ASA/Comair has 4Sale sign out?

[wms]

With DAL's history of using subsidiaries against each other, why would anyone buy just a piece of DCI, only to see the flying go to another carrier the first time DAL gets mad?

It would have to be a combined DCI with exclusive rights to DAL flying. And DAL probably wouldn't want to make that kind of commitment.

 

[sweptback]

Why would Delta have to merge the two for a sale and or IPO? Why can't they sell one and IPO the other, or sell both seperately?

Because Delta would play the carriers off each other, just as they are doing now. I'd hope a prospective buyer would be smart enough to eliminate that possibility when the purchase agreement is signed.

Keep in mind, in this situation, Delta is not in the driver's seat. They need the money, and if they want the cash, they'd have to agree to whatever terms the buyer wants, assuming the price is right.

 

[Way2Broke]

Why would Delta sell the only thing that make any money for them? Well now that I think about it, it sounds like something Delta would do. Someone needs to tell the majors that the whole idea behind a business is to make money.

 

[FDJ2]

Why would Delta sell the only thing that make any money for them? Well now that I think about it, it sounds like something Delta would do. Someone needs to tell the majors that the whole idea behind a business is to make money.

What makes you think DCI is a money maker for DAL? What makes you think DAL can't get the economic advantage of the lower labor costs of its affiliates without owning the equity in those affiliates?

Chief Executive Gerald Grinstein has told analysts more than once that the regional subsidiaries are strategically important to Delta ,but then quickly added: "You do not have to own them to get all the benefits."

 

[MedFlyer]

Why would Delta sell the only thing that make any money for them?

Whether or not the RJ's make money for DL is irrelevant. DL is desperate for cash. They have no choice but to burn every asset.

What's scary is what comes next after DL burns through this money? DL will have no other major assets left. If DL continues to lose money, they will be in big trouble. Of course, there's always CH11, but when you have no assets left CH11 becomes very problematic.

 

[cargoflyr69]

I feel for my former DCA classmates now at Comair. I hope someone like Mesa does not buy you and instead a good regional like Skywest or CHQ does instead.

Dude, You really need to change your username and avitar. You are one true professional...... tool, that is

 

[DDpaysoff]

I feel for my former DCA classmates now at Comair. I hope someone like Mesa does not buy you and instead a good regional like Skywest or CHQ does instead.

LOL. Puff, puff, pass. ASA, Comair, Express Jet, feel for the rest. A good operation will be a good operation regardless of who owns the equity. A shlt operation, well you get the point.