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Old 02-16-2013, 07:37 PM
  #123151  
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Originally Posted by johnso29
So if they make money on those routes, why were they toast?
They're toast because they have CR9s that can do it better and in the numbers they didn't have before...

Originally Posted by forgot to bid
EB Oct 24: "So when you think about say bringing in 40 76-seaters and taking out 60, 50-seaters, there’s a really good balance sheet and CASM trade there."
Originally Posted by forgot to bid
EB said [ref 50 seaters] "customers don’t particularly prefer" and "the cost of continuing to keep the 50-seat RJs in the fleet but even more importantly the upcoming fairly significant maintenance costs that we’re going to be experiencing which will run into the hundreds of millions of dollars on that fleet if we had decided to retain that aircraft."
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Old 02-16-2013, 07:39 PM
  #123152  
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Originally Posted by johnso29
Yes, but overall outsourced CA jobs were decreased with our current contract.
But not as much as they would have been if we didn't allow more large, economically viable RJ's in RJ outsourcing 2.0. Round and round we go.
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Old 02-16-2013, 07:50 PM
  #123153  
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Originally Posted by forgot to bid
They're toast because they have CR9s that can do it better and in the numbers they didn't have before...
It was past tense, questioning how they would be toast without additional 76 seaters to replace them.
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Old 02-16-2013, 07:53 PM
  #123154  
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Originally Posted by Jack Bauer
But not as much as they would have been if we didn't allow more large, economically viable RJ's in RJ outsourcing 2.0. Round and round we go.
How so? Where is the guarantee that the outsourced CA jobs would've been reduced had we not ratified the contract? It's pure conjecture on your part. Before Delta bought Pinnacle, they extended the 50 seat contract by 4 years through 2020. It's clear Delta intended to continue use of the 50 seaters. So by not reducing the allowable amount of total outsourced RJs, how would we have reduced outsourced CA jobs?
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Old 02-16-2013, 08:02 PM
  #123155  
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Originally Posted by johnso29
It was past tense, questioning how they would be toast without additional 76 seaters to replace them.
There were/are other ways....

Delta in talks with Airbus, Boeing to buy jets: Bloomberg
Reuters - Wednesday, January 23, 2013

(Reuters) - Delta Air Lines Inc is in talks with Airbus SAS and Boeing Co to buy $1 billion or more new jets, Bloomberg reported, citing people familiar with the matter.

The Atlanta-based airline is looking at current versions of the Airbus A320 and Boeing 737, not the newest versions, likely meaning a deeper discount to retail prices than normal, the news agency quoted one person as saying. (Delta Said to Talk With Airbus, Boeing on Jet Purchase - Bloomberg)

The talks are for an order of twenty-four to thirty planes and deliveries would start in three to five years, it said.

Lindsay McDuff, a spokeswoman for Delta, told Reuters that the company does not comment on industry rumor and speculation.

The deal could have a book value of at least $1 billion, based on prices tracked by consultant Avitas of Chantilly, Virginia, Bloomberg said.

Delta, the No. 2 airline behind United Continental Holdings , is looking for a deal in which it could exchange some of its 50-seat regional jets for new planes from Boeing or Airbus, similar to a deal with Bombardier Inc made in December.

The sale of old aircraft is a part of a cost-cutting program at the company, which includes retiring smaller, less efficient planes from its fleet.
You must realize J, I did this post on a droid. It was not easy.
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Old 02-16-2013, 08:54 PM
  #123156  
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Originally Posted by johnso29
How so? Where is the guarantee that the outsourced CA jobs would've been reduced had we not ratified the contract? It's pure conjecture on your part. Before Delta bought Pinnacle, they extended the 50 seat contract by 4 years through 2020. It's clear Delta intended to continue use of the 50 seaters. So by not reducing the allowable amount of total outsourced RJs, how would we have reduced outsourced CA jobs?

Then Pinnacle got all Comair'd. There are ways around those contracts...always.

The point is that the 50 seater was self mitigating and we allowed a pile of additional highly viable heavy RJs to replace them.

There is no guarantee otherwise as this is speculation since the contract passed. I would have happily taken a few more months of negotiations to at least get it somewhat more right. What was the big rush? DL supposedly wanted to "make moves." We assumed they would benefit us and open up opportunity for further negotiations and increases. Well, they bought 49% of a foreign airline with a bunch of widebodies to JV with. So much for that.
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Old 02-16-2013, 09:28 PM
  #123157  
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In other news, USair out of CLT cancelled and entire outbound bank of flights due to the snow... but didn't cancel the inbound. So planes were parked everywhere around the airport.

Apparently numerous aircraft have broken the 3 hour limit... whoops!!
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Old 02-17-2013, 03:06 AM
  #123158  
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Originally Posted by tsquare
Click here <-------------
Also check out Financial Engines on Fidelity link. You can input various scenarios, rates, contribution levels etc. and it will run the Monte Carlo simulation to calc. Gross worth, monthly income and projected depletion of saving over retirement.
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Old 02-17-2013, 03:31 AM
  #123159  
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Originally Posted by forgot to bid
They're toast because they have CR9s that can do it better and in the numbers they didn't have before...
Of course the prior contract allowed a greater number of CR9's then the current contract and with aircraft deliveries coming it would have been very simple to pump and dump to reach those numbers. Yes they would have had to reduce the CR7's some to accomplish that but they could have had more of the 9's everyone states are such great aircraft.
Keep one thing in mind. The people involved in the contract working for us modeled every possible option the company had with regard to long term fleet plans. They had airline experts to assist in that not keyboard cowboys. The company had many different options. The current plan was simply one choice among many. Several of the other plans would have been ugly for us but legal under the existing contract.
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Old 02-17-2013, 03:35 AM
  #123160  
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Sailing...come on.. they would have had to have parked 1:1 CR7s to get more 900s. ... and have grown mainline by a pile of airframes (not just domestic mainline). Nothing would have gotten ugly other than longer negotiations. You know better than what you wrote.
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