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Transatlantic JV
Here is a good perspective from last year on what is happening with the Transatlantic JV:
Delta’s recent pulldown of Transatlantic flights was fairly breathtaking in its scope, but it also showed just how joint ventures can influence decisions. Delta is increasing reliance on partners, and that’s not something it might have considered doing as much without its joint venture.... Delta plans to trim an additional 5% on existing 7-8% capacity cuts The company had previously said it would trim its trans-Atlantic capacity by 7 to 8 percent for the full year but had not given a specific forecast for the fourth quarter...Delta Air Lines will cut capacity on trans-Atlantic routes another 5 percent after Labor Day in September, a "proactive" measure aimed at blunting the risk of a weak European currency and soaring fuel costs, airline president Ed Bastian said
What is surprising is how the cuts are fairly one sided with Delta making the vast majority of the route reductions, while relying on AFKLM/AZ to pick up the loads to the key hubs CDG and AMS and the perform the onward European flying. We are already below 50% and cutting way more flying than our JV partners ...what is most interesting to me is how the joint venture with Air France/KLM has to have influenced this. Now, Delta can still easily serve every one of those cities via Amsterdam or Paris by connecting with its partner Air France/KLM. Sure, it could have done that before when it just had a codeshare, but that was different. Back then, it couldn’t have coordinated schedules with Air France/KLM. It couldn’t have looked at connecting flows and fares between the two airlines to come up with the best way to serve each city. Now it can, and that’s exactly what it’s doing. https://dl.dropbox.com/u/25953519/TA...ason-04-JV.jpg The new chart for this winter will most likely look similar... Apparently I am in the minority in finding this not keeping in the spirit of the Transatlantic JV language. We are well below the 50% mark and below even the 'low-water mark" of 47.6% when Alitalia joined the JV. For last year the cumulative production balance was 47% of the flying. For perspective: our codeshare guy RD equates a 2.4% difference as 6-7 daily transatlantic flights. Cheers George |
George,
While all that is true, the real problem here is the measuring mechanism. The out of balance is allowed to exist for a long time prior to measurement and cure. We're allowing the exact same thing with this TA. Ratios that don't even have to be measured for 2 years and don't have to be corrected for 2.5 years...if we even defend them. When will we learn? Carl |
George, thanks for making the complex understandable.
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Don't worry guys, we'll get it all back in profit sharing. Oops, well maybe not in profit sharing.
Any way, don't worry, we'll get it back some how, some day. |
Not to confuse ramblings with facts, but AF/KLM/AZ are cutting transatlantic capacity by about 15% this winter. Their total capacity cuts are more than double what Delta's are. Your graph shows what happened last winter. I note how you try to confuse the intra European capacity with the Trans Atlantic capacity. As you know, we do US domestic and they do intra Europe and the JV is about Trans Atlantic capacity. So you discussing intra Europe flying is just one more misdirection.
I guess this is just as accurate as your bogus staffing slide. Well, really your entire line of bogus slides. |
Originally Posted by texavia
(Post 1218647)
Don't worry guys, we'll get it all back in profit sharing. Oops, well maybe not in profit sharing.
Any way, don't worry, we'll get it back some how, some day. This TA is the first step. And then there are no other steps. http://www.witcoating.com/images/upl...r-Polish-1.jpg |
Originally Posted by alfaromeo
(Post 1218681)
Not to confuse ramblings with facts, but AF/KLM/AZ are cutting transatlantic capacity by about 15% this winter. Their total capacity cuts are more than double what Delta's are.
Thats a pretty tall claim... What AFKLM/AZ city pairs were cut, what AFKLM/AZ routes reduced how many EASKs for them, for us? What is the monthly and accumulated production balance for the current compliance period from April 1, 2011 to date? All my points have sources and are independently verifiable. None of your claims can be substantiated in the same manner! Show me! Cheers George |
You do know that KLM/AF have capacity cuts across the North Atlantic for the peak summer season of 6.5 percent? They are planning large cuts for the winter and just announced large layoffs in support of their new schedule. I don't know if your intentionally trying to miss lead or did not bother with even a tiny bit of fact checking. I am actually not sure what your even trying to say. If your trying to make a point that without the joint venture Delta would have maintained capacity in the face of a huge economic meltdown in Europe then I think you are disallusioned. I think you can actually make the opposite case. Absent the joint venture pulldowns to Europe would be far more dramatic.
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I looked and found this statement in George's post:
Originally Posted by georgetg
(Post 1218628)
The new chart for this winter will most likely look similar...
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Originally Posted by georgetg
(Post 1218694)
Alfa,
Thats a pretty tall claim... What AFKLM/AZ city pairs were cut, what AFKLM/AZ routes reduced how many EASKs for them, for us? What is the monthly and accumulated production balance for the current compliance period from April 1, 2011 to date? All my points have sources and are independently verifiable. None of your claims can be substantiated in the same manner! Show me! Cheers George I won't publish the EASK's because they are not public knowledge. Okay, now it's your turn, what sources do you have? You know, making a pretty graph does not make your information any more true. |
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