Q & A With Delta Route Planning Genius...

[Sedona16]

Nothing top secret here but interesting none the less.​

Moderator (Jul 9, 2008 1:54:17 PM)
Glen is here with us now, and you may submit your questions for him.​

Smackdown (Jul 9, 2008 1:54:48 PM)
Hi Glen,
One weak area in the combined DL/NW network is the U.S. West Coast ...of
vital importance if we're going to own the Pacific. What action are we
taking to keep Alaska Airlines bonded to Delta (and not to our
competitors)? Thanks!​

Glen Hauenstein (Jul 9, 2008 1:57:16 PM)
We have been working very closely with Alaska to ensure their continued
support of the merged companies. I feel very confident that we will be able
to not only maintain the existing agreements but create an even deeper
relationship with Alaska over time.​

737-800LR IGW (Jul 9, 2008 1:57:42 PM)
Good afternoon Glen, my question is in reference to my hometown, JFK
and the NYC area. Do you foresee the FAA lifting or loosening the
perimeter rule at LGA (as done in DCA) anytime soon, and if so, I would like
to request hourly LGALAX Also, where do we stand on the
redevelopment of JFK, and how comprehensive will it be? Thanks.​

Glen Hauenstein (Jul 9, 2008 2:00:42 PM)
I am also a native New Yorker (born in Brooklyn), so this topic is near and
dear to my heart. Eventually, the perimeter rule will likely be modified, but I
don't think it is anytime soon. Of course if it was lifted, we would be
interested in flying LGA-LAX, but that is likely past my retirement here at
Delta (I am older than I look). As for JFK, we have been working very
closely with the Port Authority on the redevelopment and I believe that we
are getting very close to an economic package that works for both parties.
I am hopeful we will be able to announce something by the end of the year
as that is in our 2008 Flight Plan.​

OrderEmbraers (Jul 9, 2008 2:01:00 PM)
The merger with Northwest will allow us to take a good look at an expanded
fleet of aircraft. Most people are excited about seeing 747s being flown out
of ATL. Because of the seat capacity, do you see us putting those 747s to
work out of ATL right away? If so, what would we do with our 777s out of
ATL?
Glen Hauenstein (Jul 9, 2008 2:02:43 PM)​

One of the big benefits of the Delta / Northwest merger is the ability to
better use the combined fleet. It is our thought that there will be 747-400's
flowing through Atlanta from the first merged schedule. Some of the DL
777's will be used for backfill of 747-400 routes.​

 

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atl_girl (Jul 9, 2008 2:02:55 PM)
How are we doing against Air Tran? Are there any markets where they are
eating our lunch?​

Glen Hauenstein (Jul 9, 2008 2:05:06 PM)
Air Tran is a great competitor, but the high price of fuel is not working to
their benefit right now. Unlike Delta, they play in a relatively small sector of
U.S. domestic fare sensitive customers. Our global diversity and the
relative attractiveness of our product line are positioning Delta very well
against Air Tran during this economic downturn. While we are reducing
our domestic capacity offering this fall approximately 13%, we are actually
up in our Air Tran competitive markets. As you know, Air Tran asked its
employees to accept a 5% wage cut last week, and I am very glad that we
are not having to do that.​

NRK (Jul 9, 2008 2:06:09 PM)
With Colombia and Brazil revamping their air treaties and adding more
frequencies is Delta going to take advantage of those extra frequencies?​

Glen Hauenstein (Jul 9, 2008 2:07:19 PM)
The Brazilian bilateral allows for non-Sao Paulo, Non-Rio frequency
additions and we will be applying for some Atlanta - Secondary Brazil that
this new treaty permits.​

CascoBay (Jul 9, 2008 2:07:35 PM)
Given the current fuel costs, are the current EAS supplements no longer
sufficient inducement to serve the small communities? And if so, how
much further reduction of DCI service are we to see this fall?​

Glen Hauenstein (Jul 9, 2008 2:09:22 PM)
Rising fuel prices have particularly impacted the economics of our regional
fleet, and we are working with our partners in the regional carriers to
rationalize our capacity offering. EAS contracts will be modified as they
come up for renewal to include the current economics, and it will be the
choice of the government to decide if the service is worth the costs.​

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JMD (Jul 9, 2008 2:09:33 PM)
Ed mentioned last chat that you were quite excited about the opportunity to
optimize Northwest's network. What changes do you foresee us making to
their network upon completion of the merger?​

Glen Hauenstein (Jul 9, 2008 2:11:59 PM)
There are many areas which will change, and it is not only the optimization
of the northwest network, but really the ability to flow a variety of aircraft
types across a much broader network. For example, in general Northwest
has a much larger average aircraft size for international and a much smaller
aircraft size domestically. Delta has the largest domestic aircraft size of any
network carrier, but no large narrow body. These are the areas which will
provide significant value in the short run.​

