Delta Upgrades In-flight Experience for International Coach Customers

[s80dude]

-- As Delta airplanes land in more international destinations this year, the airline is upgrading the in-flight experience for its international coach customers. Beginning July 1, customers seated in the coach cabin on most of Delta's international flights will receive printed menus; a complimentary choice of cocktail, including the new Mile High Mojito or Mango Kiss, beer or wine during the main in-flight meal service; and a mid-flight snack. Later this fall Delta will provide coach customers with their own personal amenity kit that will include eyeshades and ear plugs for a more relaxing flight. Also, more customers are already enjoying more comfortable all-leather seats in coach class as the airline continues refurbishing its international aircraft interiors.

http://biz.yahoo.com/pz/060628/101433.html


Will be curious to see how the other US carriers respond to this. I remember we used to have the mid movie candy service at AA but that went away with the 777 staffing dispute IIRC.

 

[TheWatcher]

-- As Delta airplanes land in more international destinations this year, the airline is upgrading the in-flight experience for its international coach customers. Beginning July 1, customers seated in the coach cabin on most of Delta's international flights will receive printed menus; a complimentary choice of cocktail, including the new Mile High Mojito or Mango Kiss, beer or wine during the main in-flight meal service; and a mid-flight snack. Later this fall Delta will provide coach customers with their own personal amenity kit that will include eyeshades and ear plugs for a more relaxing flight. Also, more customers are already enjoying more comfortable all-leather seats in coach class as the airline continues refurbishing its international aircraft interiors.....

Outstanding!!!!

 

[flyhigh]

this is a great move. Should help make their Y cabin more appealing. How is installation of seatback tv's going? Overall, could make for the top US carrier transatlantic Y svc...something Delta was not tops in for quite some time.

 

[hp_fa]

Here's my problem with this upgrade in amenities, and it goes for **all** the carriers that have gone the BK route. This upgrade in amenities is being paid for by the employees who took pay and benefit cuts. With fares relatively flat in light of the coast of fuel, this upgrade isn't being paid for with fare money, but rather from the sweat of workers including retired workers whose benefits are have been (or will be) reduced.

 

[WorldTraveler]

You could argue that anything that a bankrupt company spends comes out of its employees hides. That, however, flies in the face of business logic. Any successful company has to invest in itself in order to survive and to compete and airlines are no exception. It is doubtful that DL or many of the US legacy airlines will spend much on fleet expansion for the next few years. They are digging themselves out of the worst financial crisis in their history and are not about to take on a bunch of debt for airplanes when they have existed by floating debt to fund their losses.

DL is in a very fortunate position in that it had 21 very young 767-400s and 8 767-300ERs that were waiting to fly internationally and just needed a business class product put on them. The cost of a cabin modification including putting the PTVs on those aircraft is tiny compared with the cost of buying new aircraft. DL is able to expand its business and is at least keeping revenue flat and probably will be able to grow it while flying less capacity. That is a remarkable accomplishment for any business but esp. in the airline industry where yields have been sinking like a rock.

In contrast, look at UA and US, two airlines that invested very little in their product throughout their bankruptcies. Combine that will the fact that both were in the process for 3-4 years each, and they are seriously uncompetitive in many regards and have worn terminals and airplanes to show for it.

Delta was wise enough because of its experience with Song to realize that customers can spot a cash strung airline a mile away and will stay at least that far away from its planes. Since DL’s strategy involves closing the domestic revenue gap it has had and expanding in the very competitive NYC and overall Latin and Europe markets where there are a number of airlines with very good products, they had no choice but to invest in the product.

Delta’s investment in its product is coming out of its future earnings, not its employees’ pockets. Creditors control every major expense of a company in bankruptcy and they have repeatedly allowed DL to invest in the product because they recognize their investment will only grow as Delta improves its product.

 

[hp_fa]

Delta’s investment in its product is coming out of its future earnings, not its employees’ pockets. Creditors control every major expense of a company in bankruptcy and they have repeatedly allowed DL to invest in the product because they recognize their investment will only grow as Delta improves its product.

So if things don't go as planned DL's money that is spending now won't be there to pay for the bills. If all goes as planned there still won't be money to return the worker's wages or benefits to what they had prior to BK. And of course the Execs will need raises, options, etc. to reward them for all of this.

My opinion, as stated above, remains unchanged.

 

[Ch. 12]

Here's my problem with this upgrade in amenities, and it goes for **all** the carriers that have gone the BK route. This upgrade in amenities is being paid for by the employees who took pay and benefit cuts. With fares relatively flat in light of the coast of fuel, this upgrade isn't being paid for with fare money, but rather from the sweat of workers including retired workers whose benefits are have been (or will be) reduced.

Yet yields and revenue have increased far greater than the cuts we (at DL) took. That kind of negates your assertion. And yields are up for all carriers...significantly. They aren't, as you claim, "flat". Look at yield increases in the financial reports for the real numbers.

 

[WorldTraveler]

and if the product at HP/US was increased with employee cuts, then why do we continue to read so much about your substandard product and your tattered and torn airplanes? What did HP/US do w/ the much bigger cuts they extracted from you all (or in the case of HP employees, the wages you never had)?

 

[magsau]

Delta’s investment in its product is coming out of its future earnings, not its employees’ pockets.

