How one day of thunderstorms turned into a five day Delta meltdown

Discussion in 'Delta Air Lines' started by FWAAA, Apr 9, 2017.


  1. FWAAA

    FWAAA Veteran

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    Severe thunderstorms in Atlanta caused a groundstop lasting five hours on Wednesday and set in motion a Delta meltdown from which the airline has yet to recover (on Sunday evening). Delta says it expects things to be back to normal by Monday (tomorrow). This article in the AJC explains how a day of storms on Wednesday turns into more than 3,300 cancelled flights by Sunday evening:

    http://www.ajc.com/travel/why-one-d...ve-day-delta-meltdown/6iwLZXfRcLKB0w1LAdKvpI/

    One major failure has been Delta's overly optimistic predictions of when the recovery would occur - on Friday, Delta spokesholes said that by Saturday, things should be back to normal. You never want to over-promise and under-deliver; much better to communicate honestly and accurately with customers.

    This will be costly for DL, as the August computer meltdown last year cost Delta about $100 million in lost revenue:

    http://www.ajc.com/business/delta-outage-price-tag-100-million/2gewyWrTw0t7JObiAhcV3N/

    The computer failure caused about 2,300 cancelled flights over four days, while these storms account for 1,000 more flight cancellations over about five days. Back of the envelope calculations lead to an estimate of about $125 million in lost revenue.

    As eolesen said when DL terminated the interline agreement with AA: DL cancelled its flood insurance because it hadn't seen a flood in a quite a while - now DL has suffered two major floods in eight months.

    Of course, AA could not have accommodated all the displaced DL passengers, but I have to wonder if new management (Bastian) will call Parker next week and see about a mutually beneficial interline agreement. Not having one is like denying an inexpensive spare part to a competitor - it may not bite you today, but eventually, you're gonna need a cheap spare part that only your competitor possesses at some outstation, and refusing to sell it to you is gonna cost you a bunch . . .
     
  2. Kev3188

    Kev3188 Veteran

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  3. swamt

    swamt Veteran

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    Not doubting the numbers FWAAA posted as he posted Sunday evening early. Going thru my airline news this morning I read the amount of canceled flights were at or above 5000. It this true Kev? Some are thinking that there is more involved than just this storm being the culprit. And if 5k is the new number I'm afraid the $ amount will be much larger and closer to the 200 million mark. Just be glad it happened in the first week of 2nd Q. With almost 3 full months to try and make up for it. Delta runs a good airline and they will be fine. Kinda good that this United story broke since the Delta fiasco. Now the Doctor being dragged off the United flight is taking the spot light. Weird week, what's next???
     
  4. Kev3188

    Kev3188 Veteran

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    I thought I saw ~3500, but it's still far and away too many...
     
  5. swamt

    swamt Veteran

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    I agree Kev. I have not seen any more reports saying the 5K so I thought maybe it was blown up by some ticked off reporter trying to get back at Delta for something. Last daily number I saw was 150 flights were canceled on Sun. But nothing for Mon. so far. Do you know of any more for Mon.?
     
  6. Kev3188

    Kev3188 Veteran

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    I'm honestly not sure if (or how many) there were for today. I know there are/we're still some pretty significant delays on flights...
     
  7. NewHampshire Black Bears

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    One thing's for SURE Kev, it wouldn't have happened like that on 'Big RED', where REAL bad weather lives EVER winter and early spring !
    (MSP to ANC/FAI ?........No Problem, just de-ice the bittch 3 times, then get going) !!
     
  8. Kev3188

    Kev3188 Veteran

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    We were good at what we did. :)

    BTW, the latest 8k filing states that approx. 4000 flights were cancelled, at an estimated cost of $125 (reduction for the June quarter)...
     
  9. NewHampshire Black Bears

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    You know Kev, since I opined that UAL was slipping closer to the number '4' US airline, ..What US Airline IS currently number '4' ?
    Perhaps they only thing that will 'save UAL's BACON' from slipping to a # 4, is their International routes over the Atlantic, and Pacific. (The Carib' and the rest of the America's don't count). Am I missing something here, or is AA, UA and DL the only US carriers flying all over the " A + P " ?
     
  10. FWAAA

    FWAAA Veteran

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    I was dead-on with my estimate of $125 million, but I said it would be a reduction of revenue (just like the $100 million from last August's meltdown) while Delta said in the 8-K that last week's storms would reduce profits in the second quarter by $125 million. That's a bigger hit than I thought.
     
  11. eolesen

    eolesen Veteran

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    I wouldn't be so quick to dismiss "Americas" flying... DFW-GRU is almost 20% longer than JFK-FCO, and ORD-GRU is longer than SFO-NRT.

    Who is #3 and #4 depends on what metric you want to look at....

    By enplanements excluding regionals, WN is #2, DL is #3, UA is #4. Including regionals, UA is #3 and WN is #4.

    By ASM/ASK excluding regionals, UA is #3 and WN is #4. Same including regionals.

    By revenue and departures, UA is solidly #3 and WN is #4.
     

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