OrderEmbraers (Jul 9, 2008 2:12:13 PM)
How many of our 17 757ERs are we using for international service right​

 

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now? How many does Northwest use? If we are not using all of our
757ERs internationally now, when do you estimate we will?​

Glen Hauenstein (Jul 9, 2008 2:14:31 PM)
We are currently using all of them, but will reduce international flying
during the winter season. Next summer we will use all 17 again (of course
there are some domestic support sectors we will always fly in order to
protect the international operation. Northwest has 8 internationally
configured aircraft with World Business Class and they will also be used
for international service in the combined airline.​

JW (Jul 9, 2008 2:14:41 PM)
What is Delta planning to do with all the NW DC-9’s?​

Glen Hauenstein (Jul 9, 2008 2:17:37 PM)
The DC9 is a very interesting airplane in that its size fills a large void in the
DL network. We currently go from 75 seat regional jet to a 141 seat MD88
with nothing in-between. The number of DC9's we can effectively use will
depend on where fuel levels out since they are very inexpensive airplanes
to own, but expensive to fly since they are very heavy with old generation
engines. Northwest has already announced a significant reduction in their
DC9 fleet, and we will make adjustments to that plan as market conditions
change one way or the other on fuel and demand.​

sharpie (Jul 9, 2008 2:17:53 PM)
When do you anticipate the first DL/NW merged schedule to appear?​

Glen Hauenstein (Jul 9, 2008 2:18:13 PM)
Approximately 3 - 4 months from closing date.​

International Guy (Jul 9, 2008 2:18:36 PM)
What about Vietnam? I think Vietnam is very hot right now. If we would
have the Airplane to fly ATL Hochmin City, would this be an option?​

Glen Hauenstein (Jul 9, 2008 2:18:55 PM)
Vietnam is hot! We are looking at it.​

lola (Jul 9, 2008 2:19:06 PM)
What additional routes (beyond India) will the 777 with the Lie-Flat beds be
added, and when?​

Glen Hauenstein (Jul 9, 2008 2:21:18 PM)
We currently have firm orders for 8 total 777LR airplanes. They will all
come with lie flat beds, and of course the last 7 764's which are scheduled
to be converted by summer of 09 will come with lie flat seats. Northwest
already has angled lie flats on its entire long haul fleet, and we are
currently working on how to standardize the product offerings of the
combined carriers over the next several years.​

deltaboys (Jul 9, 2008 2:21:42 PM)
Will some of the 747's be placed on African routes with high load factors,
could we also use the space to accept excess baggage that passengers are
willing to pay for?​

Glen Hauenstein (Jul 9, 2008 2:24:02 PM)
We will be looking to upgrade high demand load factor markets across the
network not only using the 747's but also the A330-300's. In the case of
Africa we are looking to fly nonstop into JNB with a 777LR which would
make us the only nonstop from a US hub as a priority to upgrading
equipment.​

d80 (Jul 9, 2008 2:24:19 PM)
Hi Glen. I heard today that US is discontinuing use of IFE in coach cabin as
a fuel saving technique-- Did you hear about that, and do we have any sort
of plan to cut cost by eliminating entertainment?​

Glen Hauenstein (Jul 9, 2008 2:26:19 PM)
I would not follow US Air on any product issues. We believe the product
offerings we have are superior and we get paid for them. That is the Delta
difference and I don't see us taking away things our customers value as
long as we are winning in the marketplace. We continually outperform
USAir on revenues, so for now, we are continuing to try to offer what out
customers want and expect. That includes not charging for water ($2 on
US), and allowing the first bag for free.​

revman (Jul 9, 2008 2:26:29 PM)
Any idea what will happen in LAX post merger with terminals 2 and 5?​

Glen Hauenstein (Jul 9, 2008 2:26:32 PM)
Yes[/​

dorothy zbornak (Jul 9, 2008 2:28:04 PM)

A certain Texas based competitor has proven successful in the NY-GVA
market over the past few years, even upgrading its daily equipment from a
762 to a 764. Has DL considered flying into GVA as well to compete for the
Swiss passenger?​

Glen Hauenstein (Jul 9, 2008 2:28:47 PM)
With fuel at $4.00 per barrel we are not currently planning any
unannounced markets for winter of 08/09. As we get more visibility on
where the economy bottoms and fuel stabilizes, we will look to entering
more new international markets.​

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Wisseh (Jul 9, 2008 2:29:08 PM)
With Vinay Dube now heading the Information Technology Services
Division (DT), who is going to replace him in your team?​

