Notes from the Delta Conference Call...

[Sedona16]

No thread specifically on this yet so I thought I would start one. I am still listening to it now but key points I have so far or at least what I interpret:

1. There is something in play for an Alaska purchase.
2. Anderson spoke of the need for fleet consolidation (I think the 747's will go away within five years).
3. Anderson said pilot productivity in the form of block hours per pilot will be industry leading. I dont like the sound of that.

 

[Andy Neill]

3. Anderson said pilot productivity in the form of block hours per pilot will be industry leading. I dont like the sound of that.

Yeah.....productivity.....the horror!

 

[Sedona16]

Yeah.....productivity.....the horror!

Productivity in general is good for the pilots and the company. Pushing pilots on block hours (ie more and more time away from home and less time with family etc) is not desirable at all unless you are a loner and money is your only objective. All things being equal the sweet spot for pilots is high hourly compensation on yes productive trips but in my book, maximizing days off is of equal or more importance. Each to their own I guess.

 

[Sedona16]

4. Industry capacity down 14% from 2007 to 2009. Delta plans their domestic capacity to be down 20% through 2009.
5. There is currently a huge barrier to entry (finaly!) to new start up LCC's etc due to the credit markets being down and near impossibility to aquire airplanes for a start up. This means the playing field will either stay the same or improve minus the obvious reductions in people that are flying as of late.

 

[Sedona16]

6. Paid an average of $100 a barrel for oil in 2008. Right now it looks like $50 a barrel or less for 2009 equating to 5 billion dollars in saving. This could make for some impressive profits (a good place to start when pilots are looking for healthy pay raised in four years).
7. Bastian says Delta's costs going forward will be 10% to 15% lower than the competition.

 

[Sedona16]

8. Spending 200 million on technology and information systems to "do it right and not skimp".
9. The new agreement that was just struck with American Express is big and was mentioned several times. Worth 15 Billion dollars over the next 7 years and got one Billion in prepayment adding to current liquidity which I believe is around 7 Billion.

 

[Going2Baja]

GREAT post Sedona - Keep the info flowing!! Also please post link to download podcast. Thanks.

Baja.

 

[EMBpilot]

Yes, thanks for the effort, Sedona.

 

[Sedona16]

10. Will go from non existant player NY to Asia to the most dominant.
11. The Narita flight out of SLC will be with an A330-200
12. The route planner Hauntein (not sure how you spell his name) made a point to specifically state when you combine Delta with Alaska you now are the largest carrier in 3 out of the 4 largest gateways on the west coast (Seattle, Portland, LAX....with SFO being the fourth and pretty much still owned by United).

 

[Sedona16]

Linky for the webcast

http://phx.corporate-ir.net/phoenix.zhtml?c=71481&p=irol-eventDetails&EventId=2045519