georgetg

based on wall street reaction to ED's presentation:

There's no money in...capacity constraint.


I bet the tactical benefit of capacity constraint has run it's course.
The newly announced cuts most likely are strategic.

Cheers
George

Scoop

But big $$$$$$$$ in baggage fees. FDX may have been on to something. Maybe we should look at carrying envelopes too.

Scoop

acl65pilot

Reps are saying next week at the earliest.

forgot to bid

ha ha! good one.

I listene to wsj today and I've got to say there seems to be a lot of uneasiness about Mr Zuckenburger (sp?). They said the GM pull of adds was spiteful in its timing.

I guess from what the said the various holders of others wealth don't want to fork over twice what a company is worth when the CEO walks in with an attitude and a hoodie.

Jack Bauer

Nope.....Fedex is hanging on by a thread. There is no money in cargo. That's why we immediately drew down the cargo only ops. I mean who's going to order stuff on the internet and want it delivered to their house anyway

DeadHead

I wonder how much truth there is to this announcement.
It could be part of the TA vote, perhaps to paint a less than flattering picture.

We could always come in say this fall that we decided to reverse the decision to make the capacity cuts.
I'm 50/50 on this idea.

I do think that the global economy, as whole, is still very questionable. I like to think are capacity restraint/discipline is more in a response to that as opposed to a strategic move to squeeze more revenue out of a depressed market.
I think the election this fall is also a big variable that could swing either way.

Bucking Bar

Check,

Thought they were going all weekend.

Certainly they aren't taking trip drops to attend the Atlanta Block Party

nwaf16dude

Can't tell if that smoke is white or black?

georgetg

The global economy, blah blah blah. The analysts will always find a driving force after the play, very few really see the big picture.

Germany is in the middle of Europe, financing the majority of the bailouts of other EU states, and is enjoying a very robust economy with near record low unemployment. Why would the US be affected more from the Euro crisis than the country at the center of Europe?

I don't think the election or what pilots happen to think has any bearing on the big moves DAL is planning. The capacity pull down this winter is strategic and Ed admitted as much. More to do with long term goals, that short term financials.

Lots of consolidation is still coming in this industry. It will take certain criteria to gain regulator approval, in particular anti-trust considerations. With all the regulatory bodies involved, you can't be the king of the hill and expect to grow.

The only influence presidential elections might have is by making it easier to gain approval of anything that is even obliquely related to creating jobs...

Cheers
George

acl65pilot

I took that differently. I took it as DAL has been right with every other cut, and they are cutting with no indications. Time to dump airlines.