Glen Hauenstein (Jul 9, 2008 2:29:40 PM)
Ed, is that you asking me? We are working on all of the leadership
transition issues right now.​

md (Jul 9, 2008 2:30:39 PM)
Hi--I have a question about West Coast hub/Asia flying. Are we planning to
expand our presence at LAX and base our Asia flying there? Or, use NW's
strong presence in SEA? Or are we not planning to increase our West
Coast presence, and keep operations out of NRT/ATL etc?​

Glen Hauenstein (Jul 9, 2008 2:32:28 PM)
Combining DL and NW gives us a lot of strength in markets like LAX.
Adding DTW,MSP,IND, and NRT to our portfolio gives us a great product
offering and in conjunction with our alliance partner Alaska a very strong
product offering in the LAX area, as well as PDX and SEA. SFO is a UA
stronghold and will continue to be even after the merger.​

revman (Jul 9, 2008 2:32:41 PM)
What is the timetable for the new coach seat rollout. Will they also be used
in domestic aircraft?​

Glen Hauenstein (Jul 9, 2008 2:34:03 PM)
The seat is not yet certified but we have secured premier delivery positions
once the seat obtains FAA certification. Because of the uniqueness of this
seat, it has no benefits for narrowbody equipment.​

Don (Jul 9, 2008 2:34:22 PM)
We postponed service to Nairobi due to the political situation back in
January 2007. Are things now becoming stable enough that we are
reviewing a new start up date? Also, what was the reason JFK-Lagos was
put on hold and is there a chance we'll see that before the end of the year?​

Glen Hauenstein (Jul 9, 2008 2:35:39 PM)
JFK-Lagos was put on hold because ATL had not yet filled up. Now that we
are running full in Atlanta, we are reviewing the opportunity to start JFK in
2009. On NBO, we are currently planning on entering NBO during the peak
summer "09 season, subject to economic and fuel conditions.​

Wrangler (Jul 9, 2008 2:35:44 PM)
Glen what destinations would you love to have - that we don't have yet?​

Glen Hauenstein (Jul 9, 2008 2:36:24 PM)
The most requested market (and a personal favorite of mine) is Sydney.
With the NW merger this may be possible in late 09 or early 10.​

SimPilot (Jul 9, 2008 2:36:45 PM)
Can a combined airline support all the current hubs in close proximity, i.e.
Minneapolis, Detroit, Cincinnati, Memphis, and Atlanta? Do the routes have
to be consolidated to 2 or 3 of those cities to remain viable?​

Glen Hauenstein (Jul 9, 2008 2:37:57 PM)
The great news is that most of the US population lives in the areas
surrounding these hubs. There is a role for each of them to play in a
combined network, and we plan on having them compliment as opposed to
compete with each other as much as possible.​

DeltaBob (Jul 9, 2008 2:38:00 PM)
What cities in the middle east are we looking at? Beirut, Dubai?​

Glen Hauenstein (Jul 9, 2008 2:40:00 PM)
We are starting Kuwait in November, and are continuing to look at other
opportunities. Amman and Cairo are off to a great start!​

casey (Jul 9, 2008 2:40:18 PM)
Is it more cost effective to have a very long nonstop than having a fuel
stop? Recently heard reports that some airlines are re-thinking long
nonstops because of having to sort of 'tanker' a large fuel load.​

Glen Hauenstein (Jul 9, 2008 2:42:00 PM)
It is always more economic to avoid the stop. The Airbus ultra long haul
variant is not a very economic airplane period and I think that has caused a
lot of "buzz" in the press about the viability of ultra long haul flying, but
there are specific market conditions (nonstop to India) and aircraft (A340)
that are under duress with this fuel price.​

 

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JMD (Jul 9, 2008 2:42:11 PM)
Glen, out of the combined DL/NW fleet, which is your favorite aircraft and
why?​

Glen Hauenstein (Jul 9, 2008 2:42:26 PM)
747-400 because it is going to look great in the Delta colors!​

OrderEmbraers (Jul 9, 2008 2:42:47 PM)
How are we ever going to fit Delta and NWA’s combined network into the
route maps section in the back of Sky Magazine? It might get messy!​

Glen Hauenstein (Jul 9, 2008 2:43:12 PM)
Funny you should mention that, I think we are going to need pull-out pages
for our world map. Not a bad problem to have.
737
What are some of the new destinations for the 737 700?​

Glen Hauenstein (Jul 9, 2008 2:44:11 PM)
We are using them to replace 757's on markets like CVG-SNA where the 757
is too large, or in markets like ATL-UIO where we cannot fly nonstop in
both directions. This is a specialty airplane which will primarily be
dedicated to performance airports.​

International Guy (Jul 9, 2008 2:44:26 PM)
Have we looked at Bali Indonesia at all or at Jakarta?​

