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She's on: Delta announces Sydney-Lax-Sydney return for just $777

Delta Airlines has announced the lowest return airfares yet on the hotly contested East Coast Australia to West Coast USA flights, which it will commence flying from July, with ticket prices starting at $777.
Taxes are not included in that price, and on current structuring they will work out at approximately $300.

Delta – the world’s biggest airline in terms of fleet size – will place added pressure on new-start Australian airline V Australia, and incumbents QANTAS and United.

In the present economic climate, it is unlikely all four airlines will be able to continue operating the trans-Pacific flights profitably.

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By: David Kerr - 20th March 2009 at 10:50

Please type “A380 breakeven” into any large search engine and you will find many news reports of Airubs publicly stating that the breakeven had been raised to 420 planes in 2006. Here is one I pulled at random:
http://news.bbc.co.uk/2/hi/business/6067540.stm

There are still, nine years into the program, only about 200ish orders.

Now, I’m not a highly respected financial analyst, but it seems rather obvious that a project 9 years on that only has half of it’s breakeven, and no new orders on the horizon, and estabished customers seeking to delay deliveries CAN’T be on the firmest of financial footing. How much additional evidence does a reasonable person need? I doubt that Airbus is going to publicly come out and state that the program is in financial crisis, if that is what you need to be convinced, I guess we’ll have to agree to disagree.

Someone stated in the other thread that ALL airplane makes are under the same pressure. True, but none of those are such a huge capital risk and none are at this critical stage of gestation.

So not the 787 where it seems a raft of airlines are raising concerns about the numbers coming out of Boeing regarding performance and thats before it’s even taken to the air? And I didn’t realise that you, Great Overseeing Master of Aeronautical Engineering have decreed that an aircraft must breakeven within a given timescale proscribed by yourself. Only a fool or idiot would have forecast 420 A380 orders within 9 years so which one are you?

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By: steve rowell - 20th March 2009 at 05:48

Fares on the once overpriced trans-Pacific route have hit new lows, with Qantas releasing an all inclusive $908 return fare from Sydney to New York.

The flying kangaroo has also dropped its return fares to San Francisco and Los Angeles to $898 as it fires the biggest low fares salvo so far and extends the battle to at least the end of October.

The ultra-low fares are for travel up to June 16.
Slightly higher fares of $1108 return to New York and $1098 return to Los Angeles and San Francisco cover July 2 to October 31.

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By: symon - 20th March 2009 at 01:50

Not looking too far into this, more of an opinion than anything else, but would Airbus be able to divert profits from, say, the A330 programme (that is doing quite well) into the A380 programme, to level out the balance? Or do they keep everything totally separate and incur a loss from the A380 programme?

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By: Ship 741 - 20th March 2009 at 00:28

And you have documentary evidence for this?

Please type “A380 breakeven” into any large search engine and you will find many news reports of Airubs publicly stating that the breakeven had been raised to 420 planes in 2006. Here is one I pulled at random:
http://news.bbc.co.uk/2/hi/business/6067540.stm

There are still, nine years into the program, only about 200ish orders.

Now, I’m not a highly respected financial analyst, but it seems rather obvious that a project 9 years on that only has half of it’s breakeven, and no new orders on the horizon, and estabished customers seeking to delay deliveries CAN’T be on the firmest of financial footing. How much additional evidence does a reasonable person need? I doubt that Airbus is going to publicly come out and state that the program is in financial crisis, if that is what you need to be convinced, I guess we’ll have to agree to disagree.

Someone stated in the other thread that ALL airplane makes are under the same pressure. True, but none of those are such a huge capital risk and none are at this critical stage of gestation.

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By: David Kerr - 19th March 2009 at 12:40

and dollar signs (as in profits) don’t seem to go with A380 anyway…….:)

And you have documentary evidence for this?

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By: Ship 741 - 19th March 2009 at 01:10

Is that Aussie dollars Steve?

Maybe DL should offer up tickets for $380 Australian…….you know $A380…..oh, wait, they don’t have any of those…….and dollar signs (as in profits) don’t seem to go with A380 anyway…….:)

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By: Ship 741 - 19th March 2009 at 00:40

Delta Airlines has announced the lowest return airfares yet on the hotly contested East Coast Australia to West Coast USA flights, which it will commence flying from July, with ticket prices starting at $777.
Taxes are not included in that price, and on current structuring they will work out at approximately $300.

Delta – the world’s biggest airline in terms of fleet size – will place added pressure on new-start Australian airline V Australia, and incumbents QANTAS and United.

In the present economic climate, it is unlikely all four airlines will be able to continue operating the trans-Pacific flights profitably.

Is the last sentence your opinion or is this a cut and paste from a journalist?

Also, I think the combined DL/NWA will be the world’s biggest in just about every measure, not just fleet size.

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By: Vicbitter - 17th March 2009 at 10:12

Is that Aussie dollars Steve?

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