Delta cuts SkyWest flying

[H46Bubba]

Here's some more cuts to the DCI system!

Delta can't afford to fly - Fare hikes were not enough, so several flights from SLC will be cut

By Paul Beebe
The Salt Lake Tribune

With jet fuel prices refusing to retreat from record heights, Delta Air Lines is doing more than just raising fares, and some of the measures will hit Salt Lake City travelers this month.
On Tuesday, Delta will end nonstop service from its Salt Lake City International Airport hub to airports in Birmingham, Ala.; Des Moines, Iowa; Fayetteville, Ark.; Memphis, Tenn.; Milwaukee; and Sioux Falls, S.D. The airline cited high fuel prices, its biggest single expense.
Later in January, Delta will trim one flight a day to another 12 airports, including Washington Dulles in Virginia, Vancouver International in British Columbia, Kansas City, Omaha, as well as destinations in California, the Pacific Northwest and the Midwest. In total, Delta is cutting its Salt Lake capacity - the number of seats available to passengers - by 3 percent this year.
The action is part of Delta's larger goal to trim systemwide domestic capacity this year by 5 percent, cancel or reduce flying some aircraft and cut an unstated number of jobs to offset fuel prices that climbed nearly 60 percent in 2007 and may have wiped out the carrier's operating profit in the final quarter of the year. Also contributing to a lesser extent is a slight softening of demand for domestic travel.

Delta hopes the actions will save $400 million in 2008 and allow it to hang on to the financial recovery that began after huge losses and cutthroat competition from low-cost airlines drove it into bankruptcy in 2005.
"Given this, we are adjusting domestic capacity to reduce flying at off-peak times and to long-haul destinations that are served infrequently and can be better served via [other Delta hubs]," spokesman Anthony Black said in an e-mail.
Capacity will be scaled back "with minimal customer impact," Black said.
Others aren't so sanguine. Many Delta flights are already crowded. Drawing down the supply of available seats could make its aircraft even fuller. And that's likely to push fares higher. Moreover, some destinations that have been a nonstop flight away will be harder to reach.
"One never likes to lose any airline service, but with fuel prices as high as they are, it's not a surprise," said Michael Marnach, executive director of the Sioux Falls airport. The loss means 10,000 annual South Dakota travelers will have to find another way to reach Salt Lake or bypass the city altogether, he said.
If there is a common denominator, it's that all the affected routes are served with a mix of 50-, 70- and 76-seat gas-guzzling Bombardier regional jets that Delta and others say are inefficient to fly on long-haul routes where demand is limited.
"They are more costly on a per-seat basis. A majority of the agreements Delta has with its regional partners [such as SkyWest Airlines] calls for the cost of fuel to be passed from the partners to Delta. The high cost of fuel has reduced the number of markets where a regional jet can make money," said Michael Boyd, an airline consultant in Evergreen, Colo.
The cuts mark a turnaround from past airline practice. When demand for travel flagged, airlines often kindled interest in flying with fare cuts or promotional packages. That's changed. Now, airlines park some of their planes to bring down costs and pack the remaining aircraft with passengers.Delta, for instance, intends to ground 35 of its regional jets in the first quarter.
"We think . . . one of the best ways to manage the fuel crisis is actually not to fly the aircraft," Ed Bastian, Delta's president and chief financial officer, told analysts last month.
While capacity cuts may shore up Delta's finances, consumers will feel the pinch of higher ticket prices. Major airlines, including Delta, successfully raised fares 17 times in 2007, said Rick Seaney, chief executive officer of FareCompare.com, a Dallas-based online travel site.
"With oil slipping over the $100 per barrel mark today and legacy airlines continuing to drastically reduce capacity, consumers should brace themselves for continued airfare hikes in 2008," Seaney said Wednesday.
Whether Salt Lake travelers can expect more capacity trims is unclear. In his remarks to analysts last month, Bastian said Delta would take more steps to reduce the supply of domestic flights if fuel prices don't stabilize.
Black said the airline "will continue to invest in new services and destinations" from Salt Lake.
"It's really hard to know. The wildcard we're dealing with is the cost of fuel. We may see future decreases until oil prices can level out," airport spokeswoman Barbara Gann said.
In June, Delta will begin flying from Salt Lake to Paris. The airline's first transatlantic route between Utah and France is another element of the carrier's capacity plans. While domestic capacity will fall this year, international capacity is expected to increase at least 15 percent. Delta will add more than 20 new international routes this year as it continues to expand its overseas flights, where profits are higher and competition from low-cost carriers is less.
"It's literally a retreat from the domestic market," said George Hamlin, managing director of Airline Capital Associates, a Virginia-based firm that forecasts airline trends.
pbeebe@sltrib.com

[Seggy]

I hope once they cut this outsourced flying once, they never go back to it.

