DL: Cash flow machine with fuel cost advantage

[700UW]

As is AA/US taking a new bunch of planes, and UA has planes on order also, so their fleets will be renewed and grow younger.

 

[700UW]

Advantages and disadvantages of an older fleet
With that being said, there are a number of clear disadvantages to an older fleet. Obviously, worse fuel efficiency is going to be a big extra cost for the bottom rung of airlines, such as Delta Air Lines and Allegiant, which are running, by far, the oldest fleets.
 
Passenger comfort and amenities could also be affected as a number of older airplanes simply don't have in-flight entertainment systems. Airlines like Alaska Air have done their best to counter this with its digEplayer, a small, portable, downloadable entertainment device which flight attendants pass out during the flight and collect toward the end of a flight for a nominal fee. Not surprisingly, though, a number of the worst performers in overall customer satisfaction also have some of the oldest fleets.
 
On the flip side, operating an older fleet can have its advantages -- just ask Allegiant. Although Allegiant pays more in fuel costs than its peers for an equivalent amount of miles flown, it also pays far less out of pocket to acquire used planes. This difference has allowed Allegiant to remain one of the few airlines that's net cash positive, and gives it the opportunity to focus on the deep-discount niche where consumers are looking for a no-frills flying experience as long as the flight is cheap.

http://www.seattlepi.com/business/fool/article/How-Old-Is-Your-Plane-These-Airline-Fleet-Age-5397540.php

 

[WorldTraveler]

but DL's fuel costs are NOT HIGHER than its competitors - and DL is replacing older, fuel efficient aircraft as well.

Bút DL is NOT replacing as many aircraft and will reap the benefits of a stronger balance sheet.

It is simply impossible to argue that AA or UA can order twice the number of new airplanes as DL and have a comparable balance sheet.

Your comment about IFE and onboard amenities is also grossly inaccurate.

IN fact, DL has more refurbished and modern cabins, has more WiFi equipped planes, and has more in-seat IFE thruout its fleet than any other airline.

Unlike some airlines, DL didn't refurbish the first or business class cabin and then leave the coach cabin including the overhead bins untouched.

DL has provided a premium product throughout the cabin - and it is precisely why DL's average fares on its ENTIRE network are at a premium to the rest of the industry.

 

[700UW]

Its not my statement, that would be the reporter, do you know how to use the link and see the source?
 

 

Sean Williams, The Motley Fool

Published 8:31 am, Saturday, April 12, 2014
 

 

 

[WorldTraveler]

yes, I see it.... you have repeatedly demonstrated that you copy and paste without thinking.

If you post something without commentary, you might as well sign your name to it in agreement.

The simple fact is that he spoke in generalities which aren't even supported by specific examples.

I'm telling you that the evidence is present to show that DL's fleet strategy ALREADY delivers the results DL wanted and does it for a lower cost and gives no advantage to competitors.

if you want to argue that the facts actually exist to the contrary and against DL's strategy, put them on the table.

 

[700UW]

Really?
 
I posted an article for people to see, read, form their opinions and comment.
 
Its an information exchange, that is why I put is in quotes and linked a source.

Grow up.

 

[WorldTraveler]

I'm grown up, thank you.

Feel free to post one article after another without even the benefit of a commentary

I will post what actually exists in reality.

It is no wonder that DL employees want nothing to do with union cheerleaders who can't think for themselves and can only cut and paste.

 

[700UW]

I dont have to comment, its an informational posting.
 
You are single handily responsible for the pollution on this board with every topic on every thread a 2,000,000 word diatribe on how Delta will rule the world.
 
And you wonder why so many on here dislike you, with you're know it all attitude, insults and condescending posts.
 
Who the heck died and made you moderator?
 
Raise your $2,500 yet for this month?
 
Happy now?
 
I replied to you.

 

[WorldTraveler]

You are free to copy and paste and I am and will be free to show that what you post is inaccurate.

