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Delta

Associated Press
Delta Will Report Huge 3Q Loss Wednesday
Tuesday October 19, 6:01 pm ET
By Harry R. Weber, AP Business Writer Delta Airlines Will Report Huge Loss for Third Quarter Amid Fears of Bankruptcy Filing

ATLANTA (AP) -- Delta Air Lines Inc. will report another huge quarterly loss on Wednesday and plans to skip its routine of speaking to investors -- a sign to some observers a bankruptcy filing is near. One analyst said in a research note that a Chapter 11 filing is highly likely soon.

Delta was mum Tuesday on its intentions, except to repeat a prior statement that it will have to seek court protection if it fails to restructure its heavy debt and win deep concessions from its pilots in the next several weeks.

Company shares fell 12 cents, or 3.9 percent, to close at $2.99 Tuesday on the New York Stock Exchange. The shares have fallen more than 90 percent since the 2001 terrorist attacks, but remain slightly above the 52-week low of $2.94 posted on Sept. 27.

In a Securities and Exchange Commission filing on Friday, Delta revealed that it expects its net loss for the third quarter to be $625 million to $675 million, or $4.99 to $5.39 a share. The loss, to be reported Wednesday before the market opens, would be significantly higher than the $3.79 a share analysts had expected.

In a statement accompanying the filing, Delta said it would not conduct a conference call with investors Wednesday to answer questions about the earnings release. It cited in part as a reason its efforts to avoid bankruptcy.

"It's highly unusual, but what are they going to say, because everyone is going to be wondering about the pilots," said Ray Neidl, an analyst with Calyon Securities Inc. in New York. "I see that as a sign that the end is near."

UBS analyst Robert Ashcroft said in a research note Tuesday that the likelihood of a Chapter 11 filing by the nation's third-largest airline has increased since the SEC filing because of how little cash it has left to repay debt. Delta says it had $1.45 billion in unrestricted cash as of Sept. 30, below the $1.5 billion threshold many analysts believe is tantamount to a bankruptcy filing.

"It would take a brave person to approach a credit committee with a proposal to loan Delta more money right now," Ashcroft said. He added that bankruptcy is "not a foregone conclusion, but highly likely" within a month or two.

Atlanta-based Delta has $20.6 billion in total debt. It has been trying to restructure the terms of some of its debt commitments to help avoid bankruptcy. A recent debt exchange offer is part of that effort.

Asked for further comment Tuesday on the reason for not holding the conference call, Delta spokeswoman Benet Wilson repeated Friday's statement. She added that meetings between the company and the pilots union remain intense, though she and a union spokeswoman would not say if the sides are near an agreement.

Delta is seeking $1 billion in concessions from its pilots, who have publicly offered up to $705 million. Delta warned recently that even with the concessions it is seeking, it still may need bankruptcy.

Meanwhile, Delta has been trying to transform itself to drive more customers onto its planes.

Its latest effort announced this week is that its low-fare subsidiary, Song, plans to sell organic baby food on all its flights to encourage parents to travel with infants and small children. Song has been targeting the leisure crowd to fill its flights from the Northeast to Florida.

Delta has used Song to experiment with different initiatives to see if they might work in the mainline airline -- Song also tried to woo passengers with martini bars on flights and free tickets for being nice.

Analysts see Song as potentially worthwhile to Delta as an incubator for change. Delta said last month that it planned to add a dozen more planes to Song's 36-jet fleet next spring.

In the long run, however, some observers remain skeptical about Song's success, in turn, Delta's transformation.

"Is Song going to be the new Delta?" said Terry Trippler, an airline industry expert in Minneapolis. "It is hard to tell. It hasn't worked for anybody else, and Delta hasn't been too successful at anything else they've tried lately." He added, "It's going to take a whole lot more than premium baby food. It's going to have to mean premium prices to turn that airline around."
 
