PeanuckleCRJ
Hurrrrrrrr
- Joined
- Jul 21, 2004
- Posts
- 1,684
Less mainline seats equals less mainline jobs...just sayin'
From Atlanta Business Chronical...
Delta Airlines posted its first profit in years in 2010, and now it looks to reduce the size of its fleet, tackle its debt and fight fuel costs in 2011 through fare hikes and other methods.
That will be the message from Delta President Ed Bastian, who is scheduled to make a presentation to the Raymond James Global Airline Conference on Feb. 3. The presentation was pre-filed with the Securities and Exchange Commission.
Bastian will say the Atlanta-based airline is set to reduce debt by $7 billion over a three-year period. It also plans to battle the spike in fuel costs through revenue, capacity and fleet efficiency. This will include cutting more than 250 small domestic aircraft such as turboprops, 50-seat jets and DC9s; adding 100 newer MD90s and two-class regionals.
Delta’s fleet in December 2007 totaled 1,482 : 693 regional aircraft, 169 international and 620 domestic mainline. As of December 2011, it projects a fleet of 1,318: 600 regional aircraft, 179 international and 539 domestic mainline.
With jet fuel prices jumping some 20 percent to $2.75 a gallon in just the last 100 days, Bastian will say Delta can fight those costs by accelerating the retirement of aircraft; raising domestic fares and tacking on international fuel surcharges; trimming capacity; and cutting capital spending to keep free cash flow at $1.8 billion.
Read more: Delta to accelerate fleet size cuts, raise fares | Atlanta Business Chronicle
Notice the time frame of the comparison. It's what the shareholders want to hear. They are comparing to when both fleets were their largest anytime post bk which was in 2007. We cut capacity dramatically during the economic implosion (avoided furloughing a single pilot, too). The only planes left to cut from that list are the DC-9-50s, and we've got more MD-90's coming than there are 9-50's.
The thing that sucks is that there is no mainline replacement for the -30's and 40's that have already been parked. It's no secret, however ugly, that the E170's and 175s and jumbo CRJs are their replacements.