If you are half as knowledgeable about the industry as you say you are, you should be capable of challenging some of the stuff that analysts and investors write. It can't all be right.


You do realize how much I have to laugh when I see what you write.

You are as confused about who I am as you are about what a pension is.

Truly confused.

I do know what $1.5 BILLION is and that is what Delta employees have gained in profit sharing over the past four years.

DL is generating a whole lot of cash to be paying out that kind of profit sharing.

I'm sure you didn't catch it but do you realize that WN said that have paid out $2.5 billion in profit sharing in four DECADES while DL has paid out $1.5 Billion in four years.

I know WN was and is a lot smaller etc etc but the fact that DL spins off $5 BILLION in cash in a year and has paid out 60% of what WN has paid in profit sharing in four years compared to four decades should tell anyone who understands numbers what a cash machine DL is... exactly the point of the article.

 

[700UW]

So a keyboard warrior is more correct than a professional reporter for Motley Fool?
 
So remind me why you are posting here and not running an airline or being an airline expert for one of the think tanks or media outlets?
 
And how many times are you going to throw things into a post that have no baring?
 
Here comes another locked thread due to your arrogance.

 

[WorldTraveler]

it's not a question of who is right or wrong... it is the fact that the article spoke in GENERALITIES and I have answered in specifics regarding DL.

Smart readers pick up key words like "Generally speaking" and "tend to be" which indicate the nature of the statements the writer is making.

Further, there aren't very many specific examples in the article but the few that are made include AS' Digiplayer which might be appropriate to mention considering it is a SEA paper but few airlines for good reason rely on a portable system for IFE.

Several comments are made about the debt levels involved in acquiring an older fleet - with AA noted as having little flexibility because of their high financial commitments while Allegiant is noted for its financial strength BECAUSE of flying older aircraft.

WN is noted for buying used aircraft - but any WN fan will know that the author apparently doesn't realize that WN has acquired used aircraft in the past; they aren't breaking any new ground by buying used aircraft now.

SO, not only are there generalities that don't have accurate application to DL - which you wanted to do since you posted it in the DL forum with DL highlighted - but even the specific examples that are listed are either not accurate or relevant to the article

Feel free to post what you want... as long as you can defend what you have posted.

 

[AdAstraPerAspera]

Further, there aren't very many specific examples in the article but the few that are made include AS' Digiplayer which might be appropriate to mention considering it is a SEA paper but few airlines for good reason rely on a portable system for IFE.

 
Actually, there are a lot of advantages to using portable tablets for IFE:
They're lightweight
They're very responsive, much more touch-sensitive than the Panasonic crap
They involve far less capital expense
"IFE broken? I'm sorry sir, here's a new one"
The "tap-tap-tapping" on the back of someone's seat can get very annoying for everyone.
 
The panasonic system, installed across a wide swath of the DL fleet, is old (at least two generations behind already, first installed for Song back in 2007) and notoriously unreliable, and is a b*tch to use even when functioning correctly. I'm not sure how much it weighs but I'm sure it is considerable. And of course, "tap. Tap. TAAAAP" trying to get it to function.
 
And, well, there you have it.

 

[700UW]

Feel free to post what you want... as long as you can defend what you have posted.

Who died and made you the board rule maker?
 
I dont have to defend an article that anyone else wrote.
 
I posted an article for people to discuss, nothing more, nothing less.
 
I never said I agreed nor disagreed with it, you seem to be the only one with a problem about it.
 
So get over it.

 

[southwind]

So a keyboard warrior is more correct than a professional reporter for Motley Fool?
 
So remind me why you are posting here and not running an airline or being an airline expert for one of the think tanks or media outlets?
 
And how many times are you going to throw things into a post that have no baring?
 
Here comes another locked thread due to your arrogance.

Remind us exactly why "YOUR" here...............period!

 

[700UW]

It is a message board, maybe you should learn the concept.