ATA Airlines

ATA Holdings says cash situation worsening
Wed Oct 20, 2004 01:12 PM ET
NEW YORK, Oct 20 (Reuters) - ATA Holdings Corp. (ATAH.O: Quote, Profile, Research) , parent of struggling low-cost carrier ATA Airlines, on Wednesday said a $24 million wage concession plan recently approved by its flight attendants will not be enough to alleviate its liquidity concerns.



The airline said its cash position had worsened since its quarterly earnings filing on Aug. 16, 2004, when it said it might run out of cash in early 2005. Record-high fuel costs, weak fares and the multiple hurricanes in Florida have compounded the airline's cash crunch, it said in a filing with U.S. regulators.
 
Southwest Airlines

By Elizabeth Souder,
Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--


Southwest Airlines Co. executives tentatively expect to add 10% more capacity to the network in 2005, but they are delaying final planning to see what happens with some of their competitors.

In fact, if a competitor like bankrupt US Airways Group Inc. liquidates, or some other large opportunity comes up, Southwest may double its growth plans, executives said.

"We have not made plans for next year because we are wondering if something is going to happen that's fairly dramatic and whether we would want to respond," said the airline's new chief executive, Gary Kelly, during a conference call Thursday. "We'll wait as late as we can - then we'll proceed with our natural growth plan."

That natural growth plan would involve growth in the airline's newest destination, Philadelphia, if Southwest can get more gate space. Otherwise, the airline could add from one to three new destinations, Kelly said.

Two issues may constrain growth: airplanes and oil prices.

If another airline liquidates, or some other large opportunity comes up, Southwest may have to scramble to get enough airplanes to take advantage of the situation. The airline will add 29 Boeing 737 airplanes to the fleet next year, and could digest a maximum of twice that growth, Kelly said.

"Doubling that is about as much - I would put that at the outside boundary - that we could contemplate," Kelly said. "That would be a lot of new people to train, deploy; a lot of new markets to develop."

He said he could just order more airplanes from Boeing if he is able to plan growth far enough in advance for the manufacturer to make the airplanes. Otherwise, Kelly said, he could buy or lease used airplanes, since Southwest gets frequent offers of used aircraft. Also, if another airline is pulling out of markets that Southwest wants to serve, Southwest could buy airplanes from that shrinking airline, so long as the aircraft are 737s. Southwest only flies 737s.

"We might have to spread our wings a little bit and add a little bit different aircraft type to our fleet," such as 737-800s, Kelly said. But he has no interest in buying airplanes outside of the 737 family because that would involve a second set of expenses, such as pilot training costs and maintenance costs.

Another issue that could constrain growth is high oil prices. Southwest Airlines has hedged 80% of its jet-fuel needs for next year. But adding more airplanes means adding to the airline's unhedged fuel needs, Kelly pointed out.

"It affects the way we think about expansion," he said. "I don't think we want to take too large a risk with the new markets. If there are some good aircraft deals out there, I think we would be interested. If the aircraft are expensive, I think we should pass in this environment."

The only specific growth Kelly mentioned was in Philadelphia, where Southwest operates out of four gates and has asked the airport for more. By the end of this month Southwest will be operating at full capacity in Philadelphia. Eventually, the airline would like to have as many as 25 gates, Kelly said. That is the sort of capacity Southwest might add if US Airways, which operates a hub in Philadelphia, liquidates, he said.

When asked how much the airline would like to grow in Philadelphia next year, Kelly said: "Could we double flights in Philadelphia? The answer is yes, if we had the gate capacity. If we did double it, would we open up a new city? I don't think so, because that (doubling in Philadelphia) would in essence be the equivalent of a couple of new cities."
 
US Airways

US Airways Implements Next Phase of Transformation Plan, Introduces Changes to February 2005 Schedule

Monday October 18, 8:29 am ET

New Schedule Improves Aircraft Utilization, Increases Flights and Redefines Hubs

ARLINGTON, Va., Oct. 18 /PRNewswire-FirstCall/ -- US Airways today announced it will significantly restructure its flight schedule beginning Feb. 6, 2005, as the company continues implementing its Transformation Plan.

