Slow,

You are correct - it is most certainly not better. The sad part is that, it is reality.

Scoop

That's why 2011s slogan will be "Why can't we ALL just get along?" :)

I never understood that. With a prop, any passenger can look out the window and see the engines are running just fine. With a jet, how can they be sure?

We're #1! We're #1! We're #1!

Oh, that #1. Never mind.

USNews names Delta worst airline
The Business Journal
Date: Thursday, October 28, 2010, 8:03am CDT

Delta Air Lines Inc. is the worst major airline, according to USNews.com. The magazine rated the nation’s airlines based on the annual Airline Quality Rating (AQR) Report, American Customer Satisfaction Index and the Air Travel Consumer Reports by the U.S. Department of Transportation, plus surveys of airline industry experts.

Read more: USNews names Delta worst airline | The Business Journal

By Darren Shannon, Andrew Compart
Dublin , Washington
http://www.aviationweek.com/media/im...ikSimonsen.jpg A revival in international yields and a commitment to shareholder value produced some of the best third-quarter results on record for U.S. legacy carriers, but behind the grandiose statements there lurks the specter of another fuel-price hike that could destroy this newfound momentum.
Expenses in the third quarter were relatively stable, marking the industry’s focus on cost control and the shift to ancillary revenues rather than increased production to generate higher yields. However, each carrier’s third-quarter report noted increased fuel costs, with some pointing out that without this expense, unit costs would have declined.
And importantly, there are indications that fuel prices are expected to rise even more in the last three months of the year.
American Airlines President Gerard Arpey was the most vocal during the quarterly round of analyst conference calls, pointing out that “fuel costs [are] still historically high,” and that the quarter’s average of $2.24 a gallon despite hedges increased the line item to just $119 million shy of its labor costs. Arpey added that third-quarter fuel costs were up $123 million over the same period in 2009 and more than 250% over 2003 levels, and that the carrier’s fourth-quarter average is expected to rise to $2.41 a gallon.
This alone is concern enough, but American’s decision to avoid bankruptcy has kept its labor costs higher than its competitors, a disadvantage often cited by the airline. Should fuel become the carrier’s main expense, the company’s restructuring—based on building strength at its “cornerstone” markets in Chicago, Dallas, Los Angeles, Miami and New York—could collapse.
But Arpey was not the only executive concerned about fuel. United Continental Chief Financial Officer Zane Rowe, reporting a 14.4% rise in consolidated fuel costs in the third quarter on 4.2% more consumption, noted a spike in oil prices since August, while US Airways Chairman/CEO Doug Parker highlighted the per-barrel oil price increase to more than $80 as he assessed the airline’s third-quarter performance and prospects for the final three months of the year.
According to JP Morgan’s Jamie Baker, while some legacy carriers expect a fourth-quarter profit, fuel costs could push United Continental into the red for that quarter. Aside from this, smaller carriers such as Hawaiian Airlines recorded fuel increases in excess of 20% in the three months to Sept. 30.
Yet rising fuel costs were overshadowed by the jubilance of high—or in US Airways’ case, unprecedented—profits for the reporting period. International performance increased markedly in the quarter, with Asia-Pacific region revenues and yields up dramatically—as much as 54% and 45%, respectively, at Delta Air Lines—while transatlantic and South American growth reached well into double digits. And while domestic operations failed to reach these dizzying heights, ancillary revenues compensated for much of this shortcoming.
This performance, buoyed by a well-timed Air Transport Association report noting a 13% rise in domestic passenger revenue and 32% in international markets, prompted some optimistic comments. Delta President Ed Bastian, saying third-quarter revenue performance “exceeded our expectations,” confirmed the airline is withholding more seats for late, higher-yield bookings, while US Airways’ Parker evangelically announced a “fundamental change” in the industry.
Lower-than-expected declines in fourth-quarter unit revenue due to improved leisure sales also compelled analysts such as Morgan Stanley’s William Greene to forecast a bullish future for the industry.
According to Parker, the country’s airlines, aided by the stability provided from consolidation, no longer fall into the “boom and bust” cycles that long plagued the industry, and they will continue to keep tight control on capacity. “This is real,” Parker asserts, adding, “never before have airlines made profits when other industries are not.”
Parker’s assessment appears accurate. All of the major carriers plan minimal capacity growth in 2011, most just 2-3% although American is eyeing 4%, and this predominantly focuses on that booming international sector. Questioned by analysts, United Continental President/CEO Jeffery Smisek said any growth will be dictated by demand, while Delta’s CEO Richard Anderson noted that his company’s 1-3% anticipated increase in capacity next year illustrates that “capital-intensive capacity growth is not in our plans.”
Photo Credit: Erik Simonsen

Third-Quarter Major U.S. Airline Results
($ millions)

Airline Revenue Net Profit Change in Net Compared to 3Q,2009

American $5,842 $143 $502
Continental 3,953 354 372
Delta 8,950 363 524
United 5,394 387 444
US Airways 3,179 240 320

Where are all these larger RJs coming from? With the exception of 4 70 seaters ASA recently received there haven't been too many larger RJs brought to DCI to "quietly" slip in to a mainline city pair.

The number of regional hulls has decreased from 716 this time last year to 654 today. I hardly think that those 4 CRJ 70s will be able to fill that void.

CMR's fleet is going to be dramatically cut down to 16 CRJ200s by 2012 with no new orders on the books. It looks like DCI capacity will continue to shrink.

These are all really valid points ftb. Now we face the obvious issue of management wanting us (through our union) to approve their new dream of regionals flying larger and profitable aircraft. We all have to ask ourselves two simple questions:

1. What will ALPA's position on this be? and,
2. If ALPA's position continues to be that RJ's are good for everyone, will our local reps' best intentions be able to overcome ALPA's position?

Carl

PS: Thanks for the pics...as always! :D

I think it is because passengers have shiny jet syndrome. They view propellers as old technology and therefore.. not safe. That's the only thing I can figure.... I like your thought though :)

You've already said we shouldn't go for that anyway. You said we should set our sights on the amount of money that is just below the amount that management would not go for, when the next downturn happens. Whatever the heck that means.

Carl

Yes it is. It happened before our merger, so I wasn't a Delta pilot then. Others have posted the quote. Many others were there and witnessed the quote being spoken. LM then followed it up with his explanation of why RJ's are good for Delta Air Lines. I don't remember what others' said that explanation was.

Carl