Any "Latest & Greatest" about Delta?
Although I will say this, saying that we sold scope might be harsh, it's more like we got willfully snookered on scope.
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An RJ is not an RJ. Let me let EB explain it...
[B]
A 34-50 seat airplane is a 34-50 seat airplane, everything else is a mainline jet and it's not semantics. 70 seat and up have first, economy comfort and economy. So they rightfully refer to them as mainline jets and we allow them to have 325 of those jumbo RJs which is a fleet equivalent to all our MD88s, MD90s, 717s and A319s combined.
An RJ is not an RJ. If you hold DCI to 50-seats only and the 50-seater is a lesser product in the market, less fuel efficiency and requires more airplanes in the air and on the gates to meet capacity then you'd be in better position to keep flying at mainline.
Allowing more 2-class RJs to be outsourced does not. And that's what we did...

We increased the cap on 50+ seat aircraft from 255 to 325 and allowed more 76-seaters than was previously allowed under the old PWA given mainlines size because we dropped a fleet size requirement for a BH ratio that didn't require flying to be transferred. Just for DCI to shrink the jets EB refereed to as a lesser product, inefficient and takes up space.
What did we get? A pay increase funded by profit reduction and more pilot productivity (i.e. fewer pilots required) and 717s that the company was already going to get.
But DCI shrunk right? And that's all that matters. But note the part where EB says parking 50-seaters is "fewer airplanes in the air" and that's a good thing. Seems to me they really didn't want 343 50-seaters running around in the first place. Shrinkage was what they wanted and we obliged to throw them in the briar patch.
So Fig, that's why I see it as selling scope.
[B]
A 34-50 seat airplane is a 34-50 seat airplane, everything else is a mainline jet and it's not semantics. 70 seat and up have first, economy comfort and economy. So they rightfully refer to them as mainline jets and we allow them to have 325 of those jumbo RJs which is a fleet equivalent to all our MD88s, MD90s, 717s and A319s combined.
An RJ is not an RJ. If you hold DCI to 50-seats only and the 50-seater is a lesser product in the market, less fuel efficiency and requires more airplanes in the air and on the gates to meet capacity then you'd be in better position to keep flying at mainline.
Allowing more 2-class RJs to be outsourced does not. And that's what we did...

We increased the cap on 50+ seat aircraft from 255 to 325 and allowed more 76-seaters than was previously allowed under the old PWA given mainlines size because we dropped a fleet size requirement for a BH ratio that didn't require flying to be transferred. Just for DCI to shrink the jets EB refereed to as a lesser product, inefficient and takes up space.
What did we get? A pay increase funded by profit reduction and more pilot productivity (i.e. fewer pilots required) and 717s that the company was already going to get.
But DCI shrunk right? And that's all that matters. But note the part where EB says parking 50-seaters is "fewer airplanes in the air" and that's a good thing. Seems to me they really didn't want 343 50-seaters running around in the first place. Shrinkage was what they wanted and we obliged to throw them in the briar patch.
So Fig, that's why I see it as selling scope.
"Delta CEO Richard Anderson said the company at some point will add larger planes to serve Montana, switching to 100-passenger regional planes from the current 50-passenger planes. He called the 50-seat regional planes uneconomical. He did not specify when the larger regional planes would be put in service."
Delta Airlines larger regional planes will serve Montana and other areas
:-)
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The 50 seater is a converted business jet, the 76 seater is an airline passenger transport jet. The CRJ 200 isn't even comparable to the CRJ 900. Furthermore, since the 50 seaters don't make any profit, and are a huge cost liability, one 76 jet is more valuable than the entire 50 seater fleet.
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The 50 seater is a converted business jet, the 76 seater is an airline passenger transport jet. The CRJ 200 isn't even comparable to the CRJ 900. Furthermore, since the 50 seaters don't make any profit, and are a huge cost liability, one 76 jet is more valuable than the entire 50 seater fleet.
Oh, and that's with a management goal of a 10-12% operating margin...
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:-)
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We had several passengers this summer collapse due to heat stroke after flying on the 200, none on the 900.
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