"With our February schedule, we will lay the groundwork for a complete overhaul of the US Airways business model, a design that uniquely combines the best business practices of both legacy and low-cost carriers," said B. Ben Baldanza, US Airways senior vice president of marketing and planning. "Improved aircraft utilization and changes to hub operations will allow us to operate approximately 230 more daily flights, the equivalent of adding 27 mainline airplanes and 15 regional jets (RJs) to our fleet at today's utilization levels, without acquiring additional aircraft."

Key elements of the new schedule, which assumes a fleet of 281 mainline aircraft and 169 RJs:

* Significant changes at Philadelphia, where traditional flight-connecting banks will be replaced by a "rolling" structure; * The addition of two new flight-connecting banks in Charlotte, N.C., combined with significant capacity growth;
* The beginning of expanded operations to the Caribbean and Latin America from Fort Lauderdale/Hollywood International Airport, including four new destinations in the region added to the US Airways network;
* The redefinition of Ronald Reagan Washington National Airport, with new nonstop service to primary business destinations, complemented by the replacement of many turboprop flights with RJ service; and
* Increased productivity of aircraft and other assets closer to low-cost carrier (LCC) standards, brought about by better balancing the hub-and- spoke and point-to-point business models.

Philadelphia

US Airways' hub in Philadelphia will continue to serve as a primary connecting point in the Northeast and as a gateway to Europe, the Caribbean, and Latin America. Total departures from Philadelphia will increase to 495 each business day, or seven percent more than the November 2004 schedule, and 32 percent more than February 2004. Connecting arrival and departure banks also will be replaced by a steady flow of flights throughout the day. This is expected to relieve airfield delays and increase operational efficiency. Further, two new destinations will be added to the schedule, with 50-seat RJ flights to and from Wilmington, N.C., and Washington Dulles International Airport, operated by Mesa Airlines and PSA Airlines, respectively.

Charlotte

US Airways' largest hub will grow to 564 daily weekday departures (from the current 495) and by two departure and arrival banks, an increase of 100 daily flights as compared to the February 2004 schedule. Charlotte will continue as a modified hub-and-spoke system to maximize revenue and profitability. The current schedule includes eight flight-connecting banks.

Charlotte will continue to be US Airways' largest gateway to the Caribbean and Latin America, and transatlantic service to Frankfurt and London (Gatwick Airport) will continue as well. Service from Charlotte to Sarasota will be seasonally upgraded to Boeing 737 jets, replacing 50-and 70-seat RJs.

Ronald Reagan Washington National

New nonstop service will be added to six key business destinations, including Atlanta, Cleveland, Detroit, and Chicago (O'Hare) with four daily nonstop roundtrip flights each, as well as Dallas/Fort Worth and Houston (George Bush Intercontinental), with three daily nonstop roundtrip flights each. The new markets will feature the 72-seat Embraer 170 Regional Jet on most flights. Mainline jets will replace 50-seat RJ and 37-seat turboprop service on selected flights from Washington to Albany, Buffalo, Rochester and Syracuse, N.Y.; Columbus, Ohio; Indianapolis; Jacksonville, Fla.; Manchester, N.H.; and Raleigh, N.C., versus the February 2004 schedule. Departure levels will be unchanged in Washington versus February 2004, with seat capacity increasing by 40 percent to reflect the use of larger RJs and mainline aircraft.

"US Airways is already the leading airline at Reagan National, and with the new business markets and larger aircraft in our February schedule, we significantly increase our scope of service," said Baldanza. "The use of larger aircraft is consistent with the stimulated demand environment created by the launch of GoFares in the Washington market."

With the change, US Airways will provide nonstop service in 15 of Washington's 20 largest markets.

