Any "Latest & Greatest" about Delta?
02-07-2011 | 11:32 AM
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This whole sad affair ought to be taught at all the country's Business schools to the future Leo Mullins, Fred Reids, and Ed Bastians that outsourcing is not the be all and end all that it purports to be....but they probably wouldn't listen.
Sunday Buzz | A 'prescient' warning to Boeing on 787 trouble | Seattle Times Newspaper
A 'prescient' warning to Boeing on 787 trouble
Seattle Times business staff
In a late January appearance at Seattle University, Boeing Commercial Airplanes Chief Jim Albaugh talked about the lessons learned from the disastrous three years of delays on the 787 Dreamliner.
One bracing lesson that Albaugh was unusually candid about: the 787's global outsourcing strategy — specifically intended to slash Boeing's costs — backfired completely
"We spent a lot more money in trying to recover than we ever would have spent if we'd tried to keep the key technologies closer to home," Albaugh told his large audience of students and faculty.
Boeing was forced to compensate, support or buy out the partners it brought in to share the cost of the new jet's development, and now bears the brunt of additional costs due to the delays.
Some Wall Street analysts estimate those added costs at between $12 billion and $18 billion, on top of the $5 billion Boeing originally planned to invest.
Interviewed after the Seattle U. talk, Albaugh avoided directly criticizing the decisions of his predecessors
Seattle Times business staff
In a late January appearance at Seattle University, Boeing Commercial Airplanes Chief Jim Albaugh talked about the lessons learned from the disastrous three years of delays on the 787 Dreamliner.
One bracing lesson that Albaugh was unusually candid about: the 787's global outsourcing strategy — specifically intended to slash Boeing's costs — backfired completely
"We spent a lot more money in trying to recover than we ever would have spent if we'd tried to keep the key technologies closer to home," Albaugh told his large audience of students and faculty.
Boeing was forced to compensate, support or buy out the partners it brought in to share the cost of the new jet's development, and now bears the brunt of additional costs due to the delays.
Some Wall Street analysts estimate those added costs at between $12 billion and $18 billion, on top of the $5 billion Boeing originally planned to invest.
Interviewed after the Seattle U. talk, Albaugh avoided directly criticizing the decisions of his predecessors
Sunday Buzz | A 'prescient' warning to Boeing on 787 trouble | Seattle Times Newspaper
02-07-2011 | 11:38 AM
At home on the maddog!
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From: Retired (mandatory age 65)
This whole sad affair ought to be taught at all the country's Business schools to the future Leo Mullins, Fred Reids, and Ed Bastians that outsourcing is not the be all and end all that it purports to be....but they probably wouldn't listen.
Sunday Buzz | A 'prescient' warning to Boeing on 787 trouble | Seattle Times Newspaper
Sunday Buzz | A 'prescient' warning to Boeing on 787 trouble | Seattle Times Newspaper
02-07-2011 | 02:05 PM
No longer cares
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From: 767er Captain
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02-07-2011 | 02:57 PM
veut gagner à la loterie
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From: Light Chop
Absolutely right! This obsession with outsourcing is a business fad that we are having to suffer through right now. I predict that in a few years from now, business school textbooks will include a discussion of this era in business as an example of what not to do. People will just shake their heads and say, "what the heck were they thinking??!"
James Brian Quinn and Frederick G. Hilmer, “Strategic Outsourcing,” Sloan Management Review (Summer, 1994): 43-55.*
Most companies can substantially leverage their resources through strategic outsourcing by: 1.* developing a few well-selected core competencies of significance to customers and in which the company can be the best-in-the-world, 2.* focusing investment and management attention on these core competencies, and 3.* strategically outsourcing many other activities where it cannot be or need not be best.* There are always some inherent risks in outsourcing, but there are also risks and costs of insourcing.* When approached within a genuinely strategic framework, using the variety of outsourcing options available and analyzing the strategic issues, companies can overcome many of the costs and risks.***
02-07-2011 | 03:44 PM
Gets Weekends Off
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From: 737n/FO
Charters!
