Majors Dead?

[Swass]

" Major airlines either must change the way they do business by lowering costs or get out of the way of the smaller more efficient carriers, they won't last 5 more years." This statement was mentioned after a lengthy debate over our industry at my FBO between two very senior pilots at different airlines. They seemed to think that business the way it once was is now over, how do you feel about it and do you agree?

 

[rjcap]

I agree completely.

 

[FlyDeltasJets]

It's just like any other cycle. Some will live, some will die, and many of the current "media darlings" will end up on the junk heap (a la People Express, the last airline chosen to "kill the majors").

Are some of the majors doomed? Perhaps. Are all of them? Not by a long shot. Will adjustments be made? Sure. Am I confident in my future with Delta? Very much so. I would not want to be at any other airline.

 

[furlowedSF34]

Here is my take on it. Im sure that most of the majors will survive in some form or another after this cycle. My question is if you are currently fly for a regional or fractional and these guys eventually do put out a help wanted sign, are you going to remember what they have done to their employees, retirement systems and shareholders?

If noone applies to these guy because they are lousy places to try to make a living, either they go away on their own or they have to change to attract quality people.

 

[General Lee]

RJCAP,

I also believe that the Majors must change during this rough patch, and I think Delta has done just that. They have recognized the need for a product to fight against the LCC's. They came up with an idea (with an interesting name, I know) long before any other Major, and are already implementing it. They have also cut back where needed (lots of early retirements given for employees that were not needed), and added more Kiosks for airport check-ins than any other airline. Delta Technologies, a subsidiary of Delta, is finding many new ways to improve of efficiencies. we have instituted many new programs for saving fuel----like installing new ground power units at almost all of the Delta outstations, so we don't have to turn on our APU and waste gas as we approach the gate. We hedge fuel better than anyone else. I think you are right that airlines need to recognize inefficiencies and recognize them early. Delta has done a great job so far. Reducing high pilot salaries isn't always the answer--as we can see here.

Bye Bye---General Lee

 

[falcon20]

General Lee
That is great you'll are doing things that work, but before you make the comment Delta is the best at hedging fuel, take a look at SWA program. Good Luck to all.

 

[General Lee]

Falcon1,

I gave the DL hedging numbers, let's see the Southwest numbers. I remember reading that Delta had the best hedging plan in the business. Here it is again for 2003:

Thru March- 63% at 77 cents
March to June- 65% at 75 cents
after June-- 50% at 75 cents

Currently avgas is $1.20 a gallon

I'd say that is a pretty good savings. Maybe Southwest is better. How about next time you give the numbers instead of bragging without the proof. I don't know where to look up Southwest's hedging.

Bye Bye---General Lee

 

[falcon20]

Hey General take a chill, Ill get you the numbers. Man you need to relax! At the 4th quarter earnings conference I believe it was in the 80% range, I will go back and listen if it is still available, if not I will get it from another source. Relax, Deep Breaths.

 

[Cliff]

RJCAP,

we have instituted many new programs for saving fuel----like installing new ground power units at almost all of the Delta outstations, so we don't have to turn on our APU and waste gas as we approach the gate. We hedge fuel better than anyone else.
Bye Bye---General Lee

Yep you sure do!!! That's why I ask the company not to fly me on Delta,, in the summer you board to a hot airplane and we sit and sweat on taxi.. Additionally: Your seat pitch should be against regulations.. Business class is so tight its not worth the cost..

 

[FlyDeltasJets]

Cliff,

We only turn the APU off in the hot summer if we are at a gate that has ground air. That should be sufficient to keep the plane cool, but on a really hot day, it doesn't matter what airline you fly, it's going to be hot in there. To be honest, on most planes, the ground air works better than the APU at keeping the place cool.

As for our business elite, the pitch is better than any other airline. Now if you are talking about coach, well, I can't disagree.