DL JFK-TLV changes

[WorldTraveler]

so it's ok for DFW to have ended GIG service and DL to have downgraded TLV capacity? it is two sides of the same coin.

I can accept that AA is just as interested in putting its capacity where it has the best chance of making money as DL does.

can you accept the same?

 

[737823]

AA not DL need my approval to make any network changes. I have no interest it desire to travel to Brazil, the cut doesn't impact me either way. Point is DLs presence in TLV has dwindled in the past few years. You say the change was driven by the underperforming NRT route which isn't surprising given they are competing again NH (2x) and JL (2x) who both have hubs at NRT and command higher fares particularly among the Japanese point of sale. Japan hasn't worked well for DL they keep pulling capacity from NRT and lack a JV partner in Japan after they tried unsuccessfully to lure JL in 2009/10. Point is if DL wanted to make TLV work they could rotate the 744 through ATL or somewhere in Europe rather than have it sit a JFK for 19 hours.

Josh

 

[jcw]

Stop the presses it liked an AA move this is a first

 

[WorldTraveler]

AA not DL need my approval to make any network changes. I have no interest it desire to travel to Brazil, the cut doesn't impact me either way. Point is DLs presence in TLV has dwindled in the past few years. You say the change was driven by the underperforming NRT route which isn't surprising given they are competing again NH (2x) and JL (2x) who both have hubs at NRT and command higher fares particularly among the Japanese point of sale. Japan hasn't worked well for DL they keep pulling capacity from NRT and lack a JV partner in Japan after they tried unsuccessfully to lure JL in 2009/10. Point is if DL wanted to make TLV work they could rotate the 744 through ATL or somewhere in Europe rather than have it sit a JFK for 19 hours.

Josh

AA absolutely does not need your approval to do anything. You are living in the twilight zone if you think otherwise.

we know it is all about you.

AA and DL are both in the camp of "we could care less what Josh thinks if it is contrary to what is in our best interests"

glad you feel loved tonite, jcw.

 

[jcw]

That's rich since we know it's all about you

 

[topDawg]

AA not DL need my approval to make any network changes. I have no interest it desire to travel to Brazil, the cut doesn't impact me either way. Point is DLs presence in TLV has dwindled in the past few years. You say the change was driven by the underperforming NRT route which isn't surprising given they are competing again NH (2x) and JL (2x) who both have hubs at NRT and command higher fares particularly among the Japanese point of sale. Japan hasn't worked well for DL they keep pulling capacity from NRT and lack a JV partner in Japan after they tried unsuccessfully to lure JL in 2009/10. Point is if DL wanted to make TLV work they could rotate the 744 through ATL or somewhere in Europe rather than have it sit a JFK for 19 hours.

Josh

your looking at things to simply. 
 
now DL pulled capacity back to TLV because they needed too. They even said so in the Q3 call. 
 
but its not as simple as just moving a 744 via Europe or ATL to JFK. With the 744 fleet getting smaller it is much better to base them and fly them only out of DTW. Adding a Europe turn then a JFK Europe turn then a JFK-TLV turn your talking about taking up 2-3 aircraft.  

 

[AdAstraPerAspera]

in nearly all cases, my criticism is leveled against management.

O rly. I seem to recall you having some words about APFA recently...

 

[WorldTraveler]

unions are simply labor mgmt.

 

[jcw]

What - how to you make this stuff up

 

[700UW]

From AW&ST
 
Delta Air Lines CEO Richard Anderson says he is more concerned about cutting underperforming routes and adding lucrative ones than growing capacity, which his airline plans to increase just 1-3% in 2015, he tells analysts. Delta is realigning its international network, pivoting away from Asia-Pacific routes—which will see a “high-single-digit decline” in capacity next year—while planning on modest growth of 3% or less in North Atlantic capacity. The carrier also has cut capacity to Moscow, Tel Aviv and West Africa by 20% as it moves to align with demand.
 
American Airlines also is “upgauging” its fleet, replacing 50-seat regional jets with larger Bombardier CRJ900s and Embraer E175s and retiring a mix of Boeing 737s, 757s, 767s and MD-88s while adding 22 new aircraft. The new mix should add 2-3% to its capacity next year. “The airplanes that are leaving the fleet are fuel inefficient,” CEO Doug Parker says. “The new airplanes make a dramatic effect on our product.”
American shrugged off soft demand in Latin America, where it plans to reduce capacity, and reported a 59% increase in third-quarter net income compared with the same period a year earlier.

 

[WorldTraveler]

DL's statements came from its earnings conference call. it might have been repeated elsewhere but DL noted softness in those areas. Moscow is due to political issues, West Africa due to health issues, and TLV appears to be related to the security issues earlier this year.

As to AA's statement regarding new aircraft, it is worth noting that part of AS' ability to stay ahead of increased competition at SEA is because they are replacing older 737s with newer 739ERs which have nearly identical operating costs per flight.

AA, DL, and UA are all doing similar things but each with slightly different ways to get there.

 

[700UW]

Then why is no other US based carrier cutting TLV flights?

 

[WorldTraveler]

DL isn't cutting flights.

they are downsizing equipment.

and the 332 is the smallest aircraft that US has that can make the flight.

regardless, just because other carriers don't cut doesn't mean that the market isn't seeing things that DL thinks they should act on.

again, the best part of this business is that data does become available to know why decisions were made.

in the 2nd quarter, DOT data shows that TLV average fares were up by 5% and passengers were up by 7% for all carriers.

DL's average fare was higher than UA or US' and US' average fare actually went down - enough to reduce their total revenue. DL's average fare drove overall total revenue increases; UA was basically flat.

so, at least as far as the 2nd quarter, there wasn't evidence of weakness. in terms of total revenue, DL was about 2/3 the size of UA to TLV and US was 2/3 the size of DL.

 

[700UW]

Actually the A332 is the only aircraft that PMUS has that can fly PHL-TLV.

 

[topDawg]

DL isn't cutting flights.

they are downsizing equipment.

and the 332 is the smallest aircraft that US has that can make the flight.

regardless, just because other carriers don't cut doesn't mean that the market isn't seeing things that DL thinks they should act on.

again, the best part of this business is that data does become available to know why decisions were made.

in the 2nd quarter, DOT data shows that TLV average fares were up by 5% and passengers were up by 7% for all carriers.

DL's average fare was higher than UA or US' and US' average fare actually went down - enough to reduce their total revenue. DL's average fare drove overall total revenue increases; UA was basically flat.

so, at least as far as the 2nd quarter, there wasn't evidence of weakness. in terms of total revenue, DL was about 2/3 the size of UA to TLV and US was 2/3 the size of DL.

biggest. US's 333s are even more useless for long haul than Delta's current fleet. (not by much, but I believe NW did get higher MTOWs. They both are badly underpowered with the Pratt 4000s). Having said that the 767-200ER can make PHL-TLV.