New Arizona, Il Duce/Warlord
(standard disclaimers apply)
- >$100M profit this quarter. $300M hedge gain this qtr. Hedges on the books are worth $1.5 - 2B over the next 3 yrs.
- double-digit growth (?), and we will price our product to make a profit. We have been the industry leader in price hikes, and are at 103-104% industry average in RASM.
- goal is 50/50 domestic/int'l ASM's.
- 100 RJ's will go away this year.
- cargo revenue to grow 20-25% - we hired several cargo gurus away from United.
- Maintenance Repair/Overhaul outside business - $500M revenue this year, up to $1B in 3-5 yrs.
- Delta Conn. Academy will go away.
- JFK - working with the Port Authority to pay $2B for new terminals. We want the west leg of Terminal 4, while Terminal 3 is demolished.
- Fleet - 20-25 777's. One delivery in Dec, Jan, and Feb.
- 20-25 737-700's. Will get 7 (?) by the end of the year.
- still looking at MD-90's, especially from China Southern. Very cheap compared to new 737's.
- remaining 8 domestic 767-400's to be converted to international.
- could see 747-400's to So. America out of ATL. Will not grow that fleet. Int'l growth will be 777's and 787's.
- A-319's - would work well in CVG -> west coast markets.
- DC-9-30's -going away. We'll keep the -40's and -50's 'til at least 2012.
- 787's - not happy with Boeing. Thinks the airplane will be overweight/underperform (think MD-11), and Boeing's gonna owe us big bucks.