Glen Hauenstein (Jul 9, 2008 2:45:58 PM)
If you have not been to Bali, I highly recommend it. It is one of the most
beautiful places I have ever been. Certainly the NW presence in Asia
increases the probability that we will eventually fly to markets like
Denpasar, but we have no current plans.​

Win in LAX (Jul 9, 2008 2:46:18 PM)
Are we winning in Mexico and Central America via LAX? With the Express
Jet announcement, are we planning on finding someone else to provide
service from the various destinations that feed LAX?​

Glen Hauenstein (Jul 9, 2008 2:47:15 PM)
We will be working with other partners to increase our ability to provide
North / South capacity from LAX.​

DTRocks! (Jul 9, 2008 2:47:25 PM)
American, Jet Blue, Virgin are testing in-flight internet access, email, and
texting. Do we have any plans to follow?​

Glen Hauenstein (Jul 9, 2008 2:47:27 PM)
Yes​

Smo (Jul 9, 2008 2:47:44 PM)
Did you use Wayne Aaron's picture?​

Glen Hauenstein (Jul 9, 2008 2:47:54 PM)
I think I have more hair then him, but it is close!
Chris
In Iceland on the radar?​

Glen Hauenstein (Jul 9, 2008 2:48:39 PM)
Yes interestingly enough Minneapolis is one of the largest US markets to
Iceland, and narrow body aircraft can fly nonstop since it is only a 4.5 hour
trip from NYC.​

dank (Jul 9, 2008 2:48:48 PM)
Since Continental is leaving SkyTeam, do we have any plans to go into
Hamburg, Germany?​

Glen Hauenstein (Jul 9, 2008 2:49:02 PM)
Arrividerci, CO, but NO.​

International Guy (Jul 9, 2008 2:49:12 PM)
Tahiti? Could we do it out of the big oold ATL?​

Glen Hauenstein (Jul 9, 2008 2:49:35 PM)
Is that your vacation this year? What is wrong with stopping in LAX and
taking our AF trip?​

Vladimir (Jul 9, 2008 2:49:51 PM)
How is the joint venture with AF going? Can you give us some examples of
where we are benefiting from it?​

Glen Hauenstein (Jul 9, 2008 2:52:06 PM)
As you probably know DL had no way of getting into LHR without obtaining
slots from our partners in AF. Also, we are now carrying the AF code on all
trans-Atlantic flights that we have obtained government permission for,
and they have the largest loyalty program in Europe. That is fueling the
huge shift in point of sale Europe which is driving our international profits.
As you probably know, with the low dollar, it is much more profitable for us
to sell a ticket in Euros these days than in dollars.​

TomC (Jul 9, 2008 2:52:16 PM)
Castro will have to die eventually, and with his demise, Havana could
become a hot market. Is it true that we have some old landing rights from
PanAm?​

Glen Hauenstein (Jul 9, 2008 2:53:22 PM)
I think once Cuba opens there will either be open skies or some transition
plan. The real winner will be AA since a large portion of the Cuban
immigrants live in that metro area, but ATL will be a close second in
benefiting from the ability to get into Cuba.​

 

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AquanutC (Jul 9, 2008 2:53:30 PM)
Recently heard that Richard doesn't like the 787 - that it's late in delivery
and will be over weight. What are your views on that?​

Glen Hauenstein (Jul 9, 2008 2:54:36 PM)
It is late in delivery, and overweight which means higher fuel burn and
lower range capabilities. We will see if Boeing is able to figure these issues
out to deliver the airplane they have promised.​

International Guy (Jul 9, 2008 2:54:34 PM)
Moderator, get him to answer Zagreb - NYC for me....please​

Glen Hauenstein (Jul 9, 2008 2:56:10 PM)
Zagreb is also a hot market, but it is smaller than Bucharest which we were
not able to make work on a year 'round basis. This market (due to distance)
requires a 767, and probably a few more years of double digit growth
before we can fly there.​

Don,
Any plans for the Philippines?​

Glen Hauenstein
With the NW merger, we will fly into MNL from NRT.​

Glen Hauenstein
Thank you all for participating. As you know, the economy is soft, and fuel
is high, but Delta is in a great position to exploit the current economic
conditions to its advantage. Keep delivering that industry leading service
and we will come out of this in a much better position than we entered.
Thanks to all for the hard work you do everyday. See you soon.​

 

[p3flteng]

Thanks for posting,
very informative.

 

[BID]

"arrividerci CO"

Ha, guess he doesn't care too much about CAL leaving SkyTeam. At least that is the vibe I get. Remember he once worked at CAL.

Interesting, thanks for posting it.

 

[pilotdiscretion]

Is it just me or do the folks in Atlanta seem eager to get their hands on the 747s? Taking the 747s off the Asia routes is like taking all of the cabs out of Manhattan. Just doesn't feel right.

 

[Fly4hire]

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