Originally Posted by Razorback flyer

I think this is pretty good info on the oil Market:

"Managed money accounts on the NYMEX own a record 268,622 contracts (i.e. 269 MMbbls) of WTI crude oil. The storage capacity at the NYMEX hub in Cushing, OK is only around 45 MMbbls. In other words, speculators own nearly 6× the capacity currently available at Cushing. It does not get any clearer which way Wall Street is trying to take oil.

Bottom line, NYMEX WTI aside, light sweet crude oils (e.g. LLS, Brent, and Bonny Light) are trading comfortably above $115 a barrel. At this level retail gasoline works out to around $3.70 a gallon. The national average for gasoline as of last Monday was $3.39 a gallon. Thus, at the current rate Americans face the prospect of another 30 cent increase at the pump this summer.

We know from recent history that demand inelasticity, be it in the U.S., Europe and yes, even China, begin to wane at these retail prices."

Other info:
CVG pireps feb newsletter stated that we were projecting a $1.5B profit this year, and that was with oil at $90, and the crack spread on jet fuel another $25 on top of that. The spike would have to be not only extremley steep, but protracted to wipe that out. Not saying that can't happen, but fundamentals certainly don't support it without something extreme happening.

Unrelated:
JG flt ops 411 this week talked more about the RFP, and stated they are looking at "anything and everything" that might fit our network needs in the future. This included Boeing, Airbus, Embraer, Bombardier (specifically mentioned C-series,) as well the new Russian, Japanese, and Chinese jets.

Originally Posted by DAL 88 Driver

Yeah... very funny...

But seriously, I think that might be part of the problem. I don't have any idea if any changes have been made to the routine maintenance schedule on the DC-9 since the merger, but that wouldn't surprise me and I'm wondering if it could be part of the problem. Especially with an airplane that old, if the reliability was as good as everyone says, I think I would stick with what was working for NWA.

Any other ideas?

Originally Posted by newKnow

"...stick with what was working for NWA." sounds like a good idea.


No. Seriously, I think the DC-9 was one of the most reliable fleets at NWA. What is being done differently, I don't know.

Originally Posted by georgetg

I heard that first hand from a network guy at a base-ops visit in SLC early last year (when there still was a MD90 base in SLC)

A pilot asked about the what the difference was between the 160 seat MD90 and the 160 seat 738.

Apart from "lower pilot costs" (yes he did say that in front of a whole group of pilots) he said the 738 takes 25 days to break even with 5 days of "gravy" whereas the numbers are reversed for the MD90....

Cheers
George

Originally Posted by georgetg

AMR has some pretty big plans up their sleeve.
Offers $1B in private secured notes.

American Airlines Announces Private Offering of Senior Secured Notes -- FORT WORTH, Texas, March 7, 2011 /PRNewswire/ --

Cheers
George

Originally Posted by TOGA LK

That's wild. All this time they have been trying to pay down their debt from the TWA merger. Another merger fund???

Originally Posted by 80ktsClamp

You sure about that? Nearly every mechanical delay I had while riding in the NW system involved a Saab, Pinnacle, or a DC-9....

Originally Posted by LandGreen2

This ^^^^^^^coming from this thread's official DALPA apologist! Are you suggesting that we should all apply to SWA since DALPA knows it has no chance of doing the job SWAPA does on a daily basis? Maybe instead of recommending our membership apply to SWA, DALPA should hire SWAPA to get us a new contract! They sure seem to have a good handle on Scope, Pay and Work Rules!! If only.....

Originally Posted by sailingfun

SWAPA has never accomplished much of anything. They have piggy backed off of the rest of the pilot world. How did they get their current pay rates. The Delta 3B6 rates on the 737 NG and the Delta and UAL 2001 contracts. What did they achieve then? 20 percent lower rates then the industry.
They have what they have because the company has good management and made 5 billion dollars hedging heating oil.
Scope at SWAPA? The company has never pushed them for RJ and does not want them. No accomplishment on SWAPA part.
The one thing that SWAPA does do well is make sure they work with the company to insure the companies long term success. What a concept!

By the way, SWAPA is not happy with their current position. They don't like where their cost structure is now and the impact it has had on career progression at SWA. That is why they have made no real effort to really raise the bar and have agreed to two contracts and extensions with very small raises. They don't want to be at the top. They want their company to regain its historical huge cost advantage so they can go back to the days of 5 year captains.

Originally Posted by 80ktsClamp

Something smells about those numbers... Sounds like one of those things that changes everytime they need to sell something. I don't doubt that the MD-90 is a lot cheaper, but that doesn't quite pass the taste test.