DELTA Terminates XJT CONTRACT....Sept 1, 2008

100LLguy

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http://news.delta.com/article_display.cfm?article_id=11103

Delta and ExpressJet Announce Plans to Mutually Terminate Flying Agreement
Customers of impacted flights are eligible for rebooking
ATLANTA, July 3, 2008 – Delta (NYSE: DAL) and ExpressJet have mutually agreed to cease all ExpressJet Delta Connection operations as of Sept. 1, 2008.
ExpressJet currently operates 23 ERJ-145 aircraft for Delta Connection on flights that primarily operate out of Los Angeles and Salt Lake City. Delta intends to award a portion of this flying, including all routes currently operated by ExpressJet at its Salt Lake City hub, to another Delta Connection carrier. Delta will rebook customers whose scheduled service is impacted by these changes.
“We are pleased to be able to reach a mutual agreement on the termination of our partnership with ExpressJet,” said Don Bornhorst, senior vice president – Delta Connection. “While we expect minimal impact to customers, Delta will work to ensure that alternate transportation options are arranged as quickly as possible.”
"With the losses we were experiencing from our Delta pro-rate flying combined with our ability to return aircraft to the lessor, this termination of service is in the best interest of our company," said Jim Ream, ExpressJet President and Chief Executive Officer.
After Sept. 1, ExpressJet will retain the 23 ERJ-145 aircraft it currently flies Delta Connection.
Customers with impacted flights scheduled on ExpressJet will be notified by Delta reservations agents and offered alternate flights or refunds if their flights have been cancelled. Customers can also contact Delta directly at 1-800-221-1212.
Delta Air Lines operates service to more worldwide destinations than any airline with Delta and Delta Connection flights to 327 destinations in 62 countries. Delta has added more international capacity than any major U.S. airline during the last two years and is the leader across the Atlantic with flights to 44 trans-Atlantic markets. To Latin America and the Caribbean, Delta offers 609 weekly flights to 62 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 16,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 499 worldwide destinations in 105 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.
 
I guess it's becoming apparent how much of a lead weight the RJ's are. Mainline won't pay for the gas anymore...and connection management is happy to send the airplanes back. The entire RJ strategy formulated in the 1990's seems like it lacked foresight...in hindsight.
 
Did you predict $145/bbl oil a decade or more ago? If so you should probably be a day trader.
 
This situation is so depressing. Not even at the airlines alone, but the entire country. The news today is all about how noone is traveling for the holiday weekend. Noone has money. And the fact that I could be out of a job come the fall sucks. Oh well, Guess Ill finish polishing the resumes.
 
“We are pleased to be able to reach a mutual agreement on the termination of our partnership with ExpressJet,” said Don Bornhorst, senior vice president – Delta Connection.

Translation: "Yes, we are glad we didn't have to try to pull any chicken#### 'performance metric' stuff with another contracted capacity provider."
 
If oil were $25/bbl I think the airlines would be making so much money now they wouldn't know what to do with it with our current level of demand. In fact all things being equal except oil costs I'd bet we would be in one heck of a growth period.
 
The news today is all about how noone is traveling for the holiday weekend. Noone has money.


I live in a resort town and go to another large resort town every weekend. I have never seen as many people at either location in my short life. The airports at both towns are busier than ever. The traffic is worse than it was last year and there are no hotel rooms available in the town for the next two weekends. The wait for one of the most expensive resturant in town was over an hour last night, as it was for every other place in town. But hey, if the news said it, it must be true!

Alex.
 
This situation is so depressing. Not even at the airlines alone, but the entire country. The news today is all about how noone is traveling for the holiday weekend. Noone has money.

Yet the planes are full leg after leg....


Good luck XJT guys, an easy or no commute just turned into a nasty one for some LAXers
 
I live in a resort town and go to another large resort town every weekend. I have never seen as many people at either location in my short life. The airports at both towns are busier than ever. The traffic is worse than it was last year and there are no hotel rooms available in the town for the next two weekends. The wait for one of the most expensive resturant in town was over an hour last night, as it was for every other place in town. But hey, if the news said it, it must be true!

Alex.

Well Alex you know your stuff. However its a fact. Travel is down over all. The foreigners are indeed comming into the US and traveling due to the poor dollar. However a lot of people are not driving indeed this weekend. In addition many hotels are reporting that their people staying are locals. I know in good ole Hollywood the resorts are reporting most their clients these holidays are locals and the others are foreigners. In general perhaps your town is lucky but the fact is many are not going anywhere.
 
