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Old August 4th, 2005, 12:49 AM   #41
Latin l0cO
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I guess they're trying to challenge Continental's domincance.
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Old August 4th, 2005, 05:04 AM   #42
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Quote:
Originally Posted by el tico
Nope, as far as I know these are all flown by AA themselves...


Check it out: http://www.aa.com/content/aboutUs/wh...urope_aa.jhtml










I've flown Zurich-DFW on an American Airlines plane (Swiss and AA being partners).
Are you sure that these are all served from JFK? They could be served from O'Hare or DFW.
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Old August 4th, 2005, 02:41 PM   #43
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Are you sure that these are all served from JFK? They could be served from O'Hare or DFW.
No, and I don't think so...

Sorry I think I misunderstood your question. In the first post you asked what other cities in Europe (besides LHR and Newcastle) were served by AA (but did not specify from which airport, in this case JFK).

In this case I can't answer your question...

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Old August 14th, 2005, 05:27 AM   #44
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Out of JFK, American Airlines currently flies its own metal to the following airports: London-Heathrow=Six times a day, Brussels=one time a day, Paris-CDG=two times a day, and Zurich=one time a day.

Not much to Europe, right now. They do have a lot of flights to the Caribbean though, but when that 55 gate behemoth is finished I think they will be expanding the amount of flights that AA flies itself to Europe.
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Old November 28th, 2005, 11:25 PM   #45
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✈ | AA°+US*/UA*/DL™/AS/B6/F9/HA/NK/SY/VX/WN | US-Based Carriers

Delta CFO says $3 billion turnaround plan needed for airline's survival
By ALEKSANDRS ROZENS
28 November 2005

NEW YORK (AP) - Delta Air Lines Inc., which lost $2.6 billion in the first nine months of this year, needs the $3 billion in annual cost savings from its reorganization plan to survive, chief financial officer Edward Bastian told a bankruptcy court on Monday.

But U.S. Bankruptcy Court Judge Prudence Carter Beatty said Delta may have been wrong to spend $2.4 billion to buy back its own shares. "It is a question of if you had that money rather than had spent it that way, you might not be in the position you are in," she said.

Beatty added that the buyback may have been undertaken to placate Wall Street's financial community. "I'm buying something worth nothing to me in order to make stock market price look good," she said.

"In my opinion it (the cost reduction plan) is absolutely necessary," Bastian told the court during the third day of a hearing on a Delta request to void its contract with pilots and impose $325 million in wage cuts.

"We are losing cash at a fairly alarming rate. If we don't stop losing cash we won't make it," he said.

The Air Line Pilots Association, the union representing the pilots, has offered $90.7 million in concessions and has threatened a strike if the court grants Delta's request.

Uniformed pilots were at the courthouse Monday, as they were in earlier sessions dealing with the contract. Monday's session was a resumption of a hearing recessed Nov. 17.

Atlanta-based Delta is seeking cuts from its pilots to help offset rising fuel costs and the impact of stiff competition from low-fare competitors.

If the court approves Delta's proposed cuts, they would be on top of $1 billion in annual concessions the pilots agreed to in a five-year deal reached in 2004. That deal included a 32.5 percent pay cut and has been held up by the union as a sign of their willingness to negotiate.

Delta, which filed for Chapter 11 on Sept. 14, has recorded losses of more than $11 billion since January 2001 and over that period has announced it would cut up to 33,000 jobs.

Delta's CFO said the airline's debtor-in-posession lenders were "very, very nervous" about the possibility of any future jumps in fuel costs. These lenders, Bastian added, agreed with the airline's belief labor cost reductions are needed to "eliminate cash bleeding. They tested our assumptions."

Bastian said the airline is also trying to cut costs by renegotiating aircraft leases, but said its employment costs are hobbling its ability to compete.

"We are in an intensely competitive industry. There is excess capacity. Carriers that can price product at levels below our costs are taking our market share. Our cost structure is significant reason why we have experienced losses," Bastian said.

