00:29:39 · John Collison, Scott Kirby, Ben Thompson
[00:29:39] S1: I get it. Maybe a little bit. [00:29:41] S0: But it really isn't. You know, there were, you know, in Chicago, are, sort of been in a competitive battle there. But in, look at our market share gains, and our market share gains in Chicago, we went from having lower market share than American to basically having double the revenue share. Like those are unprecedented kind of share shifts. The market share shift that we've had against Southwest and Denver is even bigger. The market share shift we've had against Southwest and Alaska combined here in the Bay Area is even bigger. So it hasn't been directed at them. With respect to Delta, I think that what's happening right now with Starlink is the biggest push. [00:30:16] S2: That's what we want to get to is Ed's. Is Ed gonna lose his job because [00:30:20] S0: he's And lose not job over by the way, have a lot of respect for Delta. They've built, you know, I took inspiration for what they, they were the first airline to start down this building a brand loyal. I don't call it premium because I want to invest nose to tail for customers. Starlink applies to everyone. It's not a premium product. It's for everyone on the airplane. But they've done a lot of really good things. But Starlink, I think Starlink behind the schedule is the most important thing for customers to choose an airline now. We are going... Today we're at 48% of our flights are on Starlink. The next week, Way it's gonna be up to [00:30:55] S2: fewer than your seat miles, though. Why did you start on the little planes and
00:30:55 · Ben Thompson, Scott Kirby, John Collison
[00:30:55] S2: fewer than your seat miles, though. Why did you start on the little planes and [00:30:58] S0: not because This they weren't is the FAA process. You have to get the other airplanes certified. And so we're getting... We've been getting them all certified. We're doing about three airplanes a day. I mean, in fact, it's gonna go up by two points in a week and a half. That's [00:31:10] S2: What all can it could do this Asian airline point? Like, have a joint venture with ANA, and most people I know who fly over to the Pacific would often choose the ANA flights. Yeah. And now going forward, of course they're going to choose the United flight because of the Starlink. [00:31:21] S0: Customers are going to try United because of Starlink. And then they're going to realize the technology in particular is better than anything they've seen everywhere else in the world. And we're going get customers that are loyal to other, have been loyal to other airlines that try us for Starlink and stay because the technology is better. [00:31:36] S1: So with Starlink, you know, we now have this moment where there's real differentiation between airlines that previously were closer. The differentiation The is gapped fact that every airline has not chosen Starlink suggests to me that the economic deal for an airline was not like an obviously, oh, yeah, we must do this. It required, you know, there was a case you could have made to not do it because some airlines did not do it. Can you talk us through how you made the decision to do it? How painful was the decision...
00:31:36 · John Collison, Scott Kirby
[00:31:36] S1: So with Starlink, you know, we now have this moment where there's real differentiation between airlines that previously were closer. The differentiation The is gapped fact that every airline has not chosen Starlink suggests to me that the economic deal for an airline was not like an obviously, oh, yeah, we must do this. It required, you know, there was a case you could have made to not do it because some airlines did not do it. Can you talk us through how you made the decision to do it? How painful was the decision... [00:32:03] S0: It was painful. Painful. I thought it would be a big deal to customers and so I wanted to do it. Economics were, yes, it's more expensive, but it's a whole lot better. Yeah. You often get what you pay for and that's true in this case. Mostly in airlines, you look at this like these things are incremental and so it really takes time to put them on and the easiest way to it on is to do it in a heavy check. So you've got an airplane that's going be down, you strip the airplane down and while you're working on it, you you already got the airplane down, you know, put Starlink on. And that's how we started and, you know, we had, know, we were only going do like 65% of our fleet because planes were retiring and, you know, and once we put it on the first aircraft, we realized like, I just like all these anecdotes. Like I'm talking to people like, I'm switching to flying a regional flight because it's got Starlink and I was like, holy.
00:32:03 · Scott Kirby, Ben Thompson, John Collison
[00:32:03] S0: It was painful. Painful. I thought it would be a big deal to customers and so I wanted to do it. Economics were, yes, it's more expensive, but it's a whole lot better. Yeah. You often get what you pay for and that's true in this case. Mostly in airlines, you look at this like these things are incremental and so it really takes time to put them on and the easiest way to it on is to do it in a heavy check. So you've got an airplane that's going be down, you strip the airplane down and while you're working on it, you you already got the airplane down, you know, put Starlink on. And that's how we started and, you know, we had, know, we were only going do like 65% of our fleet because planes were retiring and, you know, and once we put it on the first aircraft, we realized like, I just like all these anecdotes. Like I'm talking to people like, I'm switching to flying a regional flight because it's got Starlink and I was like, holy. [00:32:54] S2: We got a host of people flight this week and I was just thinking through it. I had to book around the Brewers game, Whereas if I had known for certainty that my flight was gonna have Starlink, I would have booked it during the game. Yeah. And there's a... Such a huge gap between maybe there's Starlink Congratulations, by the way. [00:33:10] S1: With that. [00:33:11] S2: Not yet. We're not talking about [00:33:12] S0: it right now. [00:33:13] S2: Maybe there's Starlink versus there is definitely So it feels to me like you actually haven't reaped any of the benefits yet because certainty is going make a huge
00:33:13 · Ben Thompson, Scott Kirby
[00:33:13] S2: Maybe there's Starlink versus there is definitely So it feels to me like you actually haven't reaped any of the benefits yet because certainty is going make a huge [00:33:22] S0: I think we're, you're right. I think we've got some, but you know, to 50% matters, But you're right. So we wrote out a tracker today that gives you a bunch more data. We're going to put in the app sometime soon the probability that there'll be Starlink on your flight. So at least know the probability for flights and it'll be different. Like today, you know, if you're flying on a Max eight, if you're flying on a Max eight, it might be 25%. But if you're booking for Christmas, it's 36% because we know how many we plan to have done. And so we're going to have that. We also are going to have a bunch of premier markets that we're going get to 100%. So our first hub, I'm not going to tell you the date yet, the first hub that's going be 100% Starlink is Los Angeles. So sometime in the first half of next year if you're in LA. [00:34:09] S2: And is that because that's the most competitive hub? [00:34:11] S0: It's a competitive hub but it also, like, it's also the kind of aircraft that fly there. So, our only aircraft that are still a challenge, we have to get Boeing over the finish line on some of the certification work on the 787s. Oh, so We will get there, but, we will get there, but if you've got a market like San Francisco that has a lot of 787s, it's gonna take longer because we... Boeing is slower.
00:34:11 · Scott Kirby, John Collison
[00:34:11] S0: It's a competitive hub but it also, like, it's also the kind of aircraft that fly there. So, our only aircraft that are still a challenge, we have to get Boeing over the finish line on some of the certification work on the 787s. Oh, so We will get there, but, we will get there, but if you've got a market like San Francisco that has a lot of 787s, it's gonna take longer because we... Boeing is slower. [00:34:36] S1: Was the CapEx or OpEx more painful in the economic model as you looked at it? [00:34:42] S0: The numbers aren't that big. [00:34:44] S1: Oh, really? Well, I mean... But then like, why is Delta's strategy rational or do you think it's like completely mistaken?