Well, speaking only for myself, I did not make the 8-hour drive up to the farm this 4th of July (I usually go every year) because of the price of gas.

So, this is one family that changed their plans because of gas! Not complaining, if it had been that important to me, I would have gone anyway. But, it was not a necessary trip, so I decided for forego it this year.
 
Paychecks stretch instead of grow

The weekly earnings of the median worker, the one smack in the middle of the wage scale, were essentially unchanged between 2000 and 2007. In today's dollars, that middle-income paycheck went from $694 per week in 2000 to $695 in 2007.

Let's just pause on that point for a second. The productivity of the American workforce increased quite dramatically over those years, but middle-income workers got all of a buck from that growth. They baked a bigger pie, yet the size of their slice was unchanged.

So, where'd all the growth end up? Not exactly a head-scratcher. It flowed to the top of the pay scale, and the higher up you started out, the better you did.

I don't have trouble believing there are still plenty of people enjoying luxury. Unfortunately, there probably aren't enough of them justify the capacity currently flying around.

  1. Reduce Capacity
  2. Raise Fares
  3. Recover Financially
  4. Want More Growth
  5. Increase Capacity
  6. Make Money Hand-Over-Fist
  7. Drop Fares to Increase Loads
  8. Race to Bottom
  9. Flirt with Bankruptcy
  10. Go To 1
 
Well, speaking only for myself, I did not make the 8-hour drive up to the farm this 4th of July (I usually go every year) because of the price of gas.

So, this is one family that changed their plans because of gas! Not complaining, if it had been that important to me, I would have gone anyway. But, it was not a necessary trip, so I decided for forego it this year.
Really? That's really not a lot of money is it?

8 hours at 60 mph is about 480 miles. (just a guess on the mileage).

480 miles divided by 33 MPG is about 14.5 gallons. (a guess on MPG because that's what my car gets).

14.5 gallons times $4.30 a gallon is just over $62. (A guess on gas prices because that's what I pay here.)

That's really not too bad to get a family of (how ever big your family is) 500 miles.
 
"After Sept. 1, ExpressJet will retain the 23 ERJ-145 aircraft it currently flies Delta Connection."

Well it says they will retain the aircraft? any ideas more branded flying?


Someone on the other thread thought I was nuts for brining up the idea of shorting Expressjets common stock..Even made fun of me for my spelling and typing abilitites had you done that you wouldve been up 30-40 percent.
 
Well Alex you know your stuff. However its a fact. Travel is down over all. The foreigners are indeed comming into the US and traveling due to the poor dollar. However a lot of people are not driving indeed this weekend. In addition many hotels are reporting that their people staying are locals. I know in good ole Hollywood the resorts are reporting most their clients these holidays are locals and the others are foreigners. In general perhaps your town is lucky but the fact is many are not going anywhere.

I am sure travel is down a little, but I have not seen any change at all. It just took me an hour to drive a ten mile round trip. I would love to know the actual change from last year and the year before. Does the DOT publish any travel figures? For all I know the media is using the figures from ski resorts as the proof that summer travel is down 75%!

Alex
 
Really? That's really not a lot of money is it?

8 hours at 60 mph is about 480 miles. (just a guess on the mileage).

480 miles divided by 33 MPG is about 14.5 gallons. (a guess on MPG because that's what my car gets).

14.5 gallons times $4.30 a gallon is just over $62. (A guess on gas prices because that's what I pay here.)

That's really not too bad to get a family of (how ever big your family is) 500 miles.

My Tahoe gets about 16-18 mpg ;) Depending on winds, I've actually gotten over 20 mpg once (both ways!) because I had a kick-ass tailwind. But I figured it out to be about $160 one-way for fuel.

Again, if it had been really important that I make the trip, I would have. Just wanted to show that people are changing their habits because of fuel costs. So please don't think I'm whining or complaining that I couldn't go. I simply chose not to. Not a big deal, we'll probably make a trip up there in the fall. My class reunion is in October, and I love Wisconsin in October, so I'll spend the $ to be there for that. Mom & Dad will probably bring the Archer down sometime in the fall too. (His 310 is still down for panel work..... :rolleyes: I wish he'd get that thing fixed.)
 
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