More jobs at the mainline carriers!

[meritflyer]

For this very reason, I believe the fuel costs will result in many of the current fee-for-departure contracts move towards pro-rate flying.

[wheelsup]

Originally Posted by meritflyer

For this very reason, I believe the fuel costs will result in many of the current fee-for-departure contracts move towards pro-rate flying.

Sounds great until everyone does pro-rate flying and we all go out of business flying 50-70 seaters because they just don't make financial sense in this day and age.

[Rocketman99]

I'm really not so sure I necessarily see that as being bad. Sucks that suddenly a lot of us might lose jobs, but potentially better for the industry in the long run and our long term careers. I've always been a "can take the suck now for a brighter tomorrow" kind of guy. Guess that's why I've stayed at Colgan...

[Airdale]

Wow...more industry troubles. I agree with Seggy though, Majors need to start taking back or cutting a lot of this RJ flying. Fuel prices are ridiculous. This country needs to get its s*** together and it needs to do it quick. Our dollar is losing tremendously to foreign currency, American debt loads continue to increase and the fuel is just pushing things to the break.

Welcome to the transportation industry. Maybe I should jump back in the Coast Guard and get to chasin that pilot slot before I'm too old. People in distress at sea will always need Coast Guard Aviators.

[Seggy]

Originally Posted by Rocketman99

I'm really not so sure I necessarily see that as being bad. Sucks that suddenly a lot of us might lose jobs, but potentially better for the industry in the long run and our long term careers.

Exactly! Remember we are outsourced labor at the regional level. If our management can't do what they can to keep the contracts, it sucks, but we lose our jobs.

[JaceTheAce]

If there is a common denominator, it's that all the affected routes are served with a mix of 50-, 70- and 76-seat gas-guzzling Bombardier regional jets that Delta and others say are inefficient to fly on long-haul routes where demand is limited.

Well if they flew the Dash 8!...half-

[Airdale]

Originally Posted by Seggy

Exactly! Remember we are outsourced labor at the regional level. If our management can't do what they can to keep the contracts, it sucks, but we lose our jobs.

Agreed. But Colgan is in no better position than any other Regional. They might be on to something with the fuel efficient Q400's, but their business practices and management philosophy makes them less profitable. Look at how much money they piss away in repos and their "crew utilization" practices.

The Regionals suck. Period. I just hope RAH is stable enough to allow me to upgrade, get the PIC and get the heck out. I don't think I could deal with the stress of "Will I have a job tomorrow or will MESA undercut our contract?" for the rest of my career.

[Seggy]

Originally Posted by Airdale

Agreed. But Colgan is in no better position than any other Regional. They might be on to something with the fuel efficient Q400's, but their business practices and management philosophy makes them less profitable. Look at how much money they piss away in repos and their "crew utilization" practices.

Just remember before you become an eternal Colgan basher. THEY gave you an opportunity for a 121 job before anyone else.

Think about that next time you post something about them.

[Airdale]

Originally Posted by Seggy

Just remember before you become an eternal Colgan basher. THEY gave you an opportunity for a 121 job before anyone else.

Think about that next time you post something about them.

True, but what do I owe them? I could have continued instructing and ended up somewhere else anyway. I filled a seat for them, made them money and did it professionally. Just because they gave me an opportunity with 450 hours, doesn't mean I owe them years and years of service and praise. Its a business my friend. They sought pilots to fly their aircraft in return for monetary compensation (even though its a joke) and a chance to gain experience.

Just because they gave me an opportunity, doesn't give them the right to abuse me. Just calling a spade a spade.

[Screaming_Emu]

I think its sad that there is so much emphasis in this article about "omg, fares are going up!" Of course they should.

[Seggy]

You are right to an extent.

Just remember where you were when they hired you. Either instruct back at ATP or have an opportunity to move to a 121 carrier. I warned you about it, yet you still took the job. You got an experience here and are moving on. Good for you, but really no need to continuously beat a dead horse about how things are here.

[stuckingfk]

Originally Posted by Seggy

Just remember before you become an eternal Colgan basher. THEY gave you an opportunity for a 121 job before anyone else.

Think about that next time you post something about them.

lol

What about all the other regionals you rip on. That was someone else's first opportunity too. This industry will NEVER go back to all mainline flying. There will always be regionals and thus, heaven forbid regional jet pilots. I could sit here and bash your company for taking 70+ seat flying, but I don't.

