Is Delta turning into Southwest?

 
Old Aug 22, 05, 5:08 pm
  #1  
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Is Delta turning into Southwest?

Of course the question is slightly disingenuous, as Delta would have to actually turn a profit to be like SouthWest. It just seems like I've been on more and more 737s lately, even on runs to PHX & PDX. I've never been a big fan of this particular aircraft and the fact that they have much fewer FC seats doesn't help either. Is this all capacity/demand related? DeltaMike
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Old Aug 22, 05, 5:31 pm
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This makes no sense. Since when does 737 ==> Southwest?

The 737 is one of the most popular aircraft types in the world, and it has been around longer than Southwest has. With the exception of NW, every single major airline in this country (as well as many airlines around the world) operate the Boeing 737.
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Old Aug 22, 05, 5:44 pm
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Does Southwest now fly to 116 countries?

The 738 is actually a pretty nice aircraft. Now that they are moving MD88s to Shuttle, I think a lot of us are going to start flying on more 738s.

If you are talking about the 732s with just two rows of FC, the seats in row 2 seem to have more room and seat width than any other domestic configuration in FC. Of course, that is anecdotal, I have never looked up the numbers.

Marc
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Old Aug 22, 05, 6:22 pm
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I wish DL use only B737 in USA like Southwest!
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Old Aug 22, 05, 6:26 pm
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Originally Posted by elpi
I wish DL use only B737 in USA like Southwest!
Boy I don't. I kind of like the 767.
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Old Aug 22, 05, 6:30 pm
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Originally Posted by DeltaMike
Of course the question is slightly disingenuous, as Delta would have to actually turn a profit to be like SouthWest. It just seems like I've been on more and more 737s lately, even on runs to PHX & PDX. I've never been a big fan of this particular aircraft and the fact that they have much fewer FC seats doesn't help either. Is this all capacity/demand related? DeltaMike
I wasn't a big fan of the 738's at first either but it is a nice plane. If you're used to flying 757's, then yes, you lose eight FC seats but the 738 is one of the newer planes in the DL fleet and FC is pretty comfortable.

As for the 732's, I won't miss those when they go. They are starting to show their age.
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Old Aug 22, 05, 6:31 pm
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Originally Posted by card26
I wasn't a big fan of the 738's at first either but it is a nice plane. If you're used to flying 757's, then yes, you lose eight FC seats but the 738 is one of the newer planes in the DL fleet and FC is pretty comfortable.
The 738 is a great plane.

The biggest reason WN is still making a profit is fuel hedging.
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Old Aug 22, 05, 6:36 pm
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Originally Posted by indufan
The biggest reason WN is still making a profit is fuel hedging.
No question about that. When those hedges start to expire and if fuel price remain at their current levels, those lovely LUV/WN profits will start to drop like DL's stock.
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Old Aug 22, 05, 7:02 pm
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Originally Posted by card26
No question about that. When those hedges start to expire and if fuel price remain at their current levels, those lovely LUV/WN profits will start to drop like DL's stock.
I have to disagree -- LUV's hedging department is one of their competitive advantages. Year over year that department contributes a significant profit to LUVís bottom line. NWA and DAL are buying fuel at the airport daily price since they donít hedge their fuel. Currently, LUV is paying about $.50 / gal less than either Northwest or Delta. Current daily jet fuel is running around $1.60 per gallon at the pump.

LUV has hedged 60% of their projected fuel needs through 2009. The %ís are higher the closer they get to current dates.

Disclaimer: I have been a stockholder since 1999 and loaded up the boat the first day the stock market opened after 9/11.
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Old Aug 22, 05, 7:09 pm
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when is that hedging supposed to end for WN?
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Old Aug 22, 05, 7:09 pm
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Originally Posted by JS
This makes no sense. Since when does 737 ==> Southwest?

The 737 is one of the most popular aircraft types in the world, and it has been around longer than Southwest has. With the exception of NW, every single major airline in this country (as well as many airlines around the world) operate the Boeing 737.
Southwest operates 737 exclusively, which saves them a ton on maintenance. The fuel hedge, plus the fact that they pay their FAs & pilots much less than Delta is also why they remain profitable. I'm not a Southwest fan by any means, but it saddens me as a long-time customer to see how Delta has deteriorated. It's a shame when (outside of FC), your low-cost offering (Song) is a better overall experience than your flagship brand.
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Old Aug 22, 05, 7:11 pm
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Originally Posted by fschmidt
I have to disagree -- LUV's hedging department is one of their competitive advantages. Year over year that department contributes a significant profit to LUVís bottom line. NWA and DAL are buying fuel at the airport daily price since they donít hedge their fuel. Currently, LUV is paying about $.50 / gal less than either Northwest or Delta. Current daily jet fuel is running around $1.60 per gallon at the pump.

LUV has hedged 60% of their projected fuel needs through 2009. The %ís are higher the closer they get to current dates.

Disclaimer: I have been a stockholder since 1999 and loaded up the boat the first day the stock market opened after 9/11.
Thanks for the WN clarification. I knew their fuel prices were going to go up in the next few years but didn't know how much longer their hedges were going to last.

But, it looks like LUV stock has suffered along with the industry despite all their great profits. Still, probably one of the best run airlines around.

Hey, DL stock is cheap. Have room on the boat?
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Old Aug 22, 05, 8:24 pm
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Originally Posted by DeltaMike
Southwest operates 737 exclusively, which saves them a ton on maintenance. The fuel hedge, plus the fact that they pay their FAs & pilots much less than Delta is also why they remain profitable. I'm not a Southwest fan by any means, but it saddens me as a long-time customer to see how Delta has deteriorated. It's a shame when (outside of FC), your low-cost offering (Song) is a better overall experience than your flagship brand.
Yes, Southwest do have lower overall costs but they have admitted that even with all of that, if not for fuel hedging, they wouldn't be profitable right now. Now, they wouldn't be bleading as badly as others but still not making money.

However, I believe with the current pay schedules in place, Southwest has the highest paid pilots.
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Old Aug 22, 05, 8:34 pm
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Gee, everyone sees nothing but doom and gloom for Southwest, as if they are just another legacy carrier but with lucky bets in the fuel hedging department.

Southwest will see to it that their status as the highest wage airline will end before the red ink starts to flow as a result of overpaying labor. Fuel hedging is an indicator of how Southwest is run -- they have a long time horizon, and they cut off problems before they have a chance to materialize in a large way.
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Old Aug 22, 05, 9:32 pm
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I distinctly remember flying a 738 in 2000 with winglets (i think this is the lightweight wing) from SLC to various West Coast spots. Is this bird still around? (sorry to hijack this thread).

Last edited by ComAirKid; Aug 22, 05 at 9:35 pm
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