DAL to reduce by 4-5% by 4th Qtr
#61
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,273
Well, Comair had 176 aircraft at its peak, by late next year it'll be 44.
ASA picked up United flying in IAD to substitute for flying pulled by Delta, and now they're losing 8 70-seaters to GoJet.
Mesaba is losing the Saabs.
A friend who reads the SEC filings and such said Skywest is planning to lose 170-ish airplanes from its fleet between 2011-2014, spread between Brasilias, CRJ-200s and EMB-145s.
So there's that.
ASA picked up United flying in IAD to substitute for flying pulled by Delta, and now they're losing 8 70-seaters to GoJet.
Mesaba is losing the Saabs.
A friend who reads the SEC filings and such said Skywest is planning to lose 170-ish airplanes from its fleet between 2011-2014, spread between Brasilias, CRJ-200s and EMB-145s.
So there's that.
#62
Heyas,
As I have stated all along, getting rid of the 50 seaters is fine, but:
1) Does nothing to replace mainline jobs
2) Provides talking point FUD, which distracts from the real problem
3) The real problem being 70-76 seaters, which have the range and lift to replace 100-125 seat aircraft. The entire DC-9 fleet was outsourced with them, probably along with some of the bottom 125 seat market to the tune of hundreds, and possibly thousands of mainline jobs (plus advancements).
The Alaska and JV problems are separate, but related. But here's the thing: Our sub 100 seat lift got outsourced because, ostensibly, the outsourced lift was cheaper.
DAL provided lift is cheaper than Alaska. DAL provided lift is also cheaper than many of the JV participants. Using the reasoning that what's good for the goose should also be good for the gander, why is DAL metal not repacing the "more expensive" lift under the DAL code?
We're getting it from both sides...
Nu
As I have stated all along, getting rid of the 50 seaters is fine, but:
1) Does nothing to replace mainline jobs
2) Provides talking point FUD, which distracts from the real problem
3) The real problem being 70-76 seaters, which have the range and lift to replace 100-125 seat aircraft. The entire DC-9 fleet was outsourced with them, probably along with some of the bottom 125 seat market to the tune of hundreds, and possibly thousands of mainline jobs (plus advancements).
The Alaska and JV problems are separate, but related. But here's the thing: Our sub 100 seat lift got outsourced because, ostensibly, the outsourced lift was cheaper.
DAL provided lift is cheaper than Alaska. DAL provided lift is also cheaper than many of the JV participants. Using the reasoning that what's good for the goose should also be good for the gander, why is DAL metal not repacing the "more expensive" lift under the DAL code?
We're getting it from both sides...
Nu
#63
Heyas,
As I have stated all along, getting rid of the 50 seaters is fine, but:
1) Does nothing to replace mainline jobs
2) Provides talking point FUD, which distracts from the real problem
3) The real problem being 70-76 seaters, which have the range and lift to replace 100-125 seat aircraft. The entire DC-9 fleet was outsourced with them, probably along with some of the bottom 125 seat market to the tune of hundreds, and possibly thousands of mainline jobs (plus advancements).
The Alaska and JV problems are separate, but related. But here's the thing: Our sub 100 seat lift got outsourced because, ostensibly, the outsourced lift was cheaper.
DAL provided lift is cheaper than Alaska. DAL provided lift is also cheaper than many of the JV participants. Using the reasoning that what's good for the goose should also be good for the gander, why is DAL metal not repacing the "more expensive" lift under the DAL code?
We're getting it from both sides...
Nu
As I have stated all along, getting rid of the 50 seaters is fine, but:
1) Does nothing to replace mainline jobs
2) Provides talking point FUD, which distracts from the real problem
3) The real problem being 70-76 seaters, which have the range and lift to replace 100-125 seat aircraft. The entire DC-9 fleet was outsourced with them, probably along with some of the bottom 125 seat market to the tune of hundreds, and possibly thousands of mainline jobs (plus advancements).
The Alaska and JV problems are separate, but related. But here's the thing: Our sub 100 seat lift got outsourced because, ostensibly, the outsourced lift was cheaper.
DAL provided lift is cheaper than Alaska. DAL provided lift is also cheaper than many of the JV participants. Using the reasoning that what's good for the goose should also be good for the gander, why is DAL metal not repacing the "more expensive" lift under the DAL code?