Fort Lauderdale/Hollywood

As previously announced, US Airways will expand service in Fort Lauderdale/Hollywood, Fla., on Feb. 13, 2005. Daily departures will increase from 27 this fall to 54, with the introduction of daily nonstop service to nine destinations in the Caribbean and Latin America, as well as six new nonstop destinations in the U.S. In February, US Airways will initiate service to Guatemala City, Guatemala; Panama City, Panama; Kingston, Jamaica; and San Salvador, El Salvador, all subject to foreign government approval. US Airways will also introduce nonstop daily flights to Key West, Fla., operated by PSA Airlines. Connections will be created in Fort Lauderdale/Hollywood for passengers traveling from the Northeast to points in Latin America and the Keys. US Airways' new low GoFares are available on all nonstop flights to and from Fort Lauderdale/Hollywood.

Pittsburgh

Pittsburgh continues to be an important part of the US Airways network. US Airways expects to operate approximately 229 daily departures to 67 destinations with the February schedule, including 28 of the top 30 markets for local travelers. As previously announced, a redesigned Pittsburgh schedule will take effect on Nov. 7, 2004. Currently, minimal changes are planned to the Pittsburgh schedule between November 2004 and February 2005. Depending on final network and schedule decisions made by non-owned affiliate carrier providers, the total departure count could vary slightly.

Boston and New York LaGuardia

Capacity from Boston and New York will increase by 36 and 12 percent, respectively. Capacity growth occurs as larger RJs and mainline equipment replace smaller, less efficient aircraft.

US Airways Shuttle

Shuttle flights currently operate hourly between New York LaGuardia, Boston Logan and Washington Reagan National. Beginning on Feb. 6, 2005, Shuttle flights between Washington and Boston will depart 45 minutes after the hour, rather than on the hour or half-hour. Shuttle service between New York and both Boston and Washington will continue to operate hourly on the hour. The new service pattern is another part of US Airways' overall plan to ensure increased efficiency through better aircraft utilization and airport staffing.

Transatlantic

US Airways will continue to offer nonstop service to its existing 11 destinations in Europe from its international gateways in Philadelphia and Charlotte. Overall Atlantic capacity is expected to remain unchanged in 2005.

Efficiency

The revised flight schedule will reduce aircraft turn times by 15 percent, in turn allowing mainline aircraft utilization to increase by ten percent and US Airways Express utilization to increase by five percent, versus February 2004. Mainline capacity for US Airways will increase by seven percent in February 2005 as compared to February 2004.

"Adoption of the Transformation Plan represents a turning point in the history of US Airways," Baldanza said. "By changing our core business model, US Airways will be better positioned to successfully compete in an aggressive competitive environment where declines in yields, growth of other low cost carriers, and record high fuel prices are expected."




Source: US Airways
 
Continental Airlines

Continental Airlines sees big losses
By Matt Andrejczak & Steve Goldstein
Last Update: 12:51 PM ET Oct. 19, 2004

SAN FRANCISCO (CBS.MW) -- Continental Airlines swung to a quarterly loss Tuesday and warned of a hefty loss next year if soaring fuel prices don't let up.


The No. 5 U.S. airline posted a third-quarter loss of $16 million, or 24 cents a share, including one-time charges of $22 million related to job cuts and retiring leased aircraft. Continental earned $133 million, or a $1.83, a year earlier. Those results included gains on the sale of ExpressJet stock and cost saving initiatives.

In midday trading, Continental (CAL: news, chart, profile) shares fell 31 cents to $8.40.

Passenger traffic rose 9 percent on increased revenue from international flights and more regional flying. Its load factor -- a closely watched percentage of paying passengers -- rose 1.5 points to 81.5 percent.

Still, Continental's yield fell 1.6 percent due to heavy competition from low-cost carriers in U.S. and Caribbean markets. Aggressive fare wars and record fuel prices have undercut higher industry traffic this year.

Despite its ongoing cost-cutting program, Continental expects significant losses in 2004 and 2005 unless the current environment improves.

"Fuel continues to increase faster than we can lower costs," Chairman Gordon Bethune said in a conference call.

