Looks like we have one more FO rep that just announced here in LEC 44. Should be two more this week.

 

Where did he go? Is he in training or something?

 

I'm not sure you read what I wrote. While these numbers can be used for comparing companies they are not an apples-to-apples comparison. Also, excluding fuel hedging losses and special items we are far better off than our own numbers show (look at the 2Q 2009 report).

One reason SWA numbers have been low is due to their fuel hedging. On average for 2008 they paid $600/hr less for fuel than other carriers that operate 737-700s and $900/hr than Delta 737-800s.

For comparison SWA reports a fuel burn avg of 697 gal/hr @ $1612/hr for their 737-700s and 783 gal/hr @ $2510/hr for the Delta 737-800s. Even if you account for the 737-800s higher burn rates you are still left with a $700/hr difference in fuel cost for 2008. On the other hand SWA crew cost is $584/hr and Delta's is $577/hr.

Maybe DALPA should be focusing some attention on the poor business decisions that are affecting the company rather then telling the pilot group how "frightening" our CASM is. Are you trying to lower expectations with your comments?

Maybe you are implying that with a CASM as high as ours we can't compete with the cost structure of DCI for 69+ seat flying?

Of course it is impossible to break down the cost of DCI currently since most of their cost are pass-through cost which Delta is already paying. One very eye-opening set of numbers from the Form 41 data are the Pinnacle and Mesaba block hour cost for their RJs. It appears from the data that they do not report any cost they aren't paying (pass-throughs). Here are the block hour cost the above airlines are reporting:

ASA = $2245/hr
Comair = $2065/hr
Pinnacle = $665/hr
Mesaba = $950/hr

The biggest reason for the disparity is that Pinnacle and Mesaba don't report fuel cost, which is a pass-through cost. My guess is that they don't report other pass-through cost as well. If true this gives a pretty good idea of the cost Delta is already paying per block hour that is hidden in our System CASM cost giving the appearance that Mainline is even more expensive.

 

VPR, this has been my bone of contention for a long time. We the DAL mainline, are having DCI costs hit our general ledger, and as our costs are much higher than they really are. These Form 41 numbers are very telling.
What would be more interesting is to see, if these DCI cost per block hour numbers include the aircraft leases. I have a feeling that may of those leases (DCI Jets owned by DAL) come out of our side of the take.

 

ACL - According to the explanation provided by the BTS, yes, the lease costs are included for the operator listed.

Now if your question is whether those costs are back loaded to Delta through the Fee for Departure agreement, then who knows... . Guess we could ask if someone above the VP of Flight Operations comes to a briefing with us line guys sometime soon.

 

Heyas ACL,

I suspect it would take a team of forensic accountants years to figure out who REALLY pays what for what in the "portfolio of aircraft".

This can play out in two ways: You can get an EF&A team to look at the numbers provided by the company, or you can get an EF&A team to REALLY look at the books and tell you what's what.

Only one counts. The other is just for show or to "manage expectations".

Nu

 

Excellent point - and either way, the E&FA team works at the pleasure of the MEC. Whether it be ALPA's own (quite good) E&FA team or Deloitte and Touche, they answer the question that is asked and only the question the client asks.

 

As I told you Earlier today Bar, I want a team from Deloitte and Touche to come in and dig through the books, all of them. That is when we will really start seeing how the game is being played.

 

Heyas ACL,

Gonna be fun times on the MEC if the elections run a certain way.

Nu

 

One more guy just entered........