In September, Delta announced that it plans to cut as many as 9,000 jobs, representing 17 percent of the work force at Delta's flagship operation. The cuts are part of Delta's effort to save an additional $3 billion annually by the end of 2007.

As part of its plan, Delta's goal is to save $970 million annually through debt relief, lease and facility savings and fleet changes and another $1.1 billion in annual savings is expected to be gained through changes to Delta's route network. The airline will reduce domestic mainline capacity by 15 percent to 20 percent; at the same time, it will increase international capacity by 25 percent in 2006 to pursue more profitable routes.

Delta has said it hopes to cut $930 million annually through reduced employment costs, employee productivity improvements and overhead reductions. That total includes savings of $325 million from Delta pilots and $605 million from the non-pilot work force, including management.

The pilot reductions would have to be agreed to by the pilot union or imposed on the union in bankruptcy court.

Earlier this month, Delta said it lost $2.60 billion for the first nine months of the year, compared to a loss of $3.01 billion for the same period a year ago. Nine-month revenue was $12.05 billion, compared to $11.36 billion a year ago.
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Old November 28th, 2005, 11:40 PM   #46
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let them go down, I honestly think they shouldn't be helped, no chapter 11, let me go down,at least it will allow for others to recover, I think US is one of few countries with overcapacity in Air travel...

Sorry for the job loses but it is inevitable one of the big 4 in US to go broke...
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Old November 28th, 2005, 11:57 PM   #47
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will it withdraw from skyteam?
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Old November 29th, 2005, 06:15 AM   #48
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I watch Delta very closely as I used to work in the air cargo business and Delta has done Atlanta a tremendous amount of good in the last 25 years, especially.

These
1) Pilots must contribute another $200 million of the requested $325 million that management seeks.
2) The upcoming addition of international routes to Europe have to be a huge success right from the start. There will be very little room for tinkering with the schedule or cities. Basically, business class must sell out on almost all international flights to Europe.
3) The new flights to the Caribbean and Central America must succeed also from the start.
4) Current flights to Latin America that aren't profitable must be cut. There is no time to wait a few more years for the local market to develop.
4b) Latin America's economy, especially Brazil, must increase its growth rate.
5) A future's contract for a barrel of Light Sweet Crude Oil for the following month must drop to near $50 USD as soon as possible.
6) Delta must eliminate its inefficient fuel burning planes like the non-Next Generation 737s.

If most of these events occur rather rapidly than Delta Air Lines may have enough unrestricted cash to continue through 2006 and emerge from bankruptcy protection sometime early in 2007. Otherwise, Delta will fail in late 2006 or early 2007.
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Old November 29th, 2005, 04:48 PM   #49
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Delta judge says she's wary of 'union busting'
By Christian Plumb

NEW YORK, Nov 28 (Reuters) - The judge presiding over Delta Air Lines Inc.'s bankruptcy said on Monday that the carrier's motion seeking to void its pilots' labor contract had the taint of "union busting."

"The issue is whether or not at this time I should permit the rejection of the union contract," U.S. Bankruptcy Judge Prudence Beatty said. "One can talk about union busting and that is precisely what this kind of motion has the taint of. ..."

Her remarks came amid a testy exchange between the judge and Delta lawyer Jack Gallagher in which Beatty, who the pilots have in the past accused of siding against them, assailed some of the airline's main arguments.

The No. 3 U.S. carrier is asking the court to void the pilots' contract so it can force them to accept $325 million in givebacks, part of $3 billion in cost cuts and revenue hikes it says it needs to stem its losses.

"Frankly, I think you have a bias here," she told Gallagher. "It's a personal bias against the pilots."

Gallagher argued that the airline needed to weigh the pilots' rights against those of its 44,000 other employees.

"There is not enough money left in this company to continue to pay these pilots," he said.

Earlier, the pilots' lawyer Bruce Simon grilled the carrier's chief financial officer, questioning the numbers in Delta's restructuring plan.

