DL's profit does not disappoint.

[WeAAsles]

no, I said that DL has derisked the business so that it can be profitable. It's no different from what WN has done.

AA has not done the same thing including by taking on enormous amounts of debt relative to DL.

That debt is called an investment. You can't keep riding your old clunker into the ground forever. I should know, I drive a 1998 Mustang and I pay to keep it maintained only because I like and am used to the car. But it certainly doesn't have the same reliability or gas mileage as a new car.

AA locked in the majority of future new aircraft being built and DL will pay for that mistake in not ordering new airplanes in the future. They're absolutely going to be behind the curve when their business travelers start to demand that they upgrade the product.

 

[jcw]

Let's reflect when DL came out of BK I'm sure it didn't have any debt

Last I checked AA has stated they are paying down debt

Per DL reports their debt was at 17B in 2009

 

[BABABOOY]

 DL will pay for that mistake in not ordering new airplanes in the future. They're absolutely going to be behind the curve when their business travelers start to demand that they upgrade the product.

 
Were do you come up with this?  thin air?  Any facts to support this or just wishful thinking?
A few things to consider. 
Delta's product has been upgraded. FACT.   Have you stepped 
foot on any of our intl a/c  ?
Delta has spend and will continue to spend millions on cabin refurbishments. FACT
One of the few if not only carriers that offers BE direct aisle access that  
Business travelers prefer. FACT
And if you believe that Business travelers prefer more than just a new interior 
just look at Delta's ONTIME and COMPLETION rate. FACT. Best of its peers. FACT.
Business travelers want a clean, friendly on time product.  FACT. That is what 
they are getting with Delta and the financials continue to prove that. FACT

 

[WorldTraveler]

but other airlines including WN have managed to invest in their business and not spend as much money.

You and AA are still stuck in the mindset that you have to buy a new car in order to be able to get to work on-time and at the lowest cost.

that simply is not true.

and, no, DL is buying aircraft at far less than what AA is paying.

The M90 burns comparable amounts of fuel to current generation A320s and 737s but cost a fraction. 717s have lower fuel burn that 319s. That's 150 domestic aircraft that have similar or lower operating costs to current generation aircraft.

the only curve DL is behind is in running up debt that doesn't deliver improved operating results
 

Let's reflect when DL came out of BK I'm sure it didn't have any debt

Last I checked AA has stated they are paying down debt

Per DL reports their debt was at 17B in 2009

AA's financial commitments exceed the cash it is generating plus what DL is returning to stockholders.

it's readily available information.

market realist covered it before and will likely update with this quarter's data.

Were do you come up with this? thin air? Any facts to support this or just wishful thinking?
A few things to consider.
Delta's product has been upgraded. FACT. Have you stepped
foot on any of our intl a/c ?
Delta has spend and will continue to spend millions on cabin refurbishments. FACT
One of the few if not only carriers that offers BE direct aisle access that
Business travelers prefer. FACT
And if you believe that Business travelers prefer more than just a new interior
just look at Delta's ONTIME and COMPLETION rate. FACT. Best of its peers. FACT.
Business travelers want a clean, friendly on time product. FACT. That is what
they are getting with Delta and the financials continue to prove that. FACT

ALL FACTS.

PLUS DL managed to give its employees MORE in profit sharing than they kept for themselves in profit sharing after taxes and special items.

DL is the airline that has invested in its people above any other airline.

FACT.

 

[jcw]

I know it's hard when the real facts get in your way

AA debt is down 18.8 %

I know it's hard for you to read earnings announcements

 

[WorldTraveler]

AA has more current cash but has far more debts including over the long-term.

DL's stockholder equity is more than twice what AA's is - which also makes DL a larger company - $52B to AA's $44B.

AA is in very good shape for this point in its emergence from.

But is still far more leveraged that DL and has far more financial commitments.

And all of the rah-rah about the company's financial results mean little considering that DL employees are on track to receive more than $1 billion in profit sharing. Let us know what that figure is for AA.

and if you compare DL's average salary expense per FTE with AA's figure, DL employees make far more.

All of AA's success is meaningless to employees if they don't share in it.

In complete contrast to AA, DL is building its airline based on sharing its successes with its employees.

 

[jcw]

I guess you don't realize that AA's employees are driving their compensation mix - you must not know they have some unions at AA - while it's easy to say profit sharing is great at the height of a cycle it doesn't work so well at the bottom

DL has chosen one method of comp AA employees through bargaining has chosen another - both have pros and cons

DLs profit sharing does not make it a superior airline - we can easily point to other companies that are great and don't donprofit sharing actually profit sharing is really not done all that much - therefore it's no silver bullet

Sorry to burst the profit sharing spin machine

 

[WorldTraveler]

DL spent more per person on its employees than AA did.

it comes straight from the financial statement.

you should have no problem calculating it.

start with the figure in the salaries, wages, and benefits column and divide it by the number of FTE employees.

plz show your calculations.

 

[jcw]

I'm happy to show call after you get your list posted on DLs issues

 

[jcw]

We should be happy that DL is paying its employees more everyone should flock to DL

That will help keep DLs profitablility down

Good luck to them and looking forward to AA continuing to beat DLs on income

 

[WorldTraveler]

no, DL can pay its employees more and still make money.

as long as AA takes the approach of achieving its success at the expense of its employees, the loyalty will run out very quickly.

 

[jcw]

You keep forgetting AA employees are negotiating contracts

 

[737823]

That debt is called an investment. You can't keep riding your old clunker into the ground forever. I should know, I drive a 1998 Mustang and I pay to keep it maintained only because I like and am used to the car. But it certainly doesn't have the same reliability or gas mileage as a new car.
AA locked in the majority of future new aircraft being built and DL will pay for that mistake in not ordering new airplanes in the future. They're absolutely going to be behind the curve when their business travelers start to demand that they upgrade the product.

DLs product is already deficient compared to what AA has on the 77W and is installing on the 772.


Josh

 

[jcw]

Excellent point josh DL just keeps falling behind

 

[WorldTraveler]

DLs product is already deficient compared to what AA has on the 77W and is installing on the 772.


Josh

and yet DL managed to continue its streak of having the highest yield among US carriers.

you apparently aren't in tune with the real factors that influence customers to pay DL more per mile than AA.