Wow! A pilot panic over 40 737s and 20 EMB 190s? It is obvious you guys didn't listen to the call. Nothing has been canceled.

 

Record profits, and a forecast for even more the 2nd half of the year. Leave it up to pilots to turn that into doom and gloom.

Hey pilots don't look at this giant pile of money. Come here and take a look at these "gently" used e190s parked in the desert. You know you wanna fly them

haha we are ridiculous aren't we?

 

He was being mean.

 

From the call:

Jamie Baker - JPMorgan
Excellent, I appreciate it. And the follow-up, since you brought up the topic Richard to the pilots, rather than just rely on my contacts or trolling the message boards, what are the three or four biggest reasons in your mind that the TA was rejected by a fairly wide margin?
Was it noise around the sick leave issue, changes around JV flying and how Virgin got treated? I’m just trying to get a sense for what portions of the drawing board you might need to return to as opposed to just pay rates or something like that?
Richard Anderson - CEO
I think it’s premature to do that. The Delta Master Executive Council is going to be meeting in a couple of weeks and we really need to hear back from them.
I think the overarching story is that we have an incredible track record with them and if you think about it, we’re still five months ahead of the amendable day. So bottom line is the relationship is still strong. It’s intact. We have a decade history of being able to work well together and we’re still operating on both sides in that same spirit.



Later after no analysts had asked about the order the WSJ reporter was the first media questioner. Richard Anderson was off site and very sternly announced loudly into his microphone before the others on site could answer. "Those orders will be cancelled." The reporter had her story and it was not mentioned again.

Kevin Shinkle - SVP and Chief Communications Officer
Thanks Jill. We have a limited amount time for media. So we'll as many questions as possible. Please keep them brief and limit yourself to one follow-up. And with we'll go to our first call.
Operator
Our first question comes from Susan Carey with Wall Street Journal.
Susan Carey - Wall Street Journal
Good morning. Could you all tell us a little bit more about your plans for Skymark?
Ed Bastian - President
Sure Susan. This is Ed. We are discussing with the creditors of Skymark the opportunity to invest as part of their rehabilitation and reconstruction process. We’ve long been fairly public about our interest in having a local domestic Japanese partner.
This is an opportunity essentially to create that, but I think it’s premature to speculate as to the odds of success of where this is going to go given there is a lot of unique attributes to the Japanese rehabilitation process that are been explored and we have -- we’re in the discussion phase.
Susan Carey - Wall Street Journal
Thank you. Let me just follow-up with one more, what’s going to happen to the airplane orders for the 737900s and the Embraer 190s as a result of this pilot rejection?
Richard Anderson - CEO
Those orders will be canceled.
Susan Carey - Wall Street Journal
That’s Richard speaking.
Richard Anderson - CEO
Yes.
Susan Carey - Wall Street Journal
Okay, thank you.

After checking Delta's order book with Boeing I have noticed it has not changed during the entire negotiating process. The orders were never officially made. That doesn't mean they weren't going to be but there is really nothing to cancel.

Boeing: Commercial
search customer Delta

Why would Mr. Andersen make that statement and no one ask for details or further explanation? There were no press releases from Boeing today about a cancellation of a large aircraft order. No other reporter or analysts bothered to revisit the short but forceful statement. The take away is that this is a non-issue. Were these replacements? Are they able to go back to other manufacturers or Boeing to sweeten the deal by saying it will be canceled? We may have just saved Delta a few million dollars.

The airplanes the company buys have to fit the business plan. No amount of pilot input will change the operational economics enough to warrant buying or not buying 60 airplanes. The MD88 will not make the leap to next gen so they need relatively short term replacements. If this was the replacement plan then it will wait until the contract is settled. Also there was no mention of a Capital Expenditure adjustment regarding this order or lack of. This deal will be done after the pilot contract is settled. Either way we are at near training capacity and replacement, not growth is the need. Capacity may remain constrained for a while to drive yields for the second half of 2015.

Delta aims to curb capacity growth - MarketWatch

 

I think y'all better rethink this TA. Remember Comair? This voting no is really out of character for yes men such as yourselves. Don't forget, Anderson was Lorenzo's right hand man,,, he may drop the "Eastern" treatment on you if your don't stay in line.

 

Oh and yes.. I was at Comair... till the end.

 

I think there is a difference between shooting a shotgun out your living room window and shooting it in your living room....

 

yeah whatever... tell that to my wife and kids. It still doesn't remove the sting the day our home was foreclosed.

 

Thanks, performing at Chuckles in the Westlake Mall, Toledo July 17-21.

 

"Nothing to be proud of Rusty" - Clark Griswold