"Your projection of your fuel expense is $100 million above what the market tells us today," said Simon, a lawyer for the Air Line Pilots Association, which represents Delta's 6,000 pilots.

Delta's plan for stemming its cash drain next year and regaining positive cash flow in 2007 was finalized in September, reflecting oil prices which peaked shortly after Hurricane Katrina.

The plan is based on an estimate of jet fuel priced at $1.73 per gallon in 2006 and 2007. That compares with current market forecasts of $1.69 a gallon, Simon said, adding that each penny of added fuel cost is equivalent to $25 million to $26 million in costs on an annual basis.

The price of jet fuel "has now moderated very significantly," Simon said before a courtroom packed with uniformed pilots and other observers.

Delta Chief Financial Officer Edward Bastian, in his second day on the witness stand, acknowledged that fuel prices had gone down, but said that big risks remained.

Under questioning from Simon, Bastian also acknowledged that the Atlanta-based carrier does not have a contingency plan in place in case of a strike, which the pilots have threatened if the court throws out their contract.

"We've made very clear that we think that if a strike were to occur it would be devastating for the company," he said.

Bastian said in a brief interview following the hearing that Delta still hopes to reach an out-of-court settlement with the pilots, though he said no formal talks were under way. (Additional reporting by Paritosh Bansal)
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Old November 30th, 2005, 07:16 AM   #50
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Bankruptcy court judge approves Delta request to sell planes
BY ALEKSANDRS ROZENS
29 November 2005

NEW YORK (AP) - A U.S. bankruptcy court judge approved Delta Air Lines Inc.'s request to sell some of its airplanes and to reject an Atlanta office lease.

Judge Prudence Carter Beatty said Tuesday she would allow Delta to sell an undisclosed number of aircraft including include Boeing 737, Embraer 120 and Boeing 767 models. It was not evident whether Delta already has a buyer for the aircraft or how much it might get for them. No details were disclosed on the office lease.

The ruling came as Delta management and its pilots union prepared to present their cases in a fourth day of hearings devoted to Delta's motion to reject their contract, a move the airline it says it needs to successfully emerge from bankruptcy.

Tuesday's hearing also featured testimony form an industry specialist, Daniel Kasper, a managing director of LECG LLC, which provides expert testimonials.

Kasper testified for Delta that the bankrupt airline's financial woes were due to the emergence of low cost carriers, increased customer use of the Internet for buying low-price tickets and a reluctance among business travelers to buy high-cost tickets. At the same time, he said, the airline has been saddled with high labor costs.

Delta wants to eliminate the pilot contract so it can cut labor costs, which the company says it needs to successfully emerge from bankruptcy.

"The industry has become commoditized. Price is the main driver," said Kasper, who previously served at the United States Civil Aeronautics Board as director of international aviation.

Kasper was expected to continue Wednesday, the fifth day of hearings focused on the pilots' contract.

Capt. Lee Moak, chairman of the Delta Airline Pilots Association, questioned the validity of comparing Delta's financials to those of a low-cost carrier.

"At some point they have to decide what they want to be -- a low-cost carrier or a full-service international carrier," Moak said in an interview after court. He added: "They (Delta) want to have low-cost carrier costs on a full service international carrier."

Delta, which filed for Chapter 11 on Sept. 14, has about 50,000 employees of which some 6,000 are pilots. It is looking for $3 billion in annual cost savings overall.

Delta wants $325 million in concessions from the pilots, saying it needs to cut labor costs to make itself competitive with other carriers who operate at a lower cost.

The Air Line Pilots Association, the union representing the pilots, has offered $90.7 million in concessions and has threatened a strike if the court grants Delta's request. Delta maintains such a walkout would violate the Railway Labor Act.

On Monday, Delta Chief Financial Officer Edward Bastian said the cuts were needed to keep the airline alive. Delta lost $2.6 billion in the first nine months of this year.

Asked if Delta had considered the possibility of a strike by its pilots, Bastian said Monday a strike "would be devastating."

