Why indeed. Probably because Delta's Marketing arm is living in the middle ages. They're reactive, not proactive. They won't see the fragmentation of the Pacific market coming for years. As long as I can remember, Delta marketing has made blunder after blunder. After all, "you can't make money in Latin America." I guess American had to prove it to them.
Why does delta plan on adding so much Japan Service out of Portland. Is there really a market for so much point-point service out of Portland? Wouldn't it make sense for Delta to offer the service out of their major hubs so they could get more connecting traffic?
This is my question too several days ago. Here is what I think:
Negative news for Delta: (1) government investigation of the four major airlines (AMR, DAL, UAL, and NWAC)for unfair sqeezing of small start-ups. (2) OPEC will have a meeting to TRY to decrease the overall output. (3) merger in drilling industry (Halliburton buying Dresser?)
Good News for Delta: (1) This year's earning will be excellent again. Sunday loading factor (in Florada?) is 97%. (2) Potential code-sharing with Air France. (3) No war in Iraq. Furthermore, Iraq is allowed to increase "oil for food" program from about $2 billion/half year to $5.2 billion/half year, further squeezing the oil price. (4) Leo's management team is very good. (5) You will see some companies' nasty Q earnings in the next three quarters because of Asia flu. However, Delta will not be affected and it will look very good at that time. (5) Many small airlines are raising their prices, some are very close to the four majors' prices. (6) The oil price will be low in the foreseeable future. It is very hard for OPEC to decrease output, especially big-brother Saudi Arab is pessimistic about the decrease of current output. Warm winter, decreasing demand from Asia...
Overall, 1998 should be another good year for airline and DAL. DAL should be able to bounce back to solid low 120s within two weeks.
I agree with most of your reasoning re. Delta Stock Price. However would you please explain your reasons how the merger of two drilling companies (Halliburton & Dresser) would negatively effect the stock price.