One thing I've learned since following this industry nearly 30 years ago is that Delta has always been the underdog - never had the sexy route structure, large markets, or political connections but somehow has outlived some of the big names of the industry including its far-better healed competitor Eastern and become the third largest airline in the US. There's something about Delta's DNA that many of you simply do not understand.
HG,
let me address each of your issues.
1. CVG and SLC have small LOCAL markets but they are very efficient and carry extraordinary amounts of connecting traffic - far beyond the size any comparably sized city has for service by any other airline anywhere in the world. Name a city comparable to CVG that has daily service to five Europe destinations during the peak summer travel season? Delta knows how to build hubs very well; they just scale them to the size of the local markets. ATL is a much bigger city and has far more air service by one carrier and its affiliates than any other city on the planet.
2. I'd like to see DL have a stronger west coast presence but that doesn't doom it. CO has even less presence in the western US but no one thinks they are on the verge of failure. There is a principle that good people and businesses make the best of the cards they are dealt. Delta has done an extraordinary job with the smaller business markets/larger leisure markets and increased low cost competition it faces.
3. To most of us, 400 RJs seem a bit excessive but that is how DL has developed its smaller secondary cities with so much connecting traffic. More recently, DL has deployed dozens of RJs in point to point flying overflying not only DL's hubs but also other airline's hubs. In the airline business, the carrier that has nonstop service usually dominates the market. DL's RJs allow it to serve dozens of markets nonstop that no one now or in the future will serve. Those are markets DL owns. There are never too many assets for something that profitably allows DL to own those markets. Based on the loads DL carries in and out of Florida and the statistics DL provides the DOT, they do in fact take ownership of the markets they begin unique RJ service in. If you doubt that, just look at the shrinkage going on by US Airways in the SE. DL not only has a stronger hub structure serving those cities but also has point to point RJ service to the top markets. Point your cursor over to the US board and read what US employees have to say about what DL has done to Greensboro, a former US stronghold. It's just one of many.
4. see #2. same logic. DL is the dominant airline to continental Europe and serves a number of markets which no other airline serves. Right now, Asia is not what DL does. NW doesn't do South America but Delta does. CO and UA don't do the SE but DL does.
5. I'd like to see London (actually any airport would do) from the NE on the DL network. New terminals won't make or break DL or any airline. Actually, AA will be paying more than $20 per passenger for their terminal at JFK; there is no way AA can be competitive with B6 in many markets when 10% or more of the average fare ends up in terminal expenses. Also, JFK is one of the few terminals in DL's network that are significantly below par. Given the terminal building boom that is going on and the growth of LCCs, DL's antiquated facilities at JFK might look pretty attractive when it comes to competing. As DL stabilizes financially and their presence at JFK grows, I'm sure they'll commit to even more improvements at JFK ABOVE and BEYOND the ones that are in the pipeline now.
6. False. Most of DL's cash is NOT restricted. read the financial statements before you make assertions like that. Your credibility goes to pieces when you spout inaccuracies. Let me point you in the right direction:
http://biz.yahoo.com/prnews/050721/clth013a.html?.v=1
Like all legacy airlines, DL has a significant amount of debt. Unlike others, DL has considerable flexibility by being largely non-union that allow DL to do things like change pensions without getting into the battles such as have happened at UA and now NW. DL will be spending alot of money on debt service but will be able to do that because of the productivity of their employees and their more efficient operation.
In fact, just six months into DL's restructuring, it has achieved a CASM BELOW AA and CO's mainline operation. Did you catch that? DL is a lower cost producer than either AA or CO, the two airlines everyone thinks will be most likely to win.
In this business, the lowest cost producer wins and it also gets rewarded with being able to manage more assets.
DL also has considerable tax assets (mentioned in a previous posting) that will allow DL to avoid paying income taxes for years to come. Bet you didn't bothe to notice that JetBlue will send a check to Uncle Sam and his friends that amounts to a whopping 45% of their income before taxes. Doesn't that just suck working so hard and giving almost half of it to the government.
No, life is no bed of roses for DL but to think that any of the six reasons you mention will send them off the edge is itself not in touch with reality.