If the court approves Delta's proposed cuts, they would be on top of $1 billion in annual concessions the pilots agreed to in a five-year deal reached in 2004. That deal included a 32.5 percent pay cut and has been held up by the union as a sign of their willingness to negotiate.
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Old December 1st, 2005, 07:29 AM   #51
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Cash shortfall of $2.5 bln derailed Delta-adviser

NEW YORK, Nov 30 (Reuters) - Delta Air Lines Inc. faced a cash shortfall of more than $2.5 billion in its business plan as fuel prices soared and it realized it could not sell regional carrier Comair in early 2006, a financial adviser to the airline testified on Wednesday.

The company was hoping to sell Comair, the wholly owned airline, for $550 million, but then it realized an overhaul would be needed first, said the adviser, Timothy Coleman, of Blackstone Group.

He was testifying on the fifth day of a U.S. bankruptcy court hearing, where Delta is seeking to void its pilots' contract as part of $3 billion in cost cuts and revenue hikes the company says it needs to survive.

Coleman also said that the company's credit card holdbacks, or the amount of collateral the company had to provide to credit-card companies, rose to $650 million this year from a previously projected $100 million.

The pilots, who had agreed to almost $1 billion in givebacks under a 2004 plan, are arguing that the company needs much less than the $325 million in additional cuts it is asking of them.

Coleman testified that the projections in that plan included several factors that were not under the company's control. "It was the cutting-edge of risk," he said.

High fuel prices this year added another $1.4 billion to its unexpected shortfall, he said. Coleman said that under the plan the company was also expecting an equity sale to raise $250 million in 2006, but then realized that investors did not have the appetite for such an offer.

"That made their business plan and their attempts to stay out of Chapter 11 unsustainable," he said.
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Old December 2nd, 2005, 01:14 AM   #52
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Nooooo!!!! I love Delta, I don't want to see them go. Plus I love flying on their MD-88s. Very wonderful planes.
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Old December 2nd, 2005, 01:41 AM   #53
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Delta posts $1.1 billion post-bankruptcy loss

NEW YORK, Dec 1 (Reuters) - Delta Air Lines reported a net loss of $1.14 billion between Sept. 15 and Oct. 31, the period since its bankruptcy filing, as it coped with high fuel and restructuring costs.

The No. 3 U.S. airline said in a court filing on Wednesday that its loss before reorganization items was $472 million. The period partially overlaps with its third quarter, which ended Sept. 30. It reported a third quarter net loss of $1.1 billion last month.

Delta, which filed for Chapter 11 bankruptcy protection on Sept. 14, is seeking $3 billion in cost cuts and revenue increases it says it needs to stem its losses.

The airline reported that it spent $642 million on fuel in the period after filing for bankruptcy, while reorganization-related costs contributed $648 million to its loss.
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Old December 3rd, 2005, 12:22 AM   #54
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The most important item on Delta's financial statements is the amount of unemcumbered cash that they have available to them. Money lost on the books does not effect day-to-day operations of the company, but when they can't pay employees their salaries the jig is up.

From what I saw recently, they have lost around $100 million in unemcumbered cash since they filed for bankruptcy.
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Old December 3rd, 2005, 07:18 AM   #55
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Delta, Pilots Urged to Keep Negotiating
BY ALEKSANDRS ROZENS
2 December 2005

NEW YORK (AP) - A New York bankruptcy judge on Friday pressed Delta Airlines Inc. and its pilots union to keep negotiating, marking the sixth day of hearings on the airline's motion to throw out a collective bargaining agreement so it can cut costs.

Delta has maintained it needs $325 million of wage cuts from pilots as part of $3 billion in cost cuts it plans to make to dig itself out of bankruptcy.

"I feel confident you know how to negotiate, because you have done it a lot before," Judge Prudence Carter Beatty told attorneys for both Delta and its pilots.

"The code contemplates the parties should continue to negotiate," she said. "I have never had much luck with mediators."

The airline and its pilots last met formally in mid-November. The two sides have stayed in contact informally since then.

