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Originally Posted by Ralphie
(Post 835339)
+1
and Johnso29, I am told, not firsthand info here, that it was pretty much stated by SD that the cost of the flow prevented furloughs. 305 is the floor we need to hire if Europe craters and oil goes to 120. It does not mean that things cannot change. They are careful and watching for signs of a double dip. They are not seeing it yet. It appears that those working are working and traveling and those that are not are not. It is why capacity constraint and modest growth until the economy shows true direction is key. All of this stuff with the economy as become emotional and trades et al are being made on emotion. That is never good. I have been waiting for a correct of the S and P to below 1000 and it has clearly broke it though its 1080 support level. Watch the VIX. |
Originally Posted by 1234
(Post 835331)
I really don't think that they are selling because of the flow (my opinion is that it is a nice unintended consequence of the sale for some people). I really have to believe that Mother Delta is really focusing on getting back to being a very strong company. They are reducing risk (i.e. DOT fines, one level of safety, etc) for the company and ultimately shareholders. While gaining a little on the sale in dollars, this deal has to really help in reducing overhead and direct costs in maintaining 3 separate WO's. We appear to be focusing on the core of Delta Air Lines. This is good in my opinion.
It means narrow body domestic flying is not a core business for Delta Air Lines. Risk is not necessarily reduced given Delta's role in the chain of commerce and the costs of administering Delta's internal alter ego carriers were less than the cost plus profit that will be charged by outsourcing the operation. Further, regional airlines have repeatedly proven an additional source of profits is cutting corners. |
Originally Posted by acl65pilot
(Post 835368)
It did. It took the ROI to a min of 22 months from 12.
305 is the floor we need to hire if Europe craters and oil goes to 120. It does not mean that things cannot change. Watch the VIX. Blame 9/11, SARS, Fuel Prices, or SIDS. ... but look at the historical patterns. The more things change, the more they stay the same. |
Never mind...its not worth it.
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Originally Posted by Martin404
(Post 835366)
And the new 90's are they on the property yet?
I miss widgetheads too ;( Cheers George |
FWIW on DCI
It's much easier to exert downward pricing pressure on outside vendors than it is to pit one corporate division against another... I too believe the days of Comair as a Delta owned subsidiary are numbered... I mean even the Comair slogan is "ready to go" TIC Cheers George |
Originally Posted by georgetg
(Post 835380)
FWIW on DCI
It's much easier to exert downward pricing pressure on outside vendors than it is to pit one corporate division against another... I too believe the days of Comair as a Delta owned subsidiary are numbered... I mean even the Comair slogan is "ready to go" TIC Cheers George |
Well with Pinnacle now owing Mesaba and Colgan it was stated that the Colgan name will disappear and Mesaba will be an all TP operator while Pinnacle will be an all jet operator. That folks, brings the Q400 into play. It can be configured to 70 seats and has a max certified takeoff weight of 64,500 lbs. Scope allows it, and the turboprops do NOT count towards the large RJ count. Nice.
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I am all for the Q 400. It is a great airplane that can serve many destinations well.
I even would like to see it as a mainline jet, but enough about my Christmas list. OH has legacy costs or better. They cannot be sold and will probably be parted out as Awarded flying for changes in the ASA agreements with SKW inc. Just my guess. |
Originally Posted by acl65pilot
(Post 835406)
I am all for the Q 400. It is a great airplane that can serve many destinations well.
I even would like to see it as a mainline jet, but enough about my Christmas list. OH has legacy costs or better. They cannot be sold and will probably be parted out as Awarded flying for changes in the ASA agreements with SKW inc. Just my guess. I'd fly the Q400. It'd be a nice CA job. You think OH would be sold off in chunks to have less FFD & more At Risk....or shorter duration? |
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