DL International Cuts
04-17-2015, 11:50 AM
#1
Gets Weekends Off
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Joined APC: Jan 2011
Posts: 403
DL International Cuts
More international cuts coming for Delta this fall than those typical for the shoulder months. Do we think it is...
Lower fuel prices making more people drive on their international trips? (That's what the press release said). Sounds fishy. Or...
The ME3 starting to beat us? Or...
Our codeshare partners driving through the holes in our scope clause?
Those wide body cuts are going to hurt even with the hiring and retirements. Hope this is being considered by our negotiators.
Lower fuel prices making more people drive on their international trips? (That's what the press release said). Sounds fishy. Or...
The ME3 starting to beat us? Or...
Our codeshare partners driving through the holes in our scope clause?
Those wide body cuts are going to hurt even with the hiring and retirements. Hope this is being considered by our negotiators.
04-17-2015, 03:24 PM
#5
Gets Weekends Off
Joined APC: Jan 2014
Position: DAL A320 CA
Posts: 559
More international cuts coming for Delta this fall than those typical for the shoulder months. Do we think it is...
Lower fuel prices making more people drive on their international trips? (That's what the press release said). Sounds fishy. Or...
The ME3 starting to beat us? Or...
Our codeshare partners driving through the holes in our scope clause?
Those wide body cuts are going to hurt even with the hiring and retirements. Hope this is being considered by our negotiators.
Lower fuel prices making more people drive on their international trips? (That's what the press release said). Sounds fishy. Or...
The ME3 starting to beat us? Or...
Our codeshare partners driving through the holes in our scope clause?
Those wide body cuts are going to hurt even with the hiring and retirements. Hope this is being considered by our negotiators.
Que Pelican and Cricket in 3...2...1..
04-17-2015, 03:51 PM
#8
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Joined APC: Jul 2010
Position: window seat
Posts: 12,544
I think this is part of the "capacity dicipline" craze from several years ago that many on wall st view as the catalyst for the numbers being put up now, and partially for good reason in that limited context. It is not, however, an endless well any airline can go to in order to print money. Articles on the subject have called this latest round "music to their ears" referring to investors, or more likely analcysts that aren't even invested but wanting street cred by seeing if they can get companies to do whatever they pontificate they should do.
Things seem to be going so well that there is a fear of missing ever increasing expectations or upsetting the analcysts. But capacity dicipline only works if everyone else participates and it can't work forever in any case; its not a sustainable long term strategy at all. If ME3 keep barfing super jumbos into markets where others are trying to keep profitable with capacity cuts, those cuts will backfire big time on DL and any other US airlines that try them. Soon US airlines will have no choice but to either retreat and shrink into insignificance or slug it out with the dual subsidized fake royal capacity dumpers. Either way will be very costly, but fighting them while we're healthy enough to do it at least gives us a chance to win. Letting them poach our networks on their terms is extremely unsustainable.
We will see a similar, though less financially severe, battle heat up on the domestic side of things as well. The endless growth mode so called LCC's will never stop dumping capacity and trashing yields, no matter what the big 3/4 try to do to bolster the industry. The days of gifting capacity to whoever wants it to please the analcysts is going to rapidly lose its luster on wall st.
Things seem to be going so well that there is a fear of missing ever increasing expectations or upsetting the analcysts. But capacity dicipline only works if everyone else participates and it can't work forever in any case; its not a sustainable long term strategy at all. If ME3 keep barfing super jumbos into markets where others are trying to keep profitable with capacity cuts, those cuts will backfire big time on DL and any other US airlines that try them. Soon US airlines will have no choice but to either retreat and shrink into insignificance or slug it out with the dual subsidized fake royal capacity dumpers. Either way will be very costly, but fighting them while we're healthy enough to do it at least gives us a chance to win. Letting them poach our networks on their terms is extremely unsustainable.
We will see a similar, though less financially severe, battle heat up on the domestic side of things as well. The endless growth mode so called LCC's will never stop dumping capacity and trashing yields, no matter what the big 3/4 try to do to bolster the industry. The days of gifting capacity to whoever wants it to please the analcysts is going to rapidly lose its luster on wall st.
04-17-2015, 04:18 PM
#10
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Joined APC: Apr 2008
Position: 747-400 Captain
Posts: 12,487
I think this is part of the "capacity dicipline" craze from several years ago that many on wall st view as the catalyst for the numbers being put up now, and partially for good reason in that limited context. It is not, however, an endless well any airline can go to in order to print money. Articles on the subject have called this latest round "music to their ears" referring to investors, or more likely analcysts that aren't even invested but wanting street cred by seeing if they can get companies to do whatever they pontificate they should do.
Things seem to be going so well that there is a fear of missing ever increasing expectations or upsetting the analcysts. But capacity dicipline only works if everyone else participates and it can't work forever in any case; its not a sustainable long term strategy at all. If ME3 keep barfing super jumbos into markets where others are trying to keep profitable with capacity cuts, those cuts will backfire big time on DL and any other US airlines that try them. Soon US airlines will have no choice but to either retreat and shrink into insignificance or slug it out with the dual subsidized fake royal capacity dumpers. Either way will be very costly, but fighting them while we're healthy enough to do it at least gives us a chance to win. Letting them poach our networks on their terms is extremely unsustainable.
We will see a similar, though less financially severe, battle heat up on the domestic side of things as well. The endless growth mode so called LCC's will never stop dumping capacity and trashing yields, no matter what the big 3/4 try to do to bolster the industry. The days of gifting capacity to whoever wants it to please the analcysts is going to rapidly lose its luster on wall st.
Things seem to be going so well that there is a fear of missing ever increasing expectations or upsetting the analcysts. But capacity dicipline only works if everyone else participates and it can't work forever in any case; its not a sustainable long term strategy at all. If ME3 keep barfing super jumbos into markets where others are trying to keep profitable with capacity cuts, those cuts will backfire big time on DL and any other US airlines that try them. Soon US airlines will have no choice but to either retreat and shrink into insignificance or slug it out with the dual subsidized fake royal capacity dumpers. Either way will be very costly, but fighting them while we're healthy enough to do it at least gives us a chance to win. Letting them poach our networks on their terms is extremely unsustainable.
We will see a similar, though less financially severe, battle heat up on the domestic side of things as well. The endless growth mode so called LCC's will never stop dumping capacity and trashing yields, no matter what the big 3/4 try to do to bolster the industry. The days of gifting capacity to whoever wants it to please the analcysts is going to rapidly lose its luster on wall st.
Carl
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