Edward Bastian, chief financial officer at Delta said the airline remained ready to negotiate.

"We are ready to negotiate. We are willing to negotiate but both parties have to recognize that we have only truly asked for what we need," he told The Associated Press. "We have not asked for what we want. We are required under section 1113 (of bankruptcy law) to only ask for that which is truly necessary."

Lee Moak, chairman of the Delta Air Line Pilots Association, said the union also remains ready to come to the negotiating table.

"What she (Beatty) was suggesting is that the other party could learn how to negotiate," he said. "It's hard to negotiate if one party does not move off one position."

On Friday, a Wall Street investment banker testified that Delta, which filed for bankruptcy in September, has seen a key measure of profitability drop sharply since 1999. But if Delta gets the $325 million in pilot wage cuts it is seeking, the airline will achieve its goal of breaking even next year, Timothy Coleman, senior managing director at The Blackstone Group, told the court.

Coleman said the airline's plan to cut costs by $3 billion is the "minimal" needed to turn itself around. "I don't think they (Delta) have very much of a shot at surviving" if they don't achieve a $3 billion cost cut plan, he said.

Coleman said Delta's earnings before interest, taxes, depreciation, amortization and rent dropped to $486 million in 2004 from $3.7 billion from 2000.

The measurement, referred to as Ebitdar, is a gauge used to evaluate a company's performance. The financing deal that Delta struck to get though its bankruptcy requires Delta to achieve a minimum Ebitdar level each month.

The airline's Ebitdar margin -- which estimates the amount of operating cash flow generated by each dollar of sales -- fell from 23.3 percent in 1999 to 3.2 percent in 2004, Coleman said.

"The biggest event is the margin has collapsed. When you are at a low percentage you are not a viable entity," said Coleman.

Next year the airline expects to see revenues of $16.08 billion, and the pilots' wage cuts would help the airline achieve an Ebitdar margin of 11.4 percent, Coleman said.

Delta management has said the wage cuts would help the bankrupt carrier face off competition like low cost carriers.

On Thursday, Delta said it lost $1.14 billion, or $6.04 a share, in the first six weeks since filing for bankruptcy on Sept. 14.

The airline also said that it spent $2.61 billion in the first six weeks of its bankruptcy case, much of it on fuel, salaries and interest expense. It listed $17 million for "professional fees" associated with its bankruptcy case during the period and included that amount in the reorganization items it said contributed to its loss in the period.
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Old December 3rd, 2005, 05:11 PM   #56
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Delta hopes pact lands greater access to Europe
3 December 2005
The Atlanta Journal - Constitution

London --- Delta Air Lines has long believed gaining access to London's Heathrow Airport, the busiest trans-Atlantic gateway, would dramatically boost passenger traffic and ultimately the company's bottom line.

That's why the airline is enthusiastic about a preliminary "open skies" accord that would liberalize the $18 billion trans-Atlantic airline market and almost certainly result in cheaper prices and new choices for air travelers.

Olivia Cullis, a spokeswoman in London for Atlanta-based Delta, said the company is "cautiously optimistic" about a final deal to end restrictions on where airlines can fly.

But one issue --- letting foreigners own a bigger stake in U.S. carriers --- could keep the deal from winning approval at a meeting of European Union transport ministers in Brussels, Belgium, on Monday. That could delay the process for months.

After two years of talks, a preliminary open skies agreement was finally reached last month in Washington, and could take effect as early as October 2006 if all 25 European transport ministers approve.

The United States currently has open skies agreements with 15 EU countries, though not with Britain. The new agreement would create a single open skies treaty encompassing all EU members.

The deal would likely permit any EU airline to travel from any airport in the 25 member states to any airport in the United States, and vice versa. The tentative agreement would grant U.S. carriers such as Delta, Northwest and Continental airlines access to Heathrow.

Under the current U.S.-Britain air treaty, only two U.S. carriers --- American and United --- can use Heathrow. They got that status by buying route rights from TWA and Pan Am in the early 1990s.

