New Delta Cuts
 

Not sure on the specifics of where the cuts are going to be - mainline or RJ. But here is the latest.


AP
Delta to cut more domestic capacity
Wednesday June 18, 2:39 pm ET
By Harry R. Weber, AP Business Writer
Delta to cut more domestic capacity than previously expected

ATLANTA (AP) -- Delta Air Lines Inc. plans to cut domestic capacity by an extra 3 percent in the second half of this year due to record fuel prices.
The Atlanta-based company said in a regulatory filing that president and chief financial officer Ed Bastian would discuss the capacity cuts during an investor conference late Wednesday.

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The airline will cut domestic capacity by 13 percent during the second half of the year, an increase from the 10 percent reduction announced in March.

Delta, which plans to acquire Eagan, Minn.-based Northwest Airlines Corp., estimates fuel costs this year will be $4 billion more than last year.

The airline expects to post a profit in the second quarter, excluding one-time items. Delta forecast $3.2 billion in unrestricted liquidity at the end of 2008, down $600 million from the end of 2007. The total amount Delta cited includes a $1 billion undrawn credit line.

Delta shares fell 33 cents, or 5.8 percent, to $5.40 in afternoon trading Wednesday.

Several major carriers have announced plans to cut domestic capacity by double-digit margins as the price of oil soared to more than $134 a barrel, about twice what it was a year ago. Others are adding new fees for passengers and cutting jobs. Delta will shed about 4,000 jobs.

While Delta is cutting domestic capacity, it continues to increase international capacity. The carrier said Wednesday that international capacity will be up 14 percent in the second half of the year, compared to the same period a year ago.

Delta reiterated that it hopes to complete its acquisition of Northwest by the end of the year. The deal, which Delta believes is more important now than ever because of high fuel prices, is subject to shareholder and regulatory approval.

The chief executive of Orlando, Fla.-based AirTran Airways, which has its hub in Atlanta, was expected to address the same investor conference as Bastian on Wednesday.

Just read on the DeltaNet that the cuts equate to 15-20 mainline and 60-70 RJs. Which do you think will be losing more flying?

Delta, to it's credit, is reducing outsourced flying significantly more than it's mainline. I think this will pay enormous dividends down the road, especially if jet fuel prices continue upward.

All the other legacies seem determined to continue the outdated practice of shifting mainline flying to their "regional partners" as they downsize, which will continue to hurt cost cutting and fiscal performance.

Where did you read this on Deltanet? I was just logged on and couldn't find that info anywhere.

*****Disregard... I found the article!*****

On the DeltaNet Homepage, the front page article is "Ed outlines ongoing steps to make us industry-leading global airline". Right below that is a link "See Also, Get all the details in our press release". The link takes you to another article and the paragraph with the numbers is about 1/4 down the page.

Just to point out, this isn't on top of the reductions they announced back in April - this was all the reductions for 2008. From what I remember, this only expands the RJ reductions. I believe the 15-20 mainline jets was the same number announced a few months ago.

That is correct. The new reductions appear to be all at the connection level. Having said that however unless oil prices drop these reductions are the tip of the iceberg. More and bigger cuts will follow.

Yes, This is an increase of RJ reductions. It is a large one at that. Originally they were parking 25-35 not it is near 70. Any guesses where it will come from? I would say express jet in LAX, some CMR and a few other odds and ends.

Of note the 15-20 Main line jets are still up in the air. We will be parking some 88. The 757's leases are up and we are working on new leases. If we can get them they will not be parked. Also, some of these air frames are being "parked" as operational spares or going through heavy checks. With all of the cabin upgrading that is going on they wanted to trim the schedule to get more done.
Long term I believe that DAL will be on top. We are really making decision for the next ten years and not the next six months.

We're still getting the 737-700's starting July, and another handfull of 777 LR's, right. Are we going to see a net decrease in a/c this year?

Any word on where those 737's are heading?