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Someone was asking about a quote that alluded to the PWA being cost neutral. One of the quotes is from the 2012 Q3 CEO Discussion and goes as follows:
Quote 1 25JUL13 Richard Anderson [opening statement] With the benefits achieved with our new pilot agreement, we have the flexibility we need to both accelerate our fleet restructuring and improve pilot productivity as we vary our capacity by season. The agreement enables us to up-gauge our domestic fleet by acquiring 717s and two-class regional jets which will replace more than 200 50-seat aircraft over the next few years. Paul Jacobson [opening statement] The retirement of the 50-seat regional jets is one of the single biggest opportunity costs we have. The up-gauging strategy will improve our efficiency by lowering our unit costs while simultaneously improving our product while maintaining our capacity discipline. Secondly, we are aligning our head count with our reduced capacity and recently had over 2,000 employees elect to participate in our voluntary early retirement program. These employees will retire by the end of the year with limited backfill, which will continue to result in improved productivity. Ed Bastian [answering a question from UBS on CASM ex-fuel] And I’d say the other thing, Kevin, there that we did not necessarily forecast or see coming as clearly is the opportunity we had with our pilots to do the contract early. It’s going to pay significant dividends over time as it will have a big cost return to it, not just in terms of improved productivity, but the ability to fairly substantially restructure the domestic fleet. But that those costs came in right away so that’s in our September guidance as well, and that was another big piece. 24OCT13 Operator We’ll take our next question from Mary Jane Credeur with Bloomberg News. Mary Jane Credeur - Bloomberg News Hi, folks. Can you talk a little bit about how you’re going to afford that new pilot contract? Richard Anderson Hi, Mary Jane, this is Richard. Sorry for not saying hello. When you look at the overall value that we’re going to create as a result of unlocking the ability to refleet plus the productivity that has been built into that agreement, we’re confident that it will be an important part of our ability to get to unit cost over the next couple of years to improve our margins and our return on invested capital. Glen Hauenstein And, Mary Jane, this is Ed. One additional thing, we also reduced the profit sharing going forward and that’s an important part of helping to fund that cost growth. Mary Jane Credeur - Bloomberg News Sure. Okay. Thank you. Operator We’ll take our next question from... |
Quoting Carl
"This letter is to advise you of the unanimous opinion of the Delta MEC regarding your signing of the Pinnacle agreement that completely subverted the rightful role of the Delta MEC. We are requesting a letter of apology from you on behalf of ALPA national to the pilots of Delta Air Lines and their elected representatives. This letter must also include a pledge to never again act on behalf of Delta pilots without the direct participation of the Delta MEC. We will be expecting this letter no later than 30 days from today. Should this letter not be forthcoming within the timeframe stated above, the Delta MEC is unanimously resolved to no longer be affiliated with the Airline Pilot's Association. It is imperative for you to understand the importance the Delta MEC places on all parties within ALPA operating in strict adherence to the policies that make our union a truly bottom up organization. Your actions in the Pinnacle matter were in direct contravention of those policies in our opinion and can never be allowed again. DALPA either controls the interests of the pilots they represent, or they do not. We require a clear answer to that question. Although your actions have produced great mistrust among many Delta pilots, we still believe there is a solution if all can be confident of this never happening again. We look forward to your letter inclusive of the items we must have in order to continue our relationship. Regards..." Thank you Carl! I wonder how ALPA would feel if we had a direct offer from management to negotiate a side letter or understanding without them being notified of actions? How about leaving ALPA out of discussions about a possible hook up with Alaska, where we believe outsiders could successfully navigate or reason why Delta pilots should not be slotted based on realitive seniority? I am sure they would file a injunction or lawsuit to stop that by lunch time. Each year that goes bye I feel like I am working for ALPA, not the other way around. ------------------------------------------------------------------- |
A little drift here, Burt Rutan is a brilliant man and made some amazing stuff but sadly he bludgeoned his designs with the ugly stick.
http://cdn.nolet.com/sites/default/f...?itok=j-JHf-MB What does he have against landing gear and windows on any of his designs? |
You know I think we covered this already but just in case we didn't:
May 22 (Reuters) - Delta Air Lines: U.S. carrier Delta Air Lines will continue to sit out a wave of orders for the latest fuel-saving narrowbody models produced by Airbus and Boeing as it waits for newly developed engines to prove themselves in service, Chief Executive Richard Anderson said on Wednesday. The two manufacturers have stacked up orders for more than 3,000 of the revamped models, the Boeing 737 MAX and the Airbus A320neo, which boast fuel savings of around 15 percent from the second half of the decade. "We'd rather get toward the end of a production line because one, the airplane has probably been stretched, and stretched economics are always better than the original economics," Anderson told Reuters reporters and editors at Reuters New York headquarters. http://www.koolnews.gr/wp-content/up...kazino-570.jpg |
Originally Posted by Going2Baja
(Post 1414815)
New - Used - Acquisition - Merger - Growth? How about some Deets w/ your intel.
Baja. He also stated mainline will grow by nearly 130 jets by the end of 2017 based on current plans. That is net gain after subtracting planned retirements. |
Originally Posted by gloopy
(Post 1414902)
But will we? They are betting we continue to gift them BOS marketshare without question, not to mention our biggest hub out of quarterly margin myopia.
They're about to kick some serious sand in our faces. Your move RA. |
Originally Posted by gloopy
(Post 1414770)
It is JB, but not out of NY. At least, not initially. They will use their DL/AA/US provided sanctuary of BOS at the test bed, and pad it with every flag of convienience carrier that flies there as well. They will jump on ATL (again) and either CVG or MSP initially. Probably CVG since the airport CEO there still thinks there is the "Southwest Effect" of the 90's. CVG will likely be heavilly subsidized. Not sure about ATL although I'd be shocked if it wasn't to some degree. They are also about to get really bold into SA/LA.
They think their current trend against a BK AA will continue and they think DL's trend to panic run away from capacity to preserve yields at all costs serves up DL markets to them on a silver platter that they can pick from at their leisure. I think they are in for a world of hurt against AA in a year or two tops, once they get their act together. DL's reaction is less than certain. Either way I think its a fantastic thing! First of all, its inevitable. Our path towards 99.9999999% load factor for all eternity, managing yields by endless consolidation and shrinkage is just begging for predatory competition. Its going to happen either way, and DL has proven it can hammer JB hard when it wants to. All this could end up being a mute (moo?) point anyway since they are very likely going to be a participant in future consolidation, but in the meantime it will force DL's hand. Investors have finally started to question DL's capacity cannibalization as an endless strategy. If a very vulnerable "LCC" can poach DL capacity at will like JB thinks they can, investors will start to see that the emperor has less and less clothes on by the day. If DL can't/won't fight back and win this coming assault, DL won't be and won't deserve to be anything near "investment grade" at least not for long. This will force our hand and that's a great thing. Our current trajectory has to change, and this is the perfect catalyst to test if now is the time its starting to. |
Originally Posted by ITSALLGOOD
(Post 1414938)
According to a senior network manager they are new 332 and 321s. WBs are 100% growth for SEA and LAX to Asia. 321s are roughly 50/50 growth and replacement. Caveat...he did not say the deal was done, just very close to done (this was a few days back so may be inked by now).
He also stated mainline will grow by nearly 130 jets by the end of 2017 based on current plans. That is net gain after subtracting planned retirements. Thanks - Baja. |
I heard very similar last week... no specifics on type of 330, but the numbers jive.
Bring on the poodles! |
http://www.ultraswank.net/t/?src=htt...&zc=1&q=80&a=c
Good Night T3, the last flight pushed and departed for TLV... Cheers George |
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