More Delta/ExpressJet LAX expansion...

[derg]

The illuminatti at southernjets are pretty much saying the 70's are replacing -50's because of horrible performance issues.

 

[Captain_Bob]

The illuminatti at southernjets are pretty much saying the 70's are replacing -50's because of horrible performance issues.

By "-50's", I assume you mean the CRJ's and the EMB ER/LR's or the other "connection" carriers.

That jives... and that's most likely why our original deal with Delta included only XR's. No weight or performance restrictions...

 

[Alchemy]

Even the LR's that they've upped the weights on should be able to go close to max range with a bulked out bin and full passengers unless an exceptionally distant alternate is needed. Didn't they just get an extra 1200 lbs across the board? The LR at those weights is a pretty capable plane too. Other operators' problems seem to (at least partially) stem from the fact that they are required to use higher weights for pax and cargo in their weight and balance manifests.

I think xjet made a consider investment in creating their proprietary ACARS weight and balance program and getting it approved by the feds....there is not a lot of incentive for most CPA contractors to do that since they get paid by completion, not payload.

 

[kellwolf]

Re: More Delta LAX "HUB" and ExpressJet expansion...

Delta Connection carrier ExpressJet Airlines will operate the new routes using 50-passenger Embraer 145 regional jets with upgraded in-flight entertainment with more than 100 channels of free XM Satellite Radio and redesigned, memory foam leather seating with no middle seats.

You mean there are 145s WITH middle seats?

 

[Alchemy]

Re: More Delta LAX "HUB" and ExpressJet expansion...

You mean there are 145s WITH middle seats?

Ha, you should hear the commercials for xjet on the radio around here. Little do they know that it's because the airplane is TOO SMALL to have middle seats. Then again I have yet to hear a customer complain about "what a small airplane" they are on like I did every single day in houston.

They also mention "valet luggage service" in the adds (instead of gate checks, overhead bins too small to accomodate most luggage). Can't fault them for trying to turn a weakness into a strength I guess.

 

[DE727UPS]

Re: More Delta LAX "HUB" and ExpressJet expansion...

I've never thought planeside bag service was a weakness. It's one of the things I LIKE about RJ's. We'll keep it positive and just leave it at that...

I find myself in first more than coach, these days, so I'm kinda spoiled.

 

[meritflyer]

Something like that... from what I understand... we have a lot more control over our own operation and costs in this agreement. This can be really good... or really bad... depending on how we operate. The onus is more on us.

I'd personally like to see the gross revenue increase since during the earnings call it was stated that XJT's gross rev dipped 57% with only a net rev increase of a little over $6M.

 

[Captain_Bob]

I'd personally like to see the gross revenue increase since during the earnings call it was stated that XJT's gross rev dipped 57% with only a net rev increase of a little over $6M.

Why? Do you have stock?

Net Profit was $10+mil this quarter... still in the black... not bad for losing 25% of our CPA flying, starting up a charter operation, retrofitting and re-painting 69 planes, seeking out new flying, and starting up a whole new airline.

But yeah... I'd like to see rev increase as well... my profit sharing check is at stake!

Bob

 

[derg]

I'd personally like to see the gross revenue increase since during the earnings call it was stated that XJT's gross rev dipped 57% with only a net rev increase of a little over $6M.

Yes and no. Some of the other regionals had their pilot training costs (and fuel) paid for by their contract carriers. If you take out those recruitment/training costs, I bet you those are pretty dandy numbers. Especially if you take out the fuel stipend out of a large Utah-based regional, there'd have been a financial bloodbath I hear. I haven't looked at the numbers, but maybe when I get some free time next millennia I will!

 

[meritflyer]

Why? Do you have stock?

Net Profit was $10+mil this quarter... still in the black... not bad for losing 25% of our CPA flying, starting up a charter operation, retrofitting and re-painting 69 planes, seeking out new flying, and starting up a whole new airline.

But yeah... I'd like to see rev increase as well... my profit sharing check is at stake!

Bob

The margins fell by an uncomfortable number, IMO.

I do understand growing pains occur during transitional phases so lets hope they can find a profitable venture for the planes cancelled under the capacity agreement with CAL.

If not, it's a little uncertain what management will try to do. In one of their PR's today management said costs were higher due to "a pilot training program" amongst other things.

 

[meritflyer]

If you take out those recruitment/training costs, I bet you those are pretty dandy numbers.

Unfortunately, XJT with their new brand of flying has to incur these costs which will contribute to additional overhead costs, if at any point they were paid by another party, and may result in a lower profit margin.

Stay tuned..

 

[derg]

A little extra info from the public 'code a phone':

Well, earlier this week Delta announced an additional expansion in the LA market. Delta, through a partnership with ExpressJet, will provide 21 new daily flights on 50-seat RJs to nine cities from Canada to Colorado starting on July 1st. With this expansion, we’ll offer customers flying to, from or through LAX 100 peak-day departures to 48 nonstop destinations – an increase of nearly 105% from the same time last year. The expansion accelerates our efforts to transform LAX into a leading gateway for travel between the West Coast, Mexico and Central America. With the July schedule, we plan to offer Los Angeles flights to 17 destinations in Mexico and Central America as well as nonstop service to West Coast business markets such as San Francisco, Sacramento, San Jose and Vancouver. I know what you’re thinking many times news of service expansion utilizing our DCI partners is met with skepticism by many of our Delta pilots. In this case I would like to point out, that this recent announcement is but the first salvo in our initial assault on our nation’s second most populous O&D market. As you may have noticed with our recent New York expansion, the key to our international growth plan success is feed, feed, and more feed. We intend to make LAX one of our gateways to the Pacific and this initial “feed” agreement will build up the base of passengers needed to make our west coast international expansion a success from day one. For those of you based in LA, or those that would like to be, I know you have some concerns surrounding fleet types and basing decisions. I would like assure you that we working diligently to determine exactly which fleets make the most sense for the long term to operate out of this growing market. I will let you know the scope and details of these decisions at the earliest opportunity. We are many months away from doing that, however. It is my personal opinion that LA will ultimately be a big player in Delta’s future and, that those of you who live in the West, will be pleased with its ultimate development.

 

[Captain_Bob]

Nice...