Delta may alter its D/FW hub

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No. 3 carrier could trim flights, use more regional jets
01/09/2003
By ERIC TORBENSON / The Dallas Morning News
Delta Air Lines Inc. will announce significant changes to its hub at
Dallas/Fort Worth International Airport, possibly as soon as Thursday, a
travel industry consultant said.
By spring, the hub will get smaller, and Delta will substitute small
regional jets for many of the large planes it uses now.
The nation's No. 3 carrier will trim flights on unprofitable routes and
possibly cut nonstop service to some cities from D/FW, said the consultant,
who did not want to be quoted by name but who was familiar with the plan.
A Delta spokesman declined to comment on whether any announcements were
imminent but said the carrier has been making changes to its D/FW schedule
for some time. "Delta will continue to right-size operations in order to
make them profitable," spokesman Anthony L. Black said.
Delta serves 67 cities from D/FW, averaging 234 daily departures. Of those
flights, 148 use regional jets flown by Delta's partners such as Atlantic
Southeast and Comair and 86 are flown by Delta using jets such as MD88s and
Boeing 737s.
The Atlanta-based carrier employs 4,820 people in the Dallas-Fort Worth
area, and it's unclear if any of those jobs would be affected by a smaller
schedule.
The D/FW downsizing would reverse Delta's local growth strategy and would
benefit Fort Worth-based American Airlines Inc. Delta has been slowly adding
regional jet flights at D/FW since 2000, when its departures totaled 124.
Although the number of flights may not differ much under Delta's changes,
the use of smaller planes will effectively shrink Delta's presence here,
giving up market share to American and others.
Delta carries 20 percent of D/FW passengers, and American flies 68 percent,
according to November data from the airport. Delta also flies regional jets
from Dallas Love Field to Atlanta.
As the airline industry has struggled in the last two years, network
carriers have turned to regional jets to help them cut costs. The planes -
which have 50 to 70 seats, compared with 120 and up on standard jets - are
cheaper to operate because the crews aren't paid as much as those who fly
big planes.
Not all analysts are sold on the idea of substituting regional jets on
routes typically flown by big planes. Such a strategy reduces revenue
because the regional jets have far fewer seats, and passengers aren't crazy
about the small planes, even though they like them better than
turboprop-driven planes.
"These are fine planes, but there's a limit to what they can do," said
industry consultant Michael Boyd of Boyd Group in Evergreen, Colo.
He said the regional jets aren't comfortable for passengers traveling long
distances and lack the legroom and overhead luggage space of larger planes.
"There are ergonomic problems with them - these consultants [advising
airlines] aren't actually flying in these planes," he said.
United Airlines is reportedly weighing widespread use of regional jets to
help revive its fortunes as it tries to emerge from bankruptcy.
Delta is in much better financial shape than United but remains in fierce
competition with low-cost competitors and lost $900 million through the
first three quarters of 2002.
Delta is developing a yet-to-be-named low-fare carrier that will compete
primarily on the East Coast using Boeing 757 airplanes.
That offshoot will fly high-traffic routes from the East Coast to Florida,
for example, in competition with AirTran Airways and Dallas-based Southwest
Airlines.
If Delta shifts many of its 757s - it has 121 of them - to the new low-fare
carrier, it may need to pull other big planes from places such as D/FW to
fill route gaps on the East Coast. Delta also has hubs in Atlanta,
Cincinnati and Salt Lake City.
Delta had continued its D/FW expansion through its winter schedule, which
added three daily flights.
The D/FW reductions would be part of Delta's effort to cut hundreds of
millions in annual costs and eliminate 8,000 jobs.

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