AA enters LAX -ATL

[WorldTraveler]

I understand profitability very well

It's you who don't understand basic profitability you make things fit your warped world

I guess the meds help you come up with this stuff

I'm surprised DL can function with out you

let's see by this time tomorrow which airlines generating the highest profit.

since AA has already said that AA's operating profit margin will be lower than what DL has reported, I'm hoping you aren't holding your breath.

of course, DL did take a charge to set down the 744 fleet over the next few years so maybe AA is ignoring the need to actually pay something to finish their merger and will beat DL.

 

[diamondcutter]

let's see by this time tomorrow which airlines generating the highest profit.since AA has already said that AA's operating profit margin will be lower than what DL has reported, I'm hoping you aren't holding your breath.of course, DL did take a charge to set down the 744 fleet over the next few years so maybe AA is ignoring the need to actually pay something to finish their merger and will beat DL.

And let's compare how long AA has emerged with BK and how long delta has........you make no sense ... It's woth noting the incredible profits AA has made the quarter out of BK!!!

 

[WorldTraveler]

it actually makes a lot of sense.

AA decided to delay its BK because it was convinced it didn't need to file because it could still compete and the bar is now the same.

can you tell us what the tlme limit is in your mind when AA has to get to the same levels of performance as other carriers?

does AA really intend to reach operating profit margins of 20% which is where DL says it intends to be?

not even WN is doing that now or has done it on a consistent basis.

 

[diamondcutter]

it actually makes a lot of sense.AA decided to delay its BK because it was convinced it didn't need to file because it could still compete and the bar is now the same.can you tell us what the tlme limit is in your mind when AA has to get to the same levels of performance as other carriers?does AA really intend to reach operating profit margins of 20% which is where DL says it intends to be?not even WN is doing that now or has done it on a consistent basis.

See folks there is the spin why did AA wait so long. I'm talking about right now . And have have no answer as to when , beacuse I don't speculate as you do and post it as fact!!!


WT rhetoric and spin make you a fool!! AGAIN why did you get KICKED OFF AIRLINERS.NET??????????

 

[WorldTraveler]

I didn't tell AA when to file or not file.

they made that decision all by themselves.

the fact that they lost all kinds of marketshare as a result of waiting was something they should have considered.

tell me again when the statute of limitations ends for when AA has to be able to produce results like its peers?

5 minutes, 5 days, 5 months.... just when is it?

please be sure to document your answer with the appropriate citations.

and, so sorry, but challenging your jilted view of the world won't get anyone kicked off of any website.

AA has to compete against every other carrier on the same basis TODAY.

not sure of the relevance to LAX-ATL other than that AA will have to demonstrate that it is using its resources to create the greatest amount of return for stockholders.

 

[jcw]

let's see by this time tomorrow which airlines generating the highest profit.since AA has already said that AA's operating profit margin will be lower than what DL has reported, I'm hoping you aren't holding your breath.of course, DL did take a charge to set down the 744 fleet over the next few years so maybe AA is ignoring the need to actually pay something to finish their merger and will beat DL.

Once again there is no doubt DL will be more profitable in the quarter - I realize you can't realize they will have merger related charges - I know when DL mergers with NWA DL only had one month of merger charges and completed the merger in a day because they are perfect

Hail to DL

How is your list coming along - need more time in therapy to bring yourself to point out just one weakness DL has - I hope your DL medical benefits pays for that therapy

 

[WorldTraveler]

the DL/NW merger actually did take more than a weekend but the res system cutover was virtually flawless and happened fairly early in the merger - and IIRC far earlier than in any other airline megamerger.

yes, mergers cost money and I have made that point multiple times.

in fact, some analyst pointed out that it is doubtful that AA will actually cover the cost of the merger based on the revenue estimates AA has made and what they are reporting so far.

and it is precisely for that reason that AA has to be laser-focused in generating industry average revenue increases if not higher.

I'm sure there will be a whole lot more to say after AA reports tomorrow.

 

[LDVAviation]

Here's an interesting thread on airliners.net --- http://www.airliners.net/aviation-forums/general_aviation/read.main/6209982/
 
(For the record, that was the website that banned WT from its forums.)
 
Apparently, Delta is guilty of the same things WT says AA is doing.
 
Reply 44 and 60 summarize the case against Delta, with quotes from Hunter Keay and Jared Shoiaian of Wolf Research:
 
[From Reply 44] August was the third straight month of underwhelming PRASM results from Delta Air Lines. Perhaps not coincidentally Alaska Air and JetBlue (JBLU) have been underperforming industry PRASM lately as well, two airlines defending themselves against Delta Air Lines. To be sure, Delta Air Lines’ PRASM is still growing faster than its CASM, which means margins are expanding y/y, but the rate of margin change is likely to be “less good” relative to United Continental (UAL) and American Airlines (AAL) due to Delta Air Lines’ capacity choices. We like Delta Air Lines, just not as much as most other Outperform-rated airlines.
 
[From Reply 60] And we [Keay and Shoiaian] think the question asked by a competitor of ours - regarding DAL’s competitive capacity growth causing potential investor unease and value destruction - was one of the most on-point questions we’ve heard. But it was dismissed by management as being inappropriate. We believe it is a vitally important topic.
Part of the reason we downgraded DAL was due to capacity actions that we think will cause retaliation (which we’re already seeing) and, thus, PRASM weakness as DAL defends multiple fronts, rattling the confidence of those buying into a ‘this time is different’ thesis. We believe DAL underestimates the resolve of its competitors to defend what they believe is theirs. This benefits no one in the long run but we view it as particularly harmful for DAL.
 
