Delta's domestic reductions.

[Cpt Oveur]

I got this off another forum, but it's part of big D's plan.

Domestically, fuel prices – combined with a weakening domestic economy – have put significant pressure on the profitability of our U.S. network. Because of this, we are reducing 2008 domestic capacity by an additional 5 percent by August, resulting in a 10 percent year-over-year domestic reduction. These reductions will be made through a combination of decreased utilization and parking 15-20 mainline aircraft and 20-25 regional jets. Delta will continue to be an aggressive domestic competitor and will complete these capacity reductions primarily by thinning frequencies and reducing point-to-point routes. As with past schedule reductions, changes will also be focused at off-peak times or in markets where regional jets are not profitable at the current fuel levels.

Discuss.

 

[ParrotheadGTI]

just got hired by ASA, guess that means I'm screwed.

 

[Tarzan]

Doubt it. The market will adjust to the current fuel prices. Once the oil bubble pops, the industry will be wide open again unless the unthinkable happens again.

 

[DoinTime]

Doubt it. The market will adjust to the current fuel prices. Once the oil bubble pops, the industry will be wide open again unless the unthinkable happens again.

The "oil bubble"??? You have got to be kidding me right?

 

[Tarzan]

The "oil bubble"??? You have got to be kidding me right?

Haven't watched the market much have you? All the talk about supply vs demand is being heavily played up in favor of oil suppliers to get more investment into oil. Make lots of money in short time. There is enough supply to more than meet the demand right now and will be there for quite some time to come regardless of what is being played up. We had something similar go on the 70's. Oil was not quite as much factoring in inflation but the market had similar forces pushing it

 

[Smacktard]

Haven't watched the market much have you? All the talk about supply vs demand is being heavily played up in favor of oil suppliers to get more investment into oil. Make lots of money in short time. There is enough supply to more than meet the demand right now and will be there for quite some time to come regardless of what is being played up. We had something similar go on the 70's. Oil was not quite as much factoring in inflation but the market had similar forces pushing it

Don't forget that the dollar is backed by oil for all intents and purposes, so, when the dollar recovers sometime down the road, the price of oil will decline. So, yes, the bubble will pop.

 

[FlyingToIST]

Don't forget that the dollar is backed by oil for all intents and purposes, so, when the dollar recovers sometime down the road, the price of oil will decline. So, yes, the bubble will pop.

Dollar recovers? WTF? With record budget and trade deficits will go down even further.. but hey, we got rid of Saddam..

 

[Smacktard]

Dollar recovers? WTF? With record budget and trade deficits will go down even further.. but hey, we got rid of Saddam..

Yeah, you're right. I guess we should expect the dollar to remain at an all time low forever. I guess it's time to get off the grid, sell my house, move into the mountains and hunker down. Capitalism is dead. Bush has killed us all. I didn't realize that Iraq completely devalued the dollar and brought us such dire straights. I thought maybe it was more Fed policy over the last few decades, low interests, housing bubble, 9/11 etc that factored into a declining dollar. Silly me, it was the Iraq war...

The end of the world is near, all your dollar are belong to us...

 

[Tarzan]

I forgot about the dollar on that last post. Looking back to the early 70s, the dollar was also very weak as it is today. We are just a fraction lower now then we were then.

 

[av8tor4239]

Dont understand why the airlines keep taking out the sh!tty economy out on their hard working employees? F*& @ the airlines... Pass the cost on the the consumer and take care of your freaking employees!