Any "Latest & Greatest" about Delta?
Can't abide NAI
Joined: Jun 2007
Posts: 12,078
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From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
American's not keen to sell a hub:
NEW YORK - American Airlines and management consultants McKinsey & Co. looked at the feasibility of closing down one of American's five cornerstone markets to see if that would pay off for the struggling airline, a McKinsey executive said Wednesday.
But the analysis showed that such a step would hurt the company, said Alexander Dichter, head of McKinsey's airline practice.
American in late 2009 embraced its cornerstone strategy, which called for focusing its flights on Dallas/Fort Worth, Miami, Chicago, New York and Los Angeles, and exiting markets that didn't have flights to or from airports in those cities. At present, about 98 percent of American's flights go to or from the cornerstones.
That strategy has drawn fire from a number of industry analysts, who question the wisdom of American attempting to grow its presence in the hotly contested markets of New York, Los Angeles and, to a lesser extent Chicago.
Dichter said McKinsey's analysis considered two alternatives. The first called for American to abandon one of its cornerstones and reduce its flying capacity accordingly. The second also looked at abandoning a cornerstone market, but having American deploy that market's capacity to the other four cornerstones.
The firm's study showed that American would see "very strong negative results for both those scenarios," he said, with financial results well below American's targets for earnings before interest, taxes, depreciation, amortization and airplane rents.
"Based on the strength of that analysis, we dropped that analysis," Dichter said.
But the analysis showed that such a step would hurt the company, said Alexander Dichter, head of McKinsey's airline practice.
American in late 2009 embraced its cornerstone strategy, which called for focusing its flights on Dallas/Fort Worth, Miami, Chicago, New York and Los Angeles, and exiting markets that didn't have flights to or from airports in those cities. At present, about 98 percent of American's flights go to or from the cornerstones.
That strategy has drawn fire from a number of industry analysts, who question the wisdom of American attempting to grow its presence in the hotly contested markets of New York, Los Angeles and, to a lesser extent Chicago.
Dichter said McKinsey's analysis considered two alternatives. The first called for American to abandon one of its cornerstones and reduce its flying capacity accordingly. The second also looked at abandoning a cornerstone market, but having American deploy that market's capacity to the other four cornerstones.
The firm's study showed that American would see "very strong negative results for both those scenarios," he said, with financial results well below American's targets for earnings before interest, taxes, depreciation, amortization and airplane rents.
"Based on the strength of that analysis, we dropped that analysis," Dichter said.

Can't abide NAI
Joined: Jun 2007
Posts: 12,078
Likes: 15
From: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
One of the most prolific travel blogs flies Delta Connection:
The Cranky Flier -

That's outsourcing. Nobody cares. The get paid to provide a flight. They provide a flight. Service ... why? How would you quantify it? Why would they care? ... isn't their company?
The Cranky Flier -

We boarded to find a CRJ in terrible condition. The bulkhead was threadbare. There were multiple holes in each seatback pocket. The lighting was dirty with stains. The safety placards were all worn down. Delta should have been embarrassed to have ExpressJet flying this airplane under the Delta name....We went into the Sky Priority line and a woman at the counter shouted a question whether we had checked in at the kiosk. We told her no, because we wanted to see if we could make this change. She told us that we had to get in the other line to do that. I asked what the point of Sky Priority was, and she said something about how they don’t really do that.
I hope the company would care about the tarnishing of the brand name through outsourcing.
United just posted a $448M loss for 2012Q1.
United Continental's Loss Widens - WSJ.com
$134M was due to integration-related costs. Revenue was $8.6B.
United Continental's Loss Widens - WSJ.com
$134M was due to integration-related costs. Revenue was $8.6B.
Not even considering the 2.5-3.5B in yearly profits in 2013-? that is being tossed around...
FUPM!!!! The $1.86B profit number means that DAL could afford to give us 40% increases and still generate OVER $1.0 BILLION profit.....
(1%≈$21 mil. cost to DAL Inc., therefore 40%≈$840 million)
Do we have the leverage to make those gains? Does DAL Inc. think we will be part of the solution to issues going forward? Stay tuned.....
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From: DAL 330
Gets Weekends Off
Joined: Jul 2010
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Hey I have a question for you all... I finished training on the DC9 and they aren't converting me until next month. I have one day after all training and OE that is reserve and I currently am showing on the reserve list for the MD88 for that day. This is probably a really dumb question but they can't have me fly the 88 after I finish DC9 training can they? Do I just automatically get that extra day off?
Hey I have a question for you all... I finished training on the DC9 and they aren't converting me until next month. I have one day after all training and OE that is reserve and I currently am showing on the reserve list for the MD88 for that day. This is probably a really dumb question but they can't have me fly the 88 after I finish DC9 training can they? Do I just automatically get that extra day off?
Congratulations on completing DC9 school. I am awed by anyone that can fly that plane. You are a credit to Delta pilots everywhere.
Take the rest of the month off with my compliments.
Scambo
If we get a 2bln day one bump on the current contract; which I do not see happening on day one, then of course the number going to be lower. I have a bet on where the agreement will hit, but will not post that sort of stuff, and given that valuation, I see the profit going where I projects.
(Of course that is if we do not run over any more black swans!
)
I am not talking about AMR or Parker eating all of them.
Reality is that Parker will have one heck of a time operating DFW and PHX in their current structure. Parker may be smart enough to concede PHX, but if he is not, then part of DFW will probably be sold off. Competing with LUV on those two fronts alone would be difficult, especially with the Wright Amendment going totally away in a few years.
In other news apparently the word of at UCAL is a deal on their JPWA in the June time frame. It is the same time I figure we have to come to a deal for the company to go after assets of AMR's. Looks like UCAL may want MIA too.
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