Under scrutiny is the capacity growth at LAX and SEA.

 

[WorldTraveler]

and when people like you cite a.net as a source of truth and post what you just did, it is no surprise that a.net has devolved into stupid and stupider.

AA by its own estimates will underperform DL on both RASM growth and operating margin. further, AA's cost growth is likely to be the highest among the big 4.

there may be people who are scrutinizing DL's capacity growth at LAX and SEA but you and they fail to note that DL's RASM at SEA was specifically noted - BEFORE THE QUESTION - to have growth FASTER than DL's RASM as a whole. They said the same thing about ATL and NYC as well.

DL already had a revenue premium to AA at LAX and there is no indication that it is going down.

as much as you would like to believe that you and the ignoramuses on a.net can write whatever you want, there are facts that are backed up by the transcript of DL's earnings call which can be found on Seeking Alpha.

It is you and AA that want to divert attention from the fact that AA is throwing capacity into a number of markets and esp. the transpac market that is causing AA to SEVERELY underperforming the industry.

you will find out tomorrow - less than 12 hours - how AA has actually done

given that they have had falling RASM in all of their global regions for at least two straight months - the only carrier that has done that, you certainly should have no grand expectations about their revenue performance.


take your inaccurate information and head back to the child's table

 

[FrugalFlyerv2.0]

the DL/NW merger actually did take more than a weekend but the res system cutover was virtually flawless and happened fairly early in the merger - and IIRC far earlier than in any other airline megamerger.
 

 
I thought the eolesen explained why the DL/NW res system cutover was so easy for DL/NW (they were both already using worldspan).
Contrary to what you'd like people to believe, it was nothing out of this world.
Ofcourse in your world, only DL can do it and nobody else can.

 

[WorldTraveler]

no, DL does not use Worldspan as its internal res system and didn't before the merger.

Deltamatic was DL's res system before and still is.

If E actually did say this, he is wrong on something that is pretty basic that someone in his capacity should know.

all of NW's internal systems were rebuilt to work on Deltamatic or the DL system was retained.

in fact, DL did most everything with its merger far faster than what any other airline has done.

The supposed "Project Visine" was really a statement of how quickly DL mgmt. moved to accomplishment what it said it would do when the merger was announced - retain the DL name, branding, and culture

instead of spending money on a res system conversion, AA mgmt. is apparently spending it subsidizing new routes into other carrier strength markets - which is why we are having this discussion about ATL-LAX and why AA's RASM performance will underperform the industry when it is announced tomorrow - if AA's analyst guidance was the least bit accurate.

 

[robbedagain]

Or when u imply stupid or stupider bec of what that person posted and seeing how u got banned from a.net for ur comments it no brainer who can see thru ur bs vs other folks who posts the truth cuz it sure as hell aint u

 

[FrugalFlyerv2.0]

no, DL does not use Worldspan as its internal res system and didn't before the merger.

Deltamatic was DL's res system before and still is.

If E actually did say this, he is wrong on something that is pretty basic that someone in his capacity should know.

all of NW's internal systems were rebuilt to work on Deltamatic or the DL system was retained.

in fact, DL did most everything with its merger far faster than what any other airline has done.
 

 
Are you saying eolesen is wrong in post #113 on this thread:
http://www.airlineforums.com/topic/57723-77d2-cabin-772-enters-service-today/page-10#entry1126137
"DL/NW was an anomaly, since both were in Worldspan. There were no incompatibilities in merging the two PNR databases, and only minimal change needed to switch over some of the back-end systems. Sure, there was some work needed, but when you have different departments within Worldspan doing the work, and there's no incentive to drag it out financially, things can move a lot easier."
 
All hail DL!

 

[WorldTraveler]

in a word, yes, he is wrong if "being in" Worldspan meant using it as their res system.

DL didn't use Worldspan as its res system. NW did. DL's res system was Deltamatic. There were no other airline users of Deltamatic at the time of the conversion and there are none now so far as I know.

DL has just announced that Virgin Atlantic will use several customer service related systems that DL uses as part of Deltamatic but Deltamatic is almost entirely an exclusively DL operated and maintained system - and it was at the time of the merger.

Worldspan maintained Deltamatic for DL but it was a separate and distinct res system.

Whether Worldspan did the work or not is immaterial. DL paid for it.

E quite simply is wrong in what he wrote above.

DL pulled off a near flawless res system transition faster than any other megamerger has done.

 

[eolesen]

What WT leaves out is that Deltamatic and Worldspan evolved out of the same core (and it's the same code that Sabre, System One, and Apollo evolved from as well).

Thus, there was about 90-95% commonality between Deltamatic and PARS. It's the same reason a migration from Worldspan to Sabre is simple, unlike migrating Shares to Sabre, Apollo to Shares, Amadeus to Sabre, or Navitaire to Sabre.

Then again, I'm sure WT had lots of opportunity to do PNR migrations during the three decade his career spanned...


Oh, and his little slam about posting from a.net? The comments were from equity analysts, not a.net participants. I guess WT knows more than Hunter Keay now?...