Oh, daddy Delta do tell...
12-02-2009, 10:22 AM
#1
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Joined APC: Aug 2008
Posts: 503
Oh, daddy Delta do tell...
Attention all airlines (except Delta):
------------------------
Delta executive urges restraint on capacity
Posted on December 2, 2009 at 10:08 AM
Updated today at 10:08 AM
ATLANTA (AP) — A Delta Air Lines Inc. executive urged other carriers Wednesday to be careful not to increase the amount of flying they do too quickly.
Chief Financial Officer Hank Halter said at a New York investor conference that was broadcast on the Internet that even if a modest recovery occurs in 2010, the world's biggest airline hopes the industry maintains flat capacity.
Capacity is measured by the amount of available seats a carrier offers, times the miles flown.
Halter said Delta could eventually increase capacity 1 percent to 2 percent once demand shows strong signs of coming back. He says demand won't really gain steam until passengers feel that the recession is firmly in the rearview mirror and it is safe to spend.
"People are holding onto their money still," Halter said in his presentation during the Morgan Stanley Transportation Corporate Access Day. "When they are flying, they are flying in the back of the aircraft."
Many carriers have shed capacity over the last 18 months. The impact of the recession on business travel has been especially painful for airlines, which rely on sales of premium seats to boost revenue.
"The challenge for the industry is to make sure we don't come back and start flooding the market with more capacity ... when the demand isn't there," Halter said.
The comments came as Delta, based in Atlanta, continues its efforts to lure struggling Japan Airlines away from its partnership with American Airlines and into an alliance with Delta and its SkyTeam partners. Executives from Delta and American were scheduled to be in Tokyo on Thursday to meet with reporters.
Delta and its alliance partners have said a billion-dollar offer is on the table to lure JAL from its affiliation with American. JAL President Haruka Nishimatsu has said he will make a decision on the offer by the end of the year.
American is working aggressively to try to keep Japan Airlines in its oneworld alliance. American, a unit of AMR Corp., which is based in Fort Worth, Texas, has said that if JAL switches from the oneworld alliance it will cost JAL up to $500 million in lost revenue in the first two years after the changeover.
That figure assumes Delta initially will only be able to replace about half the revenue-sharing and other money that JAL currently gets from its oneworld partners, including American.
During the investor conference Wednesday, Halter did not address the status of Delta's talks with JAL, saying only, "All of SkyTeam would benefit, as would JAL, if JAL would come into the SkyTeam alliance."
------------------------
Delta executive urges restraint on capacity
Posted on December 2, 2009 at 10:08 AM
Updated today at 10:08 AM
ATLANTA (AP) — A Delta Air Lines Inc. executive urged other carriers Wednesday to be careful not to increase the amount of flying they do too quickly.
Chief Financial Officer Hank Halter said at a New York investor conference that was broadcast on the Internet that even if a modest recovery occurs in 2010, the world's biggest airline hopes the industry maintains flat capacity.
Capacity is measured by the amount of available seats a carrier offers, times the miles flown.
Halter said Delta could eventually increase capacity 1 percent to 2 percent once demand shows strong signs of coming back. He says demand won't really gain steam until passengers feel that the recession is firmly in the rearview mirror and it is safe to spend.
"People are holding onto their money still," Halter said in his presentation during the Morgan Stanley Transportation Corporate Access Day. "When they are flying, they are flying in the back of the aircraft."
Many carriers have shed capacity over the last 18 months. The impact of the recession on business travel has been especially painful for airlines, which rely on sales of premium seats to boost revenue.
"The challenge for the industry is to make sure we don't come back and start flooding the market with more capacity ... when the demand isn't there," Halter said.
The comments came as Delta, based in Atlanta, continues its efforts to lure struggling Japan Airlines away from its partnership with American Airlines and into an alliance with Delta and its SkyTeam partners. Executives from Delta and American were scheduled to be in Tokyo on Thursday to meet with reporters.
Delta and its alliance partners have said a billion-dollar offer is on the table to lure JAL from its affiliation with American. JAL President Haruka Nishimatsu has said he will make a decision on the offer by the end of the year.
American is working aggressively to try to keep Japan Airlines in its oneworld alliance. American, a unit of AMR Corp., which is based in Fort Worth, Texas, has said that if JAL switches from the oneworld alliance it will cost JAL up to $500 million in lost revenue in the first two years after the changeover.
