Originally Posted by georgetg

Johnso, of course it's all cyclical. That's the darn problem.
Richard and Ed are on record ad-nauseum trying to break the cycle.

Capacity discipline is a tool to attempt to bring unit revenue up.
A downside is a rise in unit cost, because there is less production.
If other airlines also follow suit, that unit cost rise isn't a problem.

When other airlines don't follow suit, Delta sees unit cost rise vs its peers.

What troubles me is we are seeing just that with AS. They are growing twice as fast as we are shrinking.
Their unit cost is going down and their stock valuation has shown no signs of investor dissatisfaction.

When openers are exchanged watch for the slide showing how Delta's unit cost has gone up YOY and how we must bring production cost under control. That's when its important to remember this metric:

Pilot cost of production:
ASM per each Dollar spent on pilot compensation
2010
DAL 93
AS 83
HI 112
(Source: US DOT Form 41, Schedules T2 & P52.)

Lots of training = less productivity/pilot $
Widebodies = more productivity/pilot $

There is about a 30% improvement possible when we stop playing musical chairs
That's where the company can significantly improve on cost.
Just 2 years ago DAL was getting 121 ASMs/Dollar of pilot compensation.

BTW, Delta pilots, even at 93 ASMs/$, are still 30% lower in cost than their peers at WN who stand at 70 ASMs/$ pilot compensation. Fact is, WN gets less production out of their pilot dollars than Delta.

Sure, fill out the survey, talk to your reps.
Being informed is even more important.

Cheers
George