Gman5000's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/200344/comments http://seekingalpha.com/article/81430-delta-ends-contract-with-pinnacle-what-s-the-impact-on-regional-carriers?source=feed#comment-186357 186357
Bottom line: Delta (and other carriers) are trying to reduce capacity and quick, and first priority is to get rid of 50-seat and smaller jets as soon as they can. As I mentioned previously, I think this Delta move against Pinnacle is to reduce a Delta Connection carrier (Pinnacle) and then take those 76-seat aircraft and use carrot/stick to get rid of more 50-seat aircraft at other DCI carriers (Freedom) in exchange for giving that other DCI carrier these 76-seat aircraft that Pinnacle has been flying. Delta needs these 76-seat aircraft given the gaping hole in the capacity of its fleet (next biggest a/c is 142 seat MD-88s), and the cost on 76-seat CRJ-900 is far better than 50-seat RJ lift. Delta is desperately trying to reduce 50-seat flying, and I see this as a strategic move toward that end.]]> Mon, 16 Jun 2008 10:03:53 -0400
Bottom line: Delta (and other carriers) are trying to reduce capacity and quick, and first priority is to get rid of 50-seat and smaller jets as soon as they can. As I mentioned previously, I think this Delta move against Pinnacle is to reduce a Delta Connection carrier (Pinnacle) and then take those 76-seat aircraft and use carrot/stick to get rid of more 50-seat aircraft at other DCI carriers (Freedom) in exchange for giving that other DCI carrier these 76-seat aircraft that Pinnacle has been flying. Delta needs these 76-seat aircraft given the gaping hole in the capacity of its fleet (next biggest a/c is 142 seat MD-88s), and the cost on 76-seat CRJ-900 is far better than 50-seat RJ lift. Delta is desperately trying to reduce 50-seat flying, and I see this as a strategic move toward that end.]]> http://seekingalpha.com/article/81430-delta-ends-contract-with-pinnacle-what-s-the-impact-on-regional-carriers?source=feed#comment-186340 186340
Why will Delta agree to take 76-seaters when they're trying to reduce RJ lift? Remember, Freedom continues to fly for Delta the same 76-seaters as Pinnacle. Might Freedom settle with Delta and agree to reduce the 34 50-seaters that are the subject of the dispute, with Delta dangling a carrot of 16 more 76-seaters to add to the 14 Freedom already flies for Delta? Notice Delta didn't take this action against Pinnacle until after the Freedom injunction. Might this be "Plan B" for reducing 50-seat lift with Freedom while also reducing another Delta Connection carrier by removing Pinnacle?]]> Mon, 16 Jun 2008 09:46:47 -0400
Why will Delta agree to take 76-seaters when they're trying to reduce RJ lift? Remember, Freedom continues to fly for Delta the same 76-seaters as Pinnacle. Might Freedom settle with Delta and agree to reduce the 34 50-seaters that are the subject of the dispute, with Delta dangling a carrot of 16 more 76-seaters to add to the 14 Freedom already flies for Delta? Notice Delta didn't take this action against Pinnacle until after the Freedom injunction. Might this be "Plan B" for reducing 50-seat lift with Freedom while also reducing another Delta Connection carrier by removing Pinnacle?]]> http://seekingalpha.com/article/78949-what-s-really-wrong-with-the-airline-industry-and-can-it-be-fixed?source=feed#comment-174895 174895 Tue, 27 May 2008 23:13:12 -0400 http://seekingalpha.com/article/78949-what-s-really-wrong-with-the-airline-industry-and-can-it-be-fixed?source=feed#comment-174503 174503
Contrary to conventional wisdom, they fly 2 aircraft types: 737-300/500 ("737 Classics") and 737-700 ("737 Next Gen"). Just because both types have "737" in the name doesn't mean they're the same type, any more than a 2008 Corvette shares anything other than name with a 1972 Corvette.

Southwest also is heavily unionized and has high labor costs, it's just that their management works WITH their unions to get the highest productivity out of their employees - and with a smile.

Southwest connects a lot more traffic than people think. Go sit at BWI any afternoon and watch how many pax are connecting. And while conventional wisdom is that Southwest is a "point-to-point" carrier, they have several stations that can be called hubs by anyone's definition of the word.

Southwest is a profitable fuel speculation company, that happens to also run a money-losing airline.

Still, a great article that is very well researched.]]> Tue, 27 May 2008 11:02:55 -0400
Contrary to conventional wisdom, they fly 2 aircraft types: 737-300/500 ("737 Classics") and 737-700 ("737 Next Gen"). Just because both types have "737" in the name doesn't mean they're the same type, any more than a 2008 Corvette shares anything other than name with a 1972 Corvette.

Southwest also is heavily unionized and has high labor costs, it's just that their management works WITH their unions to get the highest productivity out of their employees - and with a smile.

Southwest connects a lot more traffic than people think. Go sit at BWI any afternoon and watch how many pax are connecting. And while conventional wisdom is that Southwest is a "point-to-point" carrier, they have several stations that can be called hubs by anyone's definition of the word.

Southwest is a profitable fuel speculation company, that happens to also run a money-losing airline.

Still, a great article that is very well researched.]]>