Originally Posted by
georgetg
depends on how you're looking at it...
DALs share of the JV SKM (Seat Kilometers) is pegged at 50% with AFKLM sharing the remaining 50%.
AF and KLM combined have the same size pie as DAL: 50%
If there's a 10% cut in SKM that pretty much means 5% of that SKM capacity cut comes out of DALs share.
Of course a 10% cut for the JV also means a 10% cut for DAL
Alitalia was added to the JV later, not sure if they diluted the AFKLM share or increased it vs DAL.
The big question is what happens when Virgin Atlantic joins the fold...
call your reps and ask them that.
Cheers
George
Remember that this cut will be EASK's not block hrs. That means that DAL will have to cut more flights to get to the equal EASK's because we fly smaller jets. Eg, one 380 equals about 3 767's.
This capacity cut will come with the normal seasonal pull down, and then changing the gauge on many routes. So lets say that DTW-AMS is on a 744 it may now be on a 767. Or FCO from ATL is on a 330, but will now be on a 767 and only five days a week.
The DAL jets as stated earlier will be redeployed to other markets like Asia and South America. I can easily see them pulling the 765 of LHR and making it do SA runs and the 330's doing Asia Hops. Point is, that it the AE may not reflect what you think it may. Shifting block hrs for two quarters does not give an ROI on displacements. Of course if they have opted for a 2012 summer block pulldown from this year, you may see some displacements but I am not sure they are willing to commit to that yet.