know that they will not need them after SOC. That my friends is the big variable here. Lots of stuff is going to happen post SOC.

Lots of good stuff or bad stuff post SOC?

 

[flyboyike]

DTW itself isn't doing well as a city either.

Has it ever?

 

[Redmeat]

Has it ever?

Go back to the regional board. You're less likely to embarrass yourself there.

 

[Linedriver]

I agree with your points.... It really gives me no pleasure to point out how horrible this situation is, but the point I am trying to make is that your mgmt. is really screwing the place up.

Oh, come on! At least be honest - everyone can tell how this news excites you. I'm sure you would feel differently if you were junior at Delta.