Originally Posted by
all4114all
I feel Delta Airlines is the most vulnerable in this scenario. Their low cash situation coupled with a lot of excess capacity and employees resulting from the recent merger, have not been rightsized as of yet. This Southwest fare sale will only hasten the tough decisions Delta will have to make now that the honeymoon period is over.
"Feel" all you want, but DAL has the largest cash "situation" of any legacy carrier.
Not have been right-sized yet? What are you smoking?
Both NW and DL got out of Ch.11 BK barely more than 2 years ago....You don't get much more "right-sized" than that.
1. Over 80% of the ground stations have been merged, they are saving tens of MILLIONS each year on reduced staffing and real estate from that alone.
2. The new AF/KLM-DL joint venture is going to help DAL make a lot of money.
3. They are removing at minimum 124 rj's in the next 3 years and looking to cut even more.