That figure assumes Delta initially will only be able to replace about half the revenue-sharing and other money that JAL currently gets from its oneworld partners, including American.
During the investor conference Wednesday, Halter did not address the status of Delta's talks with JAL, saying only, "All of SkyTeam would benefit, as would JAL, if JAL would come into the SkyTeam alliance."
12-02-2009, 11:35 AM
#3
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Position: 88B - Loud Pipes Save Lives
Posts: 1,597
So do you advocate the alternative and have all the airlines add 10% + capacity next year? That will work great if yields aren't there to support it. The collective capacity reduction and restraint shown by the airlines during this recession is unprecedented. As a result, no major carrier went bankrupt so far and furloughs, I believe, were minimized. Delta led the carriers with their capacity reduction and is a contributor I believe, to why they didn't furlough and are in the strength they are in. If the airlines collectively show restraint during the recovery it will be good for all.
12-02-2009, 11:48 AM
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Position: 767er Captain
Posts: 12,109
So do you advocate the alternative and have all the airlines add 10% + capacity next year? That will work great if yields aren't there to support it. The collective capacity reduction and restraint shown by the airlines during this recession is unprecedented. As a result, no major carrier went bankrupt so far and furloughs, I believe, were minimized. Delta led the carriers with their capacity reduction and is a contributor I believe, to why they didn't furlough and are in the strength they are in. If the airlines collectively show restraint during the recovery it will be good for all.
12-02-2009, 11:48 AM
#6
Gets Weekends Off
Joined APC: Jun 2009
Posts: 5,113
So do you advocate the alternative and have all the airlines add 10% + capacity next year? That will work great if yields aren't there to support it. The collective capacity reduction and restraint shown by the airlines during this recession is unprecedented. As a result, no major carrier went bankrupt so far and furloughs, I believe, were minimized. Delta led the carriers with their capacity reduction and is a contributor I believe, to why they didn't furlough and are in the strength they are in. If the airlines collectively show restraint during the recovery it will be good for all.
So I don't mind that this strikes Seagull's funny bone. And the fact he acknowledged Delta's his Daddy only lends him more credibility.
Now, the fact Delta said it makes it slightly funny. If Southwest, JetBlue, or Virgin had talked about capacity restraint, then it would be more ironic.
12-02-2009, 11:54 AM
#7
No longer cares
Joined APC: Mar 2008
Position: 767er Captain
Posts: 12,109
This is all true, but you have to recognize that any executive that encourages other airlines to do anything (and especially keep capacity down) will be viewed with some degree of skepticism. It's only normal. It's not so much funny because we lack credibility in terms of capacity restraint (we don't), but it's mostly funny because it suggests that rational thinking (or behavior) is possible in this industry.
So I don't mind that this strikes Seagull's funny bone. And the fact he acknowledged Delta's his Daddy only lends him more credibility.
Now, the fact Delta said it makes it slightly funny. If Southwest, JetBlue, or Virgin had talked about capacity restraint, then it would be more ironic.
So I don't mind that this strikes Seagull's funny bone. And the fact he acknowledged Delta's his Daddy only lends him more credibility.
Now, the fact Delta said it makes it slightly funny. If Southwest, JetBlue, or Virgin had talked about capacity restraint, then it would be more ironic.
12-02-2009, 01:34 PM
#9
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Position: 737 CAPT
Posts: 1,905
Attention all airlines (except Delta):
------------------------
Delta executive urges restraint on capacity
Posted on December 2, 2009 at 10:08 AM
Updated today at 10:08 AM
ATLANTA (AP) — A Delta Air Lines Inc. executive urged other carriers Wednesday to be careful not to increase the amount of flying they do too quickly.
Chief Financial Officer Hank Halter said at a New York investor conference that was broadcast on the Internet that even if a modest recovery occurs in 2010, the world's biggest airline hopes the industry maintains flat capacity.
Capacity is measured by the amount of available seats a carrier offers, times the miles flown.
Halter said Delta could eventually increase capacity 1 percent to 2 percent once demand shows strong signs of coming back. He says demand won't really gain steam until passengers feel that the recession is firmly in the rearview mirror and it is safe to spend.