Let's just think about this statement for a minute................DL just asked for an extension of it POR...... So they really don't know what the future holds since they have NO presentable plan for the future. As a result this is total horse hooey to say this is coming out of future earning since they have no forecast for such an event. So to sum up the reputation and reliability of WT, HA!

As for the "only needed to throw interiors in the 67's to have an international product..." Do you even know about ETOPS and the requirements that your crack mtc. team had to go through to get those airplanes airborne? Of course not.

Finally, I was on a DL flight recently. I was on a 757 connecting to an MD80. The first class seats were worn and torn on the 757 and the MD80 was a lovely shade of 1968. Looked like an Austin Powers retro jet.

I guess woodgrain paneling is making a comeback as that if you think DL is fashionable. By the way you mentioned Song. How much did that experiment cost? Did it ruin the pilots retirment by spending on Song? Still remember a song ad I saw in the Boston Globe. What crock. No airplanes in the photo just a lady in a tree swing. Brilliant!

 

[hp_fa]

and if the product at HP/US was increased with employee cuts, then why do we continue to read so much about your substandard product and your tattered and torn airplanes? What did HP/US do w/ the much bigger cuts they extracted from you all (or in the case of HP employees, the wages you never had)?

First off, I don't work there anymore. Second, why such a defensive response to a post that specifically included all airlines that have recently been the BK route for what I thought was a relatively reasonable position by me?

 

[WorldTraveler]

If you want to come throwing unsubstantiated trash on the internet, expect that you will be called on the carpet, hpfa.

And as for you, mags, you may have noticed that NW has also filed an extension to file its POR; NW and DL did it for one reason only – and that is so management at those airlines could TRY to save at least some of their employees’ pensions through legislative action. You have absolutely no idea about the concept of trying to preserve commitments because your employer raped you not once and not twice but bent you over for a third time before they finally took your pension away – and to be “fair†they did it to everyone at United. Isn’t that nice?

And as for extensions, you don’t want me to even remind you about how many UA filed or the 3 years it took UA to come up with a POR that essentially left debt unchanged, provided no ability to buy aircraft, AND had a fuel price assumption that was months old before the plan was even filed.

Your aircraft statements are such a feeble attempt, I can see you seething right now. DL, not UA, has been updating the cabins of its aircraft over the past several years. Your CEO was the one that said that 3 years of BK with no capital expenditures has taken a toll on UA’s fleet and ground facilities.

And the 767s that DL has moved to the international market were delivered as ERs from day one. I’m not underestimating the work that was done but we’re not talking about changing out landing year or engines in order to make aircraft international capable. But DL has done that before… you might remember the L1011-250… or you may not. Actually, DL still holds a license to BUILD aircraft a unique distinction among US airlines.

 

[hp_fa]

If you want to come throwing unsubstantiated trash on the internet, expect that you will be called on the carpet, hpfa.

OK, what future profits do you claim exist under what conditions and scenarios that will be paying for the amenity upgrades. You're the one that posted that, so enlighten me on just what has to occur to pay for all of this by a airline in Chapter 11 that is still losing money. Educate me.

 

[magsau]

And as for you, mags, you may have noticed that NW has also filed an extension to file its POR; NW and DL did it for one reason only – and that is so management at those airlines could TRY to save at least some of their employees’ pensions through legislative action.

And as for extensions, you don’t want me to even remind you about how many UA filed or the 3 years it took UA to come up with a POR that essentially left debt unchanged, provided no ability to buy aircraft, AND had a fuel price assumption that was months old before the plan was even filed.

They are delaying exit just to try and save pensions? That is one of the funiest things you have ever written. If you believe that then good for you. I would think the creditors would prefer to have dl put forth a workable plan to exit and get them off the dole. But you spin it any way you wish. As for the UAL stay in BK you like to disregard the two visits to the ATSB that took almost 18 months. Factor that time frame out and DAL is on track to spend a longer time in BK than UAL on an averaged basis. But hey you are not out of BK yet so we just don't know. Also, DL will most likely revisit BK in the near future. Don't you have a chart showing how BK airlines like to go back for a second round?

Speaking of fuel. Since DL has no exit price what is the forecast price for exit and where does DL come up with a plan that makes money under the current PPB of oil? Sounds like another round of cuts to pay for the new interiors and increased oil price.

By the way where do you get that wood grain paneling on the DL jets? It is lovely to say the least.

 

[Bear96]

. . . customers can spot a cash strung airline a mile away and will stay at least that far away from its planes.

You're probably right.

Hmmm. Isn't being BANKRUPT (i.e., INSOLVENT) the ultimate form of being "cash strung?"

 

[WorldTraveler]

no, cash strung is not spending money on the product. DL has spent more on its product in bankruptcy than any other airline. And they are doing it with the complete blessing of its creditors who recognize that DL is indeed turning itself around. Witness that DL has not once gone back to the court to ask for a waiver of its loan requirements, something that UA did over and over again. DL has done more in 8 months of bankruptcy than UA did in 3 plus years.

And I don't know how you "average" out delays in a government begging process but perhaps the reason UA had to wait is because they had one flawed idea to turn itself around, including expecting the US government to bail them out, ala the days of Pan Am.

DL IS generating cash which indicates operating profits under current fuel prices. DL has not given fuel price guidance.

I don't know where DL gets its wood grain look but I really don't care and I've heard no one else ask. If the potties clean up easier with wood grain in them, who am I to stop them and who are you to care?