For those of you haven't flown them (lot of fun by the way) it is a hugely profitable business (not just the NBA special 319s). We fly a lot of MLB, NBA, NFL and college sports teams. We just added another team and an interesting factoid (St Louis Post Dispatch):
"For the first time the Cardinals have embraced Delta Air Lines as their team charter. Delta now ranks as the second-most active carrier out of Lambert-St. Louis International Airport."
Just for attribution purposes here is the link to the entire article:
http://www.stltoday.com/sports/baseb...27992bc8b.html
"For the first time the Cardinals have embraced Delta Air Lines as their team charter. Delta now ranks as the second-most active carrier out of Lambert-St. Louis International Airport."
Just for attribution purposes here is the link to the entire article:
http://www.stltoday.com/sports/baseb...27992bc8b.html
Last edited by DAL73n; 02-07-2011 at 03:45 PM. Reason: Corrections
02-07-2011 | 03:53 PM
At home on the maddog!
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From: Retired (mandatory age 65)
alright you got me thinking so I'm going looking for the best why you should be outsourcing quotes from all of those grade inflated ivy league business skools. There is a whole lot of nothing said in several articles imcluding outsourcing articles from HBR but I'm finding quotes of quotes that go back aways such as below: (mind you this is all done on iphone):
James Brian Quinn and Frederick G. Hilmer, “Strategic Outsourcing,” Sloan Management Review (Summer, 1994): 43-55.*
Most companies can substantially leverage their resources through strategic outsourcing by: 1.* developing a few well-selected core competencies of significance to customers and in which the company can be the best-in-the-world, 2.* focusing investment and management attention on these core competencies, and 3.* strategically outsourcing many other activities where it cannot be or need not be best.* There are always some inherent risks in outsourcing, but there are also risks and costs of insourcing.* When approached within a genuinely strategic framework, using the variety of outsourcing options available and analyzing the strategic issues, companies can overcome many of the costs and risks.***
James Brian Quinn and Frederick G. Hilmer, “Strategic Outsourcing,” Sloan Management Review (Summer, 1994): 43-55.*
Most companies can substantially leverage their resources through strategic outsourcing by: 1.* developing a few well-selected core competencies of significance to customers and in which the company can be the best-in-the-world, 2.* focusing investment and management attention on these core competencies, and 3.* strategically outsourcing many other activities where it cannot be or need not be best.* There are always some inherent risks in outsourcing, but there are also risks and costs of insourcing.* When approached within a genuinely strategic framework, using the variety of outsourcing options available and analyzing the strategic issues, companies can overcome many of the costs and risks.***
YouTube - Tom Peters: Business Should Be Energetic and Passionate
Also, take a look at this TV commercial from Accenture, one of the largest consulting firms. As I see it, the basic message of this commercial is that "convention" (doing fundamentals well) is 90% of business. But then take a look at the tag lines at the bottom of the screen at the very end of the commercial: *Consulting *Technology *Outsourcing. This has always bugged me every time I see one of their commercials... as I have never seen outsourcing result in doing fundamentals well, especially in the airline industry!
YouTube - Accenture TV Ad by Tiger Woods
02-07-2011 | 05:14 PM
pants on the ground
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From: back seat
Hopefully this hasn't been posted.
02-07-2011 | 06:01 PM
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From: B757/767
For those of you haven't flown them (lot of fun by the way) it is a hugely profitable business (not just the NBA special 319s). We fly a lot of MLB, NBA, NFL and college sports teams. We just added another team and an interesting factoid (St Louis Post Dispatch):
"For the first time the Cardinals have embraced Delta Air Lines as their team charter. Delta now ranks as the second-most active carrier out of Lambert-St. Louis International Airport."
Just for attribution purposes here is the link to the entire article:
Cardinals stir at Roger Dean Stadium
"For the first time the Cardinals have embraced Delta Air Lines as their team charter. Delta now ranks as the second-most active carrier out of Lambert-St. Louis International Airport."
Just for attribution purposes here is the link to the entire article:
Cardinals stir at Roger Dean Stadium
Sweet! I was wondering when they'd dump AA.
Now if we could just get the Blues to dump Air Canada. 
02-07-2011 | 06:45 PM
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From: right for a long, long time
I'm late for pick-up and will respond later, but this caught my eye. Isn't this what CMR has (senior Captains with long term FO's) and isn't that what's killing them in the pilot cost department? You understand that if you transferred that to DAL the result would be the same?
