Delta's Slash And Burn, Dfw To Close.

[AAquila]

Delta unveils $5 bln cost cut plan to save airline (DAL) By Matt Andrejczak
SAN FRANCISCO (CBS.MW) -- Delta Air Lines (DAL) , in an attempt to avoid filing for bankruptcy, said Wednesday it aims to cuts annual costs by $5 billion by 2006 by restructuring 51 percent of its network, slashing 6,000 to 7,000 jobs, and closing its Dallas/Ft.Worth hub. Delta, based in Atlanta, also plans to grow Song, its low-cost carrier, by adding 12 planes to its network. Overall, the plan calls for restructuring 51 percent of the company's network. Delta further plans to create an employee reward program, which will include equity, profit sharing and performance-based payouts. Delta CEO Gerald Grinstein further warned "bankruptcy is a real option" unless its early pilot retirement issue is not resolved by end of month.

 

[mrman]

Delta will only have about 21 flights out of DFW

 

[AAmech]

Theres going to be a BIG vacume at DFW!!!! Who's going to fill it?

 

[HGIEFOswitch]

Will AA attack or let the LCC's flood into DFW? That's the question.

 

[operaations]

I hope AA Attacks. We need to make sure the LCC stay the heck out.

 

[jimntx]

This is such a good opportunity for AA. We have the a/c and the people (currently furloughed) to step in and fill the void quickly. However, given our history, can we move quickly enough?

I can just hear some mgt type saying, "Well, you're right. It is an excellent opportunity, but it would just cost us too much to train the former TW flight attendants that would come up for recall."

 

[LiveInAHotel]

This is such a good opportunity for AA. We have the a/c and the people (currently furloughed) to step in and fill the void quickly. However, given our history, can we move quickly enough?

I can just here some mgt type saying, "Well, you're right. It is an excellent opportunity, but it would just cost us too much to train the former TW flight attendants that would come up for recall."

[post="177103"][/post]​

I couldn't have said it better myself. Let's hope that AA decides to do the right thing and not let the LCC's invade DFW.

 

[FA Mikey]

Is there an opportunity in terms of customers. There is plenty of infrastructure. Terminal, gates, hangar, etc. AA would be wise to maximize its presence in all its markets.

 

[jimntx]

The few times that I have been in Terminal E it was working alive with customers. Judging from the numbers of people in the baggage claim area, I would guess that DL had substantial O&D traffic at DFW. However, when they severely reduced mainline flying after 9/11 and replaced it with Delta Connection, it was just too much to ask people to go RJ to RJ when connecting at Dallas.

The one thing that concerns me is that there are a lot of people in the Dallas area who give their business to DL simply because they HATE AA. There is still a good bit of residual resentment over Braniff and others that AA has run out of Dallas area.

 

[FWAAA]

Last Friday, AA announced its plans to add 70 daily flights at DFW, half of them mainline. AA's announcement scooped DL's announcement by five days. B)

DL's operation at DFW looks an awful lot like AA's current STL "minihub/focus city" with 202 RJ flights (all to be canceled) and 52 mainline flights (to be cut to 21). Most of those DL RJs went to places that AA already serves with mainline aircraft - and there are still some empty seats on them. Add in the 70 new flights (to a hub with over 700 already) and you have plenty of capacity to handle any void left by DL.

DL is finally realizing that DFW isn't Chicago: There just aren't enough high-yielding passengers at DFW to support two full service hubs (as there are at ORD). AA doesn't try to operate a hub in ATL or SLC.

 

[jimmyd]

The big question is what will Delta do with their DFW gates. I assume they have a long-term lease on those gates. The DFW Airport Authority will no doubt try to retain as many of those gates as possible (easier said than done), and then peddle those gates to the LCC's, with AirTran as the leading candidate. AA is going to argue they need those gates for the upcoming expansion, but is it possible that AA could handle the new flights on their existing gates. I don't know the answer to that question, but the one thing I strongly believe is that the LCC's are going to expand in DFW regardless of what AA is planning. Delta has some leverage in the outcome of this matter, and if I was Delta, I would be calling AirTran and strike a deal now, in the hopes that AirTran expands significantly at DFW and slows down their assault in my Atlanta hub.

 

[AirLUVer]

The big question is what will Delta do with their DFW gates. I assume they have a long-term lease on those gates. The DFW Airport Authority will no doubt try to retain as many of those gates as possible (easier said than done), and then peddle those gates to the LCC's, with AirTran as the leading candidate. AA is going to argue they need those gates for the upcoming expansion, but is it possible that AA could handle the new flights on their existing gates. I don't know the answer to that question, but the one thing I strongly believe is that the LCC's are going to expand in DFW regardless of what AA is planning. Delta has some leverage in the outcome of this matter, and if I was Delta, I would be calling AirTran and strike a deal now, in the hopes that AirTran expands significantly at DFW and slows down their assault in my Atlanta hub.

[post="177153"][/post]​

Long awaited Terminal D is to open this spring as well, timed with AA's expansion, and the opening of the new skytrain system. Could be a possible move of Eagle ops back to A, and move the mainline to B. Who knows what real estate deals are in the plans now?

 

[FA Mikey]

That could also lead the way for Airtran running competing low cost flights on Deltas existing flight schedule. Using the added space to draw more passengers from there ATL and CVG hubs.

 

[jimntx]

Considering that AA has all of Terminals A & C plus the A satellite (used by AE) plus 12 gates in Terminal B, my guess is that they don't really need additional gate capacity. When I am at the airport, there are always a good number of gates empty at any given time except early in the day before the RONs depart.

As Delta has all of Terminal E (for all practical purposes) their departure will leave only NW and CO in that terminal. My guess is that the DFW AOA is going to want those gates utilized ASAP--particularly considering that the new International terminal is scheduled to come on line next year. I don't think DL will be allowed to play any "let's wait and see who we can get in here that will most spite AA" games. And, considering the lease rates at DFW, I don't think DL is going to be interested in keeping up the payments on all those unused gates for any length of time.

 

[AirLUVer]

Considering that AA has all of Terminals A & C plus the A satellite (used by AE) plus 12 gates in Terminal B, my guess is that they don't really need additional gate capacity. When I am at the airport, there are always a good number of gates empty at any given time except early in the day before the RONs depart.

As Delta has all of Terminal E (for all practical purposes) their departure will leave only NW and CO in that terminal. My guess is that the DFW AOA is going to want those gates utilized ASAP--particularly considering that the new International terminal is scheduled to come on line next year. I don't think DL will be allowed to play any "let's wait and see who we can get in here that will most spite AA" games. And, considering the lease rates at DFW, I don't think DL is going to be interested in keeping up the payments on all those unused gates for any length of time.

[post="177167"][/post]​

AA is already majorly involved in the terminal D expansion. What we may see happen is a draw down completely from C, movement of all eagle to A and have half or more of B and D for mainline. You can't expect AA not to be the biggest mover and shaker at the shiney new terminal.