The airline aims to cut $1.1 billion in annual expenses by 2007 through staff reductions, lower distribution costs, and changes to supplier contracts.

Analysts expect Continental to lose $3.39 per share in 2004 and $1.09 in 2005, according to Thomson First Call.

To offset fuel costs, the airline has hedged about 46 percent of its 2004 fuel requirements at $36.50 per barrel. Continental has not hedged any of its fuel for next year. Fuel is an airline's second highest expense after labor.

Merrill Lynch reiterated its neutral rating on Continental, saying the airline is likely to deliver one of the better performances for the traditional carriers.

It said Continental's earnings will weaken if the industry adds more seats for sale on the eastern seaboard this fall and winter.

Continental ended the quarter with $1.54 billion in unrestricted cash and short-term investments.

The airline said it partly offset its one-time charge in the third quarter by making a one-time gain of $15 million on the sale of its stake in Orbitz (ORBZ: news, chart, profile), the online travel-booking service.
 
United Airlines

Dear Fellow United Pilot,

On Friday, October 15th, the Company informed the Bankruptcy Court that United cannot emerge from bankruptcy unless the Company terminates and replaces all pension plans and secures hundreds of millions of dollars in additional wage and benefit reductions from all labor contracts. United’s attorneys reported that the Company will soon ask the judge to impose these results through proceedings under Section 1113 of the Bankruptcy Code to nullify its collective bargaining agreements. Section 1113 of the Bankruptcy Code permits a Chapter 11 debtor to obtain court-approved rejection of a labor agreement in the absence of negotiated contract modifications.
This is not where we want to be -- and not where we deserve to be -- at this point in the bankruptcy. United’s employees, primarily its pilots, have made every conceivable sacrifice to return United to profitability and long-term prosperity. We have had our wages cut (by more than half for some of us), had our medical benefits slashed, had our lives uprooted, had our workload significantly increased and had our pensions significantly reduced. Thousands of our fellow pilots and employees have lost their careers as United has eliminated more than 25% of its total operations over the past three years.

Why does our situation just seem to get worse no matter how much we sacrifice or how hard we work? There are two primary reasons: rising fuel costs and decreasing domestic passenger revenues.

Rising Fuel Costs

The run-up in fuel cost has devastated United’s cash reserves and profitability. United consumes about two billion gallons of jet fuel each year. Over the past 10 years, we have paid an average of less than $0.70 a gallon. Today, we pay about $1.45 a gallon, more than twice as much as before. The fuel spike has cost United an increased $1.3 billion on an annual basis. Fuel cost is going up, not down, as we move into the winter.

A few airlines, notably Southwest, protected themselves from increasing fuel costs through financial hedges at $0.50 to $0.70 per gallon. United did not hedge in 2002 or 2003.

Falling Domestic Revenues

To make matters worse, neither United nor any other airline can raise passenger fares in the domestic market. Every week, United attempts to raise ticket prices by $10, $5, $1 or any amount to make up for increasing fuel costs. With few exceptions, our large domestic competitors (American, Delta, Continental and Northwest) have forced the Company to abandon price increases and to reduce fares in order to maintain revenue. There simply is too much capacity in the domestic system from low-price carriers, the bankrupt or near-bankrupt airlines and even healthier airlines. There is too little demand for air travel. We fly full airplanes, but passengers are not willing to pay the fares necessary to cover our costs.

Ticket prices have been falling throughout the domestic market virtually this entire year. The average domestic United fare in August and September of this year is more than 15% below the average fare in the same period last year. This steep (and unexpected) decline in domestic revenue will cost United hundreds of millions of dollars relative to its July financial forecast. The revenue environment will worsen if Delta, ATA, Independence Air and perhaps others file Chapter 11 in the near future.

In short, the market has assaulted the Company over the past few months from both sides of the business: fuel costs have skyrocketed, and revenue, at least domestic revenue, has fallen substantially. The results are troubling. United lost money in August and September, and the remainder of the year may be equally tough.
Responding to the Challenge

No airline can succeed in this environment without making substantial changes to preserve cash and ensure long-term viability. For the past several months, we have demanded that management do just that.