British Airways and Virgin Atlantic Airways are the only British carriers allowed to fly to the United States from Heathrow.

Delta, which filed for bankruptcy court protection in September, is allowed to use Gatwick Airport near London but isn't permitted to travel to New York area airports --- creating a gaping hole in its network.

Delta hopes to add flights from both New York and Atlanta to Heathrow, which is favored by business fliers, Cullis said.

Daniel Hamilton, director of Johns Hopkins University's Center for Transatlantic Relations, said an open trans-Atlantic market for air service could increase annual passenger traffic by up to 11 million passengers on trans-Atlantic routes, and by up to 35 million on routes between EU countries. "An agreement would have a very big impact on travel and on tourism and many other industries," he said.

Dan Ikenson, a trade policy analyst at the Cato Institute in Washington, agreed that an open skies agreement would boost the economy and benefit consumers through new competition.

But Ikenson cautioned that an open skies agreement is not yet a done deal, because the preliminary accord was negotiated with the understanding that the United States would liberalize restrictions against foreign ownership of U.S. airlines. Some fear the Europeans won't move ahead without a clear sign of follow-up.

Ikenson believes easing of ownership restrictions would require a U.S. law change that could be difficult. The United States puts a 25 percent ceiling on foreign voting rights in airlines. The EU has a higher ceiling, 49 percent.

While not offering an end to the ceiling, the U.S. Department of Transportation has proposed giving foreign investors more control over some aspects of U.S. airline operations. Carriers could also get overseas financing more easily.

Objections raised by British Airways are another stumbling block. The airline says that while U.S. carriers would be allowed to pick up passengers at Heathrow and carry them on to another European destination, it would not gain the same right at New York airports.
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Old December 3rd, 2005, 09:16 PM   #57
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What's the likelihood of a strengthening of tie-up between Delta and NW and/or Continental?
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Old December 4th, 2005, 06:15 PM   #58
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Delta and Continental would love to get married, because both are lightly unionized airlines, but their international routes tend to overlap.

Delta and Northwest are a good fit, at least according to route compatibility. Delta is heavy on trans-Atlantic and Latin American flights, while Northwest is very strong on flights to Asia, especially Tokyo-Narita and China. However, Northwest has some very powerfull unions in all areas of the business.

Continental and Northwest would be another good fit route wise, but again CO doesn't want to deal with NW's unions.
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Old December 6th, 2005, 05:09 AM   #59
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Court allows Delta to sell 11 airplanes to ABX

NEW YORK, Dec 5 (Reuters) - ABX Air Inc. on Monday said a U.S. bankruptcy court approved its purchase of 11 Boeing Co. 767-200 passenger aircraft from bankrupt carrier Delta Air Lines Inc.

The cargo airline had agreed to buy the planes before Delta filed for Chapter 11 bankruptcy protection, but Delta filed a motion with the bankruptcy court for the Southern District of New York requesting approval of the sale, subject to higher bids at an auction.

Since no other bids were received, the court approved the sale as originally planned, ABX said.
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Old December 6th, 2005, 06:34 AM   #60
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Delta put out their RPMs, ASMs and the load factor for the month of November, 2005. When compared to November, 2004, this is the breakdown of Revenue Passenger Miles (RPMs) for each November. Remember, Delta is initiating a "massive" shift towards international flights while cutting domestic flights. Between November 2004 and November 2005, the percentage of international RPMs increased from 20.6% to 22.2%, for a whopping increase of 1.6%. This was also the year-to-year decrease on domestic RPMs.

This change is a very rough indicator of anything valuable, because most of Delta's new international flights have yet to be initiated. Also, RPMs only tell you the number of miles in which there was a paying passenger. A paying passenger on an international flight will be a much greater revenue generator than one on a domestic flight, in general. Also, there is no mention of the number of passengers in business class on the international flights.

But, for an airline that is planning on emerging from bankruptcy in early 2007, these miniscule changes are not going to be much of a change for Delta.
Nick in Atlanta no está en línea   Reply With Quote


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