CMR is split out, they are not tied to the larger whole. The situation shakes out very differently if they were a fully integrated part of the "Delta Pilots".
I must say that often times when you disagree you do not ask for a clearer or more comprehensive answer, you just point out how that doesn't work given current situations.
You cannot keep other factors constant when you propose major changes to a PWA. IF there was to be a major "recapture", it is my opinion that you would have to make adjustments to the pay tables in order to adequately address the need to get the most experienced pilots in the left seats. (In my ideal world*) Given a status quo on say, DAL and CMR payrates...It would be necessary to transition(over a reasonable time) the 50-76 seat CA pay to be equivalent to the highest FO pay, and then move the other rates "down a notch" (with some shavings off) to bring the 50-76 seat FO rates up to a acceptable starting salary.
*My ideal world has MANY more things to improve, but I'm trying to limit it for this scenario.
02-07-2011 | 07:46 PM
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From: Light Chop
WestJet partners up with Delta Air Lines in second U.S. interline pact
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EmailPrint..Topics:InternationalEarningsStocks.Lau ren Krugel, The Canadian Press, On Monday February 7, 2011, 9:47 pm EST
By Lauren Krugel, The Canadian Press
CALGARY - WestJet Airlines Ltd. made further inroads into the U.S. market with a partnership Monday that will enable its passengers to easily connect with Delta Air Lines flights.
Customers of either airline can now travel over connecting flights on one ticket, get boarding passes for all flight legs at check-in and tag bags through to their final destination, Calgary-based WestJet (TSX:WJA) said of the interline agreement.
"This is part of our strategy to have a partnership in each of the major geographic regions," said Hugh Dunleavy, WestJet's executive vice-president of strategy and planning, in an interview.
"The United States is such a huge market and it's obviously a focus of our attention."
Interline deals often pave the way for code-shares, in which airlines can sell seats on each other's planes using the same two-digit code.
The new pact, in effect at more than 25 Canadian and U.S. gateways, follows a similar deal WestJet inked last fall with American Airlines Ltd (NYSE:AMR).
WestJet is also expanding its business flights between Toronto, Montreal and Ottawa.
Beginning May 2, WestJet will offer 10 flights each business day between Toronto and Montreal and nine between Toronto and Ottawa.
Passengers travelling on those routes will get 50 per cent off their next Toronto-Montreal or Toronto-Ottawa flight if their aircraft is delayed by more than 30 minutes.
Dunleavy said WestJet considers both American and Delta as vital to its U.S. operations.
"I think each partner would like an exclusive partnership, and that's probably true as much as European and Asian carriers as well," he said.
"The truth is when you're competing in this space, you need enough partners that can help you to become relevant in each of the markets that you wish to serve."
For instance, Delta, whose main hub is Atlanta, gives WestJet more access to the U.S. Eastern Seaboard than would American, which flies out of Dallas.
AirTrav airline analyst Robert Kokonis has long said Delta represents a "more logical" partner for WestJet than American, since it serves twice as many Canadian destinations.
"Furthermore, where the WestJet-Delta interline agreement has two-way flow, the WestJet-American Airlines interline agreement covers only sales for U.S. originating flights on WestJet and American," he wrote in a research note.
National Bank Financial analyst Cameron Doerksen said the Delta (NYSE : DAL) deal will pay off for WestJet, but it will take time for the results to show.
"WestJet has an existing interline agreement with American Airlines so the addition of Delta gives it two strong sources of inbound U.S. travellers," the analyst wrote in a note to clients.
"Both American and Delta have extensive U.S. networks (along with large international networks) with a strong presence in key business markets, which are not well served by WestJet currently."
WestJet has already has an interline deal with British Airways, and code-share deals with Air France-KLM, Hong Kong-based Cathay Pacific and China Airlines.
Interline and code-share agreements have helped WestJet to expand its market reach, since its fleet of Boeing 737 aircraft can't make the long flights to Europe or Asia.
The Delta deal gets WestJet greater access to Latin America, a market where the airline has had limited reach so far.