After being told for well over a year that there is nothing more the company could do in non-labor costs, I insisted in July that the Company re-examine the entire business to strip out inefficiencies and unnecessary costs. Our efforts caught the interest of United’s creditors and, together, we have forced the Company to adopt a program that will reduce non-labor operating costs at United by more than $700 million a year.

The Company can do more concerning non-labor costs. We still pay too much for our aircraft leases. Our UAX partners have not done their share to contribute to a profitable United. Our Star Alliance Partners, including Lufthansa, have done nothing for United. The Company’s creditors and suppliers have contributed little to the process. It is time for all of these parties to step up with meaningful financial sacrifices and for the Company to insist that they do so. To make matters even worse, United must pay obscene amounts for an army of lawyers and advisors for the Company, the Creditors Committee and the banks. This is a cash drain experienced by no other airline but US Airways.

United can also do a better job with system revenue. The recent shift from domestic to international flying will protect our revenue base over the next few years. Management must work harder and smarter to revitalize cargo operations, to improve UAX revenue, to extend marketing relationships with Star Alliance Partners and to capture more revenue from the United brand. This will take fresh talent, new ideas and financial strength.
These improvements will help, but they will take time to become fully effective. In the meantime, United faces a significant cash challenge over the next few months, and the Company needs a stronger cost structure to attract the financing necessary to exit from Chapter 11.

As a result, we are about to face a difficult and unhappy choice. Over the next few weeks, management will come to us and say they tried everything we suggested but they still have a problem. They will say they must terminate and replace our pensions and reduce wages and benefits under our labor contracts in order to get out of bankruptcy.

We are all incensed by these events. I read your e-mail, heard you in crew lounges and at council meetings and have received excellent feedback from your representatives. A consistent and recurring theme is: We pilots didn’t create this mess, so why do we always have to clean it up? It is true that better management over the past 15 years could have put us in a far different position today. Perhaps a different management team could have prevented the fact that American and Northwest, who have higher labor costs and less attractive network brands, consistently produce better results than United.

Over the next few years, one or two network carriers will emerge as strong and growing airlines, and the rest will either limp along from crisis to crisis or be absorbed by the competition. United can and should be the strongest surviving network carrier. We have the best asset base, the most attractive global network, the most dedicated employees and the strongest brand.

I have informed Glenn Tilton that it will take responsible leadership and a dedicated partnership with the pilot group to move United in the right direction. We cannot get there if his management team tries to overreach, to pursue a traditional labor relations agenda or tries to force the pilot group to bear a disproportionate share of further cost reductions. But, if the Company works with us on fair and reasonable solutions, we have the opportunity to act decisively, to put bankruptcy behind us and to position United Airlines as the dominant network carrier in the industry.
I understand the stress all of you are experiencing. Members of your MEC are line pilots as well, and share the same feelings as do you. I urge all of you to stay in close touch with your LEC representatives and closely read all MEC communications to stay informed as we proceed through the next few weeks. We will succeed only through unity, resolve and a full understanding of the issues.

Fraternally,

Captain Mark Bathurst
Chairman, UAL-MEC
 
It's important to know what you are getting into in this industry. Things won't shape up anytime soon. Get knowledgable on the industry.
 
So I received this in my inbox (because I subscribe to Delta email off of Delta.com)....sounds like they plan to spend spend spend in this whole restructuring effort, of which I really don't see how they can?! who knows....

but it's pretty paper for the consumer!:

Dear Mrs. Taylor,

We at Delta Air Lines understand there is more choice in air travel than ever before, and we are working hard to be your preferred airline. You may have read in the news about our transformation plan and the work we are doing to become an even stronger competitor for your business. Delta is committed to meeting your travel needs now and in the future.