We, as in pilots, aren't the ones taking these contracts. The majors are farming out flying and there are businesses that want the flying. It isn't cost effective to run a DC9 from MSP - STC. So, the major has a regional do this because they don't want the smaller planes with high paid pilots up front. This is the nature of the industry. I'm sure everyone wants to be paid more for what they do, but there has to be limits. Apparently, the majors have to limit the costs associated with runs that have fewer passengers.

[Seggy]

Ahh, actually, I think it is downright disgusting that any flying over 8 seats is done by these 'regional' airlines.

Never say never.

What I am talking to about Airdale is completely different than the original topic. He made his points very clear about Colgan. So have I. Just try to stop beating a deadhorse, especially the horse that gave one an opportunity to move onto a better one in his mind.

[meritflyer]

As much as I hate to say this, Burger King's quality has really gone down hill recently.

[H46Bubba]

Originally Posted by meritflyer

As much as I hate to say this, Burger King's quality has really gone down hill recently.

Oh yeah I agree with that one!

[mrivc211]

Originally Posted by Airdale

True, but what do I owe them? I could have continued instructing and ended up somewhere else anyway. I filled a seat for them, made them money and did it professionally. Just because they gave me an opportunity with 450 hours, doesn't mean I owe them years and years of service and praise. Its a business my friend. They sought pilots to fly their aircraft in return for monetary compensation (even though its a joke) and a chance to gain experience.

Just because they gave me an opportunity, doesn't give them the right to abuse me. Just calling a spade a spade.

airdale and seggy, i agree with both of you.

Seg- You are correct, the company did hire him into a 121 seat. They gave him the opportunity to be here. Which, as he says, he is grateful for. However, you and I both know the company doesn't care about him in the slightest. And, since we both (hopefully) agree to this point, they why should he care anymore than for that single reason?

I know what your saying, and I agree to a certain extent. I guess what I'm trying to say is at one point I thought my employer cared, and you have no idea as to how much I bent over backwards for them. But as soon as the kool-aid ran out, and they showed me how much they really cared, I stopped bending over.

[meritflyer]

Originally Posted by H46Bubba

Oh yeah I agree with that one!

Ever since they changed the name of the Chicken Whopper to the Grilled Something, I've been a little upset.

Now, they're running these stunts about doing away with the Whopper then saying "just kidding!".

I think they're testing the waters on really getting rid of that flame broiled goodness.

[jynxyjoe]

Omg i love turbo-props

[Doug Taylor]

Originally Posted by meritflyer

As much as I hate to say this, Burger King's quality has really gone down hill recently.

Must mean the economy is starting to get better, which I doubt!

I remember in the 1980's when we were at rock bottom, I could go to BK, say, "Whopper with cheese, heavy pickles, heavy tomatoes, no onions, hold the mayo, add mustard" and it'd come out perfect.

Now, if I did that, they'd look at me like I was an a-hole.

"But what happened to "have it YOUR way"? "

[H46Bubba]

Originally Posted by meritflyer

Ever since they changed the name of the Chicken Whopper to the Grilled Something, I've been a little upset.

Now, they're running these stunts about doing away with the Whopper then saying "just kidding!".

I think they're testing the waters on really getting rid of that flame broiled goodness.

I know! The chicken whopper just had mayo and now it has some sort of fandangled sauce on it...definitely not the same. The burgers aren't as good anymore either. I used to love their cheese burgers but they taste bland now just like McD's. I prefer Carls over BK anyday of the week. Now if I could convince K.C. Enterprises to build a Carls in KY!

[Screaming_Emu]

Originally Posted by Doug Taylor

Now, if I did that, they'd look at me like I was an a-hole.

"But what happened to "have it YOUR way"? "

que?

[jynxyjoe]

Originally Posted by H46Bubba

I know! The chicken whopper just had mayo and now it has some sort of fandangled sauce on it...definitely not the same. The burgers aren't as good anymore either. I used to love their cheese burgers but they taste bland now just like McD's. I prefer Carls over BK anyday of the week. Now if I could convince K.C. Enterprises to build a Carls in KY!

chicken whopper? whiskey tango fox, over?

how about a 7oz bacon wrapped Omaha steak? medium rare with a loaded baked potatoe with as much bacon as sour cream?

i'm sorry, we were talking about delta weren't we?

[PGT]

them cutting back the flying, is it a hint of things to come or just getting rid of unprofitable routes?