Delta future?
09-02-2007, 03:42 PM
#11
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It looks like growth is around the corner for Delta. There was talk of taking a training break over the holidays, now there is talk about running right through Nov., Dec., & as scheduled next year. Possible narrowbody additions that would push more 737 flying towards ATL. Some good CVG and SLC news, maybe. I don't know anything, just standing near the coffee maker type stuff.
09-02-2007, 04:16 PM
#12
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Originally Posted by reddog25
And it's wearing a Red Tail
09-02-2007, 05:46 PM
#13
Can't abide NAI
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Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
That rumor is fueled by the fact the option of a DAL/NWA merger was looked at while in bankruptcy and Richard Anderson's selection puts more fuel on that fire.
However, it has been denied and nothing about it seems like a better idea than Delta continuing to be successful as the second largest airline in the World (behind American).
Here is what one better respected industry forcaster wrote: (credit Boyd, aviationplanning.com)
However, it has been denied and nothing about it seems like a better idea than Delta continuing to be successful as the second largest airline in the World (behind American).
Here is what one better respected industry forcaster wrote: (credit Boyd, aviationplanning.com)
From The
They-Don't-Hear-Thunder Department
The short answer is no. The long answer is no.
That's pretty much directly what Delta's new CEO stated when asked if he was looking at pursuing a merger with Northwest. He ought to know what can be done, what can't be done, and what won't work in this regard, having been CEO of both airlines.
Things like fleets that have about as much in common as locomotives and street trolleys. Things like the enormous expense of integrating entirely different ops specs, maintenance programs, and pilot seniority assignments. Things like the revenue growth potential for wider cooperation within the current DL/NW/CO and SkyTeam alliances, without the wreckage a merger creates.
But that hasn't stopped the usual-suspect squirrels on Wall Street from confidently "predicting" such an event, usually accessorized with some babble about the "great route synergies" a combined DL/NW would represent, and the "billions" in "new value" that would result. Keep this in mind: a lot of these financial "analysts" speak first, and worry about factual data later. The fact is that a lot of these folks literally have no basic knowledge of how airlines work. They look at a route map and start spouting.
Another trendy bit of Sacred Wall Street Scripture that's also coming up in many of these articles is the unquestioned pronouncement by analysts to the effect, "legacy carriers such as Delta are abandoning domestic routes - which are less profitable - to low cost carriers and are instead expanding into more lucrative international markets..."
That's flat out non-factual. Not within three zip-codes of airline reality. The truth is that carriers such as Delta are not being chased out of any major mainline O&D markets by LCCs. To the contrary, over the last two years, it's been Delta harassing LCCs by tossing in RJs to siphon traffic in a number of markets LCCs have entered. The fact is that Delta, Continental and Northwest have added international flying to feed and strengthen domestic markets, not as a refuge from Southwest. And it's that international feed revenue that gives the comprehensive network airlines an on-board revenue advantage domestically over LCCs.
They-Don't-Hear-Thunder Department
The short answer is no. The long answer is no.
That's pretty much directly what Delta's new CEO stated when asked if he was looking at pursuing a merger with Northwest. He ought to know what can be done, what can't be done, and what won't work in this regard, having been CEO of both airlines.
Things like fleets that have about as much in common as locomotives and street trolleys. Things like the enormous expense of integrating entirely different ops specs, maintenance programs, and pilot seniority assignments. Things like the revenue growth potential for wider cooperation within the current DL/NW/CO and SkyTeam alliances, without the wreckage a merger creates.
But that hasn't stopped the usual-suspect squirrels on Wall Street from confidently "predicting" such an event, usually accessorized with some babble about the "great route synergies" a combined DL/NW would represent, and the "billions" in "new value" that would result. Keep this in mind: a lot of these financial "analysts" speak first, and worry about factual data later. The fact is that a lot of these folks literally have no basic knowledge of how airlines work. They look at a route map and start spouting.
Another trendy bit of Sacred Wall Street Scripture that's also coming up in many of these articles is the unquestioned pronouncement by analysts to the effect, "legacy carriers such as Delta are abandoning domestic routes - which are less profitable - to low cost carriers and are instead expanding into more lucrative international markets..."
That's flat out non-factual. Not within three zip-codes of airline reality. The truth is that carriers such as Delta are not being chased out of any major mainline O&D markets by LCCs. To the contrary, over the last two years, it's been Delta harassing LCCs by tossing in RJs to siphon traffic in a number of markets LCCs have entered. The fact is that Delta, Continental and Northwest have added international flying to feed and strengthen domestic markets, not as a refuge from Southwest. And it's that international feed revenue that gives the comprehensive network airlines an on-board revenue advantage domestically over LCCs.
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