Our goal is to create a new airline for a new era—one that is comfortable, affordable, simple, stylish, and inviting to our customers. In the weeks ahead, our focus will be on continuing to implement the vision of a newly structured, customer-focused airline, with a cost structure that allows us to compete aggressively wherever we fly.

While we strive to make your overall Delta experience more enjoyable and convenient, we recognize that we have several hurdles to overcome to avoid court supervised restructuring. We continue to work to avoid this outcome. However, even if it were to happen, we will continue to provide you with safe, secure, and reliable service both in the air and on the ground. For example:

• Tickets will be honored, and refunds and exchanges will be made as usual.

• The miles in your SkyMiles® account will not be affected, and you will continue to have the opportunity to earn and redeem miles with Delta and our partners just as you've always done.

• Amenities like Delta's Crown Room Club® will continue to be available in select cities we serve.

• You'll still earn one mile for every eligible dollar spent and Always Double Miles® on qualifying purchases made with the Delta SkyMiles Credit Card from American Express®.

Please visit delta.com/transform for the latest Delta news, more information about the improvements referenced above, and our plans to create a better travel experience. We welcome your feedback and suggestions via e-mail at transform.delta@delta.com.

On behalf of all Delta employees worldwide, thank you for your continued loyalty and support.

Sincerely,


Paul Matsen
Senior Vice President
and Chief Marketing Officer
 
I got the same e-mail Kristie because I'm still a SkyMiles member ... the way I read it was, "Hey customers, we're going Chapter 11, but don't worry, everything's cool, keep flying Delta."

I'll be shocked if Delta doesn't file by month-end.

Russ
 
Word 'on the street' here in Cincitucky is that they must file by 31 Oct to avoid some things coming up on 1 Nov including the whole deal with the ACA DoJets.

Just a rumor - take it for what it's worth,

Jason
 
I no longer think there's any question that they'll file. Setting everything else aside, Chapter 11 would allow Delta to cancel the leases on the Dorniers and send them back to Oberpfaffenhofen (or anywhere else) and be relieved of them. Anybody else notice how, after all that Skyway speculation, Delta never made an announcement about them? My guess would be they'll go away(the dorks, not Skyway!). DL wants to get rid of some RJs anyway and they haven't been real happy with the Dorniers. BK is a really convenient way to solve this problem, setting aside any of the other reasons they might have for doing it.

Food for thought ...
 
[ QUOTE ]
The new markets will feature the 72-seat Embraer 170 Regional Jet on most flights. Mainline jets will replace 50-seat RJ and 37-seat turboprop service on selected flights from Washington to Albany, Buffalo, Rochester and Syracuse, N.Y

[/ QUOTE ]

Is it me, or is that REALLY bad news for Mesa? Mainline jets replacing RJs is probably good for the overall industry, but bad for Mesa. Also, if they're using the ERJ-170, then that's fo' sho not Mesa. Is it one of US Air's regionals (Mid-Atlantic or something like that?) or CHQ?

Matt, any news on continued growth on Express Jet? News travels slower than snails drenched in molasses in Memphis.......
 
We did get some red-eye flying to Mexico out of LAX. Word is there might be an LAX buildup in the near future. We need airplanes and pilots first... pilots who aren't failing out of training.
mad.gif
I'm a little upset... my base advancement to Newark has been put off now for a month or two because of so many failures. They don't have new hires to replace us with.
rolleyes.gif
 
"pilots who aren't failing out of training."

What's the deal? Do you think the low hourly mins XJT requires is related the failure rate? Do you see any patterns? 61 vs academy types?

For anyone...initial airline ground school will kick your butt.
 
[ QUOTE ]
I'm a little upset... my base advancement to Newark has been put off now for a month or two because of so many failures. They don't have new hires to replace us with.

[/ QUOTE ]

That sucks. So is CLE the junior base? Would you be off reserve in EWR? BTW, we had a flight come in today from EWR that was late. It had over an hour TAXI TIME. From what I hear, that's par for the course, though.
 
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