WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #1
We have passed another weekend and Delta has not filed for chapter 11 which leads me to believe it won't have for two more weekends since I doubt if they will file on the weekend of 9/11. Regardless of whether a bankruptcy filing is coming, there is no doubt that a large scale business plan change is needed and will be coming. I also believe DL realizes bankruptcy doesn't alter the need for change.
I believe changes will be announced soon, perhaps this week, along these lines:
Network - DL has hinted at additional service from JFK and to Latin America. Some of these are with new aircraft but some are with existing aircraft which probably means some reallocation is coming. I think it is likely that DL will thin its presence in Florida and possibly CVG and SLC.
Although crude oil is settling back a bit, I have not heard anything to say that jet fuel is coming off of its elevated heights. $2 plus jet fuel was unimaginable just a couple months ago and will require major and lasting changes at every airline.
Personnel - layoffs are quite likely but I think it is also likely that DL will change personnel policies so as to make employee careers more short-lived for many employee groups. I believe Song has personnel policies like JetBlue's which requires employees to leave after a few years. Someone correct/ enlighten me on both carriers' policies.
Fleet and financing - both of these are probably more closely tied to a chapter 11 filing but I think it is possible but probably a stretch that DL could succeed at an out of court restructuring. Either way, the fleet will change and debt will be restructured inside or outside of bankruptcy.
Because this business is so competitive, whatever changes DL makes will almost certainly require a response by other carriers. Being largely non-union, DL does have an advantage that they can make some HR related changes that other carriers cannot. The next few weeks will be interesting.
I believe changes will be announced soon, perhaps this week, along these lines:
Network - DL has hinted at additional service from JFK and to Latin America. Some of these are with new aircraft but some are with existing aircraft which probably means some reallocation is coming. I think it is likely that DL will thin its presence in Florida and possibly CVG and SLC.
Although crude oil is settling back a bit, I have not heard anything to say that jet fuel is coming off of its elevated heights. $2 plus jet fuel was unimaginable just a couple months ago and will require major and lasting changes at every airline.
Personnel - layoffs are quite likely but I think it is also likely that DL will change personnel policies so as to make employee careers more short-lived for many employee groups. I believe Song has personnel policies like JetBlue's which requires employees to leave after a few years. Someone correct/ enlighten me on both carriers' policies.
Fleet and financing - both of these are probably more closely tied to a chapter 11 filing but I think it is possible but probably a stretch that DL could succeed at an out of court restructuring. Either way, the fleet will change and debt will be restructured inside or outside of bankruptcy.
Because this business is so competitive, whatever changes DL makes will almost certainly require a response by other carriers. Being largely non-union, DL does have an advantage that they can make some HR related changes that other carriers cannot. The next few weeks will be interesting.