"With the 737 fleet there are range limitations to that size aircraft. It gets us most of the way down to the southern end of the Caribbean, but beyond that you have range issues with that particular aircraft," Dunleavy said.
Aviation analyst Rick Erickson said the interline and code-share deals offer WestJet a source of revenue at a relatively low cost.
"You don't need to work anywhere near as hard, and incur the kinds of costs you do if you're eating the whole distribution cost of finding a brand-new passenger," he said.
WestJet is set to announce its fourth-quarter and full-year results later this week. Analysts polled by Thomson Reuters are on average expecting earnings of 18 cents per share and revenues of $664 million.
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retweet
EmailPrint..Topics:InternationalEarningsStocks.Lau ren Krugel, The Canadian Press, On Monday February 7, 2011, 9:47 pm EST
By Lauren Krugel, The Canadian Press
CALGARY - WestJet Airlines Ltd. made further inroads into the U.S. market with a partnership Monday that will enable its passengers to easily connect with Delta Air Lines flights.
Customers of either airline can now travel over connecting flights on one ticket, get boarding passes for all flight legs at check-in and tag bags through to their final destination, Calgary-based WestJet (TSX:WJA) said of the interline agreement.
"This is part of our strategy to have a partnership in each of the major geographic regions," said Hugh Dunleavy, WestJet's executive vice-president of strategy and planning, in an interview.
"The United States is such a huge market and it's obviously a focus of our attention."
Interline deals often pave the way for code-shares, in which airlines can sell seats on each other's planes using the same two-digit code.
The new pact, in effect at more than 25 Canadian and U.S. gateways, follows a similar deal WestJet inked last fall with American Airlines Ltd (NYSE:AMR).
WestJet is also expanding its business flights between Toronto, Montreal and Ottawa.
Beginning May 2, WestJet will offer 10 flights each business day between Toronto and Montreal and nine between Toronto and Ottawa.
Passengers travelling on those routes will get 50 per cent off their next Toronto-Montreal or Toronto-Ottawa flight if their aircraft is delayed by more than 30 minutes.
Dunleavy said WestJet considers both American and Delta as vital to its U.S. operations.
"I think each partner would like an exclusive partnership, and that's probably true as much as European and Asian carriers as well," he said.
"The truth is when you're competing in this space, you need enough partners that can help you to become relevant in each of the markets that you wish to serve."
For instance, Delta, whose main hub is Atlanta, gives WestJet more access to the U.S. Eastern Seaboard than would American, which flies out of Dallas.
AirTrav airline analyst Robert Kokonis has long said Delta represents a "more logical" partner for WestJet than American, since it serves twice as many Canadian destinations.
"Furthermore, where the WestJet-Delta interline agreement has two-way flow, the WestJet-American Airlines interline agreement covers only sales for U.S. originating flights on WestJet and American," he wrote in a research note.
National Bank Financial analyst Cameron Doerksen said the Delta (NYSE : DAL) deal will pay off for WestJet, but it will take time for the results to show.
"WestJet has an existing interline agreement with American Airlines so the addition of Delta gives it two strong sources of inbound U.S. travellers," the analyst wrote in a note to clients.
"Both American and Delta have extensive U.S. networks (along with large international networks) with a strong presence in key business markets, which are not well served by WestJet currently."
WestJet has already has an interline deal with British Airways, and code-share deals with Air France-KLM, Hong Kong-based Cathay Pacific and China Airlines.
Interline and code-share agreements have helped WestJet to expand its market reach, since its fleet of Boeing 737 aircraft can't make the long flights to Europe or Asia.
The Delta deal gets WestJet greater access to Latin America, a market where the airline has had limited reach so far.
"With the 737 fleet there are range limitations to that size aircraft. It gets us most of the way down to the southern end of the Caribbean, but beyond that you have range issues with that particular aircraft," Dunleavy said.
Aviation analyst Rick Erickson said the interline and code-share deals offer WestJet a source of revenue at a relatively low cost.
"You don't need to work anywhere near as hard, and incur the kinds of costs you do if you're eating the whole distribution cost of finding a brand-new passenger," he said.
WestJet is set to announce its fourth-quarter and full-year results later this week. Analysts polled by Thomson Reuters are on average expecting earnings of 18 cents per share and revenues of $664 million.
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