"People are holding onto their money still," Halter said in his presentation during the Morgan Stanley Transportation Corporate Access Day. "When they are flying, they are flying in the back of the aircraft."
Many carriers have shed capacity over the last 18 months. The impact of the recession on business travel has been especially painful for airlines, which rely on sales of premium seats to boost revenue.
"The challenge for the industry is to make sure we don't come back and start flooding the market with more capacity ... when the demand isn't there," Halter said.
------------------------
Delta executive urges restraint on capacity
Posted on December 2, 2009 at 10:08 AM
Updated today at 10:08 AM
ATLANTA (AP) — A Delta Air Lines Inc. executive urged other carriers Wednesday to be careful not to increase the amount of flying they do too quickly.
Chief Financial Officer Hank Halter said at a New York investor conference that was broadcast on the Internet that even if a modest recovery occurs in 2010, the world's biggest airline hopes the industry maintains flat capacity.
Capacity is measured by the amount of available seats a carrier offers, times the miles flown.
Halter said Delta could eventually increase capacity 1 percent to 2 percent once demand shows strong signs of coming back. He says demand won't really gain steam until passengers feel that the recession is firmly in the rearview mirror and it is safe to spend.
"People are holding onto their money still," Halter said in his presentation during the Morgan Stanley Transportation Corporate Access Day. "When they are flying, they are flying in the back of the aircraft."
Many carriers have shed capacity over the last 18 months. The impact of the recession on business travel has been especially painful for airlines, which rely on sales of premium seats to boost revenue.
"The challenge for the industry is to make sure we don't come back and start flooding the market with more capacity ... when the demand isn't there," Halter said.
HYPOCRITES because on the same day they state all this above, they follow it with:
Delta Adding New Flights to Hawaii
Detroit, San Diego gain nonstop routes to Honolulu
ATLANTA, Dec. 2 /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL - News) today announced it will introduce nonstop flights connecting Honolulu with Detroit and San Diego, beginning in June. The new service marks the first time Delta has served Honolulu from San Diego and reinstates nonstop service from Detroit that had been discontinued in 2004.
"The expanded customer base created through Delta's merger with Northwest allows us to bring new service to markets that previously did not have the demand to sustain nonstop flights," said Bob Cortelyou, Delta's senior vice president - Network Planning. "Detroit to Honolulu nonstop service provides greater access to Hawaii for customers in Michigan, the eastern U.S. and Canada, while our new route between San Diego and Honolulu will expand Delta's extensive flight schedules between the West Coast and Hawaii."
As a leading carrier to the Hawaiian Islands, Delta currently offers passengers 106 weekly flights between Hawaii and nine worldwide destinations. Delta operates its largest gateway to Hawaii at Los Angeles International Airport with an average of five daily round-trip departures to four Hawaiian destinations - Honolulu, Maui, Lihue and Kona. In addition to new local nonstop service beginning in June 2010, Detroit and San Diego customers will continue to have convenient connecting access to additional Hawaiian destinations via Los Angeles. Delta offers five daily round-trip flights between Detroit and Los Angeles and will add five daily round-trip flights between San Diego and Los Angeles, effective Feb. 11, 2010.
12-02-2009, 01:42 PM
#10
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Joined APC: Jun 2009
Posts: 5,113
Put Down the Stone: You're in a Glass House
It's absolutely a case of Delta of saying "DO AS WE SAY NOT AS WE DO!!!" HYPOCRITES because on the same day they state all this above, they follow it with [two additional routes]
But before you get carried away, you should note that even the original article article acknowledges 1-2% planned growth at DAL. Furthermore, I don't think DAL is concerned about adding routes where there is demand, but adding capacity that is not proportional to demand:
"...The challenge for the industry is to make sure we don't come back and start flooding the market with more capacity ... when the demand isn't there..."
And two routes in DAL's network ins't exactly a flood of capacity, is it? So it's all meaningless absent the context of demand on that particular route, without comparisons to the overall newtork at DAL, and especially without comparing DAL's actions to other airlines.
And I don't think any airline based in EWR needs to be giving lessons on the topic of capacity discipline.
Last edited by Sink r8; 12-02-2009 at 01:53 PM. Reason: Added quotes.
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