NWA answers SWA at MSP -- adds Chicago flights

[General Lee]

Does Northwest really want to get involved in this? It's worked in the past, but times are changing. Northwest will now be part of a huge network spanning the globe with Delta. They are taking on a competitor that has a huge domestic presence. Global recession is now looking imminent in the year going forward. Delta/Northwest's Int'l loads are going to be anemic IMHO. That's lots of heavy jets crossing big ponds with low load factors. Not a recipe for making money. On the other hand you have Southwest, making money with/without fuel hedging, across a huge domestic route network at discount fares. Who do you think could outlast who??? Northwest, under new Delta management may start to rethink the wisdom of protecting turf, in favor of survival...the deeper of the two issues.

Huh???? We fly around with low numbers, eh? I think you need to look at your own domestic loads. From what I have been hearing, they are scary on some routes, and your airline is quickly cutting frequencies. Your humble opinion is wrong. Gary Kelly isn't having fun these days. His only option is to fly domestically during a recession or even a depression. Fuel is coming down, giving away the fuel hedging advantage.


Bye Bye--General Lee

 

[General Lee]

Does Northwest really want to get involved in this? It's worked in the past, but times are changing. Northwest will now be part of a huge network spanning the globe with Delta. They are taking on a competitor that has a huge domestic presence. Global recession is now looking imminent in the year going forward. Delta/Northwest's Int'l loads are going to be anemic IMHO. That's lots of heavy jets crossing big ponds with low load factors. Not a recipe for making money. On the other hand you have Southwest, making money with/without fuel hedging, across a huge domestic route network at discount fares. Who do you think could outlast who??? Northwest, under new Delta management may start to rethink the wisdom of protecting turf, in favor of survival...the deeper of the two issues.

Another thing you fail to bring up is cutting back on capacity. We have the ability to do that at Delta, with RJs. We are cutting 100 RJs this year, and that can help us in various markets. You don't have that component, and instead have to postpone expansion or delivery dates for aircraft. We also can move different sized planes around for better revenue enhancement. If a 764 is too big for a certain route, we can move a smaller 767, or a 757ER, etc. I guess you can do that with the 735 vs a 737-700, but that isn't a large stretch. It's called options.


Bye Bye--General Lee

 

[Cobra17]

Another thing you fail to bring up is cutting back on capacity. We have the ability to do that at Delta, with RJs. We are cutting 100 RJs this year, and that can help us in various markets. You don't have that component, and instead have to postpone expansion or delivery dates for aircraft. We also can move different sized planes around for better revenue enhancement. If a 764 is too big for a certain route, we can move a smaller 767, or a 757ER, etc. I guess you can do that with the 735 vs a 737-700, but that isn't a large stretch. It's called options.


Bye Bye--General Lee

Recessions have never been good to pilots at legacy carriers. Although I'm sure "this time it's different."

It's going to suck...for everyone.

 

[NuGuy]

Only problem is, NWA isn't going to be around in their present form when we start flights there in March. The NEW DELTA will be who we are competing with, and we compete with them quite well already in most markets we go head to head on.

Bad analysis. The "NEW DELTA" is actually "OLD NWA" in disguise. Check out the "new" managament roster.

RA was one of the architects of "Fortress Mid-west".

Nu

 

[ASADFW7]

There are SWA customers that want to go to MSP, in some ways NWA is simply giving up revenues from their customer base.

 

[Saluki Dawg]

Bad analysis. The "NEW DELTA" is actually "OLD NWA" in disguise. Check out the "new" managament roster.

RA was one of the architects of "Fortress Mid-west".

Nu

It's not a bad analysis. I know exactly who is running the show at the NEW DELTA, I don't care if it's John Dasburg, Richard Anderson, or Doug Steenland at the helm. If you think that the old NWA or the NEW DELTA is going to run us out of this market, think again.

 

[CiFIknow]

It's not a bad analysis. I know exactly who is running the show at the NEW DELTA, I don't care if it's John Dasburg, Richard Anderson, or Doug Steenland at the helm. If you think that the old NWA or the NEW DELTA is going to run us out of this market, think again.

We are Borg...Assimilate. You love to stand in alpha-numeric order. Yes, yes, yes, you do.

 

[roughneck]

Nobody is going to run anyone out of town. With low fares and a high frequency of flights, there will be enough passengers for us both to fill our planes. The difference will be that we make money doing it.

The truth is, Gary Kelly could care less if NWA fills its planes, as long as we do. We go into a market with our eye on the competetor, but care much more about what we are doing than what is going on in the other terminal.

SWA will do fine at MSP and eventually ATL.

 

[Schwanker]

Seniority integration hearings with the 3 arbitrators are going on now, and have been interesting to read (the transcripts). The one good thing that we did that USAir did NOT do was get a joint contract first. That will help soften the blow to whichever side or if both sides get "the shaft."


Bye Bye--General Lee

Vaseline should also help with the shaft issue as everyone will take at least a little shaft!
Schwanker