WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #16
JFK777,
Delta's 767-300ERs were not flying the Atlantic in 1988. DL has 767-300s of 1988 vintage but they are not ERs. DL bought the 767-400s as high density domestic replacements for the L1011s, not for international routes. DL could convert them to international use but that is highly unlikely in the next year. DL has 767-300ERs in domestic configuration that would likely be converted to international use first just because there are already domestic and internationally configured 767s now.
PHX,
DL does not serve any destinations in Great Britain or Ireland from the NE. If DL acquires 757s, they would very likely be placed in those markets first.
The additional revenue that is obtained from a 767-400 vs a 767-300 is very small when the conversion costs are backed out. With proper revenue management, the highest revenue passengers should be accommodated on a 767-300 and there are few airports in Europe that DL serves where slots are not reasonably available.
Part of the reason DL has not bought a significant number of large widebodies is undoubtedly because it is very likely that there will be consolidation in the industry and because several players are operating in bankruptcy. It makes blending fleets together much less complicated if there are alot less big airplanes. I consider it highly likely that there will be consolidation in the legacy segment of the industry in the next few years, possibly as few as six months, and that DL will participate, if not lead that consolidation. While DL needs a couple years to get itself back on its feet financially, it has pushed back nearly all aircraft acquisitions for the next 3 years, has reduced debt to very manageable levels, and has said it will take advantage of legislation that allows it to push back much of its pension funding for several years. Given the continued overcapacity in the industry and the need to rationalize hubs (of which DL still has several in small cities which could easily be replaced with larger ones from other carriers) and the fact that DL has few international routes outside of fairly competitive regions of the world, I think you will see DL move to acquire another carrier or its international assets as part of its turnaround plan. There are already indications that other airlines are thinking the same thing.
Good fleet planning is done in the context of a 15-20 year horizon and while considering all possibilities that could affect DL's business plan.
Delta's 767-300ERs were not flying the Atlantic in 1988. DL has 767-300s of 1988 vintage but they are not ERs. DL bought the 767-400s as high density domestic replacements for the L1011s, not for international routes. DL could convert them to international use but that is highly unlikely in the next year. DL has 767-300ERs in domestic configuration that would likely be converted to international use first just because there are already domestic and internationally configured 767s now.
PHX,
DL does not serve any destinations in Great Britain or Ireland from the NE. If DL acquires 757s, they would very likely be placed in those markets first.
The additional revenue that is obtained from a 767-400 vs a 767-300 is very small when the conversion costs are backed out. With proper revenue management, the highest revenue passengers should be accommodated on a 767-300 and there are few airports in Europe that DL serves where slots are not reasonably available.
Part of the reason DL has not bought a significant number of large widebodies is undoubtedly because it is very likely that there will be consolidation in the industry and because several players are operating in bankruptcy. It makes blending fleets together much less complicated if there are alot less big airplanes. I consider it highly likely that there will be consolidation in the legacy segment of the industry in the next few years, possibly as few as six months, and that DL will participate, if not lead that consolidation. While DL needs a couple years to get itself back on its feet financially, it has pushed back nearly all aircraft acquisitions for the next 3 years, has reduced debt to very manageable levels, and has said it will take advantage of legislation that allows it to push back much of its pension funding for several years. Given the continued overcapacity in the industry and the need to rationalize hubs (of which DL still has several in small cities which could easily be replaced with larger ones from other carriers) and the fact that DL has few international routes outside of fairly competitive regions of the world, I think you will see DL move to acquire another carrier or its international assets as part of its turnaround plan. There are already indications that other airlines are thinking the same thing.
Good fleet planning is done in the context of a 15-20 year horizon and while considering all possibilities that could affect DL's business plan.