We're getting it from both sides...
Nu
To me the answer is simple economics. DAL cannot afford to take on the debt, and or the banks will not allow them to. That is the reason for the effort to cut our debt in almost half in five years. DAL knows it needs feed for the jets they do have (Asia WB flying) but cannot afford to buy the jets to feed it, ala ALK code share.
In reality it is the same everywhere. Once they get down a billion or two more in debt it is my opinion that the ability to buy jets now changes, and we may see some show up, but until then, DAL wants to keep their network intact even if they have less control of it. That is why we see so many code shares, marketing agreements, and alliance partners being added. It also shows that pilot costs are really negligible in the scheme of things.
#64
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,522
And isn't the bulk of the SKYW ball and chain also coming to an end in the next couple years? Did we sell them the ATL gates or just rent them a portion of the ATL flying for that 10 year(ish) time frame that's about to end?
#65
Gets Weekends Off
Joined APC: Jul 2010
Position: window seat
Posts: 12,522
Gloopy the problem is that we did outsource it, and it pays a lot less. To do pay and bennies on day one results in nothing ever being done. You have to have control of the market to effect the market forces. First would be to own the flying, then the pay. The hole is just to big to fill with a simple tire sealer.
#66
That's exactly what I'm saying. We have to get it back first, and if a non linear pay and benefits system is the only way to do it then that's what has to be done. There is no moral high ground for anyone to take by acting like doing so would be bad for the profession or unfair to the pilot group when the alternative for not doing so is continued outsourcing which is far, far worse.
#67
To me the answer is simple economics. DAL cannot afford to take on the debt, and or the banks will not allow them to. That is the reason for the effort to cut our debt in almost half in five years. DAL knows it needs feed for the jets they do have (Asia WB flying) but cannot afford to buy the jets to feed it, ala ALK code share.
In reality it is the same everywhere. Once they get down a billion or two more in debt it is my opinion that the ability to buy jets now changes, and we may see some show up, but until then, DAL wants to keep their network intact even if they have less control of it. That is why we see so many code shares, marketing agreements, and alliance partners being added. It also shows that pilot costs are really negligible in the scheme of things.
In reality it is the same everywhere. Once they get down a billion or two more in debt it is my opinion that the ability to buy jets now changes, and we may see some show up, but until then, DAL wants to keep their network intact even if they have less control of it. That is why we see so many code shares, marketing agreements, and alliance partners being added. It also shows that pilot costs are really negligible in the scheme of things.
I feel so synergized.
#68
Super Moderator
Joined APC: Dec 2007
Position: DAL 330
Posts: 6,868
Yep,
During the merger roadshow I distinctly remember being told that the combined pax load of DAL and NW would enable us to reach a tipping point in markets like BOS and LAX that had no dominant airline.
I guess they forgot to mention it would be Alaska that benefited from this (in LAX at least).
So a question to all - In what market did the post-merger DAL hit a tipping point and become the dominant carrier???
I remember some bean counter saying that if we get xx percentage of seats we could control the market and raise prices - I guess this could be happening - but I certainly don't see us dominating any previously up for grabs markets.
Scoop
#69
Gets Weekends Off
Joined APC: Mar 2011
Position: Cockpit speaker volume knob set to eleven.
Posts: 1,410
I think after the 75% reduction...we've got CVG locked up.
During the merger roadshow I distinctly remember being told that the combined pax load of DAL and NW would enable us to reach a tipping point in markets like BOS and LAX that had no dominant airline.
I guess they forgot to mention it would be Alaska that benefited from this (in LAX at least).
So a question to all - In what market did the post-merger DAL hit a tipping point and become the dominant carrier???
I remember some bean counter saying that if we get xx percentage of seats we could control the market and raise prices - I guess this could be happening - but I certainly don't see us dominating any previously up for grabs markets.
Scoop
I guess they forgot to mention it would be Alaska that benefited from this (in LAX at least).
So a question to all - In what market did the post-merger DAL hit a tipping point and become the dominant carrier???
I remember some bean counter saying that if we get xx percentage of seats we could control the market and raise prices - I guess this could be happening - but I certainly don't see us dominating any previously up for grabs markets.
Scoop
Last edited by johnso29; 09-